Treasury Secretary Scott Bessent will be departing London, leaving Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer to finalize the details with the Chinese trade delegation.

Apparently, the talks have been very productive according to Bessent and extended well beyond the previously scheduled timeline as they get very specific with the expectations and terms of compliance.

LONDON – U.S. Treasury Secretary Scott Bessent said Tuesday he is departing ongoing trade talks with China because he has to travel to Washington, D.C., to testify before Congress the next day.

Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer will remain in London to continue the negotiations with Beijing, which are still underway after two lengthy days of talks, Bessent said.

Lutnick said earlier that the parties were “trying to finish” by Tuesday evening.

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Against the backdrop of a collapse of civil society in Los Angeles President Donald Trump will deliver remarks at an Invest in America roundtable.  We anticipate him taking questions from the media as part of the event.

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The blood slowly drains from the face of Margaret Brennan as she faces the indefatigable smiling truth that Kevin Hassett represents. The furrowed brows deepen, the lips pulsate to a purple posture, the accusatory sanctimony drips from her squints and failed constructs until ultimately, she is reduced to a sneering inflection of autonomous twitching.

Kevin Hassett smiles, thanks Ms. Brennan for her endeavors, outlines the White House position on the BBB and China trade negotiations, then happily orders an ice-cream cone for his walk back to the office on a bright sunny day.

[TRANSCRIPT] – MARGARET BRENNAN: We’re joined now by the Director of the National Economic Council, Kevin Hassett. He joins us from the White House. Good morning to you.

KEVIN HASSETT, DIRECTOR, NATIONAL ECONOMIC COUNCIL: Hey Margaret, good morning.

MARGARET BRENNAN: So I do want to allow you to respond to some of the very specific criticisms that Senator Klobuchar made. One of the things she brought up was something that, frankly, the Senate Majority Leader seemed to acknowledge was under discussion, and that was touching Medicare, making some kind of adjustment. He said anything we can do that’s waste, fraud, and abuse is open to discussion. Is the White House open to any discussion around Medicare?

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After President Trump had a direct telephone call with Chinese Chairman Xi Jinping, President Trump announced from the Oval Office that Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer would meet with their counterparts from China again, only this time Bessent and Greer will be accompanied by Commerce Secretary Howard Lutnick.

President Trump repeated the same announcement via Truth Social:  “I am pleased to announce that Secretary of the Treasury Scott Bessent, Secretary of Commerce Howard Lutnick, and United States Trade Representative, Ambassador Jamieson Greer, will be meeting in London on Monday, June 9, 2025, with Representatives of China, with reference to the Trade Deal. The meeting should go very well. Thank you for your attention to this matter!”

While each of the trade Wolverines have teeth, Howard Lutnick is the enforcer. The issue surrounds prior promises made in Geneva to Bessent and Greer on the continuation of mined and refined rare earth minerals from China needed in batteries.

The addition of Lutnick is akin to President Trump saying, go ahead and make the promise again – only this time Lutnick will be there to spell out the consequences of inaction.

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Senior White House official Taylor Budowich, Deputy Chief of Staff Stephen Miller, Office of Management and Budget Director Russ Vought, and James Braid discuss the details of President Trump’s Big, Beautiful Bill.

The legislation is described by Stephen Miller as the culmination of all President Trump’s campaign promises.

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President Trump and the trade team have made specific requests of Vietnam in order to negotiate a trade agreement.  Unfortunately, just like Canada, Vietnam’s problem is not an unwillingness to comply, it’s their inability.

CTH was in the manufacturing base of Vietnam in January; their factories are loaded with component parts from China used to produce finished goods sent to the USA (and globally).  President Trump is telling Vietnam they need to reduce their reliance on Chinese imported component goods, but China has spent billions in advanced positioning and contracts, influencing Vietnam.

Vietnam is a very poor country, and their population cannot afford to purchase the products they manufacture.  They do not have a domestic consumption base. They are reliant on exports to more wealthy nations to keep their manufacturing base afloat.  Practically, it is easy to have sympathy for Vietnam due to their economic dependence on both China (for imported raw materials) and the USA (for exported finished goods).

VIETNAM – The US has sent a “long” list of “tough” requests to Vietnam in its tariff negotiations, including demands that could force the country to cut its reliance on Chinese industrial goods imports, two people briefed about the matter told Reuters.

Washington wants Vietnam-based factories to reduce their use of materials and components from China and is asking the country to control more carefully its production and supply chains, one of the people briefed on the talks said, without elaborating on whether quantitative targets were included.

The list is part of an “annex” to a framework text prepared by US negotiators, according to four people familiar with the matter.

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A few datapoints to keep on a post-it note as things progress; starting with a rather significant new release that I think you will find interesting.

Approximately 12.3 million Mexicans live abroad, both legally and illegally, with 97% of them living and working in the United States, according to BBVA Research.  Last year Mexicans living abroad sent $64.75 billion back home in remittances, largely from Texas and California to states in central and western Mexico.

According to data just released, in April of this year remittances back to Mexico dropped 12.1%.  The Mexico central bank said April saw 8.1% fewer transactions than a year earlier, that’s down to 12.4 million transactions. For Mexico this could be a devastating trend.  [Sidenote: Remember, Trump is likely planning a complete overhaul of the USMCA later this year.]

MEXICO CITY (Reuters) -Remittances sent to Mexico slumped 12.1% in April compared to a year earlier, according to central bank data published on Monday, marking the steepest drop in over a decade as U.S. lawmakers mull a tax on such payments sent abroad.

The world’s second-largest recipient of remittances, Mexico receives these payments chiefly from migrants working in the neighboring United States. In April, Mexicans abroad sent fewer transactions and smaller payments, totaling $4.76 billion.

Analysts said the slump likely resulted from a broad crackdown on migration in the U.S. since President Donald Trump came to power in January, as authorities revoke some Biden-era protections and increase raids across the country.

The latest data marks the steepest year-on-year drop since September 2012, according to central bank data.

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If we cut through all the polite pretending, Commerce Secretary Howard Lutnick appears on Fox News to tell the bobble head the nation specific tariffs are going to hit regardless of what approaches need to be taken.  President Trump is going to remain focused on structural changes to the global economic system of trade, manufacturing and USA commerce despite all of the grandiose efforts of the multinationals and their Lawfare foot soldiers.

As Lutnick again repeats, there are a variety of legal mechanisms that can be used to enforce the tariff program triggered by President Trump.  Adhering to them is not optional for trade partners who wish to have access to the USA market.  If the exporting nation wants to play games, try and delay or delay tactics, the end result will be even more against their interests.  There is no alternative other than to acquiesce.  WATCH:

German Chancellor Friedrich Merz is going to find this out on Thursday when he shows up in full Blackrock mode and only creates a worse scenario for himself and the EU Commission he represents.  If Merz wants ‘ugly’, no problem – President Trump has an endless supply of big ugly tools.

FA-FO!

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Next week on Thursday, German Chancellor Friedrich Merz is scheduled to travel to Washington DC and meet with President Donald Trump in the White House.  Considering the importance of Germany to the EU economy and subsequent trade relationship with the U.S, this meeting with Merz will likely be the most important discussion toward a possible U.S-E.U. trade agreement.

Germany is the largest economy within the EU and the core industrial base of the European Union.  The number one issue for the German people is their economic status: everything else circles around this priority.

Having spent time in Hamburg, Bremen, Dresden and Frankfurt, it is very clear to me the German people are very focused on work and their vocations. Germans overall, take their economic standing very personally and seriously.

Inasmuch as Merz may have to represent the interests of the larger EU in his approach, he will undoubtedly be focused on what is in Germany’s best interest, with all else second.

For President Trump this specific German interest creates a unique facet of leverage within the larger EU trade discussion.  Because the German economy is so vital, whatever terms Germany decides are the core terms the EU will manifest in their trade and tariff negotiations.

I predict we will hear a talking point from Merz, in generally German snark, something akin to a proposal for a zero-tariff base on the import and export of heavy industrial goods (machinery) for both Germany and the USA.  I say in general German snark because passive-aggressive Chancellor Merz knows the U.S. is currently not in a position to sell Germany heavy industrial goods, and that’s entirely what President Trump is trying to recreate with the trade/tariff policy.

WASHINGTON DC – German Chancellor Friedrich Merz will travel to Washington next week to meet United States President Donald Trump for the first time since taking office earlier this month.

The leaders will meet in the White House on Thursday and are expected to discuss the war in Ukraine, the Middle East and trade policy, German government spokesperson Stefan Kornelius said in an emailed statement.

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Self-interested Wall Street analysts and leftist economic ‘experts’ once again proven wrong.  It is almost impossible to find any financial data review written objectively by media.  Everything is skewed with a negative tone, yet the data clearly shows -just like 2017- President Trump’s MAGAnomic policy benefits are starting to surface.

News pundits said President Trump’s tariff policies would skyrocket prices.  In reality the yearly inflation rate [BLS data] has dropped to 2.1%, the lowest in four years.  Core prices (removing food and energy) rose 2.5% from a year earlier, below the March figure of 2.7%, and the lowest in more than four years.

Meanwhile personal incomes tripled expectations coming in at 0.8% for the month of April. “Personal income surged 0.8% well ahead of the forecast for 0.3%.”  Then comes the predictable.  The trade deficit dropped by 46% in the month of April.

[…] The goods trade gap contracted 46.0% to $87.6 billion last month, the Commerce Department’s Census Bureau said on Friday. Goods imports decreased $68.4 billion to $276.1 billion. Exports of goods increased $6.3 billion to $188.5 billion. (source)

Companies front-loaded their orders from China in February and March, causing imports to skyrocket and a massive skew in the GDP data.  As expected in April there are fewer orders because the goods were already received in the first quarter, imports drop in half.

Despite increased tariffs we are likely to see a replay of pricing parity similar to 2017 as companies benefit from lowered energy prices, lower fuel costs, lower Transporation and lower warehousing costs.  Simultaneously, export companies who rely on access to the U.S. market will attempt to offset any tariff price as applied. Those combined savings can, likely will, offset increased tariffs on arriving goods.

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