Trump teases major trade deal amid economic tensions
President Donald Trump is teasing the announcement of a major new trade deal today, though he has yet to reveal which country it involves.
(NBC)-President Donald Trump is teasing the announcement of a major new trade deal today, though he has yet to reveal which country it involves. However, The New York Times, citing three sources familiar with the matter, reports the deal is with the United Kingdom. It remains unclear whether the agreement is a finalized pact or an initial framework.
The trade development comes as Treasury Secretary Scott Bessent faces mounting pressure on Capitol Hill for the administration’s slow delivery on promised trade deals.
“There are 18 important trading partners, and we are moving forward at all deliberate speed with those,” Bessent said during testimony.
Adding to the flurry of trade activity, Secretary Bessent is set to begin high-stakes negotiations with China this weekend. The talks come as tensions between the U.S. and China remain high, particularly over tariffs.
At a ceremonial event swearing in a new U.S. ambassador to China, President Trump made clear that he’s not backing down. When asked whether he would consider rolling back tariffs to bring China to the negotiating table, Trump responded simply: “No.”
He also rejected suggestions that the U.S. initiated the latest round of China trade talks. “They said we initiate it? Well, I think they ought to go back and study their files,” Trump said.
The U.S. currently imposes a 145% tariff on Chinese goods—a policy that has already led to price increases for American consumers.
Meanwhile, the Federal Reserve announced it will leave interest rates unchanged, despite repeated calls from President Trump for a rate cut. Fed Chair Jerome Powell cited economic uncertainty, much of it stemming from trade tensions, as the reason for the decision.
“If the large increases in tariffs that have been announced are sustained, they’re likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment,” Powell warned.
He added that while it remains uncertain whether the economic effects of tariff policy will be temporary or prolonged, the overall resilience of the U.S. economy justifies a “wait and see” approach.
