U.S., China reach deal to ease export curbs, keep tariff truce intact... U.S. and Chinese officials said after two days of meetings in London they had agreed on a framework deal. President Donald Trump said the U.S. deal with China is done, with Beijing to supply magnets and rare earth minerals while the U.S. will allow Chinese students in its colleges and universities. “WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT!” Trump wrote on Truth Social.
Commerce Secretary Howard Lutnick said the framework deal puts “meat on the bones” of an agreement reached last month in Geneva to ease bilateral retaliatory tariffs. Lutnick said the agreement would remove restrictions on Chinese exports of rare earth minerals and magnets and some of the recent U.S. export restrictions “in a balanced way,” but he did not provide specific details.
China’s top trade negotiator Li Chenggang said, “We hope that the progress we made... will be conducive to increasing trust.”
While officials on both sides were cautiously optimistic, they acknowledged that challenges remain. U.S. Trade Representative Jamieson Greer said, “There are some things that the Chinese and U.S. economies just don’t fit together very well.”
The current 90-day trade truce — which reduced U.S. tariffs on Chinese goods from as high as 145% to 30%, and China’s retaliatory tariffs from 125% to 10% — is set to expire Aug. 12 unless extended.
Both sides appear eager to avoid a collapse in negotiations — but the road to a broader trade agreement remains politically charged.
Appeals court keeps Trump-era tariffs in place — for now... The U.S. Court of Appeals for the Federal Circuit has ruled that tariffs imposed under the Trump administration using the International Emergency Economic Powers Act (IEEPA) will remain in effect while legal proceedings continue. This decision extends a previous stay of a ruling by the Court of International Trade (CIT), which found the tariffs lacked proper legal justification under IEEPA.
In its order, the appeals court noted it will hear oral arguments in the case on July 31, setting an expedited schedule that both sides had requested. However, the three-judge panel offered no indication of how it might rule, only stating, “Both sides have made substantial arguments on the merits.”
Plaintiffs challenging the tariffs expressed disappointment that the levies will remain in place for now but welcomed the court’s decision to fast-track the proceedings.
If the losing party chooses to appeal after the Federal Circuit’s decision, the case is widely expected to reach the U.S. Supreme Court. The case could have major implications for presidential tariff authority under IEEPA.
World Bank cuts global growth forecast amid trade uncertainty... The World Bank slashed its economic global growth forecast for 2025 by 0.4 percentage point to 2.3%, saying higher tariffs and heightened uncertainty posed a “significant headwind” for nearly all economies. At that level, global growth would be the lowest since the Great Recession in 2008.
Key forecasts
- The U.S. forecast was slashed 0.9 point to 1.4% and the 2026 outlook was lowered 0.4 point to 1.6%.
- Euro zone growth is projected at 0.7% in 2025, slightly down from 0.9% in 2024 – less affected than the U.S. due to a lower starting point.
- World Bank left its forecast for China unchanged at 4.5%, saying Beijing still had monetary and fiscal space to support its economy and stimulate growth.
- The report forecast global trade growth would slow to 1.8% this year from 3.4% in 2024 – based on tariffs in effect as of late May.
- World Bank said global inflation was expected to reach 2.9% in 2025 given tariff increases and tight labor markets.
World Bank called for a comprehensive reduction in tariffs and urged nations to pursue strategic trade and investment partnerships, diversify trade and seek regional agreements to mitigate the effects of rising trade barriers. Without these measures, it warns the global economy could face a prolonged period of stagnation and declining living standards. “The world economy today is once more running into turbulence. Without a swift course correction, the harm to living standards could be deep,” said Indermit Gill, World Bank Chief Economist.
Bottom Line: World Bank’s latest assessment underscores the significant risks posed by ongoing trade wars, highlighting the urgent need for international cooperation and policy adjustments to restore global economic momentum.
EPA to repeal Biden-era power plant emissions rule... EPA Administrator Lee Zeldin is set to unveil the Trump administration’s formal repeal of a key Biden-era power plant emissions rule at an event today, confirming conservative energy policy advocates’ hopes for a regulatory rollback. Zeldin will be joined by several House Republicans from the eastern U.S., underscoring the political messaging tied to regional energy concerns and coal industry support.
The announcement will mark a significant reversal of the Biden administration’s efforts to curb greenhouse gas emissions from fossil fuel-fired power plants. The rule in question aimed to limit carbon dioxide emissions under the Clean Air Act and had been framed by the Biden EPA as essential for achieving the U.S. climate goals for 2030 and beyond.
A senior House Energy and Commerce Committee aide described the repeal as “a necessary correction,” arguing the original rule placed an “unrealistic burden” on aging coal and natural gas plants.
Environmental groups have already signaled they will mount legal challenges. “This is a clear violation of the EPA’s statutory duty to protect public health and regulate climate pollution,” said Sierra Club legal director Joanne Spalding.
The Trump administration is expected to propose a narrower replacement rule in the coming months that emphasizes plant-level efficiency upgrades and voluntary state compliance pathways.
Trump to phase out FEMA after 2025 hurricane season... President Donald Trump announced plans to phase out the Federal Emergency Management Agency (FEMA) after the conclusion of this year’s hurricane season, signaling a major shift in the federal government’s approach to disaster recovery. Trump said the federal government would provide less aid and that future recovery funds would be distributed directly from his office on a case-by-case basis.
“We want to wean off of FEMA, and we want to bring it down to the state level,” Trump said. “A governor should be able to handle it, and frankly, if they can’t handle it, the aftermath, then maybe they shouldn’t be governor.”
The decision comes amid hiring freezes, budget reductions and internal restructuring that have left FEMA short-staffed and under-resourced heading into what forecasters expect to be an above-average hurricane season. According to federal and state emergency officials, most states lack the budget capacity and personnel to manage catastrophic disasters without substantial federal assistance.
Emergency managers across the country have raised alarm about the move, warning that the withdrawal of federal coordination and support could put lives and infrastructure at greater risk during hurricanes, wildfires and other large-scale emergencies. Several governors, including those from Gulf Coast and Southeastern states, have privately expressed concern that the shift could overwhelm local agencies already stretched thin by recent disasters and inflation-driven cost increases.
The administration has not released a formal replacement framework or funding mechanism beyond a general commitment that Trump’s office will “step in where necessary.”
Congressional oversight hearings are expected in the coming weeks.