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President Donald Trump suggested another delay to his higher so-called “reciprocal” tariffs was unlikely, raising pressure on nations to negotiate trade deals with his administration.

Asked about the possibility of granting another 90-day pause, Trump cast that scenario as “unlikely,” while speaking to reporters aboard Air Force One on Friday. Trump also said that he would not drop tariffs on China, the world’s second largest economy, unless Beijing offers “something substantial” in return. 

Trump said he believed financial markets were adjusting to his tariff policy, downplaying the volatility that has hit equity and bond markets this month after he announced plans to hit about 60 US trading partners with higher duties.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Bloomberg's Tyler Kendall.
• Abroath Group Managing Director Christopher Smart.
• Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino.
• Bloomberg's Romaine Bostick.
• Former US Diplomat Mara Rudman

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Balance of Power: Trump Urges Putin to Stop Ukraine Strikes (Podcast)

The US will demand that Russia accept Ukraine’s right to develop its own, adequately equipped, army and defense industry as part of a peace agreement, according to people familiar with the matter, pushing back on Russia’s insistence that the country largely demilitarize as a condition to end the war.

US envoy Steve Witkoff will travel to Russia to raise the issue with President Vladimir Putin, according to the people, who spoke on condition of anonymity to discuss private negotiations. 

It’s a signal that President Donald Trump’s administration is seeking some concessions from the Kremlin, as well as Ukraine, as it tries to end a war that’s now into its fourth year. Critics have thus far viewed the US proposals as tilted toward Russia, including the Trump administration’s insistence that Ukraine give up its aspirations to join the NATO military alliance. 

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF.
Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Director of the Futures Lab and Senior Fellow with the Defense and Security Department at the Center of Strategic and International Studies Ben Jensen.
• Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino.
• Operation Hope Inc. Chairman, CEO and Founder John Hope Bryant.

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Confronted with fresh warnings from financial markets, business leaders and top advisers, President Donald Trump this week eased off on two of his frequent punching bags: Jerome Powell and China. 

Trump entered office with a steadfast desire to reshape the global economy. But his resolve has appeared to waver in the face of turmoil in equities and bonds and pleas from powerful executives who fear his sweeping tariffs and interference with the Federal Reserve could set off an economic calamity.

Trump on Tuesday said he had no intention to fire Powell — despite days of criticism over the central bank’s policies — and said he believed a deal with Beijing would significantly reduce the sweeping tariffs he’s posted on Chinese goods. After a report that the US would be willing to phase in lighter tariffs on Beijing over five years on Wednesday, Trump told reporters that China was “going to do fine” once talks had settled.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino.
• Atlantic Council Nonresident Senior Fellow Melinda Haring.
• Bloomberg Technology Co-Host Ed Ludlow.

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US Treasury Secretary Scott Bessent told a closed-door investor summit Tuesday that the tariff standoff with China cannot be sustained by both sides and that the world’s two largest economies will have to find ways to de-escalate.

That de-escalation will come in the very near future, Bessent said during an event hosted by JPMorgan Chase & Co. in Washington, which wasn’t open to the public or media. He characterized the current situation as essentially a trade embargo, according to people who attended the session.

Bessent said that it was not the US’s goal to decouple from China and that the current status quo of 145% tariffs on Chinese goods by the US and 125% tariffs on US products by China was not sustainable. He expressed optimism that tensions could cool in the coming months, which would bring relief to markets, but cautioned that a larger deal could take longer.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Bloomberg White House Correspondent Kate Sullivan.
• Bloomberg Politics Contributor Rick Davis and ROKK Solutions Partner Kristen Hawn.
• Bloomberg International Economics and Policy Correspondent Michael McKee.
• EIU Chief Economist Constance Hunter.

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President Donald Trump warned the US economy may slow if the Federal Reserve does not move to immediately reduce interest rates, in his latest broadside against Fed Chair Jerome Powell.

Trump said in a social media post Monday that “there is virtually No Inflation,” pointing to lower energy and food prices.

“But there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW,” Trump said, referring to Powell.

Economists widely expect Trump’s tariffs to boost inflation and slow growth, even if just temporarily. While inflation has cooled notably in recent years, it remains elevated. Powell, along with several of his colleagues, has underscored the central bank must ensure new levies don’t lead to a more persistent bout of inflation.

Trump has rattled Wall Street by repeatedly criticizing Powell and suggesting he had the ability to remove the Fed Chair before the end of his term. US equities sank on Monday as traders weighed the chances Powell gets axed, with the S&P 500 Index falling more than 3%.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Bloomberg's Tyler Kendall.
• Bloomberg Intelligence Chief Equity Strategist Gina Martin Adams.
• Republican Congresswoman Nicole Malliotakis of New York.
• Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino.
• Bloomberg's Tony Capaccio.
• Beacon Global Strategies Managing Director Michael Allen.

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President Donald Trump said during a meeting with Italian Prime Minister Giorgia Meloni that he expects to reach a trade deal with the European Union, but indicated he is in no hurry to finalize an agreement to reduce tariffs.

“There’ll be a trade deal,” Trump said Thursday, adding “I fully expect it, but it’ll be a fair deal.”

The president offered no time line for when he expected the first of the agreements to be finalized with trading partners seeking to avoid high tariffs, saying only that they would happen “at a certain point” and insisting that other nations would need to make concessions.

“We’re in no rush,” Trump added. “We are going to have very little problem making a deal with Europe or anyone else.”

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Bloomberg's Michael McKee and Tyler Kendall.
• Bloomberg Politics Contributor Rick Davis and Democratic Strategist Caitlin Legacki.
• Atlantic Council Nonresident Senior Fellow Rachel Rizzo.
• Editor of NASAWatch.com and Astrobiology.com, former-Scientist with NASA Keith Cowing.

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US President Donald Trump said he’ll attend a meeting Wednesday with Japan to negotiate tariffs, American military support and “trade fairness.”

“Hopefully something can be worked out which is good (GREAT!) for Japan and the USA!” Trump wrote in a post on Truth Social.

The Treasury and Commerce departments are leading the discussions in Washington.

Treasury Secretary Scott Bessent has said Japan is likely to be prioritized because it stepped forward quickly. He envisions reaching agreements with Japan and other military allies so they could come up with a collective effort to apply economic pressure on China.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Bloomberg's Ed Ludlow and Tyler Kendall.
• Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino.
• Bloomberg's Nancy Cook.
• Immigration Attorney and Chair of the Immigration Practice Group at UB Greensfelder David Leopold.

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The European Union and US made scant progress bridging trade differences this week as officials from President Donald Trump’s administration indicated that the bulk of the US tariffs imposed on the bloc will not be removed.

The EU’s trade chief, Maros Sefcovic, left the meeting with little clarity on the US stance, struggling to determine the American side’s aims, according to people familiar with the discussions. He met for about two hours with US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer in Washington Monday. 

The US officials indicated that the 20% “reciprocal” tariffs — which have been reduced to 10% for 90 days — as well as other tariffs targeting sectors including cars and metals would not be removed outright, said the people, who spoke on the condition of anonymity.  

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Bloomberg's Tyler Kendall.
• Vice President of Federal Tax Policy at the Tax Foundation Erica York.
• Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino.
• Chief Investment Officer for US Bank Asset Management Eric Freedman.

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President Donald Trump said he is exploring possible temporary exemptions to his tariffs on imported vehicles and parts to give auto companies more time to set up US manufacturing.

“I’m looking at something to help car companies with it,” Trump told reporters Monday in the Oval Office. “They’re switching to parts that were made in Canada, Mexico and other places, and they need a little bit of time, because they’re going to make them here.”

The president was asked what short-lived product exclusions he was considering but did not specify how long a potential pause or lowering of auto levies would remain in place.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Kailey speaks with:

• Bloomberg's Tyler Kendall.
• Bloomberg's Ed Ludlow.
• Franklin Templeton Investments Global Equity Portfolio Manager Katrina Dudley.
• Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino.
• Bloomberg Intelligence Senior Commodities Strategist Mike McGlone.
• Beacon Global Strategies Managing Director Michael Allen.

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President Donald Trump has floated talks with his Chinese counterpart more than half a dozen times since the trade war started. But prospects look remote, even as their tariff fight appears to have peaked.

Inflicting trade pain is unlikely to bring President Xi Jinping to the negotiating table. Instead, Chinese authorities seem intent on proving that they can withstand more economic and political suffering than their archrival.

On Friday, Beijing hiked tariffs on all US goods to 125%, mirroring a move by the White House that pushed duties on Chinese imports to the same level, on top of an existing 20% tax. China said it won’t match any further hikes, calling the repeated use of steep tariffs economically meaningless, but reiterated its vow to “fight to the end” with other, unspecified countermeasures.

“The fact that the Chinese authorities have once again matched US tariff hikes suggests that they are in no rush to negotiate with the Trump administration,” said Julian Evans-Pritchard, head of China economics at Capital Economics.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Bloomberg's David Gura is in for Joe. Kailey and David speak with:

• Bloomberg's Jordan Fabian.
• Arbroath Group Managing Partner Christopher Smart.
• Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino.
• Chief Economist for SMBC Nikko Securities America Joe Lavorgna.
• Nonresident Senior Fellow with the Atlantic Council Global Energy Center Ellen Wald.

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