June 26, 2025: Lutnick on US-China Trade Truce, Treasury Nixes 'Revenge Tax', More

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Speaker 1 (00:01):
News when you wanted with Bloomberg News. Now I'm Doug Prisoner. First,
US China Trade. Today, President Trump said he's signed a
deal with Beijing. He didn't elaborate. Later we heard from
Commerce Secretary Howard Lutnik, and he told us these two
countries have finalized their understanding, the one reached last month
in Geneva. This essentially codifies terms, including China's commitment to

(00:24):
deliver rare earth minerals.

Speaker 2 (00:26):
That deal was signed and sealed two days ago. Their
Prime minister and their parliament have to approve it. And
the President likes to close these deals himself. I mean,
he's the deal maker. He loves to close it. And
then what we're going to do is we're going to
lay out a structure of all the different kinds of
tariff arrangements with different countries and get that ready for

(00:47):
July nine.

Speaker 1 (00:47):
Howard Lutnik, their US Commerce Secretary. The Treasury Department announced
today a deal with G seven allies to exempt American
firms from some overseas taxes, and in exchange, the US
would scrap the so called revenge tax from the President's
latest tax bill. The measure is known as Section eight
ninety nine. It would have raised taxes on foreign countries,

(01:09):
targeting US multinational corporations. Treasury Secretary Scott Bessen called the
deal a cooperative step under the OECD's Global Tax Framework
and staying in Washington, a Republican plan to slash two
hundred and fifty billion dollars in medicaid and healthcare spending
hit a major hurdle today in the US Senate, the

(01:29):
Chambers Parliamentarian ruled key provisions ineligible for fast track consideration. Now,
these provisions would have limited state's ability to tax healthcare
providers to help fund Medicaid, and the provision would also
penalize states for using their own funding to provide health
coverage for undocumented migrants. Needless to say, all of this

(01:51):
complicates President Trump's push to pass his tax and spending
bill by July fourth. Now GOP leaders are reworking provisions
accordingly enable they will be able to restore many of
the cuts. We got reaction from New Hampshire Democrat Senator
Jean Shaheen.

Speaker 3 (02:06):
The reality is the original bill that we were looking
at would have denied almost sixteen million people access to
healthcare in New Hampshire. Those people who benefit from Medicaid
include children, they include the disabled, those people on long
term care, and so it would have been a significant

(02:27):
cost to the state of New Hampshire. It would have
meant so many people who would lose their healthcare.

Speaker 1 (02:33):
That is New Hampshire Democratic Senator Jean Shaheen. Now, in
regard to another aspect of this bill, New York Republican
Congressman nik Lolotas says he is quote disgusted with a
proposal from the Treasury Department, as it would weaken the
House cap for deductions on state and local taxes. We
go to New York City next, where Democratic Mayor Eric

(02:54):
Adams officially announced today that he is running for another
term in office, this time as an independent. Here is
Adams speaking earlier to his supporters, I'm.

Speaker 4 (03:03):
So proud to be here to say to the people
of the City of New York. I am seeking read
lessons to be your mayor of the City of New York.

Speaker 1 (03:14):
That was New York City Mayor Eric Adams. Meantime, Andrew
Cuomo is planning to stay in the race to become
New York City's mayor. He will appear on the ballot
in November as an independent despite pressure from donors and
advisors to drop out of the race. The Justice Department
says it will try Kilmar Abrego Garcia on federal smuggling
charges in Tennessee before pursuing deportation. This announcement came late Thursday,

(03:40):
and it followed concerns Abrego Garcia could be removed from
the US again by immigration officials. Back on June thirteenth,
the Brego Garcia pleaded not guilty to charges that his
attorneys characterized as an attempt to justify his mistaken expulsion
to El Salvador. Now, this case has become a flashpoint
for critics of the Trump administration's immigration policies. After the bell,

(04:03):
Nike posted sales for the latest quarter above forecast, even
though they were down eleven percent from last year. Revenue
was eleven point one billion dollars. The sportswhere Giant is
clearing inventory and shifting back toward performance focused products under
new CEO. Elliott Hill Punham Goyel is senior retail analyst
for Bloomberg Intelligence.

Speaker 5 (04:24):
It tells me that they still have a lot of
work cut out for them unless we find out that
the mix of that inventory is more new inventory and
the old inventory is actually down more. This is not
good because we do need to see the inventory fall more.
Results were better, but I really want to know what
the mix of DI inventory looks like.

Speaker 1 (04:41):
That is Bloomberg's Punham Goiel shares and Nike were up
as much as eleven percent in late New York trading.
And that is news when you want it with Bloomberg News. Now,
I'm Doug Krisner and this is Bloomberg