GET THE APP
Friday, October 3, 2025

Category: Economy
May 9, 2025
Economy

Trump Pressures China for Open Trade, Considers Sharp Tariff Cut.

PULSE POINTS:

❓What Happened: President Donald J. Trump urged China to open its markets to the U.S. and suggested reducing tariffs on Chinese goods.

👥 Who’s Involved: President Donald Trump, Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer, Chinese officials.

📍 Where & When: Comments made in Washington, D.C. on Friday; meetings between the U.S. and China set in Switzerland over the weekend.

💬 Key Quote: “CHINA SHOULD OPEN UP ITS MARKET TO USA — WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON’T WORK ANYMORE!!!” – President Trump on Truth Social.

⚠️ Impact: Potential reduction in tariffs and improved trade relations between the U.S. and China.

IN FULL:

President Donald J. Trump has called for China to open its markets to the United States, suggesting a potential reduction in tariffs on Chinese imports. This announcement comes ahead of planned trade discussions between American and Chinese officials in Switzerland this weekend.

On Friday, Trump took to his Truth Social platform, emphasizing the benefits for China if it opens its markets to American goods. He stated, “CHINA SHOULD OPEN UP ITS MARKET TO USA — WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON’T WORK ANYMORE!!!” In a subsequent post, he mentioned, “80% Tariff on China seems right! Up to Scott B,” referring to Treasury Secretary Scott Bessent.

Currently, tariffs on most Chinese goods stand at 145 percent, a figure established last month following China’s retaliatory measures against U.S. tariffs. Meanwhile, China has imposed a 125 percent levy on most American products. Speaking in the Oval Office on Thursday, Trump indicated that these tariffs would not increase further and could only decrease. “It’s at 145, so we know it’s coming down,” he remarked, expressing optimism about future relations with China.

Treasury Secretary Bessent and U.S. Trade Representative Jamieson Greer are scheduled to meet with Chinese counterparts in Geneva over the weekend to negotiate a trade deal. Greer commented on the upcoming talks, saying, “At President Trump’s direction, I am negotiating with countries to rebalance our trade relations to achieve reciprocity, open new markets, and protect America’s economic and national security.” He anticipates productive discussions with his international counterparts.

Bessent has described the current economic dynamics with China as “unsustainable” and emphasized the U.S. desire for “fair trade” without a complete decoupling from China.

In related trade developments, Trump announced a significant trade agreement with the United Kingdom on Thursday. This deal aims to enhance U.S. market access in Britain for billions of dollars worth of American exports. However, a 10 percent baseline tariff on many British goods remains, with specific exceptions for Rolls-Royce engines and airplane parts, among other products.

show less

PULSE POINTS:

show more
May 8, 2025
Economy
News

Farmers Rally in Support of Trump’s Tariff Strategy.

PULSE POINTS:

❓What Happened: American farmers are showing strong support for President Trump’s trade policies, expecting tariffs to bolster the agricultural sector.

👥 Who’s Involved: President Donald J. Trump, American farmers, Purdue University, and CME Group.

📍 Where & When: United States, April (latest data from Purdue University-CME Group Ag Economy Barometer).

💬 Key Quote: “This month, one out of four respondents said it was a good time to make large investments.” — Perdue University study.

⚠️ Impact: Increased farmer optimism and investment intentions, with expectations of improved financial performance.

IN FULL:

Farmers across America are expressing robust support for President Donald J. Trump‘s trade policies, according to the latest data from the Purdue University-CME Group Ag Economy Barometer. The survey reveals that 70 percent of farmers believe the tariffs imposed under Trump’s administration will ultimately strengthen the agricultural sector. This optimistic outlook is reflected in the significant rise in farmer sentiment observed in April, with both current and future expectations showing marked improvement.

The Farm Capital Investment Index, a key measure of farmers‘ willingness to invest, has reached its highest level since May 2021. This surge in investment sentiment is underscored by the finding that one in four respondents considers it a favorable time to make substantial investments. This figure is nearly twice the percentage recorded in surveys conducted from May to October of the previous year.

Moreover, the Farm Financial Performance Index has remained above 100 for four consecutive months. This indicates that producers anticipate financial performance this year to be on par with, or slightly exceed, the levels seen last year.

The data underscores a growing confidence among American farmers in the Trump administration’s economic strategies. By focusing on restoring fairness in global trade and opening new markets for U.S. producers, the administration has garnered significant support within the agricultural community.

The optimism of farmers matches the similar sentiment expressed by those in the manufacturing industry, who have also praised President Trump’s tariff policies.

President Trump has said his new trade deal with the United Kingdom, announced Thursday, will significantly open the British market to American produce.

show less

PULSE POINTS:

show more
May 8, 2025
Economy
News

EU Takes Trump to WTO, Plans 95 Billion Euro Retaliation Against U.S. Tariffs.

PULSE POINTS:

❓What Happened: The European Union (EU) announced plans to challenge U.S. “reciprocal” tariffs at the World Trade Organization (WTO) and launched a public consultation on countermeasures.

👥 Who’s Involved: European Commissioner Maros Sefcovic, European Commission President Ursula von der Leyen, U.S. President Donald J. Trump, John Plueger of Air Lease Corp.

📍 Where & When: Luxembourg, May 7, 2025.

💬 Key Quote: “The EU’s objective is thus to reaffirm that internationally agreed rules matter, and these cannot be unilaterally disregarded by any WTO member, including the US,” stated the European Commission.

⚠️ Impact: Further trade tensions with tariffs affecting industries such as automotive, aerospace, and spirits, with a possible shift in production strategies for EU manufacturers.

IN FULL:

The European Union (EU) has declared its intention to contest the United States’ reciprocal tariff policy at the World Trade Organization (WTO). This announcement was made during a press conference held by EU Commissioner Maros Sefcovic at the EU Council building on May 7, 2025.

The European Commission has initiated a public consultation on possible countermeasures targeting U.S. imports valued at $107.4 billion, should negotiations with Washington falter. The proposed list includes a wide array of agricultural and industrial goods, notably bourbon and tequila, which have been contentious points between the transatlantic partners. President Donald J. Trump had previously threatened to impose a 200 percent tariff on EU alcohol imports, escalating tensions.

The EU’s dispute will formally begin with a consultation request, as the Commission asserts that the U.S. tariffs contravene fundamental WTO rules. “The EU’s objective is thus to reaffirm that internationally agreed rules matter and these cannot be unilaterally disregarded by any WTO member, including the US,” the Commission emphasized in its statement.

European Trade Commissioner Maroš Sefcovic highlighted the EU’s aim to negotiate a resolution to avoid Trump’s proposed 20 percent reciprocal tariffs on all U.S. imports from the EU. Despite ongoing talks, Sefcovic noted that the EU is preparing for all outcomes. The U.S. has already imposed a 25 percent tariff on imported vehicles, impacting European car manufacturers.

In a statement, EC President Ursula von der Leyen expressed commitment to finding negotiated solutions, stating, “We believe there are good deals to be made for the benefit of consumers and businesses on both sides of the Atlantic.”

The EU has temporarily halted retaliatory measures against U.S. tariffs on steel and aluminum, which could affect $24.1 billion worth of U.S. goods with a 25 percent tariff rate if implemented. Its combative approach with the Trump administration at the WTO contrasts with the approach of the United Kingdom, a former EU member state now able to control its own trade policy, which struck an ambitious free trade agreement with the U.S. on Thursday.

Image: European Union 2023– Source: EP.

show less

PULSE POINTS:

show more
May 8, 2025
Economy

Stocks Climb as Trump Secures U.S.-U.K. Trade Deal.

PULSE POINTS:

❓What Happened: President Donald J. Trump announced a new trade agreement with the United Kingdom, leading to a rise in U.S. stock markets.

👥 Who’s Involved: President Donald J. Trump, Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, investors, and the U.S. Stock Market.

📍 Where & When: The announcement of the U.S.-UK trade deal was made on Thursday morning, May 8, 2025, from the Oval Office.

💬 Key Quote: Trump stated the deal will provide “billions of dollars of increased market access for American exports, especially in agriculture.”

⚠️ Impact: U.S. stock indices rose, with the S&P 500, Dow Jones, and Nasdaq all gaining. The blue-chip Dow narrowly missed exit correction territory.

IN FULL:

U.S. stock markets experienced a boost on Thursday following President Donald J. Trump’s announcement of a trade agreement with the United Kingdom. At closing, the Dow Jones had gained 254 points, or 0.6 percent. Meanwhile, the S&P 500 also rose 0.6 percent, and the Nasdaq closed up 1 percent.

After weeks of what Trump critics tried to frame as a market decline, the blue-chip Dow Jones narrowly missed exit correction territory, strongly suggesting that the volatility has been driven by a much-needed market correction. Notably, the market gains are also throwing cold water on fears that the United States has entered a bear market.

In a statement from the Oval Office, President Trump highlighted the economic benefits of the new trade deal, which promises “billions of dollars of increased market access for American exports, especially in agriculture.” He noted that the United Kingdom will remove non-tariff barriers that have previously “unfairly discriminated against American products.”

Despite the new agreement, lower tariffs on imports from Britain will remain. Commerce Secretary Howard Lutnick confirmed that tariffs would continue to generate $6 billion in revenue for the United States.

Treasury Secretary Scott Bessent informed a House committee earlier this week that the U.S. is engaged in negotiations with 17 out of 18 key trading partners. While the U.S.-U.K. deal is seen as a positive step, larger traders like China may present more significant challenges. China has reiterated its demand for the U.S. to cancel tariffs, a point of contention ahead of talks between Secretary Bessent and a Chinese delegation this weekend.

President Trump has maintained his stance on not reducing the 145 percent tariffs on Chinese goods during negotiations. Meanwhile, the Federal Reserve, citing trade policy uncertainties, decided to keep its benchmark interest rate steady at 4.25 percent to 4.5 percent.

show less

PULSE POINTS:

show more
May 8, 2025
William Upton
Economy

Economists Blast Bank of England Rate Cut as Too Small — While U.S. Fed Won’t Slash Rates at All.

PULSE POINTS:

❓What Happened: The Bank of England reduced its base interest rate from 4.5 percent to 4.25 percent.

👥 Who’s Involved: The Bank of England, economist Patrick Minford, U.S. President Donald J. Trump, and the United States Federal Reserve.

📍 Where & When: Thursday, May 8, 2025, in the United Kingdom.

💬 Key Quote: “I would have welcomed more [of a cut to base rates] actually… At the moment, the priority is to try and stop the recession gathering pace,” said economist and former Margaret Thatcher advisor Patrick Minford.

⚠️ Impact: The British rate cut may not be sufficient to prevent a recession in Britain, but could increase pressure on the U.S. Federal Reserve to finally enact a rate cut of its own.

IN FULL:

The Bank of England has announced a reduction in its base interest rate from 4.5 percent to 4.25 percent, a move that has been met with mixed reactions from economists and the public. While this decision is seen as beneficial for many homeowners, Patrick Minford, a prominent economist and former advisor to the late Prime Minsiter Margaret Thatcher, has expressed concerns that the cut may not be enough to avert an impending recession. Conversely, yesterday, the United States Federal Reserve declined to cut rates at all, raising concerns that the American central bank is asleep at the wheel.

“I would have welcomed more [of a cut to base rates] actually,” Minford said in an interview, warning: “At the moment, the priority is to try and stop the recession gathering pace.”

As in the U.S., the British inflation rate has continued to fall, decreasing from 2.8 percent in February to 2.6 percent in March. However, in both countries, the inflation rate remains just above their respective central bank targets. In the U.S., President Donald J. Trump has steadily increased political pressure on Federal Reserve Chairman Jerome Powell to usher in a cut to interest rates and inject liquidity into the American economy.

Following the signing of a bilateral trade agreement between the U.S. and the UK on Thursday, President Trump again pushed “Too Late” Powell to cut rates, likening a cut to “jet fuel” and suggesting Powell’s reluctance to lower interest rates is politically motivated.

Despite growing concerns over a potential global recession driven by a deflationary demand collapse, the U.S. labor market has remained resilient under President Trump. The National Pulse reported on Thursday that unemployment claims are continuing to fall in the U.S., beating expectations, suggesting that recession fears may be overblown.

Image by Rafael Saldana.

show less

PULSE POINTS:

show more
May 8, 2025
Jack Montgomery
Economy
News

Trump Economy Gains Strength as Unemployment Claims Fall Even More Than Expected.

PULSE POINTS:

❓What Happened: New applications for unemployment benefits in the U.S. fell by 13,000 to 228,000 last week—2,000 more than projected.

👥 Who’s Involved: The U.S. Labor Department, President Donald J. Trump.

📍 Where & When: United States, week ending May 3.

⚠️ Impact: President Trump’s detractors have been attempting to stoke a frenzy over his America First tariff agenda, but, so far, the American economy remains fundamentally strong.

IN FULL:

The U.S. labor market showed resilience as initial claims for unemployment benefits fell more than anticipated last week, according to data released by the Labor Department. For the week ending May 3, claims dropped by 13,000 to a seasonally adjusted 228,000, surpassing economists’ expectations of 230,000. This decline reverses the previous rise attributed to school spring breaks in New York, temporarily pushing claims to a two-month high.

The economic good news comes despite globalist criticism of President Donald J. Trump’s America First tariffs, particularly the significant increase on Chinese imports to 145 percent. Anti-tariff economists have been persistently warning that negative sentiments observed in surveys—likely driven by the media clamoring over a hypothetical tariff-driven downturn—could be set to translate into negative employment data. Still, the above-expectations fall in new unemployment claims suggest market jitters are yet to translate into meaningful job losses.

The Trump White House, which imposed tariffs to level the playing field for American producers and workers competing against sweatshop economies where governments use currency manipulation and state subsidies to gain an unfair advantage, says they are already reaping dividends. They cite significant investments in American manufacturing by tech giant Nvidia and retail giant Walmart, among others, as evidence that the import levies are encouraging businesses to reshore production.

show less

PULSE POINTS:

show more
May 8, 2025
William Upton
Economy
UK

BREAKING: Trump Seals US-UK Trade Deal.

PULSE POINTS:

❓What Happened: A bilateral trade deal between the United States and the United Kingdom was signed on Thursday, May 8, 2025.

👥 Who’s Involved: President Donald J. Trump and Prime Minister Sir Keir Starmer.

📍 Where & When: Announcement from the Oval Office on Thursday.

💬 Key Quote: “Both countries agree that economic security is national security,” said President Trump, noting that the deal will “bring the United Kingdom into economic security alignment with the United States.”

⚠️ Impact: The deal is seen as a significant move following President Trump’s ‘Liberation Day’ tariffs in the U.S. and Brexit in the United Kingdom, with potential implications for UK-EU relations.

IN FULL:

The United States and the United Kingdom signed a significant trade agreement on Thursday, the first bilateral deal since President Donald J. Trump imposed tariffs on foreign goods in April. Before the signing, President Trump alluded to the agreement, saying the White House would be making a “major” announcement that would be “very big and exciting” for both the U.S. and the UK.

President Trump said the deal will eliminate many tariff and non-tariff barriers to American goods entering the British market, and vice versa, “bring[ing] the United Kingdom into economic security alignment with the United States.” The America First leader’s words suggest his administration is looking to create something of an economic bloc on the world stage, comprised of like-minded allies, as opposed to a system of general free trade, including countries like Communist China, which is notorious for underhanded commercial practices such as currency manipulation and industrial espionage.

Prime Minister Sir Keir Starmer said it was “a really fantastic, historic day,” paying tribute to President Trump and his negotiating team and noting the symbolism of the deal being signed of Victory in Europe (VE) Day, when the United States, the British Empire, and other allies declared victory over Nazi Germany. 

Notably, the trade agreement is only possible because of the United Kingdom’s Brexit vote and subsequent departure from the European Union (EU). This move has given British leaders greater maneuverability on the international stage, with the EU controlling trade policy for all of its member states and barring them from making their own bilateral deals.

The British-American agreement is a critical step for both nations, as the two countries are each other’s largest source of foreign direct investment. Additionally, the U.S. is the top export market for British goods, and the UK is the seventh-largest export destination for U.S. exports—with commerce likely to be further uplifted by the new trade agreement.

Last month, U.S. Vice President J.D. Vance signalled that a trade deal with the United Kingdom was a priority for the Trump White House. The Vice President stated: “There’s a real cultural affinity. And of course, fundamentally, America is an Anglo country. I think there’s a good chance that, yes, we’ll come to a great agreement that’s in the best interest of both countries.”

President Trump is set to visit the United Kingdom in September for a second state visit. It is widely expected that the British-American trade deal will serve as a catalyst for other nations to expedite their negotiations with the U.S. and pressure the EU to make concessions, so its former member state does not gain too much of a competitive advantage.

WATCH:

Jack Montgomery contributed to this report.

This story is developing…

show less

PULSE POINTS:

show more
May 7, 2025
Economy

Fed Holds Interest Rates Steady Despite Push for Cut by Trump.

PULSE POINTS:

❓What Happened: The Federal Reserve maintained its key interest rate at 4.3 percent, resisting pressure to lower it.

👥 Who’s Involved: The Federal Reserve, President Donald J. Trump, and U.S. Federal Reserve Chairman Jerome Powell.

📍 Where & When: Washington, D.C., during the Fed’s Federal Open Market Committee (FOMC) on May 7, 2025.

💬 Key Quote: “In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent,” the FOMC statement reads.

⚠️ Impact: The decision reflects concerns over rising inflation and unemployment, exacerbated by economic uncertainty from tariffs.

IN FULL:

The Federal Reserve has chosen to keep its key interest rate steady at 4.3 percent, despite calls from President Donald J. Trump to lower borrowing costs. This decision, announced on Wednesday, marks the third consecutive meeting where rates have remained unchanged after a series of cuts late last year, when then-Vice President Kamala Harris was seeking to succeed then-President Joe Biden. The Fed’s statement claimed increased uncertainty about the economic outlook, noting heightened risks of both inflation and unemployment.

“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook has increased further. The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen,” the Federal Reserve’s Federal Open Market Committee statement reads. It adds: “In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent.”

In recent months, President Trump has increased pressure on the central bank to cut interest rates to increase domestic economic liquidity as his tariff policies reduce foreign imports. Late last month, the America First leader posted on Truth Social, urging Federal Reserve Chairman Jerome Powell to lower borrowing rates: “‘Preemptive Cuts’ in Interest Rates are being called for by many… With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW. Europe has already ‘lowered’ seven times.”

Earlier in April, Trump accused Powell of playing politics by refusing to cut rates, leading to a push by the White House to see Powell removed as the central bank’s chairman.

show less

PULSE POINTS:

show more
May 7, 2025
Economy

Republicans Advance Trump Plan to Eliminate Overtime Taxes.

PULSE POINTS:

❓What Happened: Republican lawmakers have introduced a bill to eliminate federal income taxes on overtime pay with the aim of fulfilling one of President Donald J. Trump’s key campaign promises.

👥 Who’s Involved: Senators Roger Marshall (R-KS) and Tommy Tuberville (R-AL), President Trump, and Treasury Secretary Scott Bessent.

📍 Where & When: The two Republican lawmakers filed their bill on May 6, 2025; President Trump frequently mentioned the policy while campaigning for the White House in 2024.

💬 Key Quote: “President Trump campaigned and won on a promise to cut taxes for millions of Americans working overtime—and we are delivering on that promise,” said Senator Tommy Tuberville.

⚠️ Impact: The proposal could provide workers an estimated $1.34 trillion in tax relief by 2034.

IN FULL:

Senators Roger Marshall (R-KS) and Tommy Tuberville (R-AL) have introduced the Overtime Wages Tax Relief Act, a new legislative proposal to eliminate federal income taxes on overtime pay. The two lawmakers emphasize that the bill is intended to partially fulfill President Donald J. Trump’s campaign promise to cut overtime, tips, and Social Security income taxes.

“President Trump campaigned and won on a promise to cut taxes for millions of Americans working overtime—and we are delivering on that promise,” Sen. Tuberville said on Tuesday when unveiling the legislation. Meanwhile, Sen. Marshall indicated that the duo hoped to fold their proposal into the larger budget reconciliation bill, enacting a number of President Trump’s policy priorities as it works its way through Congress.

The bill would create a new income tax deduction for overtime wage earners, allowing individuals to deduct up to $10,000 and married couples up to $20,000. Notably, the deduction would phase out for individuals earning above $100,000 and couples earning above $200,000, decreasing by $50 for every $1,000 earned over these thresholds. Additionally, the legislation broadly defines overtime to include numerous professions such as law enforcement, healthcare, and trade workers.

Currently, the Fair Labor Standards Act mandates that employers pay eligible workers “time-and-a-half” for hours worked beyond 40 per week, which is subject to federal income, Social Security, and Medicare taxes. The proposed legislation seeks to change this by offering tax relief to those working overtime.

Already, the plan to eliminate taxes on overtime is receiving bipartisan support, with Teamsters General President Sean O’Brien backing the legislation. “More working people need more money in their pockets—that must be a shared priority across our nation. This bill will help make it happen, especially when more workers are electing for more overtime to ensure they can make ends meet,” O’Brien said, adding: “Workers, union and nonunion alike, should not be taxed for their initiative and extra labor.”

Late last month, President Trump, during a rally in Michigan, doubled down on his plans to reduce taxes for working-class Americans, stating: “In the coming weeks and months, we will pass the largest tax cuts in American history, and that will include no tax on tips, no tax on Social Security, no tax on overtime.”

show less

PULSE POINTS:

show more
May 6, 2025
William Upton
Economy
World

U.S.-UK Set to Sign Bilateral Trade Deal.

PULSE POINTS:

❓What Happened: The United States and the United Kingdom are poised to sign a bilateral trade agreement this week.

👥 Who’s Involved: President Donald J. Trump, Prime Minister Sir Keir Starmer, the United States, the United Kingdom, India, and China.

📍 Where & When: In Washington, D.C., with the likely signing occurring the week of May 5, 2025.

💬 Key Quote: U.S. Treasury Secretary Scott Bessent testified before Congress on Tuesday that the trade deal could be announced “perhaps as early as this week.”

⚠️ Impact: The trade deal will increase pressure on the European Union (EU) to come to the table, while further restricting China’s access to global markets.

IN FULL:

The United States and the United Kingdom are set to sign a bilateral trade deal this week, marking significant progress in President Donald J. Trump‘s efforts to renegotiate global trade and its impact on American workers. It is believed the deal is one of 17 being prioritized out of over 100 negotiations and will increase pressure on the European Union (EU) to reach an agreement as well.

Among the concessions being made by the British are reductions in their digital services tax aimed at multinational technology companies based in the United States. The Labour government, under Prime Minister Sir Keir Starmer, is also believed to be poised to cut its tariffs on American automobiles and steel imports and reduce trade duties on American agricultural goods.

Conversely, the United States—it is believed—has agreed to reduce its 25 percent tariff on British autos and steel, though the exact scale of the reduction is not yet public. However, the British government also says it will not adopt U.S. food production standards, meaning some U.S. agricultural exports, including hormone-treated beef and chicken, will still not be accepted in the British market.

U.S. Treasury Secretary Scott Bessent testified before Congress on Tuesday that the trade deal could be announced “perhaps as early as this week.” However, it is important to note that agreements over the pharmaceutical trade remain a contentious sticking point and could delay a final deal. Despite the pharmaceutical hang-up, the Labour government remains under intense pressure from its domestic auto industry to reach an accord with President Trump. British auto makers have warned that the impact of the Trump tariffs on their sales has been “severe, significant, and immediate.”

Earlier on Tuesday, the United Kingdom and India announced they had reached a free trade deal, giving credence to the speculation that a coalition of nations is forming with the aim of boxing in China regarding its access to the global economy and markets.

show less

PULSE POINTS:

show more