On May 12, 2025, President Donald Trump announced a major trade breakthrough with China, agreeing to lower tariffs on imports for the next 90 days. Under the deal, Chinese imports will now face a 30% tariff, down from 145%, while China agreed to reduce its retaliatory tariffs to 10%. The agreement sent U.S. stock markets soaring, as investors welcomed the de-escalation of the trade war.
Meanwhile, Trump’s spending bill made progress in Congress, with House Republicans advancing legislation that includes major cuts to Medicaid. The bill, which aims to extend Trump’s 2017 tax cuts, has sparked controversy, as the Congressional Budget Office warned that it could cause over 8 million Americans to lose their health coverage. The proposal also introduces work requirements for Medicaid recipients and new co-pays for those earning above a certain threshold.
Trump also faced criticism from Guinness owners, who warned that his tariffs could hurt their profits. The brewing company expressed concerns about rising costs, adding to the broader debate over the economic impact of Trump’s trade policies.
May 12, 2025, underscored the complexities of Trump’s leadership, blending high-stakes trade negotiations, domestic policy battles, and economic uncertainty. It highlighted the administration’s ongoing efforts to navigate global diplomacy and legislative challenges.