The President's Daily Brief PDB Afternoon Bulletin | May 7th, 2025: China Caves, Agrees To Trade Talks With US & The Fallout From India's Strike On Pakistan
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May 7, 2025 U.S. and China are preparing for crucial trade talks, marking a pivotal moment amidst ongoing tensions from a recent tariff war. Meanwhile, India has executed deadly airstrikes inside Pakistan, escalating hostilities between the two nuclear-armed nations. The situation raises serious concerns about regional stability and the potential for further conflict. Experts emphasize the long road ahead for any viable trade agreement, while the international community closely monitors the fallout from India's aggressive military actions.
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China's Trade Talks U-Turn
- China agreed to direct trade talks with the U.S. due to severe economic impact from high tariffs, including factory shutdowns and layoffs.
- The talks aim to de-escalate tensions rather than immediately resolve the trade war.
China’s Economic Strain Visible
- China's factory sector contraction and job risks reach alarming levels, sparking nationwide protests.
- The government quietly exempts some U.S. products from tariffs amid worsening economic conditions.
Trade War Hits U.S. Economy
- U.S. businesses face supply chain disruptions with cargo volumes down 60%; consumers will see higher prices and shortages.
- IMF lowers U.S. growth forecasts as the trade war's fallout spreads beyond China.