Happy Friday, newsletter readers! President Donald Trump’s tariffs (and the market reaction) are the story of the week, but a key step toward more of his domestic policy agenda is underway right now in the Senate — and our Congress team breaks down how it’s spotlighting some divides in the GOP’s narrow majorities. And ahead of this weekend’s “Meet the Press,” Kristen Welker goes through the three key questions Trump and his administration face on the tariffs. Plus, we answer a reader question about Elon Musk’s role in government.

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— Scott Bland

GOP concerns about tax cut strategy and Medicaid loom over Senate budget

By Julie Tsirkin, Syedah Asghar, Sahil Kapur, and Frank Thorp V

As President Donald Trump’s tariffs grab headlines, Senate Republicans are moving through the procedural steps to set up Trump’s tax plans and other major domestic spending priorities. But it’s not going to be easy for them to agree on exactly what to do.

Senate Republicans managed Thursday to advance their massive budget plan to debate, but not before an unexpected delay caused by some of their own who have concerns about their strategy on tax cuts and potential cuts to Medicaid.

Prior to debate commencing on the measure Friday, the delay occurred as those Republicans met with Senate Majority Leader John Thune, R-S.D., to talk through their concerns.

Some more centrist senators are worried about a budget change the party is using to slap a zero-dollar price tag on extending Trump’s tax cuts, which are estimated by the official scorekeeper in Congress to cost $4.6 trillion over a decade.

Republicans are delaying a reckoning over the issue after they bypassed the Senate parliamentarian on the question of whether they can use a “current policy” baseline to treat extending Trump’s 2017 tax cuts, which are set to expire this year, as costing nothing. But that means the move could be challenged later, and it could potentially blow up the bill if the parliamentarian rules against it — unless the Senate votes to overrule her, which some have likened to nuking the 60-vote filibuster rule.

A handful of Republicans have concerns that they will be asked to do that later in the process.

Another senator, Josh Hawley, R-Mo., said he has “a big concern” about the bill slashing Medicaid — and took his concerns directly to Trump in a phone call Thursday evening before the vote.

Twenty-one percent “of my state receives Medicaid — CHIP or Medicaid. So, I’ve made clear I’m not going to vote for Medicaid cuts. And I thought the president’s assurance to me tonight was completely unequivocal,” Hawley added, saying that assurance made him comfortable voting to begin the process.

That’s easier said than done. The House-approved budget, which Trump endorsed, makes it mathematically impossible for Republicans to achieve their targets without cutting Medicare or Medicaid. Lawmakers say they want to cut waste and fraud, along with imposing a potential work requirement for Medicaid. Beyond that, they haven’t identified ways to reduce spending.

Three questions about Trump’s tariffs

By Kristen Welker

President Donald Trump’s sweeping new tariffs have rattled the markets and raised new concerns about potential price hikes. While Trump campaigned on implementing tariffs, more questions remain as they take effect. 

First, how will the Trump administration explain the tariffs to the American public? 

“People don’t understand what the plan is, what the strategy is,” former Rep. Carlos Curbelo, R-Fla., told “Meet the Press NOW” on Thursday, later adding: “There are Republicans on the Hill who are wondering: Where are we going?” 

Another key question: What will the economic fallout look like? 

Trump warned that his trade policies would cause a “little disturbance” in his speech to Congress last month. And we’re already seeing markets rattled by the new tariffs, raising questions about the possibility of a national — or even global — recession. 

Some Republicans have indicated that the administration may need to rethink its policies if they result in an economic downturn. 

“If they make things better, they should want more; if it makes things worse, they should want to recalibrate,” Sen. John Kennedy, R-La., told our Capitol Hill team on Wednesday. 

And lastly: When are Americans going to reap the benefits of this trade policy? 

Trump told me back in December that he “can’t guarantee” American families will not pay more, later adding that tariffs “are going to make us rich.” 

The president also said on Air Force One last night that it could take “a year and a half to two years” to ramp up American manufacturing. But the administration has yet to lay out exactly when everyday Americans will start to benefit from these tariffs.

We’ll delve into these questions and more on “Meet the Press” this Sunday with Treasury Secretary Scott Bessent, Sen. Jim Lankford, R-Okla., and Sen. Adam Schiff, D-Calif.

I also talked to our friends over at NBCU Academy about how I prepare for a “Meet the Press” interview. Check out the video here!

✉️ Mailbag: Is the government paying Musk?

Thanks to everyone who emailed us this week! Here’s this week’s reader question:

“Is Elon Musk receiving a government salary?”

To answer that, we turned to national political reporter Ben Kamisar. Here’s his response:

That’s all From the Politics Desk for now. Today’s newsletter was compiled by Scott Bland and Faith Wardwell.

If you have feedback — likes or dislikes — email us at politicsnewsletter@nbcuni.com