China, Big Bill, And Debt Ceiling Top Agenda

  • Administration reaches trade deal with China
  • President Donald Trump heads to Middle East
  • Treasury issues letter on debt ceiling
  • House tees up Reconciliation package
  • SALT and Medicaid under review

Over the weekend, Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer met with representatives of China in Switzerland. It may be a sign of evolving policy at the White House that trade hawkish counselor Peter Navarro was not in the U.S. delegation that met with Chinese officials. The secretary on Monday morning announced the broad outline of the deal, which is a 90-day pause with much lower tariff rates. 

Under the deal, the U.S. will reduce the 145% tariff on Chinese goods to 30%, and China will reduce its 125% tariff on U.S. goods to 10%.  Further talks will proceed during the 90-day cooling-off period, and both sides agreed that tensions will be reduced.

Also, on the international front, President Donald Trump leaves on a trip to the Middle East, where he will meet with leaders of Saudi Arabia, Qatar, and the United Arab Emirates. Though the president will be in the region, he isn't set to stop in Israel. Hopes for a ceasefire increased when it was announced that a deal was made for the release of the last living American hostage by Hamas. 

Debt Ceili...
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