Canada ended a digital service tax that would have hit major American tech companies hard after President Donald Trump announced he was ending trade talks with the country over the levy.
Canada’s Department of Finance said Sunday that it would rescind its Digital Service Tax (DST) in “anticipation of a mutually beneficial comprehensive trade arrangement with the United States.” The reversal came after Trump said on Friday that he was “terminating” trade discussions. 
The tax, which was expected to take effect on Monday, was anticipated to have a significant impact on United States-based companies like Amazon, Google, Meta, and Apple. 
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“Canada’s new government is focused on building the strongest economy in the G7 and standing up for Canadian workers and businesses,” <a href="https://www.canada.ca/en/department-finance/news/2025/06/canada-rescinds-digital-services-tax-to-advance-broader-trade-negotiations-with-the-united-states.html" target="_blank" rel="noopener">said</a> Minister of Finance and National Revenue François-Philippe Champagne. “Rescinding the digital services tax will allow the negotiations of a new economic and security relationship with the United States to make vital progress and reinforce our work to create jobs and build prosperity for all Canadians.”
Earlier this month, Champagne said that the Digital Service Tax would be implemented despite opposition from the United States. He <a href="https://www.cbc.ca/news/politics/canada-digital-services-tax-1.7565966" target="_blank" rel="noopener">said</a> on June 19 that the tax was “going ahead” as scheduled and would be applied. 
The digital service tax was <a href="https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/digital-services-tax.html" target="_blank" rel="noopener">enacted</a> to require “foreign and domestic large businesses to pay tax on certain revenue earned from engaging with online users in Canada,” according to the Canadian government. The tax would have cost American businesses up to $2.3 billion annually, <a href="https://ccianet.org/research/reports/impacts-canada-proposed-digital-service-tax-united-states/" target="_blank" rel="noopener">according</a> to a study conducted by the Computer and Communications Industry Association. 
Canadian Prime Minister Mark Carney said Sunday that he and Trump had agreed to continue trade discussions with the hope of signing an agreement by July 21. 
The resumption of talks follows Trump&#8217;s social media berating of Canada on Friday. 
“We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country,” Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/114756567645919781">posted</a> on Truth Social. “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.”
Several other trade deadlines are looming, including a July 9 cutoff for the United States and the European Union to make a deal before 50% tariffs on European imports are imposed.

World Leaders Converge In Canada For G7 Summit

Canada Caves: Digital Tax On U.S. Tech Scrapped After Trump Pressure

Amazon

Apple

Big Tech

Canada

Donald Trump

Economy

Executive

Google

Politics

Tariffs

Taxes

Trade War

WASHINGTON — The United States is terminating trade discussions with Canada for the time being, President Donald Trump announced on Friday, citing the country&#8217;s digital services tax on American tech companies.
The president made the announcement in a Truth Social post following a Friday afternoon press briefing at the White House.
&#8220;We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country,&#8221; Trump shared.
&#8220;They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also,&#8221; he said. &#8220;Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately.&#8221;
<div id="attachment_940545" style="width: 875px" class="wp-caption alignnone"><a href="https://www.dailywire.com/news/trump-ends-u-s-trade-talks-with-canada-effective-immediately/us-president-donald-trump-held-a-press-conference-at-the-white-house-2" rel="attachment wp-att-940545"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-940545" class="wp-image-940545 size-large" src="https://dw-wp-production.imgix.net/2025/06/GettyImages-2221591124-865x576.jpg" alt="" width="865" height="576" srcset="https://dw-wp-production.imgix.net/2025/06/GettyImages-2221591124-865x576.jpg 865w, https://dw-wp-production.imgix.net/2025/06/GettyImages-2221591124-300x200.jpg 300w, https://dw-wp-production.imgix.net/2025/06/GettyImages-2221591124-768x512.jpg 768w, https://dw-wp-production.imgix.net/2025/06/GettyImages-2221591124.jpg 1024w" sizes="(max-width: 865px) 100vw, 865px" /></a>United States President Donald Trump speaks at the White House Press Briefing Room in Washington, D.C. on June 27, 2025. (Photo by Celal Gunes/Anadolu via Getty Images)</div>
&#8220;We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period,&#8221; he added, concluding, as always, &#8220;Thank you for your attention to this matter!&#8221;
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The president&#8217;s announcement comes after the United States put levies on Canadian goods after he took office this year, a move which prompted Canada to put tariffs on American exports. Canada is the largest importer of American exports, while the United States is Canada&#8217;s biggest trading partner.
Prime Minister Carney&#8217;s office did not immediately respond to a request for comment from The Daily Wire.
During his press briefing on Friday afternoon, the president <a href="https://www.dailywire.com/news/supreme-court-sides-with-trump-limits-nationwide-injunctions-in-birthright-citizenship-fight?topStoryPosition=undefined&amp;author=Mairead+Elordi&amp;category=News&amp;elementPosition=0&amp;row=1&amp;rowHeadline=Top+Stories&amp;rowType=Top+Stories&amp;title=Supreme+Court+Sides+With+Trump%2C+Limits+Nationwide+Injunctions+In+Birthright+Citizenship+Fight">celebrated multiple wins</a> throughout the past week, including Supreme Court opinions on birthright citizenship and parental rights. In a 6-3 ruling, the Supreme Court said lower courts do not have the unilateral authority to block Trump’s agenda, allowing Trump to try to end birthright citizenship in some parts of the country while legal challenges against his order proceed in others.

US President Donald Trump held a press conference at the White House

Trump Ends Trade Talks With Canada ‘Effective Immediately’

Free Trade

White House

President Donald Trump on Wednesday threatened that Spain would have to &#8220;pay twice as much&#8221; in a future trade deal after the NATO member refused to commit to the alliance&#8217;s new target of spending 5% of its gross domestic product on defense and security.
&#8220;You&#8217;re the only country that is not paying. I don&#8217;t know what the problem is,&#8221; Trump said at the NATO summit in The Hague when questioned about Spain&#8217;s refusal to go along.
&#8220;You know what we’re gonna do? We&#8217;re negotiating with Spain on a trade deal. We&#8217;re going to make them pay twice as much. And I&#8217;m actually serious about that,&#8221; the president added.
NATO members <a href="https://www.dailywire.com/news/trump-triumphs-nato-bows-to-u-s-pressure-with-5-defense-pledge?topStoryPosition=undefined&amp;author=Nathan+Gay&amp;category=News&amp;elementPosition=2&amp;row=1&amp;rowHeadline=Top+Stories&amp;rowType=Top+Stories&amp;title=Trump+Triumphs%3A+NATO+Bows+To+U.S.+Pressure+With+5%25+Defense+Pledge">agreed</a> to increase defense spending from the current 2% level to 5% of their country’s gross domestic product by 2035. Spain was the only member that rejected this target, arguing that it would strain the country’s extensive welfare state.
“We fully respect the legitimate desire of other countries to increase their defense investment, but we are not going to do it,” Spanish Prime Minister Pedro Sánchez <a href="https://www.dailywire.com/news/trump-heads-to-nato-summit-demanding-freeloading-allies-pay-their-fair-share?author=Nathan+Gay&amp;category=News&amp;elementPosition=1&amp;row=0&amp;rowType=Vertical+List&amp;title=Trump+Heads+To+NATO+Summit+Demanding+%E2%80%98Freeloading%E2%80%99+Allies+Pay+Their+Fair+Share">said</a> before the summit.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
President Trump rips into Spain for refusing to increase NATO spending.
&quot;I think Spain&#39;s terrible what they&#39;ve done, they are the only Country that won&#39;t pay 5%&quot; <a href="https://t.co/WD5JGnc2WU">pic.twitter.com/WD5JGnc2WU</a>
&mdash; Media Research Center (@theMRC) <a href="https://twitter.com/theMRC/status/1937881474520223900?ref_src=twsrc%5Etfw">June 25, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
&#8220;They want a little bit of a free ride, but they&#8217;ll have to pay it back to us on trade, because I’m not going to let that happen. It’s unfair,” Trump said.
As a part of the European Union, Spain <a href="https://www.bloomberg.com/news/articles/2025-06-25/trump-threatens-to-double-tariffs-on-spain-over-nato-spending">negotiates</a> trade as part of the 27-member bloc, not individually, per Bloomberg. Still, Trump emphasized his intention to bypass the European Union&#8217;s regular trade negotiation protocols.
&#8220;I&#8217;m going to negotiate directly with Spain. I&#8217;m going to do it myself,&#8221; Trump insisted. &#8220;They&#8217;re going to pay, they&#8217;ll pay more money this way.&#8221;
The threat comes ahead of the Trump administration&#8217;s July 9 deadline for the European Union to agree to a trade deal. If no agreement is reached, tariffs on EU products imported into the United States are set to increase to 50%.
NATO members condemned Spain for rejecting the 5% target.
Władysław Kosiniak-Kamysz, Deputy Prime Minister of Poland, whose country allocates a higher percentage of its GDP for defense than any NATO member, blasted Spain’s lack of commitment.
“We believe that any deviation from this principle by any member country is a bad example,” he said.
“It’s incredibly unfair to the alliance,” another NATO official <a href="https://www.politico.eu/article/spain-nato-canada-defense-target-spending-gdp/">said</a> to POLITICO.
At the press conference on Wednesday, Trump said his outlook on NATO had changed. Previously critical of &#8220;freeloading&#8221; nations not paying their fair share in defense, he now believes the alliance is no longer a &#8220;rip-off&#8221; given the new 5% commitment. The increase is expected to significantly boost the alliance&#8217;s collective defense capabilities at a time of heightened global tensions, as the United States has historically shouldered more than two-thirds of NATO&#8217;s collective defense spending.

NATO Summit In The Hague Final Day

Trump Says Spain Will ‘Pay Twice As Much’ On Trade After NATO Defiance

Europe

European Union

Global Politics

NATO

Spain

trade

WASHINGTON (Reuters) — Higher tariffs could begin raising inflation this summer, a period that will be key to Federal Reserve consideration of possible rate cuts, Fed Chair Jerome Powell told members of Congress on Tuesday.
Pressed by Republican members of the House Financial Services committee about why the Fed isn&#8217;t cutting rates, as President Donald Trump has demanded, Powell said he and many at the Fed expect inflation to start rising soon, and that the central bank was in no rush to ease borrowing costs in the meantime.
Powell particularly said he would not open the door to a rate cut at the Fed&#8217;s July meeting, as two of his colleagues recently suggested, or at any other session for that matter.
&#8220;I do not want to point to a particular meeting. I don&#8217;t think we need to be in any rush,&#8221; given a still-strong labor market and so much uncertainty about the impact of the still-unresolved tariff debate, Powell said.
Referring to expected tariff-driven price increases, Powell said &#8220;we should start to see this over the summer, in the June number and the July number. &#8230; If we don&#8217;t we are perfectly open to the idea that the pass-through (to consumers) will be less than we think, and if we do that will matter for policy.&#8221;
“I think if it turns out that inflation pressures remain contained we will get to a place where we cut rates sooner than later,&#8221; he said.
With the central bank largely sidelined waiting for the outcome of the Trump administration&#8217;s tariff negotiations, Powell was quizzed repeatedly about why the central bank seemed preoccupied with that issue and isn&#8217;t cutting rates given that inflation so far has been modest.
Powell said that Fed policy isn&#8217;t meant to endorse or criticize the Trump administration&#8217;s approach to trade, only to deal with an inflation impact that the Fed and forecasts more broadly expect to gather momentum over the rest of the year.
&#8220;We aren&#8217;t commenting on tariffs,&#8221; Powell said. &#8220;Our job is keeping inflation under control, and when policies have short- and medium-term, meaningful, implications, then inflation becomes our job.&#8221;
&#8220;All professional forecasters I know of&#8230;expect a meaningful increase in inflation over the course of this year,&#8221; Powell said, elaborating on the Fed&#8217;s reluctance to cut rates while major aspects of Trump&#8217;s trade policy remain unresolved.
<h3>PARING BETS</h3>
In prepared testimony to the House panel, Powell noted that those effects &#8220;could be short-lived, reflecting a one-time shift in the price level. It is also possible that the inflationary effects could instead be more persistent. &#8230; For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance.&#8221;
Following the release of Powell&#8217;s testimony, investors pared bets that the central bank might cut its policy interest rate as soon as the central bank&#8217;s July meeting, and increased the perceived odds for a rate reduction in September, with another to follow later in the year.
Powell&#8217;s testimony, as is usually the case with his semiannual congressional appearances, largely tracks the central bank&#8217;s most recent policy statement, approved last week. Fed officials voted unanimously at that meeting to hold the benchmark interest rate steady in the current 4.25% to 4.5% range, and gave no indication rate cuts were imminent.
New economic projections released at the time showed officials at the median expect two quarter-point rate cuts by the end of the year, in line with current market pricing.
In recent days, two Fed governors, both Trump appointees, have said rates could fall as soon as the July meeting, given inflation has not yet risen in response to tariffs, while three reserve bank presidents said they still worry inflation will intensify over the rest of the year.
Trump, who appointed Powell as chair in his first term but is expected to replace him when his term ends next spring, has repeatedly called for steep rate cuts.
&#8220;We should be at least two to three points lower,&#8221; he said in a social media post ahead of the hearing, adding in reference to Powell that he hoped &#8220;Congress really works this very dumb, hardheaded person, over.&#8221;
(Reporting by Howard Schneider; Editing by Andrea Ricci)

FILE PHOTO: Federal Reserve Chair Jerome Powell speaks at a press conference in Washington

Jerome Powell Suggests Delaying Rate Cuts Beyond July Meeting While Fed Studies Tariff Impact

Congress

Federal Reserve

Inflation

Interest Rates

Jerome Powell

Washington D.C.

The Federal Reserve voted to leave the benchmark interest rate between 4.25% and 4.5%, despite the economy&#8217;s &#8220;solid position.&#8221;
&#8220;For the time being, we are well-positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,&#8221; Federal Reserve Chair Jerome Powell <a href="https://www.youtube.com/watch?v=K-WAOqotRl8">said</a> in a press conference following the decision.
The Consumer Price Index rose 2.4% in May, up from 2.3% in April — its lowest point in four years, The Daily Wire previously <a href="https://www.dailywire.com/news/inflation-hits-lowest-point-in-over-4-years-as-april-report-better-than-expected?author=Zach+Jewell&amp;category=News&amp;elementPosition=undefined&amp;row=0&amp;rowType=Vertical+List&amp;title=Inflation+Hits+Lowest+Point+In+Over+4+Years+As+April+Report+Better+Than+Expected">reported</a>.
&#8220;Inflation remains somewhat elevated,&#8221; the Federal Reserve <a href="https://www.federalreserve.gov/newsevents/pressreleases/monetary20250618a.htm">said</a> today in a press release. &#8220;Uncertainty about the economic outlook has diminished but remains elevated.&#8221;
Earlier today, President Donald Trump <a href="https://x.com/theMRC/status/1935336312086675879">said</a> the Federal Reserve &#8220;probably won&#8217;t cut.&#8221;
&#8220;We have a stupid person, frankly, at the Fed,&#8221; Trump said. &#8220;I guess he&#8217;s a political guy, I don&#8217;t know. He&#8217;s a political guy who&#8217;s not a smart person.&#8221;
Powell said the Federal Open Market Committee&#8217;s stance is &#8220;not complicated.&#8221;
&#8220;What everyone on the FOMC wants is a good, solid American economy with strong labor market and price stability, that&#8217;s what we want,&#8221; Powell said. &#8220;That&#8217;s what matters to us. That&#8217;s pretty much all that matters to us.&#8221;
Powell said the country could still see negative economic effects from tariffs.
&#8220;Expectations of that [tariff] level, and thus of the related economic effects, reached a peak in April and have since declined,&#8221; Powell said in a press conference following the decision. &#8220;Even so, increases in tariffs this year are likely to push up prices and weigh on economic activity.&#8221;
The CPI has shown little impacts from Trump&#8217;s tariffs over the past three months, The Daily Wire previously reported. The index for food increased slightly compared to April, but the indexes for energy and gas decreased by 1% and 2.6%, respectively.
Powell said the Federal Reserve still expects to see impacts from tariffs this summer.
&#8220;It takes some time for tariffs to work their way through the chain of distribution to the end consumer,&#8221; Powell said. &#8220;We&#8217;re beginning to see some effects, and we do expect to see more of them over the coming months.&#8221;
But he said the ultimate effects of tariffs are &#8220;highly uncertain.&#8221;
Trump also said he would not reappoint Powell.
&#8220;I would have never reappointed him, Biden reappointed him,&#8221; Trump said. &#8220;He&#8217;s done a very poor job. So we have no inflation, we have only success, and I&#8217;d like to see interest rates get down.&#8221;
Despite maintaining interest rates, Powell said the economy shows no sign of weakening.
&#8220;The U.S. economy has defied all kinds of forecasts for it to weaken, really, over the last three years,&#8221; Powell said. &#8220;Eventually it will, but we don&#8217;t see signs of that now.&#8221;

Federal Reserve Chair Powell Holds Press Conference On Interest Rates

Federal Reserve Refuses To Cut Interest Rates

Treasury Secretary Scott Bessent remarked on Thursday that a &#8220;new version of TDS&#8221; seems to have emerged, specifically targeting President Donald Trump&#8217;s tariff policies, and reminded Democrats that they lost the presidential election last year while defending the sitting administration&#8217;s economic policies.
Shorthand for &#8220;Trump Derangement Syndrome,&#8221; TDS refers to a phenomenon characterized by intense negative reactions to Trump, his actions, or his supporters. Republican lawmakers recently <a href="https://www.dailywire.com/news/gop-searches-patient-zero-trump-derangement-syndrome-new-bill" target="_blank" rel="noopener">introduced</a> a bill in the House to begin a study of its origins and identify potential solutions.
During a hearing on Capitol Hill, Sen. Ron Wyden (D-OR) <a href="https://x.com/RichSementa/status/1933185612636463228" target="_blank" rel="noopener">pressed</a> Bessent on whether American consumers are paying the tariffs amid Trump&#8217;s trade war with other countries after pointing out that the secretary himself <a href="https://www.dailywire.com/news/bessent-speaks-to-walmart-ceo-dismisses-draconian-forecast-on-tariffs" target="_blank" rel="noopener">conceded</a> nearly a month ago that retail giant Walmart could pass on price increases to consumers.
<blockquote class="twitter-tweet" data-media-max-width="560">
&#8220;There seems to be a new version of TDS, which I would call Tariff Derangement Syndrome,&#8221; says <a href="https://twitter.com/SecScottBessent?ref_src=twsrc%5Etfw">@SecScottBessent</a>.
&#8220;Many on your side seem disappointed that there is no inflation &#8230; We saw the best inflation numbers since 2020, so there has been nothing passed on. There has been… <a href="https://t.co/KpYCPlUoA3">pic.twitter.com/KpYCPlUoA3</a>
— Rapid Response 47 (@RapidResponse47) <a href="https://twitter.com/RapidResponse47/status/1933174639531901157?ref_src=twsrc%5Etfw">June 12, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Bessent accused the Democrat of &#8220;cherry-picking&#8221; to suit a narrative. &#8220;Walmart makes decisions based on their customers&#8221; while he said two other large retailers, Amazon and Home Depot, have chosen not to pass along the cost of tariffs.
&#8220;There seems to be a new version of TDS, which I would call Tariff Derangement Syndrome, and many on your side seem disappointed that there is no inflation today,&#8221; Bessent <a href="https://x.com/RapidResponse47/status/1933174639531901157" target="_blank" rel="noopener">continued</a>. &#8220;As a matter of fact, we saw the best inflation numbers since 2020, so there has been nothing passed on. There has been no tariff recession. So no inflation, no recession due to tariffs.&#8221;
&#8220;Democrats are so out of touch and partisan that they refuse to acknowledge the President’s inflation wins and would actually prefer to see numbers rise,&#8221; Bessent <a href="https://x.com/SecScottBessent/status/1933183375227171099">wrote</a> in a post on X with a clip of his back-and-forth with Wyden.
At another point during the hearing, Bessent chided Sen. Michael Bennet (D-CO) during an exchange in which the Democrat lawmaker was loudly talking about tax cuts.
<blockquote class="twitter-tweet" data-media-max-width="560">
.<a href="https://twitter.com/SecScottBessent?ref_src=twsrc%5Etfw">@SecScottBessent</a> nukes <a href="https://twitter.com/SenatorBennet?ref_src=twsrc%5Etfw">@SenatorBennet</a> on President Trump&#8217;s tax cuts: &#8220;We had a referendum on November 5th on our economic policies. Your side lost.&#8221; <a href="https://t.co/MLQ3AbZ36P">pic.twitter.com/MLQ3AbZ36P</a>
— Rapid Response 47 (@RapidResponse47) <a href="https://twitter.com/RapidResponse47/status/1933175478455611657?ref_src=twsrc%5Etfw">June 12, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
&#8220;Sir, we had a referendum on November 5th on &#8230; economic policies. Your side lost,&#8221; Bessent said.
The secretary kept going, but Bennet started to speak over him.
&#8220;I agree with that, and I&#8217;m a rare Democrat who doesn&#8217;t blame Donald Trump for winning,&#8221; Bennet exclaimed. &#8220;I&#8217;m sad he won.&#8221;
Bessent shot back, &#8220;A higher decibel level does not give your statements more veracity.&#8221;

Treasury Secretary Scott Bessent Testifies To Senate Finance Committee On Treasury Dept’s Budget

Bessent Identifies New Strain Of TDS, Reminds Dems They Lost The Election

Democrats

Scott Bessent

Treasury Department

Trump Derangement Syndrome

The United States and China agree to a trade framework, slashing tariffs and unlocking rare earth minerals. Inflation finally cools  — but L.A. remains hot. We break down the latest on the economy and the political unrest. And, as chaos erupts on the L.A. streets, the real battle is for the narrative – who’s winning the PR war?
It’s Thursday, June 12, and this is the news you need to know to start your day.
Morning Wire is available on video! You can watch today’s episode here:
 
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If you’d rather listen to your news, today’s edition of the Morning Wire podcast can be heard below:
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<h2>Trade War Finale: We Have A Deal</h2>
<div class="image"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-933235" src="https://dw-wp-production.imgix.net/2025/06/SEGMENT-HEADERS.00_00_21_19.Still001-3.jpeg" alt="" width="640" height="360" srcset="https://dw-wp-production.imgix.net/2025/06/SEGMENT-HEADERS.00_00_21_19.Still001-3.jpeg 640w, https://dw-wp-production.imgix.net/2025/06/SEGMENT-HEADERS.00_00_21_19.Still001-3-300x169.jpeg 300w" sizes="(max-width: 640px) 100vw, 640px" /></div>
Topline: President Donald Trump announced that the United States has reached a trade deal with China. The news comes amid an uneasy truce after a series of retaliatory tariffs.
Early Wednesday morning, Trump shared on Truth Social that “Our deal with China is done, subject to final approval with President Xi and me.” This followed two days of negotiations between top economic officials from both countries in London. Trump said that the deal, as it stands, would impose 55% tariffs on Chinese goods entering the United States, but just 10% for American goods in China. China has also agreed to resume shipping magnets and rare earth minerals to the United States.
“Rare earths power $7 trillion US dollars of consumer goods every year,” Shaun Rein, the founder of the China Market Research Group, told The Daily Wire. “Without Chinese rare earths, our iPhones aren&#8217;t going to work. Our cars aren&#8217;t going to work. And importantly, our military defense weapons aren&#8217;t going to work. So without Chinese rare earths, America&#8217;s in a lot of trouble. What also people don&#8217;t realize is that about 95% of antibiotics actually [are] manufactured in China. And then all straight down everything you get out of Walgreens or CVS, whether it&#8217;s Advil or Tylenol, a lot of that is made in China.”
China is the second-largest economy in the world and is a major market for many American goods – $143.5 billion of U.S. goods were exported to China in 2024, although American imports of Chinese goods were far higher at $438.9 billion. Tariffs of 55% are comparatively high but much lower than the 145% imposed before the agreement was reached. The deal will allow Chinese students to resume attending American colleges and universities.
Commerce Secretary Howard Lutnick said that this agreement would conclude trade negotiations with China and that deals from many other countries are close to locking in their own deals with the United States.
“We’re in good shape with lots of countries, but good shape isn&#8217;t good enough for the United States of America,” Lutnick told <a href="https://x.com/atrupar/status/1932819395077710148">CNBC</a>.”We want great deals that are fundamental to America, we can get them, we can get them done.”
And&#8230; Inflation rose just 0.1% in May compared to April — it’s now sitting at 2.4%, near a four-year low. 
&nbsp;
<h2>Anti-ICE Riots Spread As Politicians Spar</h2>
<div class="image"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-933233" src="https://dw-wp-production.imgix.net/2025/06/SEGMENT-HEADERS.00_01_21_04.Still002.jpeg" alt="" width="640" height="360" srcset="https://dw-wp-production.imgix.net/2025/06/SEGMENT-HEADERS.00_01_21_04.Still002.jpeg 640w, https://dw-wp-production.imgix.net/2025/06/SEGMENT-HEADERS.00_01_21_04.Still002-300x169.jpeg 300w" sizes="(max-width: 640px) 100vw, 640px" /></div>
Topline: The clash between President Trump and California Democratic Governor Gavin Newsom escalated Wednesday, as anti-ICE riots continued to spread across the country. 
Protests continue to pick up steam nationwide:
<ul>
<li style="font-weight: 400;" aria-level="1">By Wednesday night, Las Vegas, Minneapolis, Philadelphia, and Seattle joined the growing list of cities being hit by demonstrations, many of which turned violent. </li>
<li style="font-weight: 400;" aria-level="1">In Texas, Republican Governor Greg Abbott mobilized the National Guard before protests across the state turned violent, with officers in a number of cities left hospitalized. </li>
<li style="font-weight: 400;" aria-level="1">In Atlanta, hundreds of rioters lobbed fireworks at police and attempted to shut down a highway — authorities responded with tear gas and finally got the crowd under control. </li>
</ul>
California is still the epicenter of the unrest. Demonstrations continued Wednesday night, as rioters defied curfews and clashed with police. At least one rioter, Emiliano Galvez, has been charged with attempted murder. Galvez, a previously deported Mexican national, allegedly threw a Molotov cocktail at police in Los Angeles County. 
&#8220;Since June 6, there have been 330 illegal aliens that have been arrested as part of these riots in Los Angeles,” White House Press Secretary Karoline Leavitt <a href="https://x.com/RapidResponse47/status/1932853233954836599">told</a> reporters. “113 of those illegal aliens had prior criminal convictions.&#8221;
Governor Newsom has<a href="https://www.youtube.com/watch?v=0n77NFjDlBI"> voiced his support</a> for the demonstrations, telling Americans that it was time to “stand up” to President Trump, whom he blamed for provoking the unrest: “Donald Trump without consulting California law enforcement leaders commandeered 2000 of our state’s National Guard members to deploy on our streets illegally and for no reason. This brazen abuse of power by a sitting president inflamed a combustible situation…The founding fathers didn’t live and die to see this moment. It’s time for all of us to stand up.”
These anti-ICE protests aren’t likely to die out anytime soon — organizers are planning “No Kings” demonstrations in cities across the country on Saturday, June 14. That event will coincide with President Trump’s 79th birthday, along with a massive parade in Washington, D.C., to celebrate the Army’s 250th birthday. 
&#8220;We&#8217;re going to be celebrating big on Saturday,” President Trump <a href="https://x.com/RapidResponse47/status/1932480100026511650">said</a>. “And if there&#8217;s any protester that wants to come out, they will be met with very big force… These are people that hate our country. They will be met with very heavy force.”
&nbsp;
<h2>Protests &amp; PR</h2>
<div class="image"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-933231" src="https://dw-wp-production.imgix.net/2025/06/SEGMENT-HEADERS.00_02_17_05.Still003-2.jpeg" alt="" width="640" height="360" srcset="https://dw-wp-production.imgix.net/2025/06/SEGMENT-HEADERS.00_02_17_05.Still003-2.jpeg 640w, https://dw-wp-production.imgix.net/2025/06/SEGMENT-HEADERS.00_02_17_05.Still003-2-300x169.jpeg 300w" sizes="(max-width: 640px) 100vw, 640px" /></div>
Topline: As Los Angeles and other cities contain the anti-ICE riots, Democrats, Republicans, and the media battle over shaping the narrative.
Democrats and Republicans on the national stage have made the ongoing unrest a central part of their messaging since ICE raids began in L.A. last week. Democrats have slammed Trump for deploying troops against American citizens and blame his actions for sparking the riots, arguing that the threat of a militarized response escalated tensions on the ground and tracks with a broader pattern of authoritarianism.
Republicans, especially the president, have taken the opposite tack – decrying Democrats for being complicit in the ongoing violence and lawlessness and insisting that Trump&#8217;s quick and decisive deployment of troops was necessary to prevent further destruction.
“What&#8217;s going on looks really bad to the average American,” Mark Hemingway, Senior Writer at RealClearInvestigations, told The Daily Wire. “This is a very different time than 2020. And we went through months of riots in 2020. And I think now Americans have a very good and clear sense that these are not organic riots necessarily, these are not spontaneous.”
Hemingway seemed skeptical of the proposition that a majority of Americans would view the deployment of troops as escalatory.
“I think the American people are broadly sympathetic to Trump,” Hemingway said. “Trump campaigned on mass deportations. His immigration policy is still <a href="https://www.realclearpolling.com/stories/analysis/trumps-immigration-policies-remain-popular-polls">broadly popular</a>. And the idea that Democrats are attaching support of violent riots to that, or trying to make Trump look like the extremist, it&#8217;s just, this is not five years ago…at this point in time, I think the average American would, you know, trust the first 700 Marines in the phone book at 29 Palms over the elected leadership of Los Angeles to do what&#8217;s right for the people of that city.”

MRN 6.12.25 Thumbnail_V1

Morning Brief: A China Trade Deal And More Riots

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American car manufacturing giant General Motors is set to invest $4 billion in the United States, moving production of three vehicles from Mexico.
GM plans to move production of full-size SUVs and light-duty pickups from Mexico to its Orion Assembly Plant in Michigan, a plant that had recently been repurposed to focus on electric trucks until demand for EVs dropped, The Detroit News <a href="https://www.detroitnews.com/story/business/autos/general-motors/2025/06/10/gm-plans-4-billion-push-to-move-production-from-mexico-to-u-s/84135790007/">reported</a> on Tuesday. GM&#8217;s gas-powered Equinox will be made in Fairfax, Kansas, and the gas-powered Blazer will be made in Spring Hill, Tennessee. The auto company&#8217;s major shift back is set to take place through 2027 and will move the assembly of more than two million vehicles to the United States, GM said, according to <a href="https://www.cnbc.com/2025/06/10/gm-to-invest-4-billion-in-us-manufacturing-plants-amid-tariffs.html">CNBC</a>.
“We believe the future of transportation will be driven by American innovation and manufacturing expertise,” GM CEO Mary Barra said. “Today’s announcement demonstrates our ongoing commitment to build vehicles in the U.S. and to support American jobs. We&#8217;re focused on giving customers choice and offering a broad range of vehicles they love.”
The announcement, which comes after President Donald Trump imposed a 25% tariff on foreign auto imports, was celebrated by the Trump administration.
“No president has taken a stronger interest in reviving America’s once-great auto industry than President Trump, and GM’s investment announcement builds on trillions of dollars in other historic investment commitments to Make in America,” White House spokesman Kush Desai said, according to The Detroit News.
Michigan Democratic Gov. Gretchen Whitmer also praised GM&#8217;s decision, saying it would bring &#8220;more auto manufacturing back home to Michigan, protecting thousands of good-paying, union auto jobs.&#8221;
The future of the Ramos Arizpe plant in Mexico, which currently produces the Equinox and the Blazer, remains uncertain. The production of the Blazer is set to fully move to the United States, while some Equinoxes will still be made at the Mexico plant for other markets, CNBC reported.
Last month, GM said it was also cutting back on production at a truck plant in Ontario, Canada, due to Trump&#8217;s auto tariff, The Daily Wire previously <a href="https://www.dailywire.com/news/general-motors-to-cut-back-on-manufacturing-at-canada-plant-over-trump-tariff?author=Zach+Jewell&amp;category=News&amp;elementPosition=undefined&amp;row=0&amp;rowType=Vertical+List&amp;title=General+Motors+To+Cut+Back+On+Manufacturing+At+Canada+Plant+Over+Trump+Tariff">reported</a>. The auto giant <a href="https://www.dailywire.com/news/general-motors-to-cut-back-on-manufacturing-at-canada-plant-over-trump-tariff?author=Zach+Jewell&amp;category=News&amp;elementPosition=undefined&amp;row=0&amp;rowType=Vertical+List&amp;title=General+Motors+To+Cut+Back+On+Manufacturing+At+Canada+Plant+Over+Trump+Tariff">said</a> in April that it planned to ramp up production of light-duty trucks at its assembly plant in Fort Wayne, Indiana, which promises to add more temporary jobs and increase overtime opportunities for employees.

General Motors

‘Support American Jobs’: GM Plans $4 Billion Production Move From Mexico To U.S.

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In April, President Trump imposed global reciprocal tariffs on the United States’ trading partners, invoking his authority under the International Emergency Economic Powers Act of 1977, to address the national <a href="https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-declares-national-emergency-to-increase-our-competitive-edge-protect-our-sovereignty-and-strengthen-our-national-and-economic-security/">emergency</a> posed by the large and persistent trade deficit” driven by the lack of reciprocity in the country’s trade relationship.
President Trump also wanted to see jobs and factories come “<a href="https://www.business-standard.com/world-news/trump-wants-us-to-make-things-again-but-is-it-ready-for-the-challenge-125060400675_1.html">roaring back</a>” to the United States.
The idea that the United States can become a manufacturing powerhouse is an attractive one, to politicians on both sides of the aisle. After all, who would not be in favor of economic revitalization, new jobs, improved security, and economic independence? However, America’s ability to establish manufacturing dominance faces insurmountable challenges… unless we are smart about the industries we “bring home.”
Historically, the United States has never been a true manufacturing superpower.
Manufacturing employment in the United States peaked in 1979, with nearly 20 million workers employed in the “manufacturing sector.” Over the next four decades, manufacturing entered a structural decline, and the United States transitioned to a service-oriented economy. By 2020, “the <a href="https://www.blackrock.com/us/financial-professionals/insights/exploring-us-manufacturing#:~:text=In%201979%2C%20U.S.%20employment%20in,a%20more%20service%2Doriented%20economy.">service</a> sector dominated the economy,” accounting for 79% of the nation&#8217;s Gross Domestic Product, up from 52% in 1950, and represented 80% of the nation’s total employment. In 2025, fewer than 13 million <a href="https://nam.org/mfgdata/facts-about-manufacturing-expanded/">workers</a> were in the manufacturing sector.
The challenges for the United States to become a manufacturing superpower are many and complex.
First, the country simply does not have the labor pool to do so. The <a href="https://www.cnbc.com/2025/06/04/adp-jobs-report-may-2025-.html">unemployment</a> rate in May 2025, the latest data available, was approximately 4.2%, near full employment.
The labor <a href="https://www.dol.gov/agencies/wb/data/widget">participation</a> rate is running at 62.6%, which is well below the 67+ percent <a href="https://www.statista.com/statistics/191734/us-civilian-labor-force-participation-rate-since-1990/">rate</a> seen in the late 1990s and early 2000s, but not low enough to indicate there is a bench of workers waiting to enter the job market and join the manufacturing sector.
In addition, our labor force is one of the highest-paid in the world. In the United States, the average hourly <a href="https://www.bls.gov/news.release/empsit.t24.htm">wage</a> of a “nonsupervisory manufacturing employee” is approximately $28.80. In 2020, that wage was approximately $6.50 per hour in <a href="https://www.china-briefing.com/news/reshoring-from-china-to-mexico-how-prevalent-is-it-really/#:~:text=The%20hourly%20wage%20for%20manufacturing,over%2012%20percent%20from%202019.">China</a> and $4.82 in Mexico. In <a href="https://www.statista.com/statistics/744071/manufacturing-labor-costs-per-hour-china-vietnam-mexico/#:~:text=A%20difference%20in%20earnings,and%20Vietnam%20for%20cheaper%20labor.&amp;text=Log%20in%20or%20register%20to%20access%20precise%20data.">Vietnam</a>, the average hourly wage in manufacturing is $3.10.
We simply do not have the workers to compete with less developed nations, and those we do have make too much money to make America competitive with them.
The only answer would be to open our borders and import foreign workers to fill manufacturing openings at suppressed wages. This is something that President Trump rightly opposes, as it would change the make-up of the United States, to the detriment of our national identity.
So, what are we to do?
The United States can reshore its manufacturing, but must do so on a limited, prioritized basis. We should not care where our tennis shoes, blue jeans, or T-shirts are manufactured. Those industries hold no vital interest to the United States.
However, we should prioritize the reshoring of industries such as pharmaceuticals, computer chips, drones, and food additives.
“Approximately 40% of finished pharmaceutical products and 80% of active drug ingredients sold in the U.S. are manufactured overseas, <a href="https://www.gao.gov/products/gao-20-262t">according to a report by the GAO</a>. This includes a significant portion of generic drugs, with roughly 80% being produced overseas.”
China controls 80% of the <a href="https://www.atlanticcouncil.org/in-depth-research-reports/issue-brief/a-global-strategy-to-secure-uas-supply-chains/">drone</a> market in the United States.
83% of <a href="https://www.csis.org/analysis/strategy-united-states-regain-its-position-semiconductor-manufacturing#:~:text=And%20as%20to%20semiconductors%2C%2083,capacity%20is%20now%208%20percent.">semiconductors</a> are manufactured outside of the United States.
As a free market capitalist, I do not like the government picking “winning industries,” but there is a national security aspect to consider, and President Trump is doing this.
The <a href="https://www.foxnews.com/media/pulling-billions-from-harvard-fund-trade-schools-heres-what-people-saying-about-trumps-latest-move">president</a> recently floated the idea of taking the $2.2 billion in frozen assets from Harvard University and using that money to fund trade schools, where people could learn to support the manufacturing that is in the nation’s vital and national interests.
At the end of the day, the United States will never become a manufacturing superpower. Our cost structure and standard of living are simply too high… and that is a good problem to have.
However, we must focus on reshoring those industries that are vital to our national defense and our national interests. With the right focus and incentives, we can quickly achieve this strategic goal and free ourselves from our competitors’ supply chain whims.
* * *
Jim Nelles is a Navy veteran and supply chain consultant based in Chicago. His articles have appeared in the Washington Examiner, Newsweek, Foxnews.com, and The Daily Wire. He has served as a chief procurement officer, chief supply chain officer, and chief operations officer for multiple companies.
The views expressed in this piece are those of the author and do not necessarily represent those of The Daily Wire.
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Inside A General Motors Assembly Plant Ahead Of Earnings Figures

‘Roaring Back’: Here’s How To Reshore Manufacturing The Right Way

'Roaring Back': Here’s How To Reshore Manufacturing The Right Way

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President Donald Trump said Wednesday that the United States and China had negotiated a trade deal, awaiting only &#8220;final approval&#8221; from him and Chinese President Xi Jinping. 
The agreement includes provisions on rare earth minerals, tariffs, and allowing Chinese students to study at American universities. Trump said that a 55% tariff would be placed on Chinese goods coming into the United States, while a 10% tariff would be levied on American goods going to China. 
“OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME. FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA. LIKEWISE, WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!),” Trump posted on Truth Social. “WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT! THANK YOU FOR YOUR ATTENTION TO THIS MATTER!”
The announcement comes after American and Chinese officials have been meeting in London to discuss trade. On Tuesday, Commerce Secretary Howard Lutnick <a href="https://www.cnbc.com/2025/06/11/us-china-agree-on-framework-to-implement-geneva-trade-consensus-.html">said</a> that the two countries had “reached a framework to implement the Geneva consensus and the call between the two presidents,” though the details were unclear. 
Last week, Trump <a href="https://www.dailywire.com/news/trump-hails-very-good-trade-call-with-chinas-xi" target="_blank" rel="noopener">spoke</a> to Xi for about 1.5 hours in a conversation that included discussions about rare earth minerals and trade. He had posted on Truth Social that Xi was &#8220;VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!&#8221;
At the height of the trade war, Trump imposed tariffs as high as 145% on Chinese goods while China hit the United States with 125% tariffs. The two countries later agreed to significantly lower the tariffs while negotiations moved forward. 
Trump’s announcement about Chinese students comes as his administration has cracked down on foreign nationals&#8217; access to American universities. Last week, Trump <a href="https://www.dailywire.com/news/an-unacceptable-risk-trump-signs-proclamation-to-stop-foreign-students-from-enrolling-at-harvard" target="_blank" rel="noopener">signed</a> a proclamation to restrict international students from being eligible to attend Harvard University. 
The administration has also blocked all new student visa interviews in preparation for upcoming social media vetting requirements for all international students. At the same time, Secretary of State Marco Rubio <a href="https://www.dailywire.com/news/rubio-promises-to-aggesively-target-students-tied-to-chinese-communist-party?author=Leif+Le+Mahieu&amp;category=News&amp;elementPosition=undefined&amp;row=0&amp;rowType=Vertical+List&amp;title=Rubio+Promises+To+‘Aggressively’+Target+Students+Tied+To+Chinese+Communist+Party" target="_blank" rel="noopener">said</a> that he would aggressively revoke the student visas of Chinese students, especially those with ties to the Chinese Communist Party.

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Trump Unveils Terms Of ‘Done’ Trade Deal With China

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President Donald Trump&#8217;s tariffs have driven a massive drop in the trade deficit — going from nearly $140 billion in March to $61.6 billion in April.
According to the latest numbers, which were detailed during a Thursday morning broadcast on CNBC, the sharp drop in the trade deficit also fueled a significant bump in the Gross Domestic Product (GDP) — the Atlanta Fed GDP now was at 4.64%.
&#8220;The big news is there is how much it bolsters GDP — just look at Atlanta Fed GDP now, which is at 4.64%,&#8221; the anchor noted.
WATCH:
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
CNBC: In April, the U.S. trade deficit fell to $61.6 billion — cut by more than HALF compared to March&#39;s $138.3 billion.
&quot;The big news is there is how much it bolsters GDP — just look at Atlanta Fed GDP now, which is at 4.64%.&quot; <a href="https://t.co/9R8hHlC9d6">pic.twitter.com/9R8hHlC9d6</a>
&mdash; Rapid Response 47 (@RapidResponse47) <a href="https://twitter.com/RapidResponse47/status/1930610746276172238?ref_src=twsrc%5Etfw">June 5, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
A New York Times report digging into some of the latest numbers indicated that the March trade deficit may have been slightly artificially inflated as imports surged to get ahead of the tariffs that everyone knew were coming. In addition, the NYT also noted the fact that the drop in the trade deficit almost exclusively reflected a decrease in imports — meaning that as production picked up domestically, that could also drive the deficit even lower.
President Trump celebrated the drop in the trade deficit one week earlier, playing video from another CNBC broadcast in the Oval Office.
&#8220;Personal income is up 0.8%. That is almost triple the expectation. The income numbers, really for the first four months of the year, they’re stellar. They’re really stellar. I mean, I could go back and look at the first four months of many different years, really very strong numbers,&#8221; anchor Rick Santelli said at the time.
&#8220;How the hell did they already fix the trade deficit? Or not fix it, but to cut it in half? That&#8217;s crazy,&#8221; Joe Kernen added.
&#8220;Yeah, I’ll tell you what, it really does call into question some of the conventional wisdoms. And you know it’s going to be interesting to see what happens next month, when we get this number, or we see some of the other numbers—like current accounts—see how they fared. Because I don’t know, I’ve been watching these numbers a long time. I don’t think I’ve ever seen the trade deficit cut in half for one month,&#8221; Santelli concluded.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
Trump Shows Off CNBC Touting Tariffs: &quot;How The Hell Did They Cut Trade Deficit In Half In One Month?&quot;<a href="https://t.co/RxWqWZSXdQ">https://t.co/RxWqWZSXdQ</a> <a href="https://t.co/FAzREzstRk">pic.twitter.com/FAzREzstRk</a>
&mdash; RCP Video (@rcpvideo) <a href="https://twitter.com/rcpvideo/status/1928519212584009990?ref_src=twsrc%5Etfw">May 30, 2025</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

‘Cut By More Than Half’: CNBC Details Massive Tariff-Driven Drop In Trade Deficit

'Cut By More Than Half': CNBC Details Massive Tariff-Driven Drop In Trade Deficit

CNBC

President Donald Trump announced on Thursday that he had just had a &#8220;very good&#8221; phone call with Chinese President Xi Jinping regarding trade.
In a <a href="https://truthsocial.com/@realDonaldTrump/posts/114631295762726849" target="_blank" rel="noopener">statement</a> posted to Truth Social, Trump said he and Xi discussed &#8220;some of the intricacies&#8221; of the deal struck last month between their countries in Geneva, which had resulted in both sides lowering steep tariffs as negotiations continued.
&#8220;The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries. There should no longer be any questions respecting the complexity of Rare Earth products,&#8221; Trump posted.
Last week, Trump accused Beijing of violating their agreement, after which U.S. Trade Representative Jamieson Greer told <a href="https://www.cnbc.com/video/2025/05/30/u-s-trade-rep-jamieson-greer-very-concerned-with-chinese-non-compliance-on-trade-agreement.html" target="_blank" rel="noopener">CNBC</a> that China was continuing to <a href="https://www.yahoo.com/news/u-trade-rep-says-china-173016290.html" target="_blank" rel="noopener">restrict</a> shipments of rare earth elements that are vital for the U.S. automotive, energy, and defense industries.
&#8220;Our respective teams will be meeting shortly at a location to be determined. We will be represented by Secretary of the Treasury Scott Bessent, Secretary of Commerce Howard Lutnick, and United States Trade Representative, Ambassador Jamieson Greer,&#8221; Trump continued.
Trump also said Xi &#8220;graciously invited&#8221; the first lady and himself to visit China, and he &#8220;reciprocated&#8221; that invitation.
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&#8220;As Presidents of two Great Nations, this is something that we both look forward to doing,&#8221; Trump added. &#8220;The conversation was focused almost entirely on TRADE. Nothing was discussed concerning Russia/Ukraine, or Iran. We will inform the Media as to scheduling and location of the soon to be meeting. Thank you for your attention to this matter!&#8221;
Beijing, which on Monday had <a href="https://www.nytimes.com/2025/06/02/world/asia/china-trump-trade-truce.html" target="_blank" rel="noopener">accused</a> the United States of violating the detente on trade, <a href="https://x.com/ChineseEmbinUS/status/1930623117526806799" target="_blank" rel="noopener">confirmed</a> that a conversation took place and claimed Trump requested the phone discussion with Xi.
China&#8217;s state media reported that Xi asked Trump to &#8220;remove the negative measures&#8221; and to “take the helm and set the right course,” <a href="https://www.ajc.com/news/2025/06/trump-says-after-xi-call-that-us-and-china-will-resume-trade-talks/" target="_blank" rel="noopener">according</a> to The Associated Press.
The conversation took place one week after Bessent told Fox News that discussions between the two economic powerhouses were <a href="https://www.cnbc.com/2025/05/30/us-china-talks-bit-stalled-and-need-trump-and-xi-to-weigh-in-treasury-secretary-bessent-says.html" target="_blank" rel="noopener">&#8220;a bit stalled&#8221;</a> and suggested that a call between Trump and Xi would be needed for a breakthrough.
Early Wednesday morning, Trump <a href="https://truthsocial.com/@realDonaldTrump/posts/114623632387180206" target="_blank" rel="noopener">wrote</a> on Truth Social, &#8220;I like President Xi of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!&#8221;

Trump and Xi illustration

Trump Hails ‘Very Good’ Trade Call With China’s Xi

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