Reuters World News - Kashmir attack, Musk at DOGE and Tesla, steel country and State Dept

Episode Date: April 23, 2025

Dozens have been killed after suspected militants opened fire at tourists in India's Jammu and Kashmir territory. Elon Musk says he will significantly cut back the time he devotes to the Trump administration and spend more time running his companies after Tesla net profits dropped 71% in Q1. Plus, the challenges facing America’s steel country and the major overhaul proposed for the U.S. State Department. Find our recommended read on Brazil's new super-size cocoa farms here. Sign up for the Reuters Econ World newsletter here. Find the latest podcast episode here. Visit the Thomson Reuters Privacy Statement for information on our privacy and data protection practices. You may also visit megaphone.fm/adchoices to opt out of targeted advertising. Learn more about your ad choices. Visit megaphone.fm/adchoices

Today, militants open fire on tourists in India's Kashmir, killing dozens. President Trump wants to rebuild the U.S. steel industry, but will there be any workers? Marco Rubio shakes up the U.S. State Department. And Elon Musk says he'll cut down work on Doge and focus on Tesla. It's Wednesday, April 23rd. This is Reuters World News, bringing you everything you need to know from the front lines every weekday. I'm Tara Oaks in Liverpool.

And I'm Sharon Reisch Garson in New Jersey. First today, a deadly shooting in Kashmir. India's Interior Minister Amit Shah laying a wreath alongside the coffins of some of the victims after suspected militants opened fire at tourists. At least 26 people were killed in the scenic Himalayan town of Pahalgam. Vigils and protests have followed Tuesday's attack,

which is worst on civilians in India since the 2008 Mumbai shootings. And is prompted Prime Minister Narendra Modi to cut short a two-day visit to Saudi Arabia. Many more people were injured in the shooting, which has shattered the relative calm in Kashmir, where tourism has boomed as violence has waned in recent years. For more on the story, check out Reuters.com on the Reuters app. U.S. President Donald Trump says he won't play hardball with China, promising that tariffs will be nowhere near the 145 percent mark.

It'll come down substantially, but it won't be zero. Trump also says the U.S. will decide terms if Beijing doesn't cut a trade deal. We talked in yesterday's episode about Trump's threats against Fed Chair Jerome Powell. Now, Trump says he has no plans to fire Powell, but he does want interest rates to be left. lowered. The remarks could ease concerns over the central bank chief's future that have rattled investors. Two U.S. judges have extended temporary blocks on some deportations of Venezuelan migrants. The move signals that President Donald Trump's invocation of a 1798 law used in wartime

to speed up their removal from the United States may not survive judicial review. U.S. Secretary of State Marco Rubio has canceled his trip to Ukraine talks, in London. Chances of any breakthrough looks slim after many other foreign ministers also pulled out, despite US pressure for a deal. Sources say that recognising Russia's illegal annexation of Crimea was among the US proposals, a non-starter for Europe and Ukraine. A grand procession around the Vatican as Pope Francis Boddy is moved to St. Peter's Basilica, he will lie in state until Friday evening to allow people to pay their final.

respect. Trump and dozens of other leaders will attend his funeral this Saturday. And Trump's economic approval rating has dropped, according to a Reuters Ipsos poll. As he approaches his 100th day in office, only 37% of those polls approve of his handling of the economy. The reading is well below any point in his first term. More time for Tesla. CEO Elon Musk says he'll significantly cut back his commitments to the Trump administration from next month and focus more on running his many companies. In the first quarter of this year, Tesla's auto revenue dropped 20%, and its net profit fell 71%. Musk's involvement in the so-called Department of Government Efficiency, where he's led efforts

to cut federal jobs, has become a political lightning rod, fueling protests and vandalism at Tesla showrooms. Treasurers of seven U.S. states have raised concerns about his lack of focus on the electric vehicle maker, given its significance in regional industries and employment. Tesla shares spiked to trade up 5.5% on Musk's comments. The stock has nearly halved from its December peak. President Donald Trump says he wants his tariffs to help rebuild manufacturing in the American heartland. But in steel country, foreign competition, while a drag...

on steel prices isn't the biggest challenge for steel companies. It's finding workers. Our reporter Tim Appel recently traveled to Mississippi County, Arkansas, to find out why. It's a former cotton-growing region where that was sort of the industry for many years. And then in recent decades, however, it's developed itself into, they call themselves in the land of steel, because at this point, nearly a quarter of the 20,000 jobs in the county are in steel mills or in steel companies. One of the challenges they have in Mississippi County is that the county has gone through a long economic decline.

And when you travel around the area, the downtown of Blyville has mostly empty storefronts. There's very little new housing. I mean, one of the things that the steel industry has done is help start a local program that gives people up to $50,000 and forget, loans if they'll build a house and stay in a job for four years, just to try to get more people to live and work near the steel mills. The jobs are very well-paying jobs. You're in Mississippi

County. The data shows that people in the metals-related businesses earn just over $116,000 a year on average. So they are able to attract people, but they have to cast a pretty wide net. Over half of the people that work in the steel industry actually commute from outside the county. And what some of them do is they set up an RV or they get a local temporary apartment, which during the week they live in and then they commute back and forth because some of them drive four to six hours to commute to these jobs. The U.S. as a whole, stopped training lots of factory workers decades ago, and a lot of those workers that are in that sector are retiring. In the meantime, the manufacturing sector has gone through this long decline. So a lot of younger Americans look at these jobs and see them as precarious and not very attractive. So that's one of the challenges for reviving manufacturing that the Trump administration would have to tackle.

Secretary of State Marco Rubio is overhauling the State Department to align with President Trump's America first priorities. The proposal would eliminate 132 bureaus and offices, some working on war crimes and rights advocacy. officials have 30 days to assess how many jobs will be cut. Our deputy foreign affairs editor, who Mayor of Pamuk, is in Washington. Tuesday's announcement is not as dramatic as many have feared, and a senior State Department official briefing the reporters about these plans said Tuesday's announcement

is almost entirely focusing on the department's domestic workforce in Washington. One of the biggest changes is the administration wants to completely shut down the Bureau that used to work on war crimes and accountability. This Bureau was cooperating with Ukrainian prosecutors to investigate potential Russian war crimes in Ukraine. And in the new organizational chart that they have shared with the reporters, that office disappears. Now, the offices that are going to be closed are in the U.S., right? will that affect the work that the State Department does overseas as well? This is probably the first stage of this reorganization. There will be more.

There's probably going to be some shutdowns of U.S. foreign missions abroad. And I think we're looking at a U.S. State Department that is much more focused on its own region because preventing illegal migration is the top priority for Donald Trump, and we definitely see a waning interest of promoting human rights and democracy abroad. In the past, Washington was willing to push for some of those values, but right now we're looking at a State Department, which is effectively saying, this is really no longer that much of a priority for me.

I actually see it as a meddling into the domestic affairs of the countries. What's the point of angering them while I can do business deals with them? Our recommended read today introduces us to Moises Schmidt, a farmer in Brazil, who's developing the world's largest cocoa farm. His $300 million plan is to revolutionize the way cocoa is produced and capitalize on soaring prices. It's one of several supersized projects under development there, and you can find out more by clicking on the link in the pod description.

For more on any of the stories from today, check out reuters.com or the Reuters app. Don't forget to follow us on your favorite podcast player. We'll be back tomorrow with our daily headline show.