Washington, DC

1. Bessent for ‘AI czar’?
2. Trump’s diesel dilemma
3. Trump defends Iran war
4. US’ competitive edge
5. US-China stalemate

Democrats lead Republicans 51%-42% on the generic ballot, according to Nate Silver’s model.

Bessent ahead in race for ‘AI czar’

Treasury Secretary Scott Bessent is emerging as a frontrunner for President Donald Trump’s new “AI czar” position, Semafor’s Ashley Gold and Shelby Talcott scoop. Bessent has long played a central role in the Trump administration’s AI policy, and this week he’s already held a critical early dialogue with Chinese Vice Premier He Lifeng on the sidelines of the UN General Assembly, ahead of Trump’s meeting with Chinese leader Xi Jinping. Bessent and He discussed a potential US-China “notification mechanism” to facilitate communication about AI incidents that pose threats to national security, as part of what Bessent said were talks about a formal US-China dialogue on AI. Importantly, Trump’s decision on his AI point person is not final, and he is known to favor dark-horse candidates.

Trump endorses diesel export ban

Trump said today he backs banning diesel exports, an idea Republicans in competitive races are pushing as prices hit a record $6.52 per gallon. But experts warn the move could backfire. “You would trap all of the diesel produced in the US, and that would very temporarily reduce diesel prices,” Jason Bordoff, director of Columbia University’s Center on Global Energy Policy, told Semafor. “But in the medium- to longer-term, it would discourage investment in US refining at a time when the world needs more of it,” he said, and “really damage the reputation of the US as a dependable partner in a global market.” Agriculture Secretary Brooke Rollins said yesterday she expects an announcement on diesel “very soon.” Today, Sen. Dan Sullivan, R-Alaska, joined half a dozen Republicans in calling for an export moratorium.

— Lauren Morganbesser

Trump uses world stage to defend Iran conflict

Trump used his time on the world stage at UNGA to send a message to Iran, prompting members of the Iranian delegation to walk out: “Will a deal be made with Iran that lets them rebuild and create a far greater country than it ever was before? … Or do I annihilate the Islamic Republic and do it quickly?” The president spent significant time defending the war with Iran as world leaders looked on, suggesting at one point that the two countries could make a deal after the midterm elections. Trump also highlighted his other foreign policy actions throughout his second term, from a 20-point peace plan in Gaza to the remaking of Venezuela. At one point, Trump even referenced Cuba, promising the country’s current government “will fall.” Those comments also prompted the Cuban delegation to leave mid-speech.

— Shelby Talcott

US hasn’t lost to China, DFC head says

The US can still compete with China in markets where Beijing has an established foothold, US International Development Finance Corporation CEO Ben Black said at Semafor’s The Next 3 Billion event in New York today, arguing that Washington can take on risky investments abroad while also delivering value to American taxpayers. “Just because you fell behind at one point doesn’t mean you cede the entire territory on the ground,” Black said, pointing to the recently announced investment in African digital infrastructure company WIOCC Group. Other speakers at The Next 3 Billion reflected on tariffs, AI, and energy disruptions: World Trade Organization Director-General Ngozi Okonjo-Iweala said the Trump administration’s tit-for-tat tariff war threatens to split the global economy into hostile trading blocs, while Nvidia’s head of sustainability pushed back against anti-AI sentiment, saying the backlash is driven in part by a “fear of the unknown.”

The summit won’t break the US-China stalemate

In Mao Zedong’s 1938 essay On Protracted War, penned during the Japanese invasion of China, he divided conflict into three phases: strategic defense, strategic stalemate, and strategic counteroffensive. Ahead of a leaders’ summit this week in Washington, US-China ties are stuck in the stalemate stage, deadlocked on everything from trade and technology to Taiwan — and it’s only a matter of time before hostilities ramp back up. Of course, there’s the mercurial Trump factor, which throws off any tidy analysis. The US president plans to personally greet Chinese leader Xi Jinping on the tarmac and has been conciliatory to Beijing ahead of these talks. But Trump could just as easily flip, perhaps if Republicans are routed in November’s midterms, as he did at the end of his first term when he blamed China and COVID-19 for his election defeat.

White House

• President Trump told a CNN reporter that “you should not be here covering me” at the United Nations, given the White House has banned the outlet.
• Trump made Secretary of State Marco Rubio’s “acting” national security advisor title permanent. — MSNOW

Congress

• The FBI dropped an investigation into campaign donations received by Sen. Susan Collins, R-Maine, after a purge of the bureau under President Trump. — ProPublica

Campaigns

• Republicans are starting to make moves to challenge Vice President JD Vance in 2028. — WaPo
• Former New Jersey Gov. Chris Christie, a Republican, is considering running for president again.
• Rep. Alexandria Ocasio-Cortez, D-N.Y., is still weighing whether to run. — NYT
• Troy Jackson’s Senate campaign is being reshaped by national Democratic consultants, creating tension with his grassroots Maine supporters and his “unapologetically progressive stances.” — NY Magazine

Polls

• A new Montana Senate poll from Aspect Strategic, commissioned by Montana Freedom PAC, shows Democrat Alani Bankhead cratering.

Healthcare

• The Trump administration said it removed about 760,000 Affordable Care Act enrollees’ coverage, citing fraud.

Economy

• The Nasdaq hit a record high for the first time since June and oil prices hit two-week lows.

Foreign Policy

• The US, Denmark, and Greenland signed a new security agreement giving the US broad military authority over Greenland while reaffirming the island’s sovereignty.
• An American military aircraft crashed at a US airbase in western Germany, injuring the pilot.
• State Department officials are expected to announce that 14 Latin American and Caribbean nations are labeling 25 criminal groups as terrorist organizations at the UN General Assembly this week. — NYT

Courts

• DoorDash will pay $131.5 million to settle claims that it underpaid delivery workers in New York City.

Immigration

• The Venezuelan man shot by an immigration officer in Austin over the weekend was taken to a hospital after experiencing paralysis on the left side of his body, according to his lawyer.

— President Trump sitting next to Ukrainian President Volodymyr Zelenskyy.

Laura McGann, editor

With help from Elana Schor, senior Washington editor, and Morgan Chalfant, Washington briefing editor

Graph Massara and Lauren Morganbesser, copy editors

Contact our reporters:

Burgess Everett, Ashley Gold, Eleanor Mueller, Shelby Talcott, Nicholas Wu, David Weigel, David Lim