Morning Wire Trade Deals, Tariff Truce & Trillions in US Investments
36 snips
May 17, 2025 EJ Antoni, a public finance economist and senior fellow at Heritage, unpacks the recent U.S. trade deal with China and a massive $2 trillion investment from the Middle East. He discusses the effects of tariff rollbacks on consumers and producers, alongside the recent positive trends in the stock market and decreasing inflation. Antoni also examines the sustainability of market gains amid trade uncertainties and the implications of proposed tax policies on economic growth, providing a clear outlook for America’s financial future.
AI Snips
Chapters
Transcript
Episode notes
Trade Truce with China
- The China trade deal is more of a tariff truce than a concrete agreement.
- This stops some tariff hikes but mainly continues dialogue without full resolution.
Middle East Investment Surge
- The $2 trillion Middle East investment is significant capital inflow for the U.S. economy.
- It reverses historical capital deficits by increasing domestic investment from abroad.
Inflation Linked to Government Spending
- Inflation dropped mainly due to slowed government spending and borrowing.
- Reduced federal expenditures lessen price pressures more than tariffs currently do.