Business & Economy
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Business & Economy
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Trump eyes trade deal with China, talks with Xi
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President Trump said Tuesday that the hefty tariff rate on China will significantly be reduced after he negotiates with Chinese President Xi Jinping, expressing optimism about a trade deal.
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ā145 percent is very high. It wonāt be that high, itās not going to be that highā¦ it wonāt be anywhere near that high,ā Trump told reporters in the Oval Office.
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āIt will come down substantially, but it wonāt be zero,” he added.
The overall tariff level currently imposed on China is 145 percent, which remained in place after Trump delayed the āreciprocalā tariffs on other trading partners for 90 days and reduced them to 10 percent.
āWeāre going to be very nice. Theyāre going to be very nice, and weāll see what happens. But ultimately, they have to make a deal because otherwise theyāre not going to be able to deal in the United States,ā Trump said, referring to China.
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He cited his relationship with Xi as his reason for being optimistic about a deal.
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The White House earlier Tuesday said that it was āsetting the stage for a deal with China,ā seeking to reassure nervous financial markets and investors that progress with Beijing could be imminent.
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The Hill’s Alex Gangitano takes us to the Oval Office here.
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Welcome to The Hillās Business & Economy newsletter, I’m Aris Folley ā covering the intersection of Wall Street and Pennsylvania Avenue.
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Did someone forward you this newsletter? Subscribe here.
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Key business and economic news with implications this week and beyond:
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Trump: I have āno intentionā to fire Powell
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President Trump said Tuesday he has no intention of firing Federal Reserve Chair Jerome Powell, after he has escalated his criticism over the independent agencyās decision to not lower interest rates.
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Trump says bonuses for moms after they have child āsounds like a good ideaā
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President Trump on Tuesday signaled support to reporters about a proposal to give moms bonuses when they have a child amid reports the White House is looking at ways to bring up the nationās birth rates.
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Musk says time spent on DOGE will drop next month as Tesla sales plunge
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Tesla CEO Elon Musk said on Tuesday he plans to spend less time working on the White Houseās Department of Government Efficiency (DOGE) initiatives to focus more on the electric vehicle manufacturer, which saw its sales plummet in the first quarter.
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Welcome to Tax Watch, a new feature in The Hill’s Business & Economy newsletter focused on theĀ fightĀ overĀ taxĀ reform and the push to extend the 2017 TrumpĀ taxĀ cuts this year.
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Trumpās campaign promises will be the hard part for the committee phase of reconciliation
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Starting next week, lawmakers will be on the Hill for four weeks in a row as GOP committees meet to hash out the particulars of their tax cut and spending bill.
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The extension of the 2017 Tax Cuts and Jobs Act (TCJA), which is the centerpiece of the legislation, wonāt pose nearly as much of a challenge as how to incorporate the additional tax cuts that President Trump proposed while campaigning last year. They include getting rid of taxes on tips and overtime pay and creating a credit for family caregivers, among others.
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Some reports suggest Republicans are considering sunsetting those proposals after a few years to limit the cost of the package.
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However Republicans decide to handle them, legislative experts say thatās where their attention will be focused.
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āThe expiring stuff is expiring ā thatās easy. The TCJA orphans ā thatās not that hard to draft. Even the expansion of the child tax credit ā the levers and the dials available there are pretty well known ā¦ But the presidentās campaign proposals are the ones that require the most new intellectual capital,ā Rohit Kumar, a former top aide to former Senate majority leader Mitch McConnell, told The Hill earlier this month.
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āĀ Tobias Burns
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Upcoming news themes and events we’re watching:
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Treasury Secretary Scott Bessent will address the Institute of International Finance on the “state of the global financial system” Wednesday at 10 a.m. EDT
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TheĀ Beige Book, which includes reporting on economic conditions from theĀ 12 Federal Reserve Districts, comes out Wednesday afternoon.
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In today’s Evening Report: Some Republicans itch to speak out against President Trump’s trade war as the dollar falls and the Dow is on pace for its worst April since the Great Depression. Click here to sign up
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Branch out with more stories from the day:
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Musk says heāll spend less time in Washington and more time running Tesla after its profit plunges
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NEW YORK (AP) ā Elon Musk says heāll be spending less time in Washington slashing government costsĀ ā¦
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Business and economic news we’ve flagged from other outlets:
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Dow jumps 1,000 points Tuesday to snap four-day string of losses (CNBC)
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Tesla profit falls sharply as it fights backlash tied to Muskās role in Trump administration (The Associated Press)
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Bessent Expects Tariff Standoff With China to De-Escalate (Bloomberg)
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Top stories on The Hill right now:
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Tesla earnings plunge 71 percent in first quarter
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Teslaās quarterly earnings dropped by 71 percent, the company announced Monday, marking the latest sign of bad news for Elon Muskās electric vehicle manufacturerĀ as scrutiny of the tech billionaire persists.Ā Read more
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Judge orders Trump administration to restore Voice of America
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A federal judge on Tuesday found the Trump administrationās efforts to dismantle Voice of America (VOA) and affiliated news services likely were unlawful, indefinitely blocking the shuttering of the government-funded news outlet and affiliated news services. Read more
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Opinions related to business and economic issues submitted to The Hill:
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Jerome Powellās Fed wonāt rescue Trump from his tariff messĀ
- Economic consensus is out ā fiscal feelings rule the day
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You’re all caught up. See you tomorrow!Ā
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