Overview

• President Trump indicated plans to reduce the 145% tariffs on Chinese goods, fostering optimism for a potential trade deal.
• Treasury Secretary Scott Bessent described the U.S.-China trade standoff as unsustainable and predicted a de-escalation, though formal negotiations have not started.
• Global markets rallied after Trump clarified he has no intention of firing Federal Reserve Chair Jerome Powell, easing concerns over central bank independence.
• The IMF slashed global growth forecasts for 2025 to 2.8% and U.S. growth to 1.8%, citing the economic fallout from Trump's tariffs as a major negative shock.
• Layoffs at U.S. manufacturers, including Mack Trucks and Volvo, highlight the domestic impact of elevated tariffs and trade uncertainty.