Treasury Secretary Scott Bessent dismissed Walmart CEO Doug McMillon’s “draconian” tariff warning on Sunday, stating the retail giant will absorb some costs and may pass other price increases on to consumers, following a direct conversation between the two.
Bessent shared the development on CNN&#8217;s &#8220;State of the Union&#8221; after McMillon announced last week that tariffs would lead to higher prices at Walmart, prompting President Donald Trump to <a href="https://www.dailywire.com/news/eat-the-tariffs-trump-unloads-on-walmart-ceo-for-saying-hes-raising-prices" target="_blank" rel="noopener">warn against</a> it.
&#8220;I did speak to Doug McMillon, who I have a very good relationship [with], yesterday, just to understand what he had to say,&#8221; Bessent told anchor Jake Tapper. &#8220;And understand that came from an earnings call. On an earnings call, because of SEC requirements, they have to give the most draconian case. So Walmart will be absorbing some of the tariffs. Some may get passed on to consumers.&#8221;
He added: &#8220;But the other thing that&#8217;s happening is that inflation is down. We had the first drop in inflation in four years under President Trump. The other thing that Doug mentioned to me is, for his consumers, for his buyers, the most important thing are gasoline prices. And this administration has gotten gasoline prices down. Service prices are down. So, overall, I would expect inflation to remain in line. But I don&#8217;t blame consumers for being skittish after what happened to them four years under [President Joe] Biden. We had the worst inflation in 40 years.”
<blockquote class="twitter-tweet" data-media-max-width="560">
Bessent: &#8220;Walmart will be absorbing some of the tariffs. Some may get passed on to consumers.&#8221; <a href="https://t.co/QhpOfIMsim">pic.twitter.com/QhpOfIMsim</a>
— The Bulwark (@BulwarkOnline) <a href="https://twitter.com/BulwarkOnline/status/1924092180613759120?ref_src=twsrc%5Etfw">May 18, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
McMillon shared his forecast for prices during an earnings call on Thursday, alluding to a breakthrough in negotiations in which the United States <a href="https://www.dailywire.com/news/u-s-china-release-details-of-agreement-to-dramatically-slash-tariffs" target="_blank" rel="noopener">lowered</a> tariffs on Chinese imports from 145% down to 30% for 90 days while trade discussions continue between the world&#8217;s two largest economies.
&#8220;We will do our best to keep our prices as low as possible. But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” McMillon <a href="https://corporate.walmart.com/content/dam/corporate/documents/newsroom/2025/05/15/walmart-releases-q1-fy26-earnings/q1-fy26-earnings-call-transcript.pdf" target="_blank" rel="noopener">said</a>, adding later: &#8220;We&#8217;re positioned to manage the cost pressure from tariffs as well or better than anyone. But even at the reduced levels, the higher tariffs will result in higher prices.&#8221;
Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/114523638623110397" target="_blank" rel="noopener">responded</a> Saturday in a post on Truth Social.
&#8220;Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected,&#8221; Trump said. &#8220;Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!&#8221;

Treasury Secretary Scott Bessent

Bessent Speaks To Walmart CEO, Dismisses ‘Draconian’ Forecast On Tariffs

China

Donald Trump

Economy

Scott Bessent

Tariffs

U.S.

Walmart

President Donald Trump on Saturday told Walmart CEO Doug McMillon not to raise prices for Americans, but to instead &#8220;eat the tariffs.&#8221;
Trump recently dropped tariffs on Chinese imports from 145% down to 30%, but this week, McMillion said Walmart still could not absorb the extra costs, and will have to increase prices.
&#8220;Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,&#8221; the president posted on Truth Social. &#8220;Walmart made BILLIONS OF DOLLARS last year, far more than expected.&#8221;
&#8220;Between Walmart and China they should, as is said, &#8216;EAT THE TARIFFS,&#8217; and not charge valued customers ANYTHING,&#8221; Trump wrote. &#8220;I’ll be watching, and so will your customers!!!&#8221;
McMillon made comments about having to raise prices, specifically over tariffs on China, during an earnings call on Thursday.
<p class="paragraph inline-placeholder vossi-paragraph" data-uri="cms.cnn.com/_components/paragraph/instances/cmaqx46zq00193b6mokd0s1nm@published" data-editable="text" data-component-name="paragraph" data-article-gutter="true" data-analytics-observe="off">“We will do our best to keep our prices as low as possible,&#8221; he said. &#8220;But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins.&#8221;
“The higher tariffs will result in higher prices,” McMillon added.
<div id="attachment_921641" style="width: 933px" class="wp-caption alignnone"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-921641" class="wp-image-921641 size-large" src="https://dw-wp-production.imgix.net/2025/05/GettyImages-1921426381-923x576.jpg" alt="Walmart Inc. President and CEO Doug McMillon delivers a keynote address during CES 2024 at The Venetian Resort Las Vegas on January 9, 2024 in Las Vegas, Nevada." width="923" height="576" srcset="https://dw-wp-production.imgix.net/2025/05/GettyImages-1921426381-923x576.jpg 923w, https://dw-wp-production.imgix.net/2025/05/GettyImages-1921426381-300x187.jpg 300w, https://dw-wp-production.imgix.net/2025/05/GettyImages-1921426381-768x479.jpg 768w, https://dw-wp-production.imgix.net/2025/05/GettyImages-1921426381.jpg 1024w" sizes="(max-width: 923px) 100vw, 923px" />Ethan Miller/Getty Images</div>
There have been mixed reactions online to Trump&#8217;s demand for Walmart to &#8220;eat&#8221; the extra costs. Some have noted that Trump had previously suggested that China would likely &#8220;eat&#8221; the extra costs themselves.
However, others, like journalist Batya Ungar-Sargon, railed against Walmart for hurting Americans while she said they &#8220;brag&#8221; about being a pro-American corporation.
“This is absolutely unacceptable and infuriating,&#8221; Ungar-Sargon said on Fox News airwaves this week, following McMillon&#8217;s comments. &#8220;Walmart walks around bragging that 75% of the products that they sell are made here in the United States. Why are you raising prices?&#8221;
&#8220;Do you know what Walmart’s yearly profits were last year? 169 billion dollars,&#8221; Ungar-Sargon continued. &#8220;Don’t raise prices. Support the president, support the agenda, support the American working class.”
Ungar-Sargon added that she doesn&#8217;t see these potential price hikes as &#8220;political,&#8221; but more about &#8220;rampant greed.&#8221;
WATCH:
<blockquote class="twitter-tweet" data-media-max-width="560">
Walmart CEO Doug McMillon warns that they will be raising prices in response to President Trump’s tariffs. Shoppers will likely see price increases toward the end of May and more in June.
Batya Ungar-Sargon: “This is absolutely unacceptable and infuriating. Walmart walks around… <a href="https://t.co/JpONWTgQRE">pic.twitter.com/JpONWTgQRE</a>
— RedWave Press (@RedWave_Press) <a href="https://twitter.com/RedWave_Press/status/1923354165436195059?ref_src=twsrc%5Etfw">May 16, 2025</a></blockquote>
Related: <a href="https://www.dailywire.com/news/u-s-wholesale-prices-see-biggest-drop-in-5-years-flying-in-the-face-of-economists-predictions" target="_blank" rel="noopener">U.S. Wholesale Prices See Biggest Drop In 5 Years, Flying In The Face Of Economists’ Predictions</a>

‘EAT THE TARIFFS’: Trump Unloads On Walmart CEO For Saying He’s Raising Prices

Communist China

Politics

Recently, the news stories in the media have been coming so fast and furious they’re almost like a group of muscular bald men driving hot cars out of airplanes, landing them on top of other cars, and then driving away at high speed while firing a rocket launcher out the window&#8230; because they’re fast and… well, never mind.
Anyway, I began to wonder: how can the news media report all this news in a way that reflects the outlooks of Americans everywhere across this great land, from the pine forests of Vermont to the golden wheat fields of Kansas, across the vast expanses of Texas to the sun-baked beaches of the Pacific Coast? So I decided I would take a look at the headlines of news outlets from 40th Street in Manhattan all the way to 47th Street — because that’s about all of them.
So for instance, in the news, inflation slowed to its lowest rate in more than four years.
Here’s the headline from The Wall Street Journal: &#8220;Trump’s Tariffs to Cause Massive Inflation Very, Very Soon, Experts Who Predicted Massive Inflation Because of Trump’s Tariffs Very Soon Say.&#8221;
<h3><a href="https://www.dailywire.com/show/the-andrew-klavan-show" target="_blank" rel="noopener">WATCH: The Andrew Klavan Show</a></h3>
Here’s One From The New York Times: &#8220;Hardworking Migrant Juan Ortega May Lose His Chicken Farm as Trump’s Policies Cause the Bottom to Fall Out of Egg Prices.&#8221;
And here’s the Report from NPR: &#8220;How Lower Inflation Spurred the Rise of Hitler,&#8221; a historical report read by a person with a very soft, sleepy voice that will make you want to hurt yourself just to make it stop.
Another news story: Trump negotiated a ceasefire between hostile nuclear powers India and Pakistan.
From The Wall Street Journal: &#8220;Nuclear Devastation Averted, Leaving Millions Alive to Suffer Massive Inflation Very Soon Because of Donald Trump’s Tariffs, Experts who Predicted Massive Inflation Very Soon Because of Donald Trump’s Tariffs Say.&#8221;
Or from The New York Times: &#8220;Environmentalists Worry that Trump’s Reckless Actions on the Indian Subcontinent Will Leave Earth’s Population at Levels Sure to Cause Devastating Climate Change.&#8221;
Or the story as reported by NBC News: &#8220;Biden’s Policy of Mindlessly Prolonging Foreign Wars to No Effect Finally Pays Big Dividends by Bringing Peace Deal Between India and Pakistan.&#8221;
In other news, Trump negotiated the release of Edan Alexander, the last living American hostage being held by vampiric Palestinian monsters.
The headline in The Wall Street Journal reads: &#8220;Released Hostage Finds Himself in a World Soon to be Wracked by Massive Inflation Caused by Trump’s Tariffs, According to Experts.&#8221;
The New York Times headline was: &#8220;Sad Little Palestinian Boy Jihad Muhammed Sharia Jihad Jihad Muhammed Sheds Sad Tears of Very Sad Sadness as Genocidal Israelis Steal the Wonderful Friend his Parents Kept Chained up for Him in the Basement.&#8221;
And of course, CNN featured an interview with a Columbia University professor who once read part of a book on Israel and says the Jews sound genocidal to him until Scott Jennings knocks him unconscious and jumps up and down on his face.
Then there was the news that Donald Trump had negotiated several trillion dollars in American investment from Saudi Arabia.
The Wall Street Journal reported the story with the headline: &#8220;Saudis Want to Invest in America but Whoa Nellie, Just Wait Till They See the Massive Inflation that’s Going to be Caused by Trump’s Tariffs Any Day Now, Experts Say.&#8221;
The Headline in The New York Times reads: &#8220;Sad Yale Historian Who Studies Fascism Says He Is Leaving America Because Trump’s Presidency Will Look Just Like Fascism as Soon as It Looks Like Fascism.&#8221;
And CBS reported: &#8220;Weak Trump Caves to Saudi Demands that he take their Money.&#8221;
In other news, Trump struck a deal with China to free us from their hammerlock on our supply lines, brought down drug prices, bombed the Houthis into submission, opened U.K. markets to American farmers, made progress on a nuclear deal with Iran, and the headlines say….. oh, screw it.
***
This excerpt is taken from the opening satirical monologue of “<a href="https://www.dailywire.com/show/the-andrew-klavan-show" target="_blank" rel="noopener">The Andrew Klavan Show</a>.”
The views expressed in this satirical article are those of the author and do not necessarily represent those of The Daily Wire.
Andrew Klavan is the host of “The Andrew Klavan Show” at The Daily Wire. Follow him on X: <a href="https://x.com/andrewklavan" target="_blank" rel="noopener">@andrewklavan</a>
Klavan is the bestselling author of numerous books, including the Cameron Winter Mystery series. The fourth installment, “<a href="https://www.amazon.com/gp/product/1613165536?ref_=dbs_m_mng_rwt_calw_thcv_3&amp;storeType=ebooks" target="_blank" rel="noopener">A Woman Underground.</a>” His most recent nonfiction release is “<a href="https://www.amazon.com/Kingdom-Cain-Finding-Literature-Darkness/dp/0310368340/?_encoding=UTF8&amp;pd_rd_w=nMYjR&amp;content-id=amzn1.sym.bc3ba8d1-5076-4ab7-9ba8-a5c6211e002d&amp;pf_rd_p=bc3ba8d1-5076-4ab7-9ba8-a5c6211e002d&amp;pf_rd_r=133-8344803-2786917&amp;pd_rd_wg=7a8J3&amp;pd_rd_r=5791ea0f-6d96-4732-9d6a-3a4e6b348bb5&amp;ref_=aufs_ap_sc_dsk" target="_blank" rel="noopener">The Kingdom of Cain: Finding God in the Literature of Darkness.</a>” (May 2025, Zondervan/HarperCollins).

Donald Trump, Qatari Emir Sheikh Tamim bin Hamad Al Thani

Trump’s Global Triumphs Cause Inflation Apocalypse, Say Analysts Cheering For Inflation Apocalypse

Andrew Klavan

Foreign Policy

Inflation

Legacy Media

Satire

WASHINGTON — As President Donald Trump returns to the United States from his weeklong trip to the Middle East, leaders of almost 50 companies praised the president for securing over $2 trillion in deals.
The president&#8217;s trip to the Middle East resulted in a number of deals, including a $600 billion investment commitment from Saudi Arabia, $200 billion in commercial deals between the U.S. and United Arab Emirates, $1.2 trillion economic exchange agreement with Qatar, and $243.5 billion in U.S.-Qatar commercial and defense deals, according to the White House.
The administration is touting the trip as not only historic, but also one that strengthened safety and stability in the Middle East.
“The numbers don’t lie,&#8221; White House Assistant Press Secretary Taylor Rogers told The Daily Wire. &#8220;President Trump secured trillions of dollars in great deals, and his first foreign trip was a huge success. These historic investments and landmark agreements are a direct result of the economic climate President Trump has quickly developed.”
Business leaders who are benefitting from the deals were vociferous in their praise of the president&#8217;s efforts on Friday afternoon. That includes leaders from Lockheed Martin, Palantir, Qualcomm, Amazon, Google, and more.
“We appreciate President Trump and Crown Prince Mohammed bin Salman convening business leaders in Saudi Arabia to strengthen economic ties and drive innovation between our two countries,&#8221; Amazon CEO Andy Jassy said of the U.S. Saudi deals. &#8220;Amazon is excited to partner with HUMAIN, Saudi Arabia’s newly created AI innovation company, to collectively invest more than $5 billion to build a groundbreaking ‘AI Zone’ there, which will bring multiple innovative AWS AI capabilities to Saudi Arabia along with skills training for 100,000 citizens from the Kingdom.”
Ruth Porat, Alphabet and Google President and Chief Investment Officer, also expressed gratitude to Trump for the Saudi deals, praising the &#8220;engagement and policies of the Trump Administration and the Kingdom of Saudi Arabia, who are enabling strong execution to accelerate AI innovation in both countries.&#8221;
&#8220;Together,&#8221; she said, &#8220;we will create highly-skilled jobs and deliver AI training programs to open new, rewarding career pathways.”
DataVolt CEO Rajit Nanda argued that the Saudi partnership was &#8220;made possible in large part due to the enabling technology and trade frameworks advanced during the Trump Administration—policies that championed high-tech exports, strengthened U.S.-Saudi strategic ties, which have empowered entrepreneurial collaboration in the digital era.”
<div id="attachment_921533" style="width: 874px" class="wp-caption alignnone"><a href="https://www.dailywire.com/news/top-business-leaders-jubilant-over-trumps-economic-success-in-middle-east/president-trump-makes-first-middle-east-trip-of-his-second-term-7" rel="attachment wp-att-921533"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-921533" class="wp-image-921533 size-large" src="https://dw-wp-production.imgix.net/2025/05/GettyImages-2215290920-864x576.jpg" alt="" width="864" height="576" srcset="https://dw-wp-production.imgix.net/2025/05/GettyImages-2215290920-864x576.jpg 864w, https://dw-wp-production.imgix.net/2025/05/GettyImages-2215290920-300x200.jpg 300w, https://dw-wp-production.imgix.net/2025/05/GettyImages-2215290920-768x512.jpg 768w, https://dw-wp-production.imgix.net/2025/05/GettyImages-2215290920.jpg 1024w" sizes="(max-width: 864px) 100vw, 864px" /></a>ABU DHABI, UNITED ARAB EMIRATES &#8211; MAY 15: U.S. President Donald J. Trump tours the Sheikh Zayed Grand Mosque. (Photo by Win McNamee/Getty Images)</div>
And Oracle CEO Safra Catz thanked Trump for his leadership and &#8220;decisive actions,&#8221; actions that allow Oracle to provide &#8220;the world’s most advanced cloud and AI technology to Saudi Arabia.&#8221;
&#8220;Our expanded partnership with the Kingdom will create new opportunities for its economy, deliver better health outcomes for its people, and fortify its alliance with the United States, which will create a ripple effect of peace and prosperity across the Middle East and around the world,&#8221; Catz said.
As for the Quatar deals, Boeing President and CEO Kelly Ortberg touted a historic order, the &#8220;largest-ever for Boeing&#8217;s widebody planes.&#8221;
&#8220;Thank you to President Trump for supporting the agreement, which grows our longstanding partnership with the airline,&#8221; Ortberg said. &#8220;As one of America&#8217;s top exporters, Boeing is proud that our aircraft sales to global customers strengthen U.S. manufacturing and sustain jobs in our factories and at suppliers across the United States.”
Lockheed Martin President and CEO Jim Taiclet promised that &#8220;thanks to President Trump’s leadership, we will help accelerate Qatar’s next-generation air and missile defense capabilities, enabling a more secure and stable region, sustaining American manufacturing jobs, and reinforcing our defense industrial base.”
A spokesman for Northrop Grumman, celebrating Trump&#8217;s deals with the United Arab Emirates, promised: “Just as we have invested in the UAE, such as Northrop Grumman’s grant to the American Community School in Abu Dhabi, we welcome increased partnership and investment by the UAE in our world-class defense sector. This historic trip will increase U.S. jobs and economic strength.”
Parsons President Carey Smith said that his corporation is &#8220;proud to be a part of President Trump’s initiatives to strengthen strategic relations in the UAE,&#8221; and Baker Hughes CEO Lorenzo Simonelli congratulated the president, calling the trip to the United Arab Emirates, &#8220;A key moment that underscores the enduring partnership between two nations committed to innovation, progress, and shared prosperity.&#8221;
&#8220;As we look to the future, energy will remain central to economic growth and broader cooperation that supports stability and opportunity for both countries, and Baker Hughes remains steadfast in our dedication to help both nations meet their goals,&#8221; Simonelli promised.

President Trump Makes First Middle East Trip Of His Second Term

Top Business Leaders Jubilant Over Trump’s Economic Success In Middle East

Middle East

Qatar

Saudi Arabia

World

Predictions of widespread shortages from President Donald Trump’s trade wars have fallen flat as supply chains and retailers weather the uncertainty of tariff hikes.
The first quarter of 2025 came back with negative GDP growth, but economic signs are pointing toward a positive return in the Commerce Department’s next quarterly report. A positive report should tamp down severely pessimistic predictions about the state of the economy and the impact of tariffs.
“I&#8217;ve told people this is gonna be a skinned knee. This is not a broken leg,” Jim Nelles, a veteran supply chain consultant, told The Daily Wire.
“If you look at the data, we&#8217;re ahead of where we were this time in 2023 and just slightly down from where we were this time in 2024,” said Nelles regarding ships traveling between the United States and Asia.
Since the United States and China <a href="https://www.nbcnews.com/world/asia/tariffs-china-trump-agree-slash-levies-duties-business-markets-bessent-rcna206193" target="_blank" rel="noopener">slashed</a> tariffs, shipping in the Pacific is set to pick up, according to Nelles. “The shipping companies are scrambling to redeploy ships to Chinese ports, and American companies are scrambling to secure containers to put on those ships to bring goods into the United States,” he said.
The most recent <a href="https://www.descartes.com/resources/knowledge-center/descartes-releases-may-global-shipping-report-april-us-container-imports" target="_blank" rel="noopener">report</a> on U.S. imports from the supply chain and logistics company Descartes shows that 2025’s container import volume is higher through April of 2025 than it was in either 2024 or 2023.
Trump announced sweeping new tariffs last month, threatening heavy levies on America’s trading partners. The shock sent the stock market plummeting and had media outlets and financial experts warning about an economic collapse on par with the coronavirus pandemic.
Headlines in recent weeks have catastrophized about shortages slamming Americans. Stories suggested that supply chains are breaking under Trump’s gambit to remake global trade like they broke under COVID. “<a href="https://www.cnn.com/2025/05/10/business/zero-ships-china-trade-ports-pandemic" target="_blank" rel="noopener">For 12 hours, zero ships left China bound for California’s top ports. That hasn’t happened since the pandemic</a>,” says one CNN headline from May 12.
Other headlines have warned of empty ports and empty shelves for Americans. “<a href="https://www.bloomberg.com/news/newsletters/2025-05-07/empty-store-shelves-might-be-coming-sooner-than-you-think" target="_blank" rel="noopener">Empty Store Shelves Might Be Coming Sooner Than You Think</a>,” says a May 7 headline from Bloomberg. An April 29 Reuters report warned: “<a href="https://www.reuters.com/markets/us/shipping-volume-will-plummet-35-next-week-la-port-official-says-cnbc-interview-2025-04-29/" target="_blank" rel="noopener">Shipping volume will plummet 35% next week, LA port official says in CNBC interview</a>.”
Major financial institutions such as Goldman Sachs and JPMorgan predicted last month that the United States was likely to fall into recession. They have since <a href="https://www.bloomberg.com/news/articles/2025-05-13/jpmorgan-drops-us-recession-call-after-us-china-trade-truce" target="_blank" rel="noopener">reversed</a> <a href="https://www.cnbc.com/2025/04/09/goldman-forecast-a-recession-then-almost-immediately-rescinded-it-after-trump-tariff-pause.html" target="_blank" rel="noopener">those</a> forecasts.
“The panic was silly and it was driven by the media because they ran out of things to talk about,” said Nelles.
Shortages that did appear would be localized, Nelles said. Generally, businesses properly read the administration’s signals and prepared before the president began slamming down tariffs. That preparation is reflected in Commerce Department data that show imports to the United States spiking in the months leading up to the tariffs falling into place. Imports to the United States in March <a href="https://www.foxbusiness.com/economy/us-trade-deficit-hits-record-high-march" target="_blank" rel="noopener">hit</a> an all-time high.
“At the end of the day, we would&#8217;ve seen nothing like we saw during COVID,” said Nelles. “We just would never have gotten to that point.”
“If you look at what actually happened in December, January, and February, shipments were up. People were stocking their shelves and adding inventory so that they could withstand any sort of tariff action that took place,” he said.
The most pressing problem that Nelles expects has to do with container ships sitting in U.S. ports full of goods that nobody is able or wants to receive.
“Those have to be shipped back to China, unloaded, and then loaded with other goods,” he said. “So, we might have, maybe a four week period where the equipment needs to be rebalanced between North America and Asia. But that&#8217;ll sort itself out.”
The Commerce Department’s quarterly report on GDP released last month <a href="https://www.bea.gov/data/gdp/gross-domestic-product" target="_blank" rel="noopener">showed</a> that the U.S. economy contracted 0.3%, at the time raising fears that the United States may hit the technical definition of a recession, two consecutive quarters of negative GDP growth.
New economic data has since <a href="https://www.axios.com/2025/05/15/tariffs-inflation-recession-data" target="_blank" rel="noopener">relieved</a> those concerns. In April, retail sales rose by 0.1%. Revised data showed that retail sales rose by 1.7% in March, a 0.2 percentage point increase. With positive signs for consumer spending, inflationary signals also came back positive. The Producer Price Index fell by 0.5% in April after holding steady in March.
“If you actually take a very hard look at the data, a lot of the shrinkage in GDP was driven by reduction in government spending, which is a good thing,” said Nelles on negative growth in the first three months of the year.
“I think that when they do the second review of GDP, it&#8217;s probably going to be zero to slightly positive,” he predicted. “I think Q2 is going to be positive as well, but it wasn&#8217;t a concern.”
The latest Consumer Price Index data on April came in cooler than expected, <a href="https://www.nytimes.com/2025/05/13/business/inflation-prices-tariffs.html" target="_blank" rel="noopener">showing</a> a 2.3 % increase in prices from a year ago.
“That&#8217;s the third consecutive month that we&#8217;ve had cooler than expected inflation, which tells me that the economy isn’t quite sure what it wants to do yet,” said Nelles. “But it definitely it’s saying I don&#8217;t feel like I need to heat up right now. I just need to bring inflation down and we need to see what’s gonna happen.”
“What I wish the president would do is get rid of uncertainty. I wish he would talk about what the plan is because, right now, it feels like the plan changes based on what he sees on X or on Truth Social,” Nelles said. “That creates a lot of uncertainty in the economy and in the business world, and that&#8217;s why you saw the stock market go down so much in the month of April. But now we&#8217;ve actually gone back up to the point where we&#8217;ve regained everything that we&#8217;ve lost. So, you know, the market likes what we&#8217;re doing.”
Since Trump’s Liberation Day announcement, the administration has entered into negotiations with dozens of countries to rewrite the United States’ trade deals. The process could take a year if not longer to hammer out the details. In the meantime, businesses in the United States will be forced to reckon with the tariff system largely put in place by the president.
The White House could choose to lighten tariffs on countries that agree to negotiate in good faith, Nelles said, or the president may leave in place broad 10% tariffs on countries to increase revenue to the federal government until new trade agreements are signed. If the president chooses the latter option, buyers and suppliers will have to work out together how to handle the tariffs while international trade continues to flow.
Either way, “the net impact will be quite low,” said Nelles.

Apocalyptic Predictions About Trump’s Trade Wars Never Came True. Here’s Why.

United States

Companies have announced billions in new investments in the United States while President Donald Trump has been traveling and signing deals in the Middle East this week.
The president has traveled to Saudi Arabia, Qatar, and the United Arab Emirates so far this week to sign agreements and receive commitments that will generate roughly $2 trillion in trade and investment. At the same time, major companies have announced plans to invest billions more dollars into the United States.
Those corporate investments include: at least $20 billion over the next five years from the medical company <a href="https://www.prnewswire.com/news-releases/sanofi-to-invest-at-least-20-billion-in-the-us-through-2030-growing-investments-in-science-and-expanding-domestic-manufacturing-302455566.html" target="_blank" rel="noopener">Sanofi</a>, $3 billion by Kraft Heinz to <a href="https://www.reuters.com/business/ketchup-maker-kraft-heinz-investing-3-billion-upgrading-us-manufacturing-2025-05-14/" target="_blank" rel="noopener">upgrade</a> its U.S.-based manufacturing, a $1 billion investment from the energy company Carrier that will <a href="https://www.corporate.carrier.com/news/news-articles/202505_carrier-announces-additional-1-billion-investment-us-manufacturing-footprint-advanced-cuttingedge-rd-workforce-expansion.html" target="_blank" rel="noopener">create</a> an estimated 4,000 new jobs, a $300 million investment from Anheuser-Busch to <a href="https://www.anheuser-busch.com/newsroom/anheuser-busch-announces-new-300-million-investment-in-manufacturing-operations-across-the-US" target="_blank" rel="noopener">improve</a> the beer-maker’s manufacturing facilities, and a $150 million investment from Siemens Healthineers to <a href="https://www.siemens-healthineers.com/en-us/press-room/press-releases/us-investments" target="_blank" rel="noopener">expand</a> production and relocate some manufacturing from Mexico to the United States.
The White House touted the new investments in a <a href="https://www.whitehouse.gov/articles/2025/05/president-trumps-policies-keep-paying-off/" target="_blank" rel="noopener">press release</a>.
“While the President is securing historic investments on his trip in Middle East, billions of dollars’ worth of investments on the home front are pouring in. America is returning as the world’s manufacturing powerhouse thanks to President Trump’s leadership, brilliant economic agenda, and willingness to put America first,” White House spokeswoman Taylor Rogers told The Daily Wire in a statement.
The recent wave of investments comes as Trump has hopped around the Middle East signing and <a href="https://www.dailywire.com/news/trump-announces-200-billion-in-commercial-deals-with-uae-bringing-total-gulf-investments-to-massive-sum?author=Kassy+Akiva&amp;category=News&amp;elementPosition=0&amp;row=0&amp;rowType=Vertical+List&amp;title=Trump+Announces+%24200+Billion+In+Commercial+Deals+With+UAE%2C+Bringing+Total+Gulf+Investments+To+Massive+Sum" target="_blank" rel="noopener">announcing</a> massive economic commitments between the United States and some of the Gulf states.
On Thursday, Trump announced over $200 billion in commercial deals between the United States and the United Arab Emirates. The deals include a commitment from Etihad Airways to purchase $14.5 billion worth of aircraft from Boeing and GE Aerospace. Emirates Global Aluminum plans to spend $4 billion to build an aluminum smelter in Oklahoma, the first of such plants built in the United States in 45 years.
On Wednesday, Trump was in Qatar to announce a new defense agreement in which the United States will sell billions-worth of U.S. weaponry to Qatar. Trump also signed an agreement to “generate an economic exchange worth at least $1.2 trillion,” according to the White House.
Trump <a href="https://www.dailywire.com/news/hours-into-middle-east-trip-trump-announces-largest-defense-sales-deal-in-u-s-history" target="_blank" rel="noopener">began</a> his Middle East tour with a visit to Saudi Arabia on Tuesday with a $142 billion defense sales deal, the largest weapons deal in history. Saudi Arabia made a commitment to invest $600 billion in the United States.

While Trump Pulls In Investments In Middle East Trip, White House Touts Investments On ‘Home Front’

The Producer Price Index, which measures the average change over time in selling prices received by domestic producers, fell 0.5% in April, its biggest drop in five years, the U.S. Bureau of Labor Statistics <a href="https://www.bls.gov/news.release/ppi.nr0.htm" target="_blank" rel="noopener">reported</a> on Thursday.
The drop marks the first time the Producer Price Index declined since October 2023. Since last April, producer prices rose 2.4%, but that&#8217;s a significant deceleration from the 3.4% year-over-year gain in March, according to the <a href="https://apnews.com/article/producer-wholesale-prices-tariffs-83aef2863cac075143e89dc2d951eff6" target="_blank" rel="noopener">Associated Press</a>. The producer price drop defies economists&#8217; <a href="https://www.bloomberg.com/news/articles/2025-05-15/us-producer-prices-fall-unexpectedly-as-margins-decline" target="_blank" rel="noopener">predictions</a>, which forecast that producer prices would rise last month.
Services prices, the prices charged by domestic producers for the services they provide, dropped 0.7% in April, which was the biggest drop since the index began in December 2009, according to the Bureau of Labor Statistics. Wholesale food prices dropped 1% last month, including a 39% drop in egg prices.
The report is the second round of economic news being <a href="https://x.com/RapidResponse47/status/1923000718648041816" target="_blank" rel="noopener">celebrated</a> by the Trump administration this week after the Labor Department reported on Tuesday that inflation hit its <a href="https://www.dailywire.com/news/inflation-hits-lowest-point-in-over-4-years-as-april-report-better-than-expected" target="_blank" rel="noopener">lowest point</a> in four years. The consumer price index was up just 2.3% from April 2024, the smallest year-over-year gain since February 2021.
POLITICO <a href="https://www.politico.com/news/2025/05/13/trump-tariffs-inflation-trade-economy-fed-powell-00344184" target="_blank" rel="noopener">reported</a> on Wednesday that the inflation report has surprised economists as &#8220;there was broad anticipation that Trump’s levies on Chinese imports, steel and aluminum and certain Canadian and Mexican products had caused prices for apparel, electronics and other consumer goods to spike.&#8221; The outlet noted that &#8220;the opposite has occurred&#8221; as the cost of clothing and new cars, which were supposed to take the brunt of Trump&#8217;s tariffs, both dropped.
Economists continue to predict that President Donald Trump&#8217;s tariffs will drive up prices, with increases likely hitting American consumers over the summer. As Trump continues to negotiate trade deals, however, those forecasts could change. Some businesses are also still expecting that consumers will feel the pinch of Trump&#8217;s tariffs soon. Walmart said it will likely raise prices as soon as this month due to tariffs, CNN <a href="https://www.cnn.com/2025/05/15/business/walmart-prices-tariffs" target="_blank" rel="noopener">reported</a>.
“We will do our best to keep our prices as low as possible. But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” Walmart CEO Doug McMillon said on Thursday during an earnings call.
“The higher tariffs will result in higher prices,” he added.

U.S. Wholesale Prices See Biggest Drop In 5 Years, Flying In The Face Of Economists’ Predictions

Prices

Trump Administration

An <a href="https://www.jct.gov/publications/2025/jcx-23-25/" target="_blank" rel="noopener">analysis</a> from Congress’ Joint Committee on Taxation revealed discomfiting news for Democrats who engage in class warfare: the House tax package would give average-income people almost double the percentage decline in their tax bills than those making more than $1 million a year.
The report found a general steady decline in the tax percentage as wages decreased. People making more than $1 million per year would see a drop of 8.6%; a decline of between roughly 11%-13% from those making between $1 million and $60,000, then a surge to 14.5% for those making between $50,000-$60,000; 16.1% for those making between $40,000-$50,000, 17.6% for those making between $30,000-$40,000, and 21.1% for those making between $15,000-$30,000 per year.
&#8220;The measure of income used to place tax returns into income categories is adjusted gross income (&#8220;AGI&#8221;) plus (1) tax-exempt interest, (2) employer contributions for health plans and life insurance, (3) employer share of FICA tax, (4) workers&#8217; compensation, (5) nontaxable Social Security benefits, (6) insurance value of Medicare benefits, (7) alternative minimum tax preference items, (8) individual share of business taxes, and (9)excluded income of U S citizens living abroad,” the analysis noted.
“The analysis does not take account of a likely expansion of a deduction for state and local taxes, which would overwhelmingly benefit upper-income households, or look at the possible effect of spending cuts Republicans are also planning that would primarily hit lower-income people,” <a href="https://www.politico.com/live-updates/2025/05/13/congress/average-taxpayers-tax-bills-set-to-fall-under-house-tax-package-forecasters-say-00347318" target="_blank" rel="noopener">POLITICO</a> reported.
On Monday, House Ways and Means Committee ranking member Rep. Richard Neal (D-MA) ripped the House GOP, saying,  “They’re very uncertain of where they’re headed. And they know the political consequences, because I talked to a couple of them already.”
&#8220;House Republicans are hoping to get the tax portion of the bill out of committee on Tuesday. Neal plans to make that task as hard as he can,” Semafor <a href="https://www.semafor.com/article/05/12/2025/how-democrats-plan-to-counterattack-trumps-tax-bill" target="_blank" rel="noopener">reported</a> on Monday.
On Tuesday, U.S. Rep. Terri Sewell (D-AL) resorted to the time-honored Democratic tradition of accusing the GOP of favoring the rich, <a href="https://www.alreporter.com/2025/05/14/rep-sewell-slams-trumps-tax-bill-in-house-ways-and-means-committee/" target="_blank" rel="noopener">saying</a>, “My colleagues, let’s be honest about why we are here today. We are here because—according to President Trump, Elon Musk, and Republicans in Congress—the wealthiest individuals and the largest corporations in our country are not wealthy enough.”
Despite Democrats’ efforts to stop it, the House Ways and Means Committee, in a straight party-line vote, voted to advance the tax package out of committee on Wednesday morning, which means the package must next go to the House Budget Committee. The package makes the income tax rates from the Tax Cuts and Jobs Act of 2017 permanent while including President Donald Trump’s promises of no tax on tips or overtime, a jump in the child tax credit, and an increase in the endowment tax on some universities.
The House Budget Committee will gather the disparate parts of Trump’s tax bill, then send it to the entire House for a vote. Speaker Mike Johnson (R-LA) will have to work assiduously to unify the various factions in the House, given the razor-thin majority the GOP has in the House.

Trump McDonalds

Dems Hit Hardest: Analysis Says Trump Tax Plan Disproportionately Helps The Poor

Class warfare

Democrats

Taxes

Shortly after arriving in Saudi Arabia on the first day of his high-stakes <a href="https://www.dailywire.com/news/trump-to-visit-saudi-arabia-qatar-and-uae-in-first-middle-east-trip-this-term" target="_blank" rel="noopener">Middle East trip</a>, President Donald Trump announced that Saudi Arabia committed to investing $600 billion in the United States.
“President Trump is the dealmaker in chief, and he has once again secured a historic deal that strengthens America’s economic dominance and global influence,” the White House said in a statement, adding that the investment will build “economic ties that will endure for generations to come.”
The investment will initially focus on deals that strengthen energy security, the defense industry, technology leadership, and access to global infrastructure and critical minerals.
<a href="https://www.dailywire.com/news/heres-what-you-need-to-know-about-trumps-middle-east-trip?author=Kassy+Akiva&amp;category=News&amp;elementPosition=0&amp;row=0&amp;rowType=Vertical+List&amp;title=Here%E2%80%99s+What+You+Need+To+Know+About+Trump%E2%80%99s+Middle+East+Trip" target="_blank" rel="noopener">HERE’S WHAT YOU NEED TO KNOW ABOUT TRUMP’S MIDDLE EAST TRIP</a>
“The deals celebrated today are historic and transformative for both countries and represent a new golden era of partnership between the United States and Saudi Arabia,” the White House said. “From day one, President Trump’s <a href="https://www.dailywire.com/news/trump-to-announce-major-trade-deal-with-united-kingdom" target="_blank" rel="noopener">America First Trade</a> and Investment Policy has put the American economy, the American worker, and our national security first.”
The Trump administration also announced that the two countries signed the largest defense sales agreement in history, totaling $142 billion, providing Saudi Arabia with air force advancement and space capabilities, air and missile defense, maritime and coastal security, border security and land forces modernization, and information and communication systems.
The first deals in the investment include Saudi company DataVolt investing $20 billion in AI data centers and energy infrastructure in the United States, and Shamekh IV Solutions, LLC will invest $5.8 billion, including in a Michigan high-capacity IV fluid facility. Other multinational companies, including Google, Oracle, Salesforce, and Uber, have committed to investing $80 billion in “cutting-edge transformative technologies” in both the United States and Saudi Arabia.
<a href="https://www.dailywire.com/news/trump-bring-wrath-iranians-over-renaming-body-water-says-iranian-official" target="_blank" rel="noopener">TRUMP WILL ‘BRING THE WRATH OF ALL IRANIANS’ OVER RENAMING BODY OF WATER, SAYS IRANIAN OFFICIAL</a>
American companies are expected to boost exports to Saudi Arabia and build $2 billion worth of infrastructure in the country. American companies are also slated to build over $14 billion in gas turbines and energy solutions, and Boeing will manufacture nearly $5 billion of 737-8 passenger aircraft for the Saudi company AviLease.
“The United States and Saudi Arabia celebrate these and many other deals today as a result of the growing momentum of the last four months,” the White House <a href="https://www.whitehouse.gov/fact-sheets/2025/05/fact-sheet-president-donald-j-trump-secures-historic-600-billion-investment-commitment-in-saudi-arabia/">said</a>. “The total package has quickly built to more than $600 billion–the largest set of commercial agreements on record between the two countries.”
Investment partnerships will include several sector-specific funds with a strong emphasis on American deployment — such as the $5 billion Energy Investment Fund, the $5 billion New Era Aerospace and Defense Technology Fund, and the $4 billion Enfield Sports Global Sports Fund — each channeling substantial capital into American industries, driving innovation, and creating high-quality jobs across the United States.
<a href="https://www.dailywire.com/news/how-trump-and-rubio-put-america-first-in-100-days?author=Kassy+Akiva&amp;category=News&amp;elementPosition=undefined&amp;row=0&amp;rowType=Vertical+List&amp;title=How+Trump+And+Rubio+Put+America+First+In+100+Days" target="_blank" rel="noopener">HOW TRUMP AND RUBIO PUT AMERICA FIRST IN 100 DAYS</a>
Saudi Arabia is one of the United States’ largest trading partners in the Middle East, with the United States exporting $13.2 billion in goods in 2024 and importing $12.7 billion from Saudi Arabia, making a trade surplus of $443 million.
During his first term, Trump<a href="https://www.dailywire.com/news/picture-trump-saudi-arabia-glowing-orb-setting-aaron-bandler" target="_blank" rel="noopener"> built strong ties</a> with several Gulf states, which led to the signing of the Abraham Accords between the UAE, Israel, and Bahrain. Trump has expressed interest in expanding the agreement to include Saudi Arabia, but the ongoing war in Israel has complicated those efforts.

Trump Secures ‘Historic’ Investment Deal From Saudi Arabia On First Day Of Middle East Trip

The annual inflation rate was lower than experts expected in April, coming in at 2.3%, its lowest point since February 2021.
The Labor Department on Tuesday reported that the consumer price index rose a seasonally adjusted 0.2% in April, according to <a href="https://www.cnbc.com/2025/05/13/cpi-inflation-april-2025.html" target="_blank" rel="noopener">CNBC</a>. While April&#8217;s 0.2% increase from the same month last year was a jump from the 0.1% year-over-year drop in March, the 2.3% inflation rate was just below the forecast of 2.4%, giving President Donald Trump some good economic news shortly after his &#8220;Liberation Day&#8221; tariffs went into effect. The White House <a href="https://x.com/RapidResponse47/status/1922282764780355920" target="_blank" rel="noopener">celebrated</a> the news in a post on X, crediting the &#8220;TRUMP EFFECT.&#8221;
&#8220;For the last several years, hardworking families have faced an affordability crisis. Finally, with @POTUS at the helm, Americans are breathing a sigh of relief — every dollar is going further and workers are able to keep more of their hard-earned paychecks!&#8221; Labor Secretary Lori Chavez-DeRemer <a href="https://x.com/SecretaryLCD/status/1922287250882109733" target="_blank" rel="noopener">added</a>.
Food prices saw a slight decline of 0.1% from March to April, with the cost of eggs falling 12.7%. Used car prices were also down in April, while month-over-month energy prices increased 0.7%, shelter costs rose 0.3%, and new car prices remained the same, according to the consumer price index <a href="https://www.bls.gov/news.release/cpi.nr0.htm" target="_blank" rel="noopener">report</a>. The year-over-year index for energy was down 3.7%, gasoline dropped 11.8% over the past 12 months, and the fuel oil index saw a 9.6% decline over that period. The index for electricity was up 3.6% over the last 12 months, and the natural gas index rose 15.7%, the report added.
The report comes as President Trump makes progress on a trade deal with China, providing some tariff relief. The Trump administration <a href="https://www.dailywire.com/news/u-s-china-release-details-of-agreement-to-dramatically-slash-tariffs" target="_blank" rel="noopener">announced</a> on Monday that it agreed to slash its reciprocal tariff on China to 10% for 90 days while the 20% fentanyl tariff remains in place. In return, China also dropped its retaliatory tariff on U.S. goods to 10%. Those reductions are set to go into effect on Wednesday as the two countries seek to continue negotiations.
Last week, Trump also struck a deal with the United Kingdom, giving the United States more access to the British economy and maintaining the tariff on U.K. imports at 10%. In return, the United Kingdom will be allowed to export up to 100,000 vehicles to the United States for a 10% tariff, a reduction of Trump&#8217;s 25% tariff on foreign auto imports.
Some economic experts predict that the brunt of Trump&#8217;s tariffs will not reflect in economic data until the summer, according to <a href="https://www.nytimes.com/2025/05/13/business/inflation-prices-tariffs.html" target="_blank" rel="noopener">The New York Times</a> and The <a href="https://www.wsj.com/economy/trade/cpi-inflation-april-2025-interest-rate-8febd2d2?mod=WSJ_home_mediumtopper_pos_1" target="_blank" rel="noopener">Wall Street Journal</a>.

Inflation Hits Lowest Point In Over 4 Years As April Report Better Than Expected

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White House

The United States and China on Monday announced an agreement to significantly reduce tariffs for 90 days while trade negotiations continue after top American and Chinese officials met in Switzerland over the weekend.
The deal means that President Donald Trump&#8217;s 125% reciprocal tariff on China will be reduced to 10%, with a 20% fentanyl tariff still in place, a significant drop from the 145% tariff placed on Chinese goods in the last few weeks. China will drop its retaliatory tariffs on the United States from 125% to 10%. The reductions are to be in place by Wednesday, May 14.
“After taking the aforementioned actions, the Parties will establish a mechanism to continue discussions about economic and trade relations,” said a joint statement from the United States and China. &#8220;These discussions may be conducted alternately in China and the United States, or a third country upon agreement of the Parties. As required, the two sides may conduct working-level consultations on relevant economic and trade issues.&#8221;
U.S. Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer, and China Vice Premier of the State Council He Lifeng will continue discussions.
&#8220;I would say one of the big takeaways from this weekend — the United States will continue a strategic rebalancing in many areas that were exposed as supply chain weaknesses during COVID, whether it&#8217;s medicines, whether it&#8217;s semiconductors, steel,&#8221; Bessent said. &#8220;We will continue moving toward U.S. independence or reliable supplies from allies on those — but the consensus from both delegations this weekend is neither side wants a decoupling.&#8221;
China will also suspend non-tariff actions taken against the United States since April 2 such as restrictions on exports of rare earths and penalties for certain American companies.
Bessent added that he would like to see China open to more American goods and said that the two countries now have a mechanism in place to continue trade discussions. He <a href="https://www.cnbc.com/2025/05/12/treasury-secretary-bessent-says-hes-likely-to-meet-with-china-again-in-next-few-weeks.html" target="_blank" rel="noopener">later told</a> CNBC that he expected to meet with Chinese officials again in a few weeks to work toward a more &#8220;fulsome agreement.&#8221;
“We tried to identify shared interest,” he said. “We came with a list of problems that we were trying to solve, and I think we did a good job on that.”
The White House also wants to rebalance trade with China, noting in a release that the trade deficit with the communist country was $295.4 billion in 2024.
Bessent said that the Biden administration had failed to make China abide by previous trade agreements.
&#8220;We had an excellent trade agreement with China — and the Biden Administration chose not to enforce it,&#8221; he said. &#8220;The Chinese delegation basically told us that once President Biden came into office, they just ignored their obligations.&#8221;
<blockquote class="twitter-tweet">
.<a href="https://twitter.com/SecScottBessent?ref_src=twsrc%5Etfw">@SecScottBessent</a>: &#8220;We had an excellent trade agreement with China — and the Biden Administration chose not to enforce it. The Chinese delegation basically told us that once President Biden came into office, they just ignored their obligations.&#8221; <a href="https://t.co/Sv8pxVrazf">pic.twitter.com/Sv8pxVrazf</a>
— Rapid Response 47 (@RapidResponse47) <a href="https://twitter.com/RapidResponse47/status/1921896843610403005?ref_src=twsrc%5Etfw">May 12, 2025</a></blockquote>
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Greer noted that Chinese officials had indicated that they would be taking more steps to crackdown on the flow of fentanyl originating in China into the United States.
&#8220;Both the Chinese and the United States agreed to work constructively together on fentanyl and there&#8217;s a positive path forward there as well,&#8221; he told reporters.
Bessent noted that the Chinese Deputy Minister for Public Safety, who he noted was not &#8220;traditionally part of the trade team,&#8221; was present at the talks over the weekend. He said that official had a &#8220;robust and highly detailed&#8221; discussion on the fentanyl issue.
Stock markets worldwide surged due to the temporary agreement, and the U.S. stock futures also jumped.

SWITZERLAND-US-CHINA-DIPLOMACY-TARIFF-TRADE

U.S., China Release Details Of Agreement To Dramatically Slash Tariffs

trade

Trade War

After two days of talks in Switzerland, President Donald Trump&#8217;s envoys touted what they said was significant movement toward reaching a trade deal with China.
Treasury Secretary Scott Bessent told reporters on Sunday that there was <a href="https://x.com/business/status/1921615311838577125" target="_blank" rel="noopener">&#8220;substantial progress&#8221;</a> and a &#8220;great deal of productivity&#8221; in the discussions with Chinese officials.
&#8220;We will be giving details tomorrow, but I can tell you that the talks were productive,&#8221; Bessent added.
<blockquote class="twitter-tweet" data-media-max-width="560">
.<a href="https://twitter.com/SecScottBessent?ref_src=twsrc%5Etfw">@SecScottBessent</a> says there has been a &#8220;great deal of productivity&#8221; in trade talks with China: &#8220;We will be giving details tomorrow, but I can tell you that the talks were productive.&#8221; <a href="https://t.co/v85uugnMnV">pic.twitter.com/v85uugnMnV</a>
— Rapid Response 47 (@RapidResponse47) <a href="https://twitter.com/RapidResponse47/status/1921597140784013614?ref_src=twsrc%5Etfw">May 11, 2025</a></blockquote>
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The delegation from China also indicated the negotiations went well.
Chinese Vice Premier He Lifeng said the talks marked &#8220;an important first step&#8221; and promised a joint statement, according to <a href="https://www.bloomberg.com/news/articles/2025-05-11/us-china-made-substantial-progress-in-trade-talks-bessent-says" target="_blank" rel="noopener">Bloomberg</a>.
As it stands, the United States imposed an overall tariff rate on Chinese goods at 145%. Beijing responded by <a href="https://www.cnbc.com/2025/04/11/china-strikes-back-with-125percent-tariffs-on-us-goods-starting-april-12.html" target="_blank" rel="noopener">raising</a> tariffs on U.S. goods to 125%.
China&#8217;s delegation <a href="https://www.dailywire.com/news/china-dispatches-top-security-chief-to-face-trump-team-over-fentanyl-crisis-tariffs" target="_blank" rel="noopener">reportedly</a> included President Xi Jinping&#8217;s top security official, a sign the discussions broached the fentanyl crisis in addition to trade.
The world&#8217;s two largest economies have been roiled as a result of the trade war, which escalated with Trump&#8217;s &#8220;Liberation Day&#8221; tariffs last month.
Bessent noted that he and U.S. Trade Representative Jamieson Greer spoke to Trump the night before.
&#8220;He is fully informed of what is going on,&#8221; Bessent said of the president.
Trump himself posted about the talks on Truth Social in the evening on Saturday.
&#8220;A very good meeting today with China, in Switzerland. Many things discussed, much agreed to. A total reset negotiated in a friendly, but constructive, manner,&#8221; Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/114486066663976973" target="_blank" rel="noopener">said</a>.
&#8220;We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE!!!&#8221; the president added.
Greer, who was standing beside Bessent, said China&#8217;s officials &#8220;worked very diligently&#8221; and were &#8220;very tough negotiators.&#8221;
<blockquote class="twitter-tweet" data-media-max-width="560">
.<a href="https://twitter.com/USTradeRep?ref_src=twsrc%5Etfw">@USTradeRep</a> in Geneva: &#8220;The U.S. has a massive $1.2 trillion trade deficit, so the President declared a national emergency &#8230; We&#8217;re confident that the deal we struck with our Chinese partners will help us work toward resolving that national emergency.&#8221; <a href="https://t.co/1kuPhzzGLp">pic.twitter.com/1kuPhzzGLp</a>
— Rapid Response 47 (@RapidResponse47) <a href="https://twitter.com/RapidResponse47/status/1921597758911267219?ref_src=twsrc%5Etfw">May 11, 2025</a></blockquote>
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He echoed what Bessent said, declaring how the past two days were &#8220;very constructive,&#8221; and then made a stark observation about the timeframe.
&#8220;It&#8217;s important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as maybe thought,&#8221; Greer said.
&#8220;That being said, there was a lot of groundwork that went into these two days,&#8221; he continued.
Greer also emphasized that it was &#8220;important&#8221; to remember why they were there in the first place.
&#8220;The United States has a massive $1.2 trillion trade deficit, so the president declared a national emergency and imposed tariffs,&#8221; Greer said.
&#8220;We&#8217;re confident that the deal we struck with our Chinese partners will help us work toward resolving that national emergency,&#8221; he added.
Heading into the high-stakes talks, Trump suggested that Bessent had room to offer a lower rate.
“80% Tariff on China seems right! Up to Scott B,” Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/114477628854583525" target="_blank" rel="noopener">said</a> in a Truth Social post on Friday.
Trump officials have been <a href="https://www.dailywire.com/news/sorry-china-bessent-says-deal-with-massive-trade-partner-very-close" target="_blank" rel="noopener">negotiating</a> on trade with a host of nations impacted by the president&#8217;s &#8220;Liberation Day&#8221; tariffs, which hinge on a national emergency declaration.
Last week, the White House unveiled a trade deal <a href="https://www.whitehouse.gov/fact-sheets/2025/05/fact-sheet-u-s-uk-reach-historic-trade-deal/" target="_blank" rel="noopener">framework</a> with the United Kingdom.

US Treasury Secretary Scott Bessent (L) and US Trade Representative Jamieson Greer

Trump’s Envoys Tease China Trade Breakthrough, Stress How ‘Quickly’ It Came Together

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