China exempts some U.S. goods from tariffs... China plans to exempt some U.S. imports from its 125% tariffs and is asking firms to identify critical goods they need duty-free. Reuters reported a commerce ministry taskforce is collecting lists of items that could be exempted from tariffs and is asking companies to submit their own requests, citing a person with knowledge of the situation. Beijing has not yet communicated publicly on any exemptions.
An unverified list of 131 product categories that could be eligible for tariff exemptions has circulated widely on Chinese social media and among trade organizations. This list reportedly includes items such as vaccines, chemicals, jet engines, medical devices and certain semiconductor-related products (excluding memory chips). Bloomberg and other sources indicate that exemptions may also cover medical equipment, industrial chemicals (like ethane), and possibly aircraft leases — areas where Chinese industries are highly dependent on U.S. technology and components.
A Friday statement by the Politburo, the Communist Party’s elite decision-making body, focused on efforts to maintain stability at home, by supporting firms and workers most affected by tariffs.
U.S. seeks India trade deal on ag goods, e-commerce and data storage... A U.S.-India trade agreement under discussion will cover 19 categories, including greater market access for ag goods, e-commerce, data storage and critical minerals, Bloomberg reported. Terms of reference for a bilateral deal, which was finalized by both sides this week, includes trade in goods as well as services, the report said, citing people familiar with the matter.
Indonesia seeking ‘fair and square’ trade negotiations... Indonesia is prioritizing its national interests in its ongoing negotiations over American tariffs, its senior economic minister and top negotiator said, noting it wants a “fair and square” trade relationship with the United States. The minister refrained from sharing specific details about the negotiations but said the discussions included energy supply, U.S. market access for Indonesian goods, deregulation in Indonesia and critical mineral and technology sharing for agriculture, healthcare and renewable sectors. Indonesia has proposed increasing its imports from the U.S. by up to $19 billion by switching to U.S. suppliers for goods such as wheat, soybeans, liquefied petroleum gas and crude. It has also offered to reduce non-tariff barriers and proposed some tax cuts for U.S. goods.
Hassett details global trade negotiations, tariffs and tax policy... Kevin Hassett, Director of the National Economic Council, appearing on Fox Business, emphasized the unprecedented pace and breadth of global trade negotiations under President Donald Trump. He described a week filled with back-to-back meetings with foreign ministers and finance officials from virtually every country, highlighting the administration’s active and strategic engagement on the world stage. According to Hassett, the White House has received an overwhelming number of requests for bilateral meetings, with a list of countries seeking talks with President Trump that spans three single-spaced pages. He credited Trump’s initial tariff moves for “rebooting the global trading system” and initiating a new phase of negotiations, which he likened to the “Art of the Deal” in action.
Hassett reported the U.S. now has 18 written offers from countries proposing significant trade deals designed to benefit American workers. He stressed that the administration’s approach is not about isolating China but about building a coalition of trading partners who share concerns over China’s industrial overcapacity and non-market practices.
Hassett noted the European Union (EU) is particularly concerned about the risk of Chinese goods, blocked by U.S. tariffs, flooding European markets and destabilizing local industries. The EU, he said, is prepared to defend its market and jobs if necessary and is aligned with the U.S. in pushing for China to respect international trade norms.
Hassett pushed back against the notion the Trump administration’s trade policy is reactive or haphazard. He explained that the White House and its allies had been preparing detailed action plans since Jan. 20, well before the public announcement of tariffs. This groundwork, he argued, allowed the administration to move quickly and secure multiple promising trade offers. He credited the leadership of Trump and key advisors for this rapid progress, noting that several deals were close to completion even before the Reciprocal Trade Act was announced.
On the economic front, Hassett defended the administration’s tariff strategy as fiscally sound. He argued that tariff revenues would help balance the federal budget, and that encouraging companies to onshore production would further boost tax revenues. Hassett predicted that the U.S.’ trading relationships would be “radically better” within a year, benefiting both the U.S. and its partners, and leading to higher real wages and economic growth. He suggested that the positive market reaction was a reflection of this optimism.
Hassett also addressed tax policy, affirming President Trump’s strong opposition to a millionaire tax or raising the highest marginal tax rates. He echoed Trump’s view that such measures would drive wealthy individuals — and their tax contributions — out of the country, harming economic growth. Hassett described the President as “America First,” focused on policies that prioritize job creation and worker prosperity. (See next item for more on tax cuts.)
He highlighted the analytical rigor with which the administration evaluates policy options, noting that the White House routinely conducts detailed revenue analyses on potential tax changes. However, he made clear that raising marginal rates was never seriously considered and that Trump was right to “put the kibosh” on the idea.
Looking ahead, Hassett revealed that the administration is working on a new tax package that will maintain or extend current rates and include pro-growth measures, such as eliminating taxes on overtime pay. He expressed high confidence that the bill would move efficiently through Congress, with broad agreement between the White House and lawmakers, and would become law well before the Fourth of July. Hassett described this legislative process as the smoothest he has ever witnessed for a major tax bill.
Hassett concluded by noting the strong positive reaction from financial markets to both the administration’s trade and tax policy announcements. He attributed this to widespread optimism about the direction of U.S. economic policy and its potential to deliver tangible benefits for American workers and the broader economy.
Update on GOP-pushed tax cut measure... A Fox Business program centered on the current efforts by House Republicans to advance a major legislative package aligned with President Donald Trump’s economic agenda. The discussion featured Kevin Brady, former House Ways and Means Committee chair, and Stephen Moore, economist and radio host, both of whom played key roles during the 2017 tax reform. The conversation compared the present legislative push to the 2017 tax overhaul, debated the strategy on tariffs and tax extensions and addressed the prospects for further tax reform and trade deals.
The host and guests reflected on the challenges and successes of the 2017 tax reform, noting how the administration at the time initially focused on repealing ObamaCare, which delayed tax legislation. Despite setbacks, the tax bill passed narrowly before the end of 2017, setting a precedent for the current legislative effort.
Kevin Brady emphasized the impressive speed with which the House and Senate are working on the new reconciliation bill, drawing parallels to the aggressive timetable that helped pass the 2017 reforms.
House Republicans are targeting a May 19 vote on what is described as “Trump’s one big, beautiful bill,” aiming to deliver both tax reform and significant changes to international trade policy. There was optimism among the guests that pursuing both tax and trade reforms simultaneously could yield a “double whammy” for economic growth, potentially triggering a major stock market rally if successful.
The panel discussed whether the focus on tariffs has been a distraction from tax policy. While some initially doubted the tariff strategy, there is growing acknowledgment that it could complement tax reform if trade deals are secured. The importance of reorganizing supply chains and the challenges faced during the Biden administration were highlighted, with the suggestion that Trump-era policies were more effective in bringing back manufacturing jobs and investment.
The $10,000 cap on state and local tax (SALT) deductions, a contentious issue for Republicans in high-tax blue states, was discussed. Kevin Brady advocated for a reasonable compromise that would not jeopardize the passage of the broader bill or create budgetary issues.
The program revisited the goal of simplifying the tax code, specifically the idea of reducing the number of tax brackets and moving toward a flatter tax system. While acknowledging the challenges, Stephen Moore expressed support for further simplification and lower rates, even suggesting a flat tax as proposed by Steve Forbes.
The guests expressed cautious optimism that the House could deliver a pro-growth legislative package, combining tax reform with meaningful trade policy changes underway.
NCGA urges farmers to lobby congress on key tax provisions... The National Corn Growers Association (NCGA) is urging farmers nationwide to contact Congress as lawmakers prepare for budget reconciliation. NCGA President Kenneth Hartman Jr. emphasized the need for farmer voices to support federal tax provisions critical to agriculture. Top tax priorities:
- Extension of 2017 tax cuts: NCGA backs the continuation of expanded estate and gift tax exemptions, the qualified business income deduction and 100% bonus depreciation. They also oppose changes to the stepped-up basis, which shields family farms from excessive inheritance taxes.
- Biobased product incentives: NCGA supports new tax credits to help commercialize renewable chemical and material technologies derived from U.S. feedstocks.
- Sustainable aviation fuel credit (45Z): Extension of this credit would increase demand for corn-based biofuels, boosting rural economies and job growth.
Of note: The budget reconciliation process allows these provisions to pass with a simple Senate majority, bypassing a filibuster and presidential veto.
North Dakota enacts pesticide label shield law as Bayer pushes for national legal immunity... North Dakota became the first U.S. state to enact a law that limits state-level pesticide label regulations, granting legal protection to manufacturers like Bayer from failure-to-warn lawsuits if labels are approved by EPA. This move aligns with Bayer’s national lobbying campaign for the Agricultural Labeling Uniformity Act, a federal bill that would preempt state warning requirements and is supported by over 360 agricultural groups.
Backed by lawmakers from agricultural states, the initiative is framed as a safeguard for farmers and food security. Critics, including environmental and consumer health groups, argue it undermines local protections, restricts legal recourse for victims, and prioritizes corporate liability protection over public health. Similar legislation is advancing in states like Georgia, while the federal bill is being considered in the new farm bill.