US News
LAST UPDATE: May 28, 2025
Trump Lauds EU for Speeding Tariff Negotiations After Threat
President Trump praises the EU’s initiative to expedite trade talks following his threat to impose 50% tariffs on EU imports, extending the negotiation deadline to July 9.
Insight
Trump’s commendation suggests a temporary easing of transatlantic trade tensions, yet his readiness to act unilaterally if talks falter maintains pressure on the EU. The situation reflects the volatile nature of current trade relations and the strategic use of tariff threats as leverage in negotiations. The upcoming weeks are critical for both parties to reach a mutually beneficial agreement.
Fed’s Barkin Says Firms on Hold Amid Elevated Uncertainty
Richmond Fed President Thomas Barkin notes that businesses are delaying decisions due to heightened uncertainty, including policy directions and economic outlooks.
Insight
Barkin’s observations highlight the cautious stance of firms amidst ambiguous economic signals and policy shifts. The hesitancy in business investments and hiring reflects concerns over potential regulatory changes and market volatility. This environment of uncertainty can dampen economic momentum, suggesting a need for clear and consistent policy communication to restore confidence.
Consumer Confidence Climbs in May, Conference Board Survey Shows
U.S. consumer confidence rebounded in May, ending a five-month decline, with the index rising to 98.0, surpassing expectations, amid eased trade tensions with China.
Insight
The uptick in consumer sentiment indicates resilience in household outlooks despite ongoing economic challenges. The improvement suggests that temporary relief in trade disputes can positively influence public confidence. However, lingering concerns about tariffs and inflation may continue to affect spending behaviors, underscoring the importance of sustained economic stability for consumer assurance.
US Durable Goods Orders Tumble on Lower Aircraft Demand
In April 2025, U.S. durable goods orders declined by 6.3%, primarily due to a 51.5% drop in non-defense aircraft orders. Excluding transportation, orders rose slightly by 0.2%.
Insight
The significant decrease in durable goods orders reflects volatility in the aerospace sector, particularly with Boeing’s reduced orders. While core capital goods orders—a proxy for business investment—fell by 1.3%, the modest rise in non-transportation orders suggests underlying resilience. However, ongoing trade tensions and policy uncertainties may continue to impact business investment decisions.
Tax Bill Can End US Reliance on China Solar at a Transition Cost
President Trump’s proposed tax bill aims to reduce U.S. dependence on Chinese solar components by restricting tax credits for projects linked to “foreign entities of concern,” potentially slowing the clean energy transition.
Insight
While the bill seeks to bolster domestic manufacturing and energy security, it may inadvertently hinder the growth of renewable energy by limiting access to affordable components. The transition away from Chinese suppliers could lead to higher costs and project delays, challenging the U.S.’s clean energy goals and climate commitments. Balancing national security concerns with environmental objectives remains a complex policy issue.
