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In today's edition:
→ MARK CARNEY and DONALD TRUMP are on the horn.
→ A one-on-one with Northwest Territories Premier R.J. SIMPSON.
→ A look back at MARC GARNEAU's early advice on countering Trump 2.0.
POLITICO PRO SPACE: Need an insider's guide to the politics behind the new space race? From battles over sending astronauts to Mars to the ways space companies are vying to influence regulators, this weekly newsletter decodes the personalities, policy and power shaping the final frontier. Try it for free for a limited time starting today. Find out more.
Trade war
PICK UP THE PHONE — One of DONALD TRUMP's allies in Congress has some advice for MARK CARNEY: Call up the president, call him again and then call him some more.
Sen. KEVIN CRAMER (R-N.D.), who joined a recent peacemaking congressional delegation to Ottawa that scored face time with Carney, told POLITICO's JONATHAN MARTIN that Trump is keen on a cellphone relationship with world leaders.
The president wants to receive constant intelligence from guys like Carney, Cramer said, adding he was aware of at least one informal leader-level conversation between the two following the prime minister's trip to the White House last month.
— High-stakes negotiations: Carney appears to have taken the counsel.
Trump's Ottawa envoy, PETE HOEKSTRA, revealed to The Globe and Mail that the PM and president are directly engaged in negotiations on a new economic and security relationship.
'The indications that they are talking and in communications regularly is a clear indicator to me that both sides recognize the importance and the urgency of moving this forward,' Hoekstra told the Globe, adding that a prospective deal could touch on autos, critical minerals, defense spending, energy, border security — and steel and aluminum.
The ambassador added the talks also include Canada-U.S. Trade Minister DOMINIC LEBLANC, U.S. Commerce Secretary HOWARD LUTNICK and U.S. Trade Representative JAMIESON GREER.
— Official lines: The Prime Minister's Office isn't commenting on the Globe report, but Industry Minister MÉLANIE JOLY confirmed to reporters the two leaders are in touch.
'We won't negotiate in public,' she said. 'We'll let the prime minister do his work.'
— Elsewhere in trade: Ontario's premier lashed out at any notion that Trump would show warmth to Chinese President XI JINPING, who landed a lengthy morning call with Washington on Thursday.
'China is getting better treatment than their closest allies and friends,' Ontario Premier DOUG FORD.
Ford didn't hide his impatience with the Americans during a Thursday spot on MSNBC: 'I'm in constant communication with the prime minister as of even [Wednesday] afternoon, and if it doesn't go too well, then we have to start matching tariff for tariff, dollar for dollar.'
— Speaking of China: 'Carney agrees to high-level talks with Beijing on resolving Canada-China trade war,' the Globe's STEVE CHASE reports
THE ROOMS THAT MATTER
— At 10:15 a.m., federal officials will hold an embargoed background media technical briefing on the introduction of a bill to 'build One Canadian Economy.'
— Carney will lead a 12:30 p.m. media availability in West Block alongside ministers DOMINIC LEBLANC, CHRYSTIA FREELAND and TIM HODGSON.
— Industry Minister MÉLANIE JOLY is in Hamilton. Joly is scheduled to visit ArcelorMittal Dofasco alongside local MPs LISA HEPFNER, JOHN-PAUL DANKO and ASLAM RANA. The minister will speak to reporters at 12:45 p.m.
LISTEN UP, OTTAWA
HE THE NORTH — Canada's North is having a moment — and R.J. SIMPSON is here for it.
The Northwest Territories premier just wrapped up a trip to Ottawa, where he sat down with Prime Minister MARK CARNEY armed with a wishlist of nation-building projects — one of which is likely to bear fruit in the coming months.
The meeting was a refreshing change for Simpson, who says he went through pains to get Ottawa's attention when former Prime Minister JUSTIN TRUDEAU held office.
Even landing a meeting used to be a challenge.
'I just met with Prime Minister Carney, and it hasn't been that long since he's been in office,' Simpson told Playbook. 'We've had a number of face-to-face First Ministers Meetings, which was not common in the last government either.'
— Breaking the ice: The Liberal government took a renewed interest in the North in January, Simpson said, when President DONALD TRUMP returned to the White House.
— Slap on the wrist: In a February trip to D.C. with other premiers, Simpson said U.S. lawmakers flagged Canada's lack of Arctic infrastructure compared to Russia and other Nordic countries.
'They view it as a missing component in their defense,' Simpson said.
Some proposed infrastructure projects have languished for up to 70 years, Simpson said.
— Elevator pitch: This isn't merely a list-checking exercise for Simpson. Infrastructure projects can feed national defense and economic strategies. They can help Canada meet NATO spending targets, keep China out of its backyard and unlock critical minerals, Simpson insists.
The premier teased that some of his priority projects could gain traction 'in the next couple of months.'
— Wishlist: That fast track could include an Arctic Security Corridor, Simpson said, which would run through the territory's Slave Geological Project — an untapped critical mineral zone.
'It is one of the most mineral resource-rich areas in the world. We know there's critical minerals. We know there's rare earth elements,' Simpson said.
He's also pushing for a road to NORAD's forward operating location in Inuvik — to facilitate military infrastructure and transport goods to communities.
— For sovereignty's sake: As past governments pursued different priorities, China has attempted to move in, Premier Simpson said — including by buying into N.W.T. mining firms.
— Watch your back: 'We have not received a lot of investment in the North, ever. And when an area is not receiving any investment from their own government, they become more open to investment from elsewhere,' Simpson said. 'It would deter Chinese interference in the North if the North was getting what it needed from the government of Canada.'
WHO'S UP, WHO'S DOWN
Up: House of Commons confidence in the Liberal government, which watched its throne speech sail through the chamber Wednesday without a recorded vote. Shortly after the anticlimactic victory, Liberal MPs indulged at various Sparks Street watering holes.
Down: Canada's merchandise exports, which Statistics Canada said dropped 10.8 percent in April compared to a month earlier. The agency called the country's global trade deficit in merchandise the 'largest … on record' at C$7.1 billion.
IN MEMORIAM
MARC GARNEAU — The trailblazing astronaut and former Cabinet minister offered what turned out to be his parting thoughts on the trade war with Trump in an April 24 interview with Playbook co-host MIKE BLANCHFIELD.
— No illusions: Days before the federal vote, Garneau offered an unvarnished take on the cross-border state of play in Trump 2.0.
'We have to take a very aggressive approach with the full realization that, you know, never mind trying a charm offensive. That's a waste of time. The world order has changed, and at this point there should be no illusions about ever going back to what existed before. And in fact, I think it would be a mistake to try to go back to what existed before,' Garneau said over the phone.
'From Canada's point of view, we have to be resolute in dealing with the tariffs that he ends up imposing on us. There will be pain, there's no question about it.'
Most recently, Garneau was the Canadian co-chair of the Canada-Korea Forum. He saw a good opportunity in the Indo-Pacific region to diversify Canada's trade portfolio.
— Spreading our wings: 'They are a like-minded country to us, and so we should try to strengthen our trade ties to that part of the world, not only to Europe,' Garneau said. 'I'm also talking about the ASEAN countries, and I'm also talking about India, where we have had some challenges.'
MORNING MUST-CLICKS
— Top of POLITICO this morning: DONALD TRUMP, White House aides signal a possible détente with ELON MUSK
— 'Insiders say Mark Carney could compromise on emissions cap,' reports the Toronto Star's ALEX BALLINGALL.
— CP's ANJA KARADEGLIJA reports on Canada's years-long wait for a national disaster response agency.
— The House of Commons unanimously voted Thursday for a government-proposed tax cut for middle-income earners.
PLAYBOOKERS
Birthdays: HBD to House Speaker FRANCIS SCARPALEGGIA and former diplomat HOWARD BALLOCH. Also celebrating today: Quebec Education Minister BERNARD DRAINVILLE, as well as former MPs RAMESH SANGHA and NICK WHALEN.
Celebrating Saturday: Liberal MP ROB OLIPHANT, NDP politician JINNY SIMS, former Ottawa Centre provincial Liberal candidate THOMAS SIMPSON, and GUY GALLANT, chief of staff to Agriculture Minister HEATH MACDONALD (40!).
On Sunday: Former Bank of Canada governor DAVID DODGE and McMillan Vantage founding partner MARK RESNICK.
Spotted: Prime Minister MARK CARNEY, stopping in for lunch at Cocotte Bistro.
Environmental activist DAVID SUZUKI, strolling past West Block Thursday afternoon: 'What I'm here to tell people is we have very little time to take big steps, and if we don't take them, guess what? Extinction in our grandchildren's lifetime is what faces us.'
Noted: Parliament Hill's cutest dog award went to LOUIS, whose owner is Liberal MP KODY BLOIS … The Bloc Québécois' Bill C-202, a private member's bill that would shield supply management from future trade negotiations, cleared third reading in the House on Thursday by unanimous consent.
Movers and shakers: The PM revealed his new parliamentary secretary team. Some standouts:
— ALI EHSASSI and TIM LOUIS: Canada-U.S. Trade Minister DOMINIC LEBLANC
— ROB OLIPHANT and MONA FORTIER: Foreign Affairs Minister ANITA ANAND
— KARIM BARDEESY and CARLOS LEITíO: Industry Minister MÉLANIE JOLY
— COREY HOGAN and CLAUDE GUAY: Energy Minister TIM HODGSON
— RYAN TURNBULL: Finance Minister FRANÇOIS-PHILIPPE CHAMPAGNE
— LESLIE CHURCH: Jobs Minister PATTY HAJDU (with responsibility for persons with disabilities)
— ÉLISABETH BRIÈRE is deputy chief government whip, and ARIELLE KAYABAGA is deputy government House leader.
JEREMY NIXON, Hogan's Conservative opponent in Calgary Confederation and a former Cabinet minister in Alberta, is now a principal at Navigator in Calgary.
Lobby watch: The Canadian Canola Growers Association posted a Wednesday meeting with Agriculture Minister HEATH MACDONALD, Deputy Minister LAWRENCE HANSON and senior political aides.
Media mentions: Unionized employees at The Canadian Press are publicly calling out their employer's latest offer amid collective bargaining … La Presse won the 2024 Michener Award.
Send Playbookers tips to canadaplaybook@politico.com
PROZONE
For Pro subscribers, our latest policy newsletter from MIKE BLANCHFIELD: Trump tariffs pound Canada's exports
In other Pro headlines:
— What do Musk and Tesla want from the Republican megabill?
— Army leaders warn US is losing drone race, tout big changes.
— Senate bill would add $10B to NASA budget.
— GAVIN NEWSOM met privately with Trump's Hollywood ambassador JON VOIGHT
TRIVIA
Thursday's answer: Six foreign ministers have served since the Liberals were elected in 2015: STÉPHANE DION, CHRYSTIA FREELAND, FRANÇOIS-PHILIPPE CHAMPAGNE, MARC GARNEAU, MÉLANIE JOLY and ANITA ANAND.
Props to CHRIS LALANDE, MARCEL MARCOTTE, JOHN PEPPER, ANDREW BALFOUR, STEVE YANG, CHRISTINA DE TONI, SHAUGHN MCARTHUR, ELIZABETH BURN, MARC LEBLANC, DARREN MAJOR, CAMERON RYAN, JEFF VALOIS, JIM REILLY, ROBERT MCDOUGALL, MALCOLM MCKAY, BOB ERNEST, ALEX BALLINGALL, HEATHER CHIASSON, DUANE BRATT, WAYNE EASTER and GARY COLLINS.
Props +1 to JEFF VALOIS, too.
Friday's question: On this day in history, British and American forces have fought on both the same side and opposing sides. In 1944, they joined forces on the beaches of Normandy. During which war did they once engage in battle on June 6?
Answer to canadaplaybook@politico.com
Writing Monday's Playbook: MICKEY DJURIC
Canada Playbook would not happen without: Canada Editor Sue Allan, editor Willa Plank and POLITICO's Grace Maalouf.

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Inside the Trump-Musk Breakup
Inside the Trump-Musk Breakup

Atlantic

time11 minutes ago

  • Atlantic

Inside the Trump-Musk Breakup

For once, President Donald Trump was trying to be the adult in the room. Trump and Elon Musk, two billionaires with massive egos and combustible temperaments, had forged an unlikely friendship over the past year, one built on proximity, political expediency, and, yes, a touch of genuine warmth. Relations between the president and his top benefactor had grown somewhat strained in recent weeks, as Trump began to feel that Musk had overstayed his welcome in the West Wing. Musk had suggested privately that he could stay on at the White House, an offer that Trump gently declined, two people familiar with the situation told us. (They, like others we talked with for this story, spoke anonymously in order to share candid details about a sensitive feud.) But Musk was still given a gracious send-off last Friday—complete with a large golden, albeit ceremonial, key—aimed at keeping the mercurial tech baron more friend than foe. The peace didn't last even a week. On Tuesday, Musk took to X to attack the Republican spending bill being debated in the Senate, trashing Trump's signature piece of legislation as 'a disgusting abomination.' Even as the White House tried to downplay any differences, Musk couldn't let go of his grievances—the exclusion of electric-vehicle tax credits from the bill, and Trump's rejection of Musk's pick to run NASA. Yesterday, the planet's richest man attacked its most powerful. Each took aim at the other from their respective social-media platform, forcing rubberneckers into a madcap toggle between Truth Social and X. Trump deemed his former aide 'CRAZY,' while Musk went much further, dramatically escalating the feud by calling for Trump's impeachment, suggesting that the president had been part of Jeffrey Epstein's notorious sex-trafficking ring, and—likely worst of all in Trump's mind—taking credit for the president's election in November. Charlie Warzel: The Super Bowl of internet beefs For one day, Musk made X great again. The spectacle seemed to subside today, as Trump showed—at least by his standards—some restraint. The president insisted that he was not thinking about Musk and wanted only to pass the reconciliation bill that had featured in the brawl. Musk, meanwhile, has far more to lose: his newfound stardom within the MAGA movement, his personal wealth, and government contracts worth billions to his businesses. Steven Bannon, the influential Trump adviser who has long been critical of Musk, crowed that the tech billionaire's attacks on Trump were so personal that he won't be forgiven by the MAGA crowd. 'Only the fanboys are going to stick with him—he's a man without a country,' Bannon told us. Trump and Musk were inseparable during the transition and in the first months after the inauguration. At times, Musk stayed over in the White House residence, regaling reporters with tales of late-night Häagen-Dazs ice-cream binges (caramel flavor) in the White House kitchen. He grew close to Trump's powerful adviser Stephen Miller and to Miller's wife, Katie, who'd entered the administration as a special government employee alongside Musk; the trio socialized outside work. (Musk has since unfollowed Stephen Miller on X.) Musk's 5-year-old son, X, became a frequent visitor to the Oval Office and Mar-a-Lago, at times scampering around the tables at Trump's private club. But friction mounted over time: a West Wing shouting match between Musk and Treasury Secretary Scott Bessent, a heated Cabinet meeting about job cuts, clashes with senior White House staffers. Trump grew angry that Musk was bad-mouthing his tariff plan to CEOs, and was especially incensed when The New York Times reported in March that Musk was scheduled to receive a classified briefing at the Pentagon about China; the president began quietly telling confidants last month that he was getting tired of the Tesla chief. The cuts forced by Musk's Department of Government Efficiency—symbolized by Musk wielding a gold-plated chain saw at the Conservative Political Action Conference—angered even some Republicans, who depended on the government services DOGE was slashing. Trump initially bought into Musk's claim that DOGE would find $2 trillion in cuts, two advisers told us. But the potential savings shrank as the chaos grew, and Trump became disillusioned 'Trump started off as more than enamored, then it faded when it turned out the trillion dollars in DOGE cuts was bullshit,' Bannon told us. 'Trump was like, Okay.' Musk's 130-day tenure as a special government employee expired late last month. Despite growing disenchanted with Washington, he suggested to the White House that he wanted to stay on, the two advisers told us. Trump declined. A representative for Musk did not respond to requests for comment. 'Trump was like, You know, he's been around long enough, but he was not mad, not like, Screw this guy,' one of the advisers told us. 'It was like, It's probably time to turn the page.' The White House built Musk a dignified off-ramp, with aides putting together an exit plan that would allow Musk to leave the team on good terms. White House Chief of Staff Susie Wiles had often found herself in the unenviable position of trying to manage Musk—a man Trump privately described as part genius, part child. But in the hours before his departure, Musk was dealt a disappointment over a government job that was very important to SpaceX. Trump had announced Jared Isaacman, an aviation entrepreneur and a Musk ally, as his pick for NASA administrator in early December. But Isaacman faced opposition on Capitol Hill, and the scheduling of his confirmation vote forced the issue last week. Trump, after hearing senators' complaints, asked Sergio Gor, the personnel director who had previously clashed with Musk, for Isaacman's vetting files. The White House was unhappy about the nominee's previous donations to Democrats, a White House official told us, and his nomination was withdrawn. David A. Graham: Elon Musk goes nuclear At the same time, Musk took aim at the One Big Beautiful Bill Act that encapsulated the entirety of the Republican legislative agenda. He privately lobbied Trump, Wiles, and House Speaker Mike Johnson to include an EV tax credit and then publicly torched the bill when they didn't, posting on Tuesday to his 220 million X followers: 'Shame on those who voted for it: you know you did wrong.' The split has forced Republicans in Congress to choose between a president who demands their loyalty and a billionaire who helped fund their victory last year (and who could finance their opponents' campaigns, if he chooses to). Some rushed to proclaim their neutrality. 'I learned a long time ago when I was fighting to stay out of other people's fights,' Senator Markwayne Mullin of Oklahoma, a Trump ally, posted yesterday on X. (A former wrestler, Mullin had a brief professional career in mixed martial arts.) Other Republicans assumed the posture of a child begging their warring parents to get along for the sake of the family. Representative Beth Van Duyne began a post on X, 'We have the best chance to save America, save the world, and bring lasting prosperity.' Then she dropped the politesse: 'WE ARE STRONGER TOGETHER!! CEASE FIRE FOR GOD'S SAKE!' For GOP leaders, the choice seems to be an easy one: They have stuck with Trump, fiercely defending the bill they wrote on his behalf and are rushing to enact before the self-imposed July 4 deadline. After Musk took credit for the party's majorities in Congress as part of his X tirade yesterday, Johnson told reporters that the glory belonged not to Musk, but to the president. A few House conservatives seized on Musk's complaints about the deficit-busting nature of the bill and suggested that they might reconsider their support if the Senate does not improve the legislation. 'He made the biggest mistake in Washington,' a Republican strategist who requested anonymity to speak frankly told us. 'He told the truth. He is not wrong, even if he is annoying.' But Musk might have overplayed his hand in pivoting from policy to personal attacks on the president. 'He hasn't moved a vote,' House Majority Leader Steve Scalise told reporters, according to NBC News. Perhaps realizing that he was destined to lose a fight he'd started, Musk appeared to cool off late yesterday, approvingly quoting social-media posts about stopping the fight and saying that he would not follow through on his threat to decommission SpaceX's Dragon spaceships, which are used to transport NASA astronauts and supplies to and from the International Space Station. He might have 38 billion reasons for seeking détente: That's the number of dollars his companies are believed to receive in government contracts, deals that could be canceled by a vengeful president. Musk spent nearly $300 million supporting Trump and other Republicans in the 2024 presidential election, but slumping Tesla sales worldwide—due, in large part, to anger about his alliance with Trump—are estimated to have cost him well over $100 billion since he took his government post. Tesla stock fell 14 percent the day of Musk's fight with Trump. As of early this afternoon, Trump had not posted again about the feud. He gave brief interviews to a few reporters in which he insisted that he was not thinking about Musk, though he referred to his once–top aide as 'the man who has lost his mind' to ABC News. Trump allies circulated to reporters allegations of Musk's drug use recently aired by The New York Times ('I think the ketamine finally rotted his brain,' one told us; Musk has disputed the Times report). White House aides, stung by Musk's eruption yesterday, let it be known that Trump has no intention of speaking to Musk today and that the president plans to sell or give away the Tesla he'd bought back in March as a show of support for Musk. Asked for comment on the breakup, White House Spokesperson Karoline Leavitt did not mention Musk, saying instead that the administration will 'continue the important mission of cutting waste, fraud, and abuse from our federal government' and that 'the One Big Beautiful Bill is critical to helping accomplish that mission.' Musk typically averages about 100 X posts a day. But through the afternoon today, he's posted only a handful, all promotions of his various businesses. None were about Trump.

Trump's immigration, trade policies could cost tourism industry $12B: report
Trump's immigration, trade policies could cost tourism industry $12B: report

New York Post

time12 minutes ago

  • New York Post

Trump's immigration, trade policies could cost tourism industry $12B: report

The US economy could lose out on billions of dollars this year as President Trump's policies hamper the tourism industry, according to a report. The administration's mass deportation efforts, costly trade war, anti-LGBTQ legislation and, most recently, a travel ban on 12 countries have hammered foreign arrivals and spurred anti-US boycotts. The backlash from foreign visitors is expected to cost the US economy a whopping $12.5 billion this year, according to the World Travel & Tourism Council. Advertisement However, the organization's estimates have been vastly off the mark in the past. It predicted that growth in the country's travel sector would slow significantly in 2017 after Trump's surprising first election victory, but the number of visitors actually jumped amid a worldwide upswing in tourism. 3 The US economy could lose out on billions of dollars this year as the tourism sector is hammered by policy changes. AP Though Trump has made clear his frustrations with the trade deficit, the projected decline in tourism would only worsen the issue, as spending by foreign visitors in the US is counted toward our exports, according to a Bloomberg report. Advertisement The White House did not immediately respond to The Post's request for comment. Foreign arrivals to the US by air have plunged 2.5% so far this year through April compared to the year before, according to the US International Trade Administration. The largest drop came in March, when arrivals fell 10% after Trump unveiled hefty tariffs on Canada, China and Mexico. Those tariffs, combined with Trump's call to annex Canada as the 51st state, have prompted frustrated Canadians to call for a travel boycott and to stop buying US products. Advertisement Figures on Canadian tourism have not been released by the US yet, but Canada's statistics bureau said trips across the border tumbled 15% in April for the third straight month of decline. Research firms have scaled back their expectations for US tourism this year since Trump took office. Tourism Economics now expects just 66 million visitors – above previous expectations of 79 million – as policy changes prompt travelers to book trips elsewhere, according to Bloomberg. 3 Venezuelan migrants arrive after being deported from the United States at Simon Bolivar International Airport. REUTERS The largest reversal will likely come from Canadians, with visits expected to plunge 20% this year, followed by a nearly 6% drop from western Europe, Tourism Economics said. Advertisement Air carriers like Air France, British Airways and Lufthansa have started to cancel long-haul flights to popular US cities while travel sites like Airbnb, and Expedia have warned that their earnings could be hit hard this year. At least a dozen foreign nations have advised their citizens to use caution when traveling to the US due to the risk of being detained by immigration officials. Others have warned transgender and nonbinary citizens that they could run into trouble using their passports after Trump signed an executive order recognizing 'male' and 'female' as the only two sexes. Global air bookings to the US from May 1 to July 31 are 11% lower than the same time last year, according to Tourism Economics. 3 President Trump departing the White House on Friday for a weekend trip to New Jersey. Getty Images And it's the first year that spending by overseas visitors is expected to fall since the pandemic, with a projected 7% dip to less than $169 billion, according to WTTC. The US is the only economy expected to suffer a tourism revenue decline this year out of the nearly 200 economies tracked by the WTTC.

Newsom floats withholding federal taxes as Trump threatens California
Newsom floats withholding federal taxes as Trump threatens California

Politico

time16 minutes ago

  • Politico

Newsom floats withholding federal taxes as Trump threatens California

SACRAMENTO, California — Gov. Gavin Newsom on Friday suggested California consider withholding tens of billions in annual federal tax dollars amid reports Donald Trump is preparing funding cuts targeting the state. Newsom's suggestion came after CNN reported the president was considering a 'full termination' of federal grant funding for California's universities. 'Californians pay the bills for the federal government. We pay over $80 BILLION more in taxes than we get back,' the Democratic governor said in an X post Friday afternoon, referencing a recent analysis from the Rockefeller Institute that California contributed about $83 billion more in federal taxes in 2022 than it received back from Washington. 'Maybe it's time to cut that off,' he added. White House spokesperson Kush Desai, asked to comment on Newsom's post, threw cold water on mass funding cuts but blasted California for what he said were 'lunatic anti-energy, soft-on-crime, pro-child mutilation, and pro-sanctuary policies.' 'The Trump administration is committed to ending this nightmare and restoring the California Dream,' Desai said in a statement. 'No final decisions, however, on any potential future action by the Administration have been made, and any discussion suggesting otherwise should be considered pure speculation.' Trump has wielded federal funding as leverage to push its politics on California before. The president last month threatened to choke off the state's cash flow if a transgender athlete participated in a state girls' track meet. Newsom's biting suggestion comes as the governor escalates his anti-Trump rhetoric, even as he asks the White House for economic assistance. Newsom in early May blamed tariffs for ripping $16 billion from California's state budget, but has at the same time sought federal disaster relief for the recent Los Angeles wildfires and privately consulted Trump officials about ways to bolster the state's flagging film industry. Assembly Speaker Robert Rivas also floated withholding federal taxes Friday in a post on the social media site Bluesky shortly before Newsom raised the issue. He dismissed the rumored grant cancellations as 'unconstitutional and vindictive.' 'We're the nation's economic engine and the largest donor state, and deserve our fair share,' Rivas wrote. 'I'll use every legal and constitutional tool available to defend CA — we must look at every option, including withholding federal taxes.' State Senate Pro Tem Mike McGuire similarly vowed to defend California from 'this President's illegal and unprecedented attack on our state' in an X post Friday, but he stopped short of suggesting the state should withhold federal taxes. State leaders have tried to starve Trump's Washington of tax revenues before; in 2017, then-Senate President Kevin de León proposed a state tax credit scheme that would have allowed residents to sidestep a federal tax hike targeting California. Two New York mayoral candidates, former state Assemblymember Michael Blake and current state Sen. Jessica Ramos, similary suggested withholding the city's federal tax dollars during a Democratic primary debate Wednesday evening.

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