US News
LAST UPDATE: June 28, 2025
Trump Cuts Off Trade Talks With Canada, Threatens to Set Tariff
President Trump abruptly halted trade negotiations with Canada over its new digital services tax on large U.S. tech firms and threatened to impose tariffs within a week. U.S. stocks and the Canadian dollar responded negatively.
Insight
Trump’s aggressive stance signals a tougher use of trade leverage, targeting Canada over digital taxation. It may provoke tit-for-tat retaliation and further global trade instability, especially given the existing U.S.-Canada trade friction.
President Trump Declines to Say What Will Happen to Tariffs After July 9
President Trump declined to confirm whether he will extend reciprocal tariffs after the July 9 deadline for trade deals, saying he could extend or shorten it at will. Treasury Secretary Bessent, however, expressed optimism that a trade agenda could be wrapped up by Labor Day.
Insight
The contrast between Trump’s flexible rhetoric and Bessent’s timetable signals disunity in U.S. trade strategy. The ambiguity may unsettle international trade partners and markets relying on clear U.S. trade policy signals.
Trump Says July 4 Tax‑Cut Bill Deadline Isn’t the ‘End All’ Date
President Trump clarified that the July 4 deadline for passing tax-cut legislation is not fixed. He indicated that lawmakers could continue negotiations beyond that date to strike a favorable deal.
Insight
Trump’s flexible approach allows for extended bargaining time, but also introduces uncertainty for investors and households expecting timely tax relief. The ambiguity may pressure Congress to act swiftly or risk delaying economic stimulus.
Bessent Says Trade Agenda Could Wrap by Labor Day in September
Treasury Secretary Bessent expressed optimism that the trade agenda—including digital tax resolution and tariff frameworks—could be finalized by Labor Day in early September.
Insight
The forecast reflects a coordinated push to resolve trade uncertainties before the U.S. election campaign heats up. Completing deals by September may strengthen growth outlook and reassure markets.
Bessent, Johnson Express Optimism About Quick SALT Compromise
Treasury Secretary Bessent and incoming Finance Chair Johnson voiced hope for a swift resolution on State and Local Tax (SALT) deduction reforms, suggesting bipartisan agreement is within reach.
Insight
Their confidence suggests momentum for tax reform. A SALT compromise would offer relief to high-tax states and could influence broader fiscal and electoral dynamics.
Fed’s Kashkari expects two rate cuts this year, with pause possible
Minneapolis Fed President Kashkari expects two interest rate cuts in 2025 but cautioned that cuts may pause if inflation fails to slow. He emphasized data-driven decision-making.
Insight
Kashkari’s position signals a cautious pivot toward easing. His emphasis on “if inflation slows materially” signals continued vigilance, underscoring the Fed’s balancing act between growth support and inflation control.
US Consumer Spending Drops in May, Price Pressures Remain Muted
U.S. consumer spending growth slowed to 0.2% month‑on‑month in May, below forecasts. Core inflation metrics like PCE remained soft, bolstering expectations for upcoming Fed rate cuts.
Insight
The slowdown in spending aligns with easing inflation pressures, reinforcing the case for monetary easing. However, continued consumer resilience could complicate the timing of policy shifts.
