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Trump Administration Secures Temporary Legal Win on Tariffs as Appeals Court Pauses Lower Court’s Ruling

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The Trump administration scored a temporary legal reprieve on Thursday after a federal appeals court agreed to pause a lower court ruling that had struck down much of President Donald Trump’s sweeping tariff regime.

The move preserves for now—the administration’s authority to impose tariffs under emergency powers, just as legal and economic battles over the trade measures intensify.

The U.S. Court of Appeals for the Federal Circuit issued a brief order granting the administration’s request to stay a May 28 judgment by the U.S. Court of International Trade. That lower court had ruled that key elements of Trump’s trade policy, including the so-called “Worldwide and Retaliatory Tariff Orders,” exceeded the authority granted to the president under the International Emergency Economic Powers Act (IEEPA). The orders targeted imports from multiple U.S. trading partners and were part of Trump’s broader effort to reset America’s global trade relationships.

“The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,” the trade court said in a stinging rebuke on Wednesday, siding with five small business owners who challenged the administration’s authority.

The Trump administration responded swiftly, warning the appeals court that it would seek “emergency relief” from the U.S. Supreme Court as early as Friday if the lower court’s ruling was not put on hold. The Federal Circuit’s temporary stay prevents that escalation for now, allowing time for the court to fully consider the case.

“The trade court’s judgment is temporarily stayed until further notice while this court considers the motions papers,” the appeals court wrote in its one-paragraph order.

Legal Challenge to Executive Power

The plaintiffs in the case—a group of small, owner-operated import businesses—had argued that Trump’s use of IEEPA to justify wide-ranging tariffs lacked legal basis. Their lead attorney, Jeffrey Schwab, who serves as Senior Counsel and Interim Director of Litigation at the Liberty Justice Center, told Business Insider the court’s initial ruling was a much-needed check on executive overreach.

“I think the court understood that the administration’s argument—that it had essentially unilateral authority to impose whatever tariffs it wanted on any country, at any rate, at any time—under IEEPA went too far,” Schwab said. “So we’re really happy the court ruled the way it did, and I think we will make the same arguments before the Federal Circuit Court of Appeals.”

Schwab added that the lower court’s ruling acknowledged the real limits on presidential power, even under emergency laws originally designed for foreign policy crises, not economic re-engineering.

Economic and Political Stakes

The legal battle is unfolding against the backdrop of growing unease over the tariffs’ impact on the U.S. economy. Earlier, the Commerce Department reported that the economy shrank by 0.2% in the first quarter of 2025, the first contraction in three years. The drop was largely driven by a surge in imports, as U.S. companies scrambled to stock up before the tariffs took full effect, and by declines in consumer and federal government spending.

The temporary stay granted by the appeals court now leaves the business community and economic forecasters with uncertainty. While the ruling allows the administration to maintain its tariffs in the near term, it also signals that a final judgment on their legality may still be months away.

If the tariffs are eventually struck down again, it could offer much-needed relief to U.S. importers, manufacturers, and consumers burdened by rising prices. Conversely, if the court upholds Trump’s use of emergency powers under IEEPA, it could cement a dramatic expansion of presidential authority over trade policy.

The appeals court did not provide a timeline for its decision on the administration’s motion. If it eventually sides with the lower court, the case could quickly advance to the U.S. Supreme Court—where the broader question of how much power the president has to reshape the U.S. economy through emergency declarations could be tested in full.

Until then, the tariffs remain in place, prolonging a period of legal, political, and economic uncertainty that continues to shape both America’s trade posture and its broader economic trajectory.

Implications of Elon Musk’s Departure from DOGE

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Elon Musk’s tenure as a special government employee leading the Department of Government Efficiency (DOGE) ended on May 30, 2025, due to a 130-day statutory limit on his role, which began with President Donald Trump’s inauguration on January 20, 2025. Musk announced his departure on X, stating he would step back to focus on his companies, particularly Tesla, which faced a 71% profit drop amid protests and boycotts linked to his DOGE involvement. He expressed gratitude to Trump for the opportunity and claimed DOGE’s mission to reduce wasteful spending would continue.

During his time, Musk led aggressive cost-cutting efforts, with DOGE claiming $160 billion in savings, though transparency issues and a Partnership for Public Service analysis estimated $135 billion in taxpayer costs due to inefficiencies like paid leave and rehiring. His policies sparked lawsuits, protests, and tensions with Cabinet officials like Treasury Secretary Scott Bessent and Secretary of State Marco Rubio over DOGE’s sweeping cuts to agencies like USAID and the Social Security Administration.

Musk’s influence persists through loyalists like Steve Davis and Antonio Gracias, embedded in agencies, ensuring DOGE’s ongoing impact despite his reduced role. Critics argue his cuts harmed essential services, while supporters, including Trump and Vice President JD Vance, praised his efforts. Musk may continue advising Trump informally, but his formal DOGE role has concluded. Elon Musk’s exit from the Department of Government Efficiency (DOGE) on May 30, 2025, carries significant implications for government operations, policy direction, and public perception.

Despite Musk’s departure, his loyalists, such as Steve Davis and Antonio Gracias, remain embedded in key agencies, ensuring DOGE’s cost-cutting agenda persists. This could lead to continued reductions in federal programs, particularly in areas like foreign aid like USAID and social services (e.g., Social Security Administration), which faced heavy cuts under Musk’s tenure. Musk’s aggressive reforms, including layoffs and agency consolidations, have disrupted federal operations. The Partnership for Public Service estimated $135 billion in taxpayer costs due to inefficiencies like paid leave for furloughed workers and rehiring expenses. Ongoing lawsuits and employee resistance may further destabilize agencies.

Musk’s informal advisory role with President Trump suggests he could still shape policy, potentially prioritizing deregulation and privatization aligned with his business interests like Tesla, SpaceX. However, conflicts with Cabinet officials like Scott Bessent and Marco Rubio may temper DOGE’s influence over broader economic or foreign policy.  Musk’s return to Tesla comes amid a 71% profit drop, partly attributed to boycotts and protests tied to his DOGE role. His focus on stabilizing Tesla could boost its innovation (e.g., autonomous driving, energy storage) but may face challenges from lingering public backlash.

Musk’s departure could stabilize markets wary of his divisive policies, though his continued influence via proxies may sustain uncertainty in sectors reliant on government contracts or regulations (e.g., defense, healthcare). Musk’s tenure exacerbated divides between supporters of deregulation and those advocating for robust public services. His cuts to programs like education and environmental agencies were praised by fiscal conservatives but criticized by progressives as undermining vulnerable communities.

Musk faced significant protests, including from furloughed federal workers and advocacy groups, who accused him of prioritizing corporate interests. This has fueled anti-Musk sentiment, with boycotts impacting Tesla’s brand. Musk’s clashes with Cabinet members highlight intra-administration rifts. His alignment with Trump and JD Vance contrasts with resistance from moderates like Rubio, potentially complicating Republican unity on fiscal policy.

Trump, Vance, and conservative groups like the Heritage Foundation lauded Musk’s $160 billion in claimed savings, viewing DOGE as a model for lean government. They argue his reforms cut bureaucratic waste and empowered private-sector efficiency. Democrats, federal employee unions, and advocacy groups decry the cuts as reckless, citing harm to essential services such as Social Security, education administration. Transparency issues—DOGE’s lack of detailed spending breakdowns—fueled accusations of cronyism, especially given Musk’s business ties.

Musk’s exit may calm some tensions but risks entrenching distrust in government efficiency efforts. His legacy at DOGE—streamlined in some areas, chaotic in others—will likely shape debates on government size and role through Trump’s term. The divide between pro- and anti-Musk factions mirrors broader U.S. polarization over wealth, power, and public goods, with implications for the 2026 midterms and beyond.

AfDB Unveils $6bn for Health Investment Across Africa, Reports Major Gains in Agriculture and Energy

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The African Development Bank (AfDB) Group is rolling out a bold $6 billion investment strategy to transform Africa’s fragile healthcare systems and reduce the continent’s reliance on imported drugs.

The initiative, unveiled at the 2025 AfDB Annual Meetings in Abidjan, marks one of the most ambitious continent-wide health interventions in recent memory—divided into two $3 billion programmes targeting infrastructure and local pharmaceutical manufacturing.

AfDB President Dr. Akinwumi Adesina, while presenting his 10-year scorecard, emphasized that the investment was already underway, describing it as a critical step toward ensuring Africa can both deliver and produce healthcare solutions at scale.

“Today, the African Development Bank Group is implementing a $3 billion programme for quality health infrastructure and a $3 billion programme for the development of local pharmaceutical manufacturing capacity in Africa,” Adesina announced.

Central to this vision is the newly established African Pharmaceutical Technology Foundation, an institution designed to break Africa’s historical exclusion from proprietary pharmaceutical technologies. The foundation will help African countries gain access to intellectual property rights and safeguard essential manufacturing know-how for medicines and vaccines.

Adesina’s remarks came as the Bank marked what he called “a decade of delivery,” particularly in agriculture, food security, and energy access—three areas where the AfDB says it has either mitigated or outright reversed looming crises.

The Bank’s Feed Africa strategy, launched in response to growing food insecurity and exacerbated by the war in Ukraine, reportedly helped 104 million Africans achieve food security. The Bank said its interventions also gave 13 million farmers access to improved agricultural technologies across the continent.

When the war in Ukraine triggered fears of a food crisis due to blocked exports of wheat, maize, and oilseeds, the AfDB moved swiftly with a $1.5 billion emergency food production facility. According to Adesina, the facility exceeded expectations.

He said in just two years, our support allowed 14 million farmers across 30 countries to have access to improved seeds and fertilizers. This led to the production of 44 million tons of food—116% above the target—worth $17.3 billion.

Ethiopia’s Wheat Revolution and a $72 Billion Food Pledge

One standout example is Ethiopia, which expanded its heat-tolerant wheat-producing areas from just 5,000 hectares in 2018 to more than 650,000 hectares by 2023. The result: self-sufficiency in wheat within four years—a feat that was once seen as far-fetched in a region traditionally reliant on imports.

The momentum gained from such successes was evident at the Feed Africa Summit in Dakar, where over 30 African leaders signed the Food and Agriculture Delivery Compacts. The summit mobilized a staggering $72 billion in global pledges to back national food security agendas, which were later endorsed by the African Union.

Energy Access Push Gains Steam

Buoyed by gains in agriculture, the AfDB is now turning its attention to another foundational issue—energy. In partnership with the World Bank, the Bank launched Mission 300, an ambitious drive to connect 300 million people to electricity by 2030.

This culminated in the Africa Energy Summit in Dar es Salaam, co-chaired by Tanzanian President Samia Suluhu Hassan, where more than 48 African countries endorsed the Dar es Salaam Declaration on Energy Access.

“Leaders at the summit unanimously endorsed the Dar es Salaam Declaration on Energy Access, with the full support of the African Union,’’ Adesina said.

The Declaration reflects a rare continent-wide consensus to accelerate energy delivery through a combination of national policy shifts, regional electricity grid interconnections, and increased investment in renewables and transmission infrastructure. The Bank reported that $55 billion has already been mobilized to support these efforts.

A Coordinated Future

Adesina’s report card paints a picture of an institution not merely reacting to crises but proactively reshaping the African development narrative—from health and food to energy. The Bank is banking on high-level coordination and massive financial commitments to drive systemic changes across sectors.

With the launch of the African Pharmaceutical Technology Foundation, a major step has been taken to change how the continent responds to health emergencies—ending dependence on imported vaccines and treatments that became painfully evident during the COVID-19 pandemic.

The broader investment push underlines a coordinated, long-haul approach by the AfDB to ensure that Africa’s economic growth is not only resilient but also anchored in self-reliance and innovation.

Meta AI Hits 1 Billion Users as AI Race Intensifies Among Tech Giants

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Meta’s artificial intelligence assistant has surpassed one billion monthly active users, CEO Mark Zuckerberg announced during the company’s annual shareholder meeting.

The milestone, first reported by CNBC, represents a doubling of Meta AI’s user base since September 2024, when the company last disclosed it had 500 million active users.

The growth cements Meta AI as one of the most widely adopted consumer-facing AI platforms in the world and underlines Meta’s unique advantage: the unmatched reach of its social media empire.

Social Media Synergy Accelerates Meta AI Growth

Meta’s success in rapidly onboarding users to its AI assistant is closely tied to its control of some of the most widely used social platforms globally—Facebook, Instagram, WhatsApp, and Messenger. The company has capitalized on its massive user base by providing seamless access to AI tools across platforms that users already depend on daily, embedding the assistant directly into these services and recently launching a standalone Meta AI app.

“The focus for this year is deepening the experience and making Meta AI the leading personal AI with an emphasis on personalization, voice conversations, and entertainment,” Zuckerberg told shareholders.

Meta has made it clear that it’s not just competing to be first—it wants to dominate the AI space by making its assistant a routine part of how people interact online. This strategic integration gives Meta an advantage many of its rivals can’t match.

Monetization on the Horizon

Zuckerberg also hinted at future monetization models for Meta AI, which has so far remained free to users. The company is exploring inserting paid recommendations and offering a subscription service for those who want access to more powerful AI capabilities—particularly those requiring more computational resources.

“If we’re delivering value to people, there will be opportunities to either insert paid recommendations or offer subscriptions so that people can pay to use more compute,” he said.

Such a move would position Meta AI to go head-to-head with other leading AI platforms like OpenAI’s ChatGPT, which already offers a paid tier to access GPT-4 and other advanced tools.

The Broader AI Battle: Leverage is King

Meta isn’t the only player using platform leverage to drive AI adoption. Elon Musk’s xAI, still in its early stages, is following a similar path by integrating its chatbot, Grok, directly into X (formerly Twitter), which Musk owns. The tactic gives xAI instant distribution and feedback loops across millions of users, a powerful boost in an increasingly competitive field.

This is a key edge that OpenAI currently lacks. Despite its leading technical position and widespread name recognition, OpenAI does not have a proprietary social media platform to deploy its assistant at scale. As competition heats up, OpenAI appears to be aware of the gap.

In recent months, there have been signals that OpenAI is exploring ways to build or acquire a social network of its own. The company understands that while superior AI models are essential, they aren’t enough to win the race without mass user engagement and data streams that platforms like Meta and X can readily supply.

As the AI assistant space moves from novelty to necessity, distribution power may prove as decisive as technical prowess. With Meta’s user base now surpassing the billion mark, the company is positioned not only as a front-runner in AI—but potentially the first to truly embed it into daily digital life at scale.

The inevitability of AI monetization also means that Meta’s control of both infrastructure and distribution puts it in a rare position to turn scale into sustained revenue.

Salesforce’s aggressive artificial intelligence push isn’t just limited to its products. Speaking at a quarterly earnings call this week, Chief Operating and Financial Officer Robin Washington said the company has “reduced some of (its) hiring needs” as it outsources more work to AI. Engineering and customer service are seeing the most movement, and Washington says 500 customer service employees will be reassigned to other roles. Hiring hasn’t slowed down in all departments, however: Salesforce plans to beef up its sales ranks by 22%.

Boeing to Resume Jet Deliveries to China as Trump’s 90-Day Truce Softens Trade Standoff

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Boeing will resume aircraft deliveries to China next month, marking a breakthrough in the icy trade relationship between Washington and Beijing.

The move comes after months of stalled transactions that left the American aerospace giant shut out of its second-largest market. The restart also follows President Donald Trump’s announcement of a 90-day truce in the U.S.-China trade conflict earlier this month — a key development that appears to have paved the way for the return of Boeing jets to Chinese tarmacs.

CEO Kelly Ortberg confirmed the update on Thursday during a presentation at the Bernstein investor conference, saying China had now given the green light to resume deliveries after previously halting them amid heightened trade tensions.

“China has now indicated … they’re going to take deliveries,” Ortberg said. “The first deliveries will be next month.”

The renewed flow of Boeing jets into China highlights what could be a significant shift in U.S.-China commercial relations — one catalyzed by President Trump’s unexpected trade truce announcement on May 5. The 90-day pause in new tariffs and trade hostilities was framed by Trump as a window to “allow our teams to work on a more comprehensive agreement.”

The truce marked a rare cooling of rhetoric in a trade war that has spanned tariffs on billions of dollars worth of goods, export restrictions, and a near halt in cross-border industrial cooperation. For Boeing, which is often seen as a proxy for broader U.S. manufacturing and export health, the resumption is an early sign that the truce is already having commercial consequences.

Boeing has long depended on China’s booming aviation sector, fueled by a growing middle class and rapid domestic airport expansion, to drive long-term sales growth. But the company’s deliveries to Chinese airlines have slowed to a trickle in recent years, weighed down by regulatory uncertainty, pandemic disruptions, and a wider geopolitical chill.

Ortberg declined to comment on whether the resumed deliveries came with additional conditions or concessions but acknowledged that the development was “encouraging for everyone watching the U.S.-China dynamic.”

Boeing’s Strategic Stakes in China

China is not just a major buyer of Boeing aircraft — it is a critical linchpin in the company’s global business. The country is expected to account for nearly 20% of all global aircraft demand over the next two decades, according to Boeing’s own forecasts. Missing out on Chinese contracts leaves Boeing exposed to European rival Airbus, which has capitalized on the opening to deepen its footprint in the country.

Thursday’s announcement provides a shot in the arm to Boeing’s embattled commercial division, which has been trying to recover from a series of crises — including the two fatal 737 Max crashes and the more recent midair blowout of a door panel on an Alaska Airlines Max 9 jet. Those incidents invited waves of regulatory scrutiny and production restrictions, including a Federal Aviation Administration (FAA) cap limiting output to 38 Max jets per month.

However, Ortberg said Boeing is aiming to ramp up production to 42 planes per month by midyear and will assess increasing that number to 47 by the end of 2025. The company is also targeting certification for its Max 7 and Max 10 models by year-end, which would restore its full narrow-body lineup for the first time in years.

Even with the resumed deliveries, Boeing continues to face tariff pressures. Ortberg noted that the company is still paying duties on some imported aircraft components, particularly from Japan and Italy, used in the production of wide-body Dreamliner jets. Those jets are primarily assembled in South Carolina.

He, however, pointed out that most of those duties can be recouped once the aircraft are exported.

“The only duties that we would have to cover would be the duties for a delivery, say, to a U.S. airline,” he said, downplaying any lasting financial impact for international orders.

He added that the current trade environment, while volatile, is unlikely to be permanent.

“I personally don’t think these [tariffs] will be permanent in the long term,” Ortberg said, expressing cautious optimism about a thaw in U.S. trade relations with its key partners.

Ortberg’s leadership, which began last August, has won cautious praise from major airline CEOs, who had grown increasingly frustrated with Boeing’s delayed deliveries during a period of surging post-pandemic travel demand. United Airlines CEO Scott Kirby, speaking on CNBC Thursday, said he believed Boeing “has turned the corner.”

“We over-ordered aircraft believing the supply chain would be challenged,” Kirby said, noting that global production remains under strain even as demand returns.

Airlines have welcomed the prospect of more predictable Boeing deliveries, especially as summer travel season approaches and capacity constraints loom.

Turning a Corner or Temporary Relief?

While the resumed deliveries to China are a clear win for Boeing, questions remain about whether this shift is a permanent reordering of the U.S.-China trade balance — or just a temporary reprieve under Trump’s 90-day truce.

China’s willingness to re-engage in commercial aviation may indicate a strategic pivot to secure essential industrial partnerships while avoiding further economic fallout. For Trump, allowing Boeing to restart deliveries gives his administration leverage to claim a trade win — even as structural issues in U.S.-China relations remain unresolved.

In the meantime, Boeing is capitalizing on the opportunity, using the breakthrough to reset its narrative. The company still faces a long road to recovery, burdened by regulatory hurdles, production constraints, and the lingering reputational scars of its past missteps.