US Eyes China Tariff Cut; Trump's Plan to Tax Millionaires

Bloomberg Audio Studios, Podcasts, Radio News.
Good morning, I'm Nathan Hagen and now I'm lak Simiteo Lisa.
We begin with the latest on trade. We are just
a day away from a key meeting between the US
and China. The talks will take place in Geneva, led
by Treasury Secretary Scott Bessant and Chinese Vice Premier Hallifang.
We get more from Bloomberg News Senior editor Derek Wallbank.
I think the magic word is de escalation. That's what
Scott Besson said that the US negotiators are going to
try and come away with was a de escalation that
could potentially set the frame for future trade talks. And
so that's really where I'm sort of watching right now.
I'm not looking for this to come out of Switzerland
on the high side scenario with a full comprehensive deal
or the outlines of what could be one. But what
you're looking for is a possibility of seeing concrete steps
to kind of take down the temperature and the relationship.
Bloomberg's Eric Wallbank says one of those steps the Trump
administration is considering is a significant tariff reduction to ease
economic pain and de escalate tensions. We're told the US
aims to reduce tariffs below sixty percent as a first step, and.
Nathan that China talks come after President Trump announced the
first framework of a deal and his global trade war
with the UK.
The final details of being written up in the coming weeks.
We'll have it all very conclusive, but the actual deal
is a very conclusive one. We think just about everything's
been approved.
President Trump's agreement gives the US increase market access, while
the UK will see limited relief on auto, steel and
aluminum tariffs, a baseline ten percent tariff rate will stay
in effect. John Alty is a former Director General for
Trade Policy at the UK Department for International Trade. He
says a deal falls short of a full and comprehensive
trade agreement.
It's quite limited in its scope, and obviously both sides
are saying that it should be the start of a
wider negotiation, so we look forward to seeing that.
John Alte, now a senior advisor at page Field, says
full trade negotiations typically take years to complete.
Well, Lisa, one US company may be starting to see
the benefits of the US UK trade framework, bloombergs John
Tucker joins US with that which company John.
Boeing has an order from IAG. This is the parent
of British Airways Nathan for thirty two Boeing seven eighty
seven to ten aircraft and there's also an option to
top up the deal with as many as ten additional
Boeing seven eighty sevens. So this provides a much needed
shot of confidence to the embattled planemaker. IAG is Boeing's
largest customer in the UK. Now Boeing is the largest
US exporter of manufactured goods. It has been a target
for countries stung by the wide ranging tariffs rolled down
by the Trump administration. A China, one of the world's
largest aircraft makers that has stopped taking deliveries, and the
European Union is proposed tariffs on American made jets if
its own talks with the US. Sputter shares a Boing
gut and over three percent boost in Thursday's trading in
New York. I'm John Tucker Bloomberg Radio.
Thank you, John. It was a historic moment at the
Vatican Abe Muspapaman for the first time an American is
the leader of the world's one point four billion Roman Catholics.
This morning, the former Cardinal Robert Francis Provost is celebrating
his first Mass as Pope Leo the fourteenth. He set
the tone in his first words to the faithful at
Saint Peter's Square, we have to be.
A church that works together, meet them, to bill bridges
and to keep our arms open like this very piazza, welcoming.
Pope Leo speaking there through an interpreter. We get more
from Bloomberg Italy Bureau chief Kiara Albaniz.
He has shown to already say and speak his mind
very loudly in the past that he said publicly that
Vice President Vance was wrong about his assessment of the
Catholic law. So we should expect that bridges will be
built on some issues, but also bridges will be tested
on some others.
And that was Bloomberg's Kara albany Is reporting from Rome.
Lisa.
Tensions continue to escalate between India and Pakistan. Soldiers exchanged
heavy volleys of shelling and gunfire across their frontier in
Kashmir overnight, killing at least five civilians. The nuclear armed
rivals have seen tensions sore since an attack on a
popular tourist site in Indian controlled Kashmir, left twenty six
civilians dead last month. New Delhi has blamed Pakistan for
backing the attack and accusation Islamabad rejects.
And Nathan back here. In the US, President Trump is
looking for a tax hike on millionaires. Bloomberg's Amy Morris
has more from Washington.
President Trump is pushing lawmakers to increase tax rates on
some of the wealthiest Americans, sources tell Bloomberg. The president's
proposal calls for creating a thirty nine point six percent
tax bracket for anyone earning at least two and a
half million dollars or couples making five million dollars. Commerce
Secretary Howard Lutnick tells Balance of Power this will help
pay for the president's proposed tax cut.
Remember he cut it from thirty nine point six to
thirty seven, So if he just goes back to what
he did last time, you know, I'm in favor of that.
I think it's smart as long as it's a redistribution.
Lawmakers are expected to take up the tax package next
week in Washington. Amy Moore as Bloomberg Radio.
Amy, Thanks, Let's turn to corporate news now, Bloomberg News
has learned the UBS is telling bankers to stop flying
business class on short trips to China. The move comes
as deal making and capital markets activity in China has
slowed significantly amid escalating US trade tensions, and we're starting
to see.
The impact tariffs are having on global travel. Expedia posted
weaker than expected gross bookings for the first three months
of the year. The travel company CEO cited weaker than
expected demand to to and from the US. The stock
is down more than nine percent in early trading.
Then, Lisa, the City that Never sleeps, is looking a
bit sleepier, at least when it comes to international tourism.
Bloomberg's Tom Busby has more.
New York City officials slashing their forecast for the number
of visitors coming to the Big Apple from outside the
US by seventeen percent in twenty twenty five, and they're
blaming President Trump's tariffs and hardline policies on immigration. City
officials perdict twelve point one million foreign travelers will visit
this year. That's down from a forecast for fourteen point
six million just six months ago. The biggest hit will
likely come from our neighbors to the north. United Airlines says,
visits to New York City from Canada by air We're
down seven percent in just the first four months of
this year compared to a year ago. Tom busby Bloomberg Radio, It.
Is timing now for a look at some of the
other stories making news in New York and around the world.
For that, we're joined by Bloomberg's Michael bar Good morning, Michael.
Good morning Lisa. The Trump administration announced a plan to
overhaul the air traffic control system after deadly plane crashes
and technical failures at airports, including at Newark. Transportation Secretary
Sean Duffy says, it's time to fix the system.
This is going to allow us to better manage the airspace,
to allow the airlines to better manage their flight so
when you take off, you actually fly, and you land,
you don't circle airports.
President Trump joined Duffy on the phone for the announcement.
The ancient infrastructures buckling under the weight of more than
a billion flying passages a year and supporting hundreds of
billions of dollars.
How much it will all cost wasn't immediately revealed. Congress
must sign off on the upgrades. President Trump called for
a thirty day ceasefire between Russia and Ukraine to pave
the way for talks on a lasting peace agreement, and
threaten to impose further sanctions if a truce is violated.
President Trump's comments contradicted his Vice President JD. Vance, who
said the US has to focus on a long term settlement.
A former model has testified that Harvey Wine Einstein sexually
assaulted her when she was sixteen years old, calling it
the most horrifying thing I ever experienced to that point.
Kaya Socola, toad jurors at Weinstein's reed trial, graphic details
about her encounter with the one time movie mogul at
a Manhattan apartment in two thousand and two. Weinstein is
not charged with any crime in connection with the alleged assault.
Socola is testifying because Weinstein is charged with forcing oral
sex on her at a Manhattan hotel four years later.
Weinstein is pleaded not guilty to all of the charges
and denies sexually assaulting anyone. Former First Lady Barbara Bush
is now on a postage stamp, who was unveiled at
the White House Thursday. Daughter Doro Bush Cook called it
a fitting tribute.
Our family is I measurely blessed to call Barbara Bush
our mom. Her legacy lives on not only in history boats,
but in the hearts of everyone she touched.
The first day of issue for the Barbara Bush postage
stamp will be June tenth. Global News twenty four hours
a day and whenever you wanted with Bloomberg News. Now,
I'm Michael Barren. This is Bloomberg, Lisa.
Thank you, Michael. Ks time now for a Bloomberg Sports update.
For that, we bring in John stash Hour.
Hey John, Thanks Lisa.
The Washington Capitol's top seeds in the NHL Eastern Conference
looks sluggish at a game one overtime loss at home
to Carolina Veteran Game two Caps beat the Canes three
to one, series tie to one another comeback by Edmonton.
The Oilers lost their first two playoff games. They've won
six in a rows since have trailed in all six, though,
though they then led at Vegas four to two, third
period of the game went to overtime.
Here's for data working past Tacket.
Nick Tables, stop.
Nick Table and tri sid.
On Tom par for the game winner heatman Tim who
lives in it overtime on ESPN, the two Stars hookup
Boilers beating the Golden Knights five for the the series
to nothing NBA Playoffs Minnesota Bean Golden State one, seventeen
to ninety three. That series one to one. Indiana is
up to nothing home tonight for Cleveland, who is apparently
getting its three injured players back for a must win
Game three. Darius Garland, Eric Mobley and DeAndre Hunter all
missed Game two. The next shockingly up to nothing have
Game three with the Celtics tomorrow afternoon at the Garden,
where the Knicks have lost their last two, but on
the road five and oh five wins by a total
of only ten points. Tom Thibodeau's team keeps pulling games out.
Always have the belief I think in each other. You know,
I think you get you get to the playoffs. It's
about really your mental toughness, your defense, and your teamwork
and always having the belief that you could do something
better and you could find a way to win.
Celtics star Jason Tainam admitted yesterday he needs to play
better Yankees tonight in the place they've never been before, Sacramento,
to play the Ads much improved second place in the
AL West NL Division leaders meet at City Field. Mets
take on the Cubs. Pirates are twelve twenty six. They
fired manager Derek Shelton. Chat Lemon, who played center field
for sixteen seasons, has died at seventy a three time
All Star a part of the nineteen eighty four championship
team in Detroit. John Stashawer of Bloomberg Sports, Lisa and Nathan.
Coast to Coast on Bloomberg Radio, nationwide on Sirius XM, and.
Around the world on Bloomberg dot Com and the Bloomberg
Business app. This is Bloomberg Daybreak.
Good morning, I'm Nathan Hager. After announcing a framework trade
deal with the United Kingdom, President Trump says he's looking
for more.
We have many meetings planned today and tomorrow, and every
country wants to be making deals.
Perhaps the biggest meetings of all begin tomorrow, when Treasury
Secretary Scott Bessant and the US Trade Representative sit down
with officials from China for the first trade talk since
both countries slap triple digit tariffs on each other. For
more ahead of the talks in Geneva, We're joined by
Bloomberg News Senior editor Bill ferries Bill.
This this really is the big.
One, isn't it.
Good morning, Good morning, Nathan, Thanks for having me.
It really is.
We were wondering for weeks when either side might show
a little bit of flexibility here the with its one
hundred and forty five percent tariffs on China and China
with its one hundred and twenty five percent tariffs on
the US. Both sides have made some exceptions to those,
but the reality is that a lot of bilateral trade
has been slowing down or stopping completely, and both sides
are feeling the pain economically. So there's going to be
a lot of interest in how these talks progress, what
really might come out of them. I think the most
important thing is that they're happening. I don't think there's
a lot of expectations of a big breakthrough trade deal,
but there is talk on the US side. We've done
some reporting on this that the Trump administration would love
to see find an agreement where they could come out
with tariffs cut a little bit more than in half,
so down in the perhaps under sixty percent range, which
would be a breakthrough if China follows through with it.
So that's I think what the markets will be trying
to look for, as well as signs that the talks
will continue after this weekend's meetings in Switzerland.
A breakthrough like that would be pretty significant given the
fact that we've heard from President Trump telling reporters that
he wouldn't lower tariff rates to jump start talks. Does
does our reporting contradict that or something else?
Well, the President's, you know, the comments have been kind
of all over the place. He has said that he's
not willing to back down. Our reporting shows that there
are at least officials on the Trump administration side looking
to try to get tariffs potentially below sixty percent as
a first step that China would presumably try to follow
up on in match. So the Chinese side as well
is basically said that they want to see the US
rescind what it considers to be these unwarranted tariffs before
it any steps at all. But I think the reality
is both sides are going to be trying to show
perhaps a little bit of flexibility coming out of these talks.
Does the announcement of the framework deal with the UK
yesterday bill provide a springboard for the US heading into
these talks? How could what we saw from the UK
yesterday play into what comes this weekend in Geneva.
Well, I think what it does do is show that
despite I think a lot of marketing by the White House,
these are really framework deals. They are not full complete
trade agreements in any sort of normal sense. What we
see with the UK is that there was some agreement
on market access for a few goods from the US,
including some agricultural goods. There was a reduction in tariffs
for US imports of British automobiles, but a lot of
the big questions were left hanging. Those are going to
take months, if not longer, to deal with. That includes
the digital services tax from the UK. That includes food
regulations that the US has wanted the UK to ease
up on. The really tough details are yet to be
worked out. I would expect the same from anything that
comes out of these talks in China. There might be
some sort of broad agreement, but they're not going to
get into the nitty gritty that might take potential years.
Does that hinted more nitty gritty to come for some
of the other trade negotiations that we're hearing are happening
from the likes of South Korea and Japan got about
a minute left.
Yeah, absolutely. I mean we heard Commerce Secretary Howard Lutnick
saying that is they're very far away from announcing a
big deal with countries like Japan or India. Those are
countries that have been much higher on the list earlier.
The reality is, you know, the President put a ninety
day reprieve on those reciprocal tariffs that he announced on
April second. We are almost halfway through that ninety day period.
This UK Framework agreement is the first sign of light
in the ton that we've seen. But if you're talking
about striking deals with dozens or more countries, it's going
to take quite a while.
This is Bloomberg Daybreak, your morning podcast on the story's
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