By Amanda Castro
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After a day of online jabs from Elon Musk, President Donald Trump's administration shifted focus Friday, asking the Supreme Court to greenlight its stalled plan to dismantle the Department of Education. The move follows a federal appeals court ruling that left in place a lower court's block on mass layoffs at the agency, one of Trump's top priorities since returning to office in January.
What to know:
- The administration argues the layoffs are part of internal agency reforms
- Trump has long vowed to eliminate the department, created in 1979
- Lower courts say only Congress can formally shut it down
- DOJ says the agency can still perform its legal duties with fewer staff
- Over a dozen emergency appeals have been filed by Trump this year
- A prolonged feud could cost Musk billions. SpaceX and Tesla rely heavily on federal contracts, many of which Trump has now threatened to cancel.
- Musk reportedly spent about $275 million supporting Trump's 2024 run and promised $100 million more to Trump-aligned groups before the 2026 midterms. That funding is now in doubt.
- The rift began after Musk slammed Trump's agenda bill as a "disgusting abomination." From there, it spiraled into a personal spat involving insults, old grudges, and even a reference to Jeffrey Epstein.
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Jun 06, 2025 at 04:59 PM EDT
Michael Cohen sends message to Elon Musk after feud with Trump erupts
Michael Cohen, the former personal attorney to Donald Trump, asked Elon Musk to get in touch amid his public fallout with the president on Thursday.
Newsweek reached out to Musk for comment via Tesla's press email.
Why It Matters
Musk, a fierce Trump ally who headed the Department of Government Efficiency until last month, sparred with the president on Thursday after criticizing his "One Big Beautiful Bill." The Tesla CEO wrote in a series of social media posts that Republicans would not have won in 2024 without his support, and alleged that Trump was named in the Epstein files.
The collapse of the Trump-Musk relationship has potential consequences for technology, business and American politics, as both wield considerable influence over politics and the business community.
Cohen was once a central figure in Trump world, serving as the president's personal attorney and "fixer." He had a public falling out with the president after he served a prison sentence for charges of tax evasion, making false statements to a federally insured bank, and campaign finance violations.
Cohen is now a vocal Trump critic who offers insights into how the president operates.
Read the full story by Andrew Stanton on Newsweek.
Jun 06, 2025 at 04:56 PM EDT
Trump and Musk’s ugly political breakup wasn’t on our 2025 bingo card
Elon Musk is out of the White House and into the dog house. Less than a week after his seemingly peaceful departure from the Trump administration, the president and the former DOGE head have been dealing blows to each other on social media in an unexpected twist. The online beef is just the tip of the iceberg amid a busy week at the White House, as the return of a Trump travel ban and deadly aid rollouts in Gaza raise alarms. Here's what happened this week in Washington.
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Jun 06, 2025 at 04:43 PM EDT
Higgins reintroduces bill to require random drug tests for Congress
Rep. Clay Higgins (R-La.) has reintroduced the Exposing Congressional Drug Abuse Act. This resolution would require U.S. House and Senate members to undergo random drug screenings.
"Elected officials in Washington, D.C. should be subject to the same kind of random drug screenings that every blue-collar, working-class American endures," Higgins said in a statement. The bill, designated H.Con.Res. 35 would mandate one random drug test per term for each member of Congress.
Any lawmaker who tests positive for illegal substances would be referred to the Committee on Ethics for possible disciplinary action. The costs of the screenings would not fall on taxpayers—members would be required to reimburse the full amount.
Jun 06, 2025 at 04:30 PM EDT
Deported Maryland man returned to U.S. to face federal charges
Kilmar Abrego Garcia, a Maryland man who was mistakenly deported to El Salvador in March, has been brought back to the United States to face federal criminal charges, Attorney General Pam Bondi announced Friday.
Bondi described Abrego Garcia as a "danger to our community," though officials have not yet detailed the exact charges against him.
His deportation had raised questions about internal coordination between immigration authorities and the federal justice system.
Jun 06, 2025 at 04:17 PM EDT
U.S. and China to resume trade talks Monday in London
Senior U.S. officials will meet with a Chinese delegation in London on Monday for the next round of trade negotiations, President Donald Trump announced Friday.
The talks follow a phone call on Thursday between Trump and Chinese President Xi Jinping, which Trump described as "very positive" as the two sides look to resolve tensions over tariffs and rare earth mineral supply chains.
The American delegation will be led by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer.
Trump said the meeting "should go very well," and noted that his call with Xi lasted about 90 minutes. China's foreign ministry said Trump initiated the call, during which Xi urged the U.S. to lift "negative measures" against China. The ministry also quoted Trump as saying he welcomes Chinese students in the U.S., despite ongoing visa restrictions.
Jun 06, 2025 at 03:58 PM EDT
Elon Musk’s secret weapon in his war with Donald Trump
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It was barely an hour after Donald Trump survived an assassination attempt last summer when Elon Musk declared his full support. The post on X, his social media platform, landed fast and took off like one of Musk's rockets: "I fully endorse President Trump and hope for his rapid recovery."
Musk—once ridiculed by Trump for leading companies that made "driverless cars that crash" and "rocketships to nowhere"— slapped a red MAGA hat on his profile photo, lit up X with pro-Trump memes, and used his platform's reach to carpet-bomb swing states with political propaganda dressed as engagement. By sundown, Trump's digital war room was headquartered on X, and Musk looked like the unofficial campaign manager.
Ten months later, he detonated that alliance in real time.
Read the full story by Jesus Mesa on Newsweek.
Jun 06, 2025 at 03:27 PM EDT
House Republicans push Senate to revise clean energy tax credit rollbacks
Thirteen House Republicans are urging Senate leaders to revise clean energy tax credit provisions in the House-passed mega bill, warning that current language could threaten billions in investments and jobs, according to Politico.
Led by Rep. Jen Kiggans of Virginia, the lawmakers sent a letter Friday expressing concern over steep phaseouts of incentives from the 2022 climate law and new supply chain requirements. They said the Senate has "a critical opportunity" to strengthen the bill and protect U.S. energy interests.
The group wants to eliminate a 60-day construction deadline for tax credit eligibility, ease rules on foreign entities, and restore "transferability" of credits between companies. Despite their concerns, most signers voted for the House bill, except Rep. Andrew Garbarino, who missed the vote but said he supported it.
The push comes as Senate Republicans, including Lisa Murkowski and Thom Tillis, work on adjustments to the legislation.
Jun 06, 2025 at 03:01 PM EDT
Trump says he plans to build new White House ballroom
Trump announced Friday that he plans to add a new ballroom to the White House, saying he inspected a potential site for the project on the grounds.
Posting on his social media platform, Trump promised the ballroom would be built "quickly" and described it as a "wonderful addition" to the historic complex. He did not share details about the design, cost, or funding source.
The president has frequently criticized the East Room as being too small for large gatherings, often leading to temporary event tents being set up on the South Lawn.
"For 150 years, Presidents, and many others, have wanted a beautiful Ballroom, but it never got built because nobody previously had any knowledge or experience in doing such things," Trump wrote. "But I do."
Jun 06, 2025 at 01:59 PM EDT
Democrat urges Democrats to seize GOP chaos amid Trump-Musk rift
At the closing event of World Pride's human rights conference, Rep. Becca Balint (D-Vt.) called on Democrats to take advantage of the growing tension between Donald Trump and Elon Musk, saying the GOP's internal confusion presents a rare political opportunity, particularly in the fight to protect transgender rights.
"We do have an opportunity here because our colleagues don't know who to support and they're scared, and we must exploit that," said Balint, Vermont's first woman and first openly gay member of Congress.
Rep. Emily Randall (D-Wash.), who flipped Washington's 6th Congressional District in 2024, echoed Balint's point. "The tension between Trump and Musk reflects the chaos within the Republican party," she said.
Jun 06, 2025 at 01:45 PM EDT
‘Don’t ever challenge the president,’ Johnson warns as GOP reacts to feud
House Speaker Mike Johnson has warned his friend Elon Musk never to "challenge" the president, after the Tesla CEO's blowup with Donald Trump on Thursday.
"I'll tell you what, do not doubt and do not second-guess and don't ever challenge the president of the United States, Donald Trump," Johnson told reporters on Friday.
"He is the leader of the party. He's the most consequential political figure of this generation and probably the modern era."
Johnson added that he hopes the tech billionaire and Trump can still work it out, both for the good of the party and the country, adding, "I believe in redemption."
Read the full story by Hannah Parry and Dan Gooding on Newsweek.
Jun 06, 2025 at 01:29 PM EDT
Scalise introduces $9.4 billion Trump rescissions package
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House Majority Leader Steve Scalise formally introduced legislation to enact President Donald Trump's $9.4 billion rescissions package on Friday, setting up a floor vote as early as Tuesday.
The proposal would claw back funds already approved by Congress, including $8.3 billion in foreign aid and $1.1 billion for public broadcasting. It faces a July 18 deadline before the administration must release the money.
Scalise said the move reflects a shift toward cutting "waste, fraud, and abuse" in government. The bill now heads to the House Rules Committee.
Some GOP senators have raised concerns about cuts to global AIDS programs and rural media funding, but House Republicans are expected to support the bill largely as written.
Jun 06, 2025 at 01:17 PM EDT
Betting markets preview possible next escalation in Musk-Trump feud
Betting markets are already predicting what the next developments could be in the new feud between President Donald Trump and Elon Musk.
Newsweek reached out to the White House and Musk through Tesla for comment via email.
Musk became one of Trump's most ardent supporters on the campaign trail in the 2024 presidential race, donating nearly $300 million to Republicans last year. However, the relationship between the two has appeared to sour over Trump's "Big Beautiful Bill," a piece of legislation that would extend tax cuts and include funding for other priorities, such as immigration. Musk raised concerns about its effect on the national debt.
On Thursday, Musk escalated the feud, writing in a post to X that Republicans would not have won in 2024 without him while also claiming the administration has not released the Epstein files because Trump is mentioned in them.
No one knows exactly what will happen next, but some are turning to online betting markets like Polymarket to make their guesses about whether the feud will further escalate or whether the two could soon make up.
On Friday, Musk has been a bit quieter on social media, not making any more comments about Trump. Trump Chief of Staff Susie Wiles told NBC News there are "no plans" for the two to meet on Friday.
Here's an overview of what betting markets say about the next potential developments.
Read the full story by Andrew Stanton on Newsweek.
Jun 06, 2025 at 01:03 PM EDT
Vance backs Trump amid Musk feud, avoids direct comment
Vice President JD Vance stood by Trump as tensions with Elon Musk flared Thursday, according to CNN, citing a source familiar with the matter. Trump reportedly encouraged Vance to strike a diplomatic tone publicly.
The source said the two spoke multiple times throughout the day. Vance later joked online about it being "a slow news day" ahead of a podcast taping with comedian Theo Von, where the feud may have come up. The episode has not yet been released.
Musk escalated the spat by reposting a comment suggesting Trump be impeached and replaced with Vance.
Jun 06, 2025 at 12:51 PM EDT
Japanese battery maker pauses $1.6B SC factory over policy concerns
A Japanese company has paused construction on a $1.6 billion battery plant in South Carolina meant to supply electric BMWs, citing "policy and market uncertainty."
Automotive Energy Supply Corp. (AESC) didn't detail the cause. Still, Republican Gov. Henry McMaster blamed possible changes to federal EV tax breaks, business incentives, and tariffs under President Donald Trump's administration. "What we're doing is urging caution," McMaster said Thursday.
AESC pledged to resume construction but gave no timeline. The company remains committed to investing $1.6 billion and hiring 1,600 workers. So far, it has invested $1 billion into the Florence site.
The pause won't impact BMW's plans to open its nearby battery assembly site in 2026. AESC previously scaled back its SC expansion, leading the state to withdraw $111 million in planned support. Still, $135 million in grants and $121 million in bonds remain in place.
South Carolina continues to bet big on EVs, including a $2 billion project from Scout Motors. However, Trump's trade stance has stirred unease among state leaders who are banking on foreign investment.
Jun 06, 2025 at 12:38 PM EDT
Elon Musk’s father reacts to Jeffrey Epstein files claim about Trump
Elon Musk's father has weighed in on his son's high profile feud with President Donald Trump.
Errol Musk compared yesterday's clash as two "elephant bulls or alphas having a go at each other," during an interview with Al Arabiya English.
Musk senior said he believed the fight would soon fizzle out, but he did take issue with one of his son's barbs at Trump on Thursday, namely his claim that the president was included in the Jeffrey Epstein files.
"I have no idea what he was thinking... I can only imagine that's just a silly mistake," he said.
Read the full story by Hannah Parry on Newsweek.
Jun 06, 2025 at 12:24 PM EDT
Trump asks Supreme Court to pause order reinstating Education Department staff
On Friday, President Donald Trump's administration asked the Supreme Court to block a lower court ruling that reversed mass layoffs at the Education Department, a key part of Trump's plan to dismantle the agency.
The Justice Department argued that U.S. District Judge Myong Joun overstepped his authority by ordering nearly 1,400 employees reinstated and halting the broader shutdown effort. A federal appeals court previously declined to pause Joun's decision.
Solicitor General D. John Sauer wrote that the layoffs are central to Trump's policy of shifting education responsibilities to the states and eliminating what the administration calls unnecessary federal functions.
The layoffs are being challenged in two consolidated lawsuits, including one brought by a coalition of Democratic attorneys general and another by school districts and educators. They argue the move undermines congressional mandates, especially for special education and student aid services.
Though Trump cannot legally close the department without Congress, his March order directed a phased wind-down. Critics say the effort would severely disrupt essential programs.
Jun 06, 2025 at 12:09 PM EDT
Hakeem Jeffries calls Trump-Musk feud a ‘welcome development’ in fight against GOP bill
House Democratic Leader Hakeem Jeffries welcomed the public rift between President Donald Trump and Elon Musk, framing it as helpful in Democrats' efforts to stop the GOP's proposed tax breaks and spending cuts.
"To the extent that Musk has declared the bill a 'disgusting abomination,' we agree," Jeffries said.
He added that the split creates "an opportunity to kill the GOP tax scam," and urged continued public and political pressure on Republicans in both chambers to reject the legislation.
Jun 06, 2025 at 11:56 AM EDT
Democratic attorneys general sue to block Trump’s election overhaul order
Democratic attorneys general from 19 states are challenging President Donald Trump's sweeping executive order on elections, arguing it unlawfully infringes on states' rights and violates the Constitution's separation of powers.
The lawsuit, filed in federal court, came after Trump signed the March order directing national voting procedure standards. During a hearing on Friday, the attorneys general argued that the proposed changes would be too costly and disruptive, with California estimating that implementation alone could cost $1 billion.
Lawyers representing the federal government resisted, saying the claims were speculative and premature, given that 18 months remain before the next federal election.
The case is shaping to be a significant legal test of presidential authority and state control over elections.
Jun 06, 2025 at 11:42 AM EDT
Donald Trump approval rating update: Support hits highest level in months
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President Donald Trump's net approval rating has hit its highest level in months.
Decision Desk HQ's tracker currently shows that Trump's net approval rating sits at -1 point, with 47.8 percent approving and 48.8 percent disapproving.
The last time Trump had a net approval rating lower than that was March 10, when 48.6 percent disapproved and 47.9 percent approved.
In recent months, Trump's approval ratings have fluctuated as he pursued an aggressive policy agenda, including the introduction of tariffs, which led to volatile economic markets, an immigration plan based on deportations, and the cutting of thousands of federal jobs.
If the president's approval rating continues to rise, it could bolster Republican momentum and complicate Democratic strategy heading into the 2026 midterms.
Read the full story by Martha McHardy on Newsweek.
Jun 06, 2025 at 11:29 AM EDT
Trump’s surgeon general pick promoted wellness products without full disclosure
Trump's nominee for U.S. surgeon general, Dr. Casey Means, has built a brand that criticizes the influence of corporate interests in medicine and promotes dozens of health and wellness products that financially benefit her.
An Associated Press review found that Means, 37, often recommended supplements, medical tests, and wellness services on her website, social media, and podcasts without disclosing her financial or advisory ties to those companies. Among the promoted products were blood testing services, glucose monitors, and basil seed supplements—some linked to businesses in which she was an investor.
Means has accused scientists and regulators of being "bought off" by the pharmaceutical and food industries. Yet ethics experts say her own undisclosed promotional relationships raise concerns, especially for a nominee who could shape national health policy.
While federal rules require influencers to reveal "material connections" to the products they endorse, Means' disclosures were inconsistent. In several instances, affiliate links on her site and social media posts suggested she would profit from sales, yet lacked clear disclaimers.
Means, a former Stanford-trained surgeon who left her residency in 2018, co-founded Levels, a metabolic health startup that charges users for blood glucose monitoring and data. Critics say that the company, and others she's affiliated with, could benefit from her position in government if confirmed.
As she awaits a Senate hearing, Means has not publicly committed to recusals or financial divestments.
Jun 06, 2025 at 11:17 AM EDT
Congressman raises alarm over treatment of asylum seekers at L.A. federal building
Rep. Jimmy Gomez is calling for immediate answers from the Department of Homeland Security following what he described as "very disturbing" reports of asylum seekers being mistreated at the Roybal Federal Building in Los Angeles.
"These are not criminals. These are families who followed the rules," Gomez said in a statement Friday. "Filed the paperwork. Showed up on time. Instead, they're being treated like they broke the law just for seeking asylum."
According to Gomez and multiple attorneys, law-abiding asylum seekers — including families with children — have been detained for over 12 to 24 hours in holding rooms without food, water, or explanation after arriving for scheduled ICE check-ins.
Gomez also raised concerns over ICE allegedly claiming authority to detain individuals indefinitely, even if they have a court-ordered stay. "This isn't 'just how the system works.' This is a system breaking people," he said.
The congressman has demanded access to the facility and an explanation from DHS about why these individuals are being detained, separated, and denied basic necessities.
Jun 06, 2025 at 11:04 AM EDT
Mike Johnson says feud with Elon Musk was ‘surprising’ and ‘disappointing’
House Speaker Mike Johnson said he was caught off guard by Elon Musk's public criticism of Trump this week, describing the fallout as "surprising" and "disappointing."
"We exchanged text messages yesterday. I spoke with him at length on Monday," Johnson told CNBC. "That's why the kind of blowup that happened this week was very surprising, disappointing to me."
Johnson added that he still considers Musk a friend and praised the billionaire's intelligence and business insight. "I really like Elon. He's a friend. I've come to truly respect his acumen," he said.
"I hope it all resolves today," he added, referring to the Trump-Musk feud.
Jun 06, 2025 at 10:51 AM EDT
Trump moves to block Harvard’s international students, escalating legal fight
Trump has again moved to prevent international students from attending Harvard University, deepening a legal and political standoff with the Ivy League institution over immigration, campus speech, and governance.
On Wednesday, Trump signed a proclamation using presidential authority to bar Harvard's international students from entering the U.S., after a federal judge blocked an earlier administration attempt to strip them of their visas. Harvard quickly filed a new legal challenge, and the same judge temporarily halted Trump's latest order.
The administration's pressure campaign against Harvard, which enrolls more than 7,000 international students, follows the school's refusal to adopt policy changes demanded by the White House. Trump officials have criticized Harvard's handling of antisemitism allegations and pro-Palestinian protests, while also threatening to cut funding and revoke its tax-exempt status.
Harvard denounced the measure as a political attack and said it would continue to protect its students. About 26% of the university's student body is international, and some programs—like its comparative law master's program—are composed almost entirely of foreign students.
If the new ban passes, thousands of students could be prevented from arriving for the summer and fall terms.
Jun 06, 2025 at 10:38 AM EDT
Trump to sell red Tesla bought in show of support for Musk, official says
A White House official said Friday that Trump plans to sell the red Tesla Model S he purchased earlier this year to support Elon Musk, marking another visible sign of the breakdown between the two former allies, The New York Times reported.
The car, a bright red Model S, was chosen by Trump in March after he and Musk inspected several Tesla vehicles brought to the White House. At the time, the move was seen as a public show of support for Musk and his electric vehicle company amid criticism of the billionaire's involvement in the Trump administration.
The car has since been parked on West Executive Avenue, near the West Wing. But after a very public falling-out in recent days, Trump now intends to part ways with it, the official said.
Jun 06, 2025 at 10:25 AM EDT
Pentagon watchdog probes whether aides deleted Hegseth’s Signal messages
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The Pentagon's inspector general is investigating whether aides to Defense Secretary Pete Hegseth were asked to delete Signal messages that may have included sensitive details about U.S. airstrikes in Yemen, according to two people familiar with the matter and documents reviewed by the Associated Press.
The inquiry focuses on Signal messages related to the March 15 airstrikes on Houthi targets and whether they were shared improperly, including with a reporter. Hegseth is scheduled to testify before Congress next week and is expected to face tough questions on information security and recent internal turmoil at the Pentagon.
The probe follows reports that Hegseth shared details of military operations in private Signal chats, including one involving his wife and brother, and another that mistakenly included The Atlantic's editor-in-chief. Critics, including lawmakers from both parties, have warned that sharing pre-strike details on an unsecured app could have endangered U.S. pilots.
Hegseth has defended his actions, saying none of the information was classified and calling the messages "informal, unclassified coordinations." However, military officials have pushed back, arguing that such specific details should never be shared outside secure systems.
The investigation was launched at the request of Sen. Roger Wicker and Sen. Jack Reed, the top Republican and Democrat on the Senate Armed Services Committee.
Jun 06, 2025 at 10:09 AM EDT
Trump tells CNN he’s not planning to speak to Musk: ‘The poor guy’s got a problem’
Trump told CNN's Dana Bash on Friday morning that he has no plans to speak with Elon Musk anytime soon, despite ongoing efforts by allies to broker a truce between the two powerful figures.
"I'm not even thinking about Elon. He's got a problem. The poor guy's got a problem," Trump said in a brief phone call recapped on CNN News Central. He added that he wishes Musk well, but made clear he's moving on for now.
The call comes amid a political firestorm surrounding their public feud, which has escalated throughout the week and sparked concerns among Republicans about the fallout on Trump's economic agenda.
According to Bash, Trump appeared unbothered and instead tried to steer the conversation toward the economy, highlighting gas prices and jobs data. While Trump expressed no anger toward Musk, his dismissive tone suggested he's not ready to reconcile despite mounting pressure.
The high-profile spat has gripped Washington and the public, with Bash noting, "Literally the entire world is focused on this remarkable feud."
Jun 06, 2025 at 09:53 AM EDT
Is Donald Trump in the Epstein files? What we know
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President Donald Trump's name has surfaced repeatedly when it comes to the case of Jeffrey Epstein.
On Thursday, billionaire Elon Musk suggested Trump is mentioned in still-secret Justice Department files related to the late financier and convicted sex offender and that it is "the real reason they have not been made public." Musk provided no support for the claim which emerged in a high-profile public feud with the president. White House press secretary Karoline Leavitt has called Musk's claim "an unfortunate episode."
While Trump is mentioned in some of the previously released court documents on Epstein, he has not been accused of wrongdoing. There is no evidence to suggest he is mentioned in any unreleased files related to Epstein.
Read the full story by Khaleda Rahman on Newsweek.
Jun 06, 2025 at 09:35 AM EDT
Feds move to drop Sheetz discrimination lawsuit under Trump order
Federal officials are preparing to drop a racial discrimination lawsuit against Sheetz, the convenience store chain, following an executive order from Trump that aims to roll back the use of "disparate impact liability" in civil rights enforcement, The Associated Press reported.
The Equal Employment Opportunity Commission (EEOC) has begun notifying potential claimants in the Sheetz case that it intends to withdraw the lawsuit. The lawsuit accused the company of unfairly rejecting minority applicants based on criminal background checks.
Disparate impact liability allows civil rights enforcement even when a policy is neutral but disproportionately harms protected groups. Trump's April 23 order directed federal agencies to eliminate their use "to the maximum degree possible."
The lawsuit, filed initially during the Biden administration, argued that Sheetz's hiring practices harmed Black, Native American, and multiracial applicants at higher rates than white applicants. Sheetz denies the claims.
Civil rights groups are now moving to take over the case and are filing a motion to continue the lawsuit independently. Legal experts warn that the rollback of disparate impact enforcement could reduce corporate accountability and leave discrimination unchecked.
Jun 06, 2025 at 09:22 AM EDT
Speaker Johnson hopeful Trump-Musk rift can be mended
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House Speaker Mike Johnson said Friday he believes the feud between President Donald Trump and Elon Musk can be resolved.
"Yeah, I believe in redemption, and I think it will all work out," Johnson told CNN.
Johnson confirmed he's contacted Musk but declined to share details. "He's a friend. Just trying to get everybody to yes," he said.
Republican leaders are still pushing Trump's agenda bill, which Musk criticized this week as a "disgusting abomination."
Jun 06, 2025 at 09:10 AM EDT
May jobs report shows steady growth despite tariff pressure
The U.S. labor market remained resilient in May, adding 139,000 jobs despite mounting pressure from President Trump's new tariff policy.
The unemployment rate held steady at 4.2%, matching April's figure. However, revisions to prior months showed the economy added 95,000 fewer jobs than previously reported in March and April.
Average hourly earnings rose 0.4% from the prior month and 3.9% year over year—both higher than expected. The labor force participation rate dipped to 62.4% from 62.6%.
"We're seeing a softening in the labor market," said EY chief economist Gregory Daco. "But it's not a retrenchment."
The report follows weak private payroll data and a rise in unemployment claims earlier this week.
Jun 06, 2025 at 08:56 AM EDT
Tesla shares rebound slightly after sharp drop
Tesla shares rose more than 4 percent in pre-market trading Friday, a modest rebound after a dramatic 14 percent drop the day before.
The selloff followed the escalating feud between Musk and Trump, who on Thursday suggested cutting government contracts with Musk's companies, including Tesla and SpaceX.
"The easiest way to save money in our Budget," Trump posted on Truth Social, "is to terminate Elon's Governmental Subsidies and Contracts."
Despite Friday's early gains, Tesla remains down significantly for the week.
Jun 06, 2025 at 08:41 AM EDT
Rep says Trump-Musk feud could hurt GOP tax bill
Rep. Ryan Zinke, R-Mont., warned Friday that the public fallout between Trump and Musk could jeopardize key Republican legislation on taxes and immigration.
"I think for some it gives ammunition and cover to vote against the big, beautiful bill," Zinke said. "It's unfortunate because you have the richest man in the world versus the most powerful man in the world."
Zinke, who served as Interior secretary under Trump, praised Musk's efforts to cut federal spending and said both men were "good complements." But he acknowledged growing unease among lawmakers.
"I would say the fight of the egos does put the reconciliation bill in greater jeopardy," he said. "I think that's a fair assessment."
Jun 06, 2025 at 08:28 AM EDT
Russia offers political asylum to Elon Musk over Trump feud
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A Russian official said the American billionaire Elon Musk could be offered political asylum in Russia over his fierce dispute with U.S. President Donald Trump.
Dmitry Novikov, first deputy chairman of the State Duma Committee on International Affairs, commented to Russian state news outlet TASS.
"I think that Musk has a completely different game, [so] he will not need any political asylum, although if he did, Russia, of course, could provide it," Novikov said, in remarks translated from Russian.
Musk and Trump, ostensibly political allies over cuts to federal spending, publicly clashed on June 5 in a series of social media exchanges and comments to reporters.
The dispute's origin is the impact of Trump's One Big Beautiful Bill on U.S. public debt.
Read the full story by Jordan King and Shane Croucher on Newsweek.
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