Economy

Elon Musk said the “big, beautiful bill” will not help the nation’s finances, in an interview to be aired on “CBS Sunday Morning.”
“I think a bill can be big or it could be beautiful, but I don’t know if it could be both,” Musk said.

U.S. President Donald Trump and Tesla CEO Elon Musk, alongside Musk’s son X Æ A-Xii, speak to the press as they stand next to a Tesla vehicle on the South Portico of the White House in Washington, D.C., on March 11, 2025.
Mandel Ngan | AFP | Getty Images

Elon Musk criticized the Republican spending bill that recently made it through a House vote, saying it counters the work he’s been doing to reduce wasteful government spending.
In an interview to be aired June 1 on “CBS Sunday Morning,” the richest man in the world and the head of the Department of Government Efficiency advisory board said the “big, beautiful bill” will not help the nation’s finances.

“I was, like, disappointed to see the massive spending bill, frankly, which increases the budget deficit, not just decrease it, and undermines the work that the DOGE team is doing,” Musk said in a clip the program shared on social media platform X.
DOGE says it has saved $170 billion in taxpayer money since it began in January, targeting areas of government waste and redundancy in sometimes-controversial ways.
For instance, it has gutted the U.S. Agency for International Development and reduced staff elsewhere. DOGE-related moves have been responsible for some 275,000 government layoffs, according to Challenger, Gray & Christmas, a consultancy firm.
The sweeping One Big Beautiful Bill Act by contrast, is projected to raise the federal budget deficit by $3.8 trillion over the next 10 years, according to the Congressional Budget Office. The deficit is on track in 2025 to run close to $2 trillion, with the national debt now at $36.2 trillion.
“I think a bill can be big or it could be beautiful, but I don’t know if it could be both,” Musk said in the clip.

Trump and congressional Republicans counter that the bill reduces spending in key areas and will generate enough growth to compensate for the tax reductions. The legislation, though, is expected to face strong resistance in the Senate.
For his part, Musk has pulled back his DOGE work, saying he plans to focus on running his companies, which include X, Tesla and SpaceX. Musk had been a frequent presence in the White House since Trump’s election.
In an interview with The Washington Post published Tuesday, Musk said the federal bureaucracy is “much worse than I realized” and that DOGE became “the whipping boy for everything.” More

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Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Christine Lagarde has discussed cutting short her term as European Central Bank president to become chair of the World Economic Forum, according to WEF founder Klaus Schwab.Schwab, who left the WEF last month following misconduct allegations that he denies, said that practical arrangements — such as an apartment in Switzerland — had been made for Lagarde to take over the organisation before her tenure at the ECB ends in 2027.Any move by Lagarde to accelerate her departure from the ECB could trigger a succession race for the EU’s top monetary authority.Schwab told the Financial Times that Lagarde had been at the centre of a plan both had discussed for “several years” for her to replace him as head of the WEF, the body behind the annual meetings of the business and political elite at the Swiss ski resort of Davos.The latest conversation was in early April, when Schwab visited Lagarde in Frankfurt “to discuss with her the leadership transition [at WEF] with myself remaining chair until she was ready to take over, at the latest, early 2027”, he said in an interview.Schwab, left, and Lagarde at a WEF meeting in Davos in 2013 More

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.European companies in China have ranked a domestic slowdown in the world’s second-largest economy as a bigger challenge for them than the trade war, underlining the hurdles for Beijing as it negotiates with the US on tariffs. A record number of the 503 companies surveyed by the EU Chamber of Commerce in China also said doing business in the world’s second-largest economy had become more difficult and were pessimistic about future profitability. “Now, by a wide margin, it is China’s economic slowdown that is seen as having the greatest impact on future business,” said Jens Eskelund, EU Chamber of Commerce in China president, ahead of the launch of the survey on Wednesday.China’s economy lost a big growth driver during the pandemic when Beijing cracked down on the property sector, leading to a slump in domestic demand and persistent deflationary pressures. The country’s producers have increased exports to offset weak onshore demand but tensions with trading partners, particularly the US, which has imposed tariffs of more than 40 per cent on Chinese goods, are threatening to curtail growth in the sector.Over the past decade, China has also extensively pursued industrial policies that have led producers to expand in sectors where European manufacturers were among the world leaders, ranging from machine tools to industrial robots, shipping and automotives. The EU study found that 73 per cent of members reported that doing business in China became more difficult in the past year — the fourth year in a row of deterioration. Of the survey respondents, 71 per cent cited China’s economic slowdown as having the largest impact on their businesses, followed by US-China tensions at 47 per cent. Optimism about near-term future growth and profitability in China reached record low levels, of 29 per cent and 12 per cent respectively.The importance of China for European businesses’ global profits also diminished. Seven of 10 respondents said earnings before interest and tax (Ebit) margins in China were less than or equal to their worldwide average. Despite this, many said they were still sourcing a growing number of components from China because of its highly competitive pricing. “So it’s a little bit counter-intuitive that you have this movement where companies are super pessimistic, they are not earning money, there is a politicisation, there are market access barriers, but for economic reasons we are beginning to see that you simply need to have a presence in China to source components in order to stay competitive,” said Eskelund.Despite government pledges to improve the business environment for foreign investors, a record 63 per cent said they had missed business opportunities last year owing to regulatory and market barriers. Over the next five years, 44 per cent expected the number of regulatory obstacles they faced to increase.The findings mirror some of those from other foreign chambers of commerce. The British Chamber of Commerce in China in a recent position paper said “major market access challenges remain”.It cited factors including China’s lack of recognition of professional qualifications to its licensing regimes and cross-border data rules as in need of reform.But British business had seen “an increased willingness on both sides to engage” to discuss the commercial relationship, said Chris Torrens, vice chair of the British chamber. More

This article is an on-site version of our FirstFT newsletter. Subscribers can sign up to our Asia, Europe/Africa or Americas edition to get the newsletter delivered every weekday morning. Explore all of our newsletters hereGood morning. Today we’ll be covering:Musk’s rebuke of Trump’s “big, beautiful” billMcKinsey’s steep headcount cutsBrazil’s diplomatic battle against US sanctions on one of its judgesWhat makes the perfect cheeseburgerGood morning. Elon Musk has slammed US President Donald Trump’s “big, beautiful” tax bill, claiming it “undermines” the so-called Department of Government Efficiency’s cost-cutting work by increasing the fiscal deficit.What Musk said: In a preview of an interview with CBS Sunday Morning released late yesterday, the Tesla chief executive said he was “disappointed to see the massive spending bill, which increases the budget deficit . . . and undermines the work that the Doge team is doing . . . I think a bill can be big, or it can be beautiful. But I don’t know if it can be both.”Why it matters: The comments are Musk’s strongest rebuke of the Trump administration to date, and reveal one of the tensions within the GOP between Trump and Republicans who want the administration to be more hawkish on the deficit. The president had to browbeat several congressional holdouts to back the bill, which non-partisan groups say will increase public debt by $3.3tn. Musk pulled back from his role at Doge last month to focus on his business endeavours, saying he had “done enough” to support political causes. Art of the barter: The president has offered Canada free protection from the US’s ambitious “Golden Dome” missile defence shield if the country relinquishes its sovereignty.Touchdown troubles: Musk’s company SpaceX suffered another setback yesterday, after its Starship rocket failed to deliver its payload and exploded on re-entry.Here’s what else we’re keeping tabs on today:Economic data: The US Federal Reserve publishes minutes from its last rate-setting meeting.Oil: Opec and the non-Opec ministerial monitoring committee meet to review production output policy. Results: Nvidia, HP and Salesforce report.Five more top stories1. European Central Bank President Christine Lagarde discussed cutting short her term at the bank to become chair of the World Economic Forum, the think-tank’s founder Klaus Schwab said. Schwab told the Financial Times that a Switzerland apartment had already been reserved for her. An ECB spokesperson said Lagarde was “determined to complete her term”. 2. McKinsey has cut more than 10 per cent of its staff in the past 18 months, reversing a big expansion plan that peaked during the pandemic. The job cuts, among the largest in McKinsey’s nearly 100-year history, reflect the sharp slowdown in revenue growth across the consulting market.3. Listed companies are increasingly buying bitcoin, after its huge rally and the Trump administration’s favourable stance towards digital assets tempt investor appetite. Many firms are trying to emulate the success of software company Strategy, which has accumulated 580,000 bitcoin and commands a market value of more than $100bn.4. Saudi Arabia’s new state-owned artificial intelligence venture will seek investment from US Big Tech companies as it aims to turn the kingdom into a global AI hub. Humain’s chief executive said he was in talks with OpenAI, Musk’s xAI and Andreessen Horowitz. Andrew England and Ahmed Al Omran have more details from Riyadh.5. A US private military contractor has hired an obscure Palestinian group to staff its aid distribution centres in Gaza under a controversial, Israel-backed scheme. Safe Reach Solutions — run by an ex-CIA officer — had approached prominent local businessmen to run the hubs, but they refused to participate, arguing that doing so would amount to forced displacement of people in the enclave.The Big Read© FT montage/Getty Images/Rory GriffithsLaunched a decade ago, Beijing’s “Made in China” industrial policy sought to achieve 70 per cent domestic market share across Chinese manufacturing of “core basic components and key basic materials” by 2025. Today, its aggressive investments in domestic production have successfully established the country as a supply chain leader — but at what cost? We’re also reading . . . Curiosity’s value: We must recognise and protect the pipelines that lead from scientific research to real-world benefit, writes Anjana Ahuja. 401k plans: Should ordinary US retirement accounts be investing in private assets? Even some in private equity are worried, writes Brooke Masters.Brasília’s battle: Brazil is fighting to stop the US imposing sanctions on one of its supreme court judges, who is overseeing the prosecutorial case against ex-president Jair Bolsonaro for allegedly plotting a coup.Chart of the dayRussia’s wartime economy has padded out pay packets, according to FT analysis — and bolstered domestic support for the war in Ukraine.Some content could not load. Check your internet connection or browser settings.Take a break from the newsWhat makes the perfect cheeseburger? One chef says it’s all about the patty: “You need the perfect synthesis of aged beefy funk, bold assertive savour, a firm meaty density, but a forgiving and indulgent yield on the bite.” HTSI grills the experts.A double cheeseburger at Buster’s in Brixton More

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Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.India has offered “deep” cuts to its import tariffs on a swath of goods in talks with the US, but is seeking to retain its high levies on sensitive agricultural commodities such as foodgrains and dairy products, according to two people with knowledge of the negotiations. The government of Prime Minister Narendra Modi is racing to secure a preliminary trade agreement with the US to forestall President Donald Trump’s threatened imposition of a 26 per cent “reciprocal tariff” on all Indian goods from July 9. “There is a possibility of a very deep tariff reduction from India under the bilateral trade agreement,” said one of the people familiar with India’s stance on the talks, who asked not to be identified because they were confidential. “But this is subject to a very balanced outcome for both sides.”The people with knowledge of the talks declined to give details of the range of US goods on which New Delhi had offered to substantially cut tariffs because the negotiations were at an “early stage” and might be complicated by any backlash from affected industries.But they said India’s trade negotiators had signalled flexibility on less sensitive farm products such as almonds, which are currently subject to tariffs of up to 120 per cent, and New Delhi might also cut its tariffs of 2.5 to 3 per cent on imported oil and gas. Indian trade officials have privately said any opening to the US would in large part mirror that seen in other recent trade pacts. In a deal with the UK agreed this month, India agreed to cut tariffs on alcoholic spirits, cars including electric vehicles and car parts, and engineering goods. Some content could not load. Check your internet connection or browser settings.The descriptions of India’s offer so far suggest it will fall far short of expectations voiced by Trump last month, when he said: “They’ve offered us a deal where basically they’re willing to literally charge us no tariff.”India’s trade negotiators were taking a firm line on retaining its hefty duties on core agricultural commodities such as wheat, rice and maize and on dairy products, sectors that employ millions of Indians, the two people said.India currently imposes tariffs of 70-80 per cent on US rice and of 30-60 per cent on American dairy products.India Business BriefingThe Indian professional’s must-read on business and policy in the world’s fastest-growing big economy. Sign up for the newsletter here For its part, New Delhi has pushed Washington to cut US tariffs for goods made by labour-intensive industries including gems and jewellery, textiles, footwear, leather and handicrafts, the people said. Modi’s government would also push for social security payment exemptions for Indian workers posted to the US on short-term visas. India has asked Washington to grant this before and won a similar concession from the UK in the agreement announced this month. Some content could not load. Check your internet connection or browser settings.India’s commerce ministry declined to comment. The White House, US commerce department and office of the US trade representative did not immediately respond to requests for comment.Trump in early April paused for 90 days the “reciprocal tariffs” he imposed on India and scores of other countries, but retained a blanket import duty of 10 per cent. India, which has some of the world’s highest average tariffs, is now rushing to secure a framework agreement with the US. Indian commerce minister Piyush Goyal met US counterpart Howard Lutnick and US trade representative Jamieson Greer in Washington last week.The two countries say they plan to agree the first tranche of a bilateral trade agreement by the autumn and to more than double bilateral trade to $500bn by 2030.India, the world’s largest milk producer, has successfully pushed to protect big, politically sensitive sectors such as dairy in other recent trade pacts, including one with Australia in 2022. India has almost 200,000 dairy co-operative societies totalling about 15mn members, mainly small herding families.Some content could not load. Check your internet connection or browser settings.India and the US have two of the world’s three largest farming sectors, but New Delhi has since independence in 1947 kept high tariff walls around agriculture, which employs nearly half of the workforce of the world’s most populous country. Agriculture is a sensitive topic for the Modi government, which was in 2021 forced to abandon legislation reforming the sector after mass farmer protests.India has made similar demands to protect dairy and other sensitive farming sectors in trade talks with the EU, according to senior European diplomats and Indian officials in New Delhi. However, the negotiations with Washington are particularly challenging as the US is India’s largest trading partner, and Trump has frequently criticised its high import levies, once even calling it a “tariff king”.Trump last week criticised iPhone maker Apple’s plans to expand manufacturing in India, which has already helped make mobile phones one of the country’s biggest exports to the US. More

As President Trump’s tariffs have ratcheted up in recent months, so have the mysterious solicitations some U.S. companies have received, offering them ways to avoid the taxes.Shipping companies, many of them based in China, have reached out to U.S. firms that import apparel, auto parts and jewelry, offering solutions that they say can make the tariffs go away.“We can avoid high duties from China, which we have already done many in the past,” read one email to a U.S. importer.“Beat U.S. Tariffs,” a second read, promising to cap the tariffs “at a flat 10%.” It added: “You ship worry free.”“Good News! The tariffs has been dropped finally!” another proclaimed.The proposals — which are circulating in emails, as well as in videos on TikTok and other platforms — reflect a new flood of fraudulent activity, according to company executives and government officials. As U.S. tariffs on foreign products have increased sharply in recent months, so have the incentives for companies to find ways around them.The Chinese firms advertising these services describe their methods as valid solutions. For a fee, they find ways to bring products to the United States with much lower tariffs. But experts say these practices are methods of customs fraud. The companies may be dodging tariffs by altering the information about the shipments that is given to the U.S. government to qualify for a lower tariff rate. Or they may move the goods to another country that is subject to a lower tariff before shipping them to the United States, a technique known as transshipment. More