Wisconsin and Florida Election Results; Trump's Tariff Announcement
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Good morning, I'm Nathan Hager. And I'm Karen Moscow. Here are the stories we're following today. Karen, we begin with election results in two key states. We'll start in Wisconsin, where voters picked a state Supreme Court justice in a race that billionaire Elon Musk poured roughly $20 million into. With 98% of the votes counted, Musk's preferred candidate, Brad Schimel, lost to Democrat-backed Susan Crawford 55% to 45%. Wisconsin stood up and said...

loudly that justice does not have a price. Our courts are not for sale. Susan Crawford's campaign did raise $24.6 million. That was more than double Schimel's haul. Schimel told his supporters that he called Crawford to concede. We will rise again. We'll get up to fight another day.

But this wasn't our day. Brad Schimel's defeat keeps a 4-3 liberal majority in place in Wisconsin's Supreme Court. The result could have implications in cases on abortion rights and labor laws, along with congressional redistricting ahead of next year's midterm election.

Well, Nathan, Republicans had a better night in Florida. They held on to two House seats in special elections to replace former Congressman Matt Gaetz and Mike Waltz. In Waltz's 6th district, Randy Fine defeated Democrat Josh Weil by a 14 percentage point margin, 56.7 to 42 percent. That was well below Waltz's 33 point margin of victory in November. But Fine says

It's a result that counts. It's a special election. You have to look at the turnout. I mean, there were twice as many people that voted. I don't think you can read much into it. We won by double digits. We're super excited. And along with Randy Fine, Republican Jimmy Patronis beat Democrat Gay Valamont in Matt Gaetz's old first district. Patronis told his supporters there's one takeaway from the race. This election is a reminder that Florida panhandle will forever be red and it'll be forever Trump country.

Jimmy Petronas won by nearly 17 points over Valamont, 56.9 to 42.3 percent. And Gates defeated Valamont in November by a 32-point margin. Well, now, Karen, let's get to the story that the world is bracing for. President Trump's team is finalizing plans for reciprocal tariffs. They're set to be unveiled after the close of today's trading. We begin our global team coverage with Bloomberg Trade Czar Brendan Murray.

There's a range of options that the administration is still weighing. It starts with a very simple flat rate for all countries across the board. 20% has been thrown around. Then there's a tiered system where you divide countries into, say, three groups.

and each group gets a different tariff rate. Or there's the customized, each country gets its own tariff rate route that the president could go. He's got all these options on the table from what we hear from his advisors is he hasn't made that decision yet.

Bloomberg's Brendan Murray says the tariffs are expected to take immediate effect with countries able to negotiate to bring rates down. A Trump trade advisor says the president's aiming to raise $700 billion a year in tariff revenue. Well, Nathan, how will the world react to the Trump tariffs? The European Union is expected to be one of the hardest hit by the U.S.,

Bloomberg's Oliver Crook continues our global team coverage in Berlin. I think unfortunately for the EU, just like everybody else, everybody knows what it's called, Liberation Day, but they don't know what's in it. So what they've got to do is sort of produce a menu of different options given what the potential moves of the Trump administration could be.

and basically be ready to deploy them, you know, as soon as possible. They have been taking a slightly more measured approach than the EU has in the past in terms of these trading discussions with the Trump administration. They want to take a measured response. You know, we heard from Ursula von der Leyen, the president of the EU Commission yesterday, saying that basically, you know, what we've heard from the EU from the very beginning, we didn't start this, we don't want this, we want to negotiate a deal. But at the end of the day, we will respond and we will respond powerfully if we have to.

Bloomberg's Oliver Crook says one of the most extreme retaliations by the EU could be the first ever use of its anti-coercion instrument, which could lead to restrictions beyond trade and services. And Karen, Asia is also anxiously awaiting the tariff announcement. Bloomberg's Stephen Engel has that angle as we continue our global team coverage from Hong Kong.

Right now, we know that President Xi Jinping has essentially instructed his bureaucrats to remain calm through this period, wait to hear what those reciprocal tariffs will do to China tariffs, which, of course, the Trump administration version 2.0 has added 20 percent because of the fentanyl issue. So they're bracing for the worse and the better outcomes.

The problem is there hasn't been a lot of high-level negotiations or even discussions between the two sides. Bloomberg's Stephen Engel in Hong Kong says China thinks the tariffs already in place are unjustified. Well, Nathan, Canada is also bracing for the extent of Trump's tariffs. Bloomberg's Derek DeCluid wraps up our global team coverage from Toronto. I'd say the mood right now in the country and from what we can tell in the government is both...

anxiety and a little bit of curiosity because there has not been a lot of information flow from the White House to his trading partners about how this is going to work. So Trump has said a lot of different things about Canada in his second term so far. How high will these tariffs be and what will the carve-outs be? Will they go after Canadian oil, for example? Canada's got a lot more at stake here than almost every other country.

Bloomberg's Derek DeKluet reporting from Toronto. And stay tuned for Bloomberg's live coverage of President Trump's tariff announcement. We'll have complete coverage on Bloomberg Radio, Bloomberg Television, and on the Bloomberg podcast page on YouTube. Along with the tariffs, Karen, we're keeping an eye on this. President Trump has said for months that the U.S. will take over Greenland one way or another.

Now that rhetoric may be turning into policy. According to the Washington Post, the White House is drawing up a cost estimate to take over the Arctic territory. The report says one option being considered is to offer a sweeter deal to Greenland's government than Denmark. The NATO ally currently subsidizes the island to the tune of $600 million a year.

Nathan, Republican lawmakers are in the process of drafting a new tax bill behind closed doors that includes an increase in the state and local tax deduction or SALT. Bloomberg's Amy Morris has the latest. Sources tell Bloomberg the bill includes a SALT cap increase of $25,000 for an individual, a sizable increase from the current $10,000 limit.

That would be a big political victory for swing statehouse Republicans representing the New York City area and Southern California. Sources say the plan also includes a renewal of President Trump's 2017 tax reductions, with possibly offsetting the increase by reducing the deductions corporations can claim. The plan is still in the process of being drafted. It is not yet final.

In Washington, Amy Morris, Bloomberg Radio. Amy, thank you. We now move to markets where futures are lower this morning. Yesterday, stocks eked out gains as we kicked off the second quarter. Anne Mileti is head of active equity at Allspring Global Investments. She's bullish on stocks long term. In this environment, it's looking for opportunity instead of risk. I would say...

Three months ago, we were looking for where the risks were in the market, and that was in concentration and speculation and a lot of those other areas. Now it's looking for opportunities. And, you know, we believe investors should stay invested in equities. It's been the long-term place to be to win.

So if you're going to stay, where do you want to be? And it's outside of those momentum, concentration, speculation areas. All Springs and Mileti adds the Trump administration's tariffs will cause disruption that will lead to investment opportunities.

Well, Nathan, Tesla has certainly been one of the hardest hits so far this year. And today, investors will be getting an update on how business is faring. We get the latest with Bloomberg's John Tucker. John, good morning. Good morning, Karen. About 9 a.m. Wall Street time, Tesla is going to report how many vehicles it delivered during the first three months of this year. Elon Musk's company has had a brutal start to the year with vandalized showrooms, paused production lines and

tanking sales overseas. Wedbush analyst Dan Ives telling clients on a recent note the anti-Musk and brand issues are clearly at play and a major factor. Analysts expect Tesla delivered about 390,000 cars in the first quarter, potentially its worst quarter in a year. Pre-market Tesla shares down 1%. I'm John Tucker, Bloomberg Radio.

It's time now for a look at some of the other stories making news in New York and around the world. And for that, we're joined by Bloomberg's Michael Barr. Michael, good morning. Good morning, Karen. Democratic Senator Cory Booker of New Jersey broke the record for the longest floor speech in recorded Senate history. I yield the floor.

After more than 25 hours, Booker bested Senator Strom Thurmond's filibuster of the Civil Rights Act of 1957. Booker's speech was meant to highlight what he called a looming constitutional crisis in the many early actions taken by President Donald Trump in the first weeks of his term. We have a government now.

As I said earlier, that isn't ask not what your country can do for you, but what you can do for your country. We have a country now where a president says, ask not what your country can do for you, ask what you can do for Donald Trump. Senator Booker invoked the late Congressman John Lewis, who organized during the civil rights movement. Val Kilmer has died. The versatile actor played flying ace Iceman opposite Tom Cruise in Top Gun. You are still dangerous. Yeah! Yeah!

You can be my wingman anytime. Kilmer also played Batman in Batman Forever and singer Jim Morrison in the biopic The Doors. Kilmer's daughter says he died in Los Angeles from pneumonia. He had been diagnosed with throat cancer in 2014. Val Kilmer was 65.

U.S. Attorney General Pam Bondi says she has directed federal prosecutors to seek the death penalty against Luigi Mangione, the man accused of gunning down UnitedHealthcare CEO Brian Thompson outside a Manhattan hotel on December 4th.

Mangione, who is 26, faces separate federal and state murder charges for the killing. The federal charges include a charge of murder through the use of a firearm, which carries the possibility of the death penalty. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr. This is Bloomberg, Karen. All right, Michael Barr, thank you.

When you have bars in the sky, onboard showers and award-winning in-flight entertainment, it's no surprise that Emirates was recently named the best airline in the world. We fly you to over 140 destinations and with partners across the globe, we connect you to another 1,700 cities across six continents. So when we say we're also the largest international airline, what we really mean is...

If you're going there, so are we. Book now on Emirates.com. Fly Emirates. Fly better.

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where money means more. When your company has a position to fill, are you really seeing the best professional candidates? Sure, you get plenty of resumes, but you may be missing an untapped resource. Ideal candidates not currently job searching. People not actively looking, but who may be open to the right opportunity. It can be the difference between a good hire and a great hire.

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Time now for the Bloomberg Sports Update, brought to you for that we bring in John Staschauer. John, good morning. Good morning, Karen. The Yankees looking for a 4-0 start to the season. Took a 4-2 lead to the eighth inning. Arizona to that point had only one hit, but they scored a run, had the bases loaded as Gino Suarez faced Mark Leiter. Yankee Stadium crowd on its feet. Leiter's 2-2, hit high and deep left field. Bellinger to the track, to the wall.

It's a grand slam for Suarez!

On TNT, they won 7-5 in defeat. Three more Yankee home runs, all from youngsters Jason Dominguez, Anthony Volpe, and Ben Rice. But the Yanks had only two other hits. They've hit 18 homers in their first four games. That's a Major League record. In Miami, a game with all the scoring in the first four innings, Marlins beat the Mets 4-2, Nationals lost in Toronto 5-3. At the guard of the Knicks played without Carl Anthony Townsend. Again, their top three point guards.

Still completed a season sweep of Philadelphia 105-91. OG Ananobi scored 27. It'll be tougher for the Knicks tonight in Cleveland. In Boston, Alex Ovechkin with career goal number 891. Can he score four more times in the Capitals' last eight games and break Wayne Gretzky's career scoring record this season? The Caps won 4-3.

Six straight loss for the Islanders, beaten by Tampa Bay 4-1. The Rangers' playoff hopes dealt the blow with wins by both Montreal and Columbus. From college hoops, Buzz Williams leaving Texas A&M to be the new coach at Maryland, replacing Kevin Willard, who left for Villanova. John Staschauer, Bloomberg Sports, Karen and Ethan.

Coast to coast on Bloomberg Radio. Nationwide on Sirius XM. And around the world on Bloomberg.com and the Bloomberg Business App. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. It is the morning after the first major elections since President Donald Trump's return to the White House. Voters in Wisconsin and Florida delivered a split decision for the national parties.

Republicans held on to a pair of House seats in the Sunshine State, while Democrats scored a win backing Susan Crawford in a Wisconsin Supreme Court race that pitted her against Brad Schimel and about $20 million in spending by Elon Musk. Wisconsinites fended off an unprecedented attack on our democracy.

That was Susan Crawford in her victory speech last night in Wisconsin. Joining us this morning from Washington, Terry Haynes, the founder of Pangea Policy. Terry, of course, that was the message that Susan Crawford wanted to send. What was the message that you received from the Wisconsin vote last night? Good morning.

Hi, good morning, Nathan. It's a split decision, as you say, and the expected results happened. So these things are usually touted by the established parties and their workers to provide a sense of direction overall. If I were Democrats, I wouldn't be taking much of anything from this. Ms. Crawford wanted Wisconsin

the Minnesota, excuse me, the Wisconsin Supreme Court stays as it is. The balance in Florida stays as it is. And with a hundred, excuse me, with half the votes in one district, for example, the Republicans still won by almost 60 percent. So, you know, net, net, it's a draw. And but more importantly, this says nothing about the direction of travel in Washington.

Well, what does it say, Terry, about the brand of Elon Musk style politics, pouring tens of millions of dollars and giving away money to voters in some of these races? Does that still have legs on a national level?

Well, you know, both parties do this. Musk is a relatively new and high-profile adherent to this. But there are lots and lots of similar Democrat organizations that do much of the same thing. They do it with a little less splash than Musk does. But

I think the parties will continue to welcome those kinds of donors. Dark money is still out there. Max donors are still out there. These kinds of things have, frankly, the maximum effect in America.

special elections such as this, which is precisely why you can't really read much of anything about the public reaction from special elections of this kind. And in the special elections in Florida, Republicans did hold onto those House seats, but by narrower margins than in November. Should that be a concern for Republicans?

You know, I wouldn't be I would always be concerned about new members going from a special into their first major race. The midterms in 2026 are going to be a very different environment than a special election. And so those candidates need to be.

brought in and they need to be, you know, frankly, stood up and made into better candidates. Just 30 seconds, Terry, but we're hearing President Trump's tariff decisions coming down to the wire before the 4 p.m. Wall Street time announcement. Are we going to get clarity this afternoon?

Yeah, I think you will. I think what you get from it is, dovetailing with your reporting, the overall goal here is to lower things. This is a start of a negotiating process. Treasury Secretary Besson has confirmed that these things are going to be a cap. And going forward, this is going to be a negotiating process that's, as Besson says, path dependent. It's dependent on what other folks do. So

What's going to happen here, I think, is markets react well to clarity and they're going to get some. And they're also going to see that the United States and other countries both are committed to lowering tariffs rather than continuing to raise it. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed by 6 a.m. Eastern each morning on Apple, Spotify or anywhere else you listen.

You can also listen live each morning starting at 5 a.m. Wall Street time on Bloomberg 1130 in New York, Bloomberg 99.1 in Washington, Bloomberg 92.9 in Boston, and nationwide on Sirius XM Channel 121. Plus, listen coast-to-coast on the Bloomberg Business app now with Apple CarPlay and Android Auto interfaces.

And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it, in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. I'm Karen Moscow. And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak. What caffeinated foodstuff is currently suffering a shortage? What company's new AI model is called QWQ32B?

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