U.S., UK announce trade deal... President Donald Trump posted on Truth Social the deal that will be announced at 10 a.m. ET will be a “full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come.” He added: “Many other deals, which are in serious stages of negotiation, to follow!” This is the first bilateral trade deal announced since Trump began slapping tariffs on U.S. trading partners.
The Associated Press reported the agreement is likely to fall short of a full free trade deal but will provide tariff relief to certain sectors.
USDA releases some info regarding ag disaster aid... USDA Secretary Brooke Rollins announced the agency will soon open applications for nearly $21 billion in disaster relief funding, aimed at helping farmers and ranchers affected by natural disasters over the past two years. Of this aid, $2 billion is specifically allocated for livestock producers, and funds may be distributed through block grants or direct payments. Click here for details.
China resumes shipments of Brazilian soybeans from five companies ahead of Lula visit... China has resumed shipments of Brazilian soybeans from five companies previously suspended over phytosanitary issues, a source familiar with the matter told Reuters. The source confirmed that the resumption of supplies began on April 25, weeks before a planned state visit to China by President Luiz Inácio Lula da Silva and at a time when Beijing is trying to form a global coalition against the trade war with the United States. In January that China had suspended imports from units related to Terra Roxa Comércio de Cereais, Olam Brasil, C.Vale Cooperativa Agroindustrial, Cargill Agrícola S.A. and ADM do Brasil. According to a Chinese customs database, all entities with the exact names of the five companies currently have “normal” registration status. The database does not specify a resumption date.
Perspective on weekend trade talks between U.S. and China... China watchers Trivium China note the planned talks between top U.S. and Chinese trade officials this weekend are only the start of what’s likely to be a long and bumpy negotiation. Of note: China’s foreign ministry said the U.S. requested the trade talks, while Trump insisted they were initiated by China. Beijing reiterated its call for the U.S. to cancel unilateral tariffs on China, something Trump on Wednesday said wouldn’t happen.
Trivium China said: “Unlike recent negotiations between the U.S. and its trading partners — which have been held in Washington — this meeting was set in a third country to avoid the optics of one side bending to the other. Trump’s ‘maximum pressure’ playbook and unpredictable decision-making could easily upend fragile progress. We’ll be looking for the following two deliverables, which will generate momentum for more detailed negotiations down the line: 1) Both sides agreeing to broaden carve-outs for tariff exemptions; and 2) The U.S. clearly spelling out its demands to China.
Tariffs wreak havoc on U.S./China trade ahead of holidays... The U.S./China tariff war has escalated sharply, with new duties reaching 145% on most Chinese imports, paralyzing trade in key consumer sectors like holiday décor, toys and fast fashion. The result: billions in canceled U.S. orders, stalled Chinese production and rising fears of shortages and price hikes for American shoppers heading into the back-to-school and holiday seasons.
About 87% of Christmas decorations and 80% of toys sold in the U.S. come from China. Retailers are freezing or canceling billions in orders due to unprofitable margins. Deposits already paid are being forfeited, creating inventory gaps for peak seasons.
Chinese production lines are halting, workers are being furloughed and some are unpaid. Factories are turning to livestream sales to offload inventory, though demand is low for items like Christmas trees. Protests are erupting as job losses mount.
The U.S. economy contracted in the first quarter, while China’s manufacturing sector recorded its sharpest decline in over a year.
The Trump administration is considering trade exemptions for certain baby products made in China and imported into the United States. Treasury Secretary Scott Bessent told Congress that tariff exemptions for car seats, strollers, cribs and other baby supplies that come from China are “under consideration.” Trump said he’d “think about it,” in response to a reporter’s question about Bessent’s remarks. While indicating he’s reluctant to encourage exemptions, Trump said: “We have to make it very simple, but I’ll take a look at it.”
Bottom line: What began as a tariff escalation is now a full-blown supply-chain crisis, with global consequences. Businesses face mounting losses, consumers confront soaring prices and empty shelves, and both governments are under pressure as economic costs deepen.
Hassett defends tariffs, saying Trump’s policies are lifting the middle class... On Fox News, National Economic Council Director Kevin Hassett joined Laura Ingraham to confront what he called misleading attacks on President Trump’s tariff policies and the economic strategy behind them. Ingraham opened by pointing to Capitol Hill criticism: “This was something on Capitol Hill today. I watched it, and I thought I was in an ‘80s time warp,” Ingraham said. “They lost the middle class, and now they’re claiming that Trump’s tariffs are for the rich. Explain that to me.”
Hassett fired back: “Yeah, it doesn’t make any sense at all... The bottom line is that President Trump’s America First, American worker–first agenda in the first term made it so that wages went up by $6,500,” Hassett explained. “Wages went up by more for people at the bottom than people at the top. Income inequality declined because of the policies that we’re now multiplying by two.”
Hassett lauded the Trump administration’s work ethic and coordination, praising Treasury Secretary Scott Bessent and citing a day full of high-level strategy meetings and global negotiations. “We had a so-called Big Six meeting today... Meanwhile, we’re negotiating the President’s trip to Saudi Arabia, and while he’s preparing to go to Switzerland to negotiate with the Chinese... I’m so proud to be on the team that President Trump has put together.”
When Ingraham, who openly supports tariffs, pointed out that Trump’s first-term tariffs were narrowly targeted and legally sound, Hassett agreed and stressed the effectiveness of that approach: “President Trump did something last time, looked and saw that it really worked, and now he’s doing more of it — a little bit bigger. That’s what you should do: test, adjust, and scale up.”
Dismissing panic over supply shortages, Hassett said: “There were a couple of weeks where shipping from China was lower, but now shipping from a lot of other countries is going way, way up. People don’t have to be worried... These policies are onshoring jobs, onshoring production.”