—— US and China Slash Tariffs in Temporary Truce; Trump Defends Qatar’s Gift of $400M Jet; Americans Opt for Road Trips Over Overseas Travel; One World Trade Center Opens Highest Office Floors for Lease; CATL to Raise at Least $4 Billion in Hong Kong’s Largest Listing of 2025; Newsom Urges Cities to Clear Homeless Encampments Under New State-Backed Ordinance; Interlune to Supply Moon-Harvested Helium-3
1. US and China Slash Tariffs in Temporary Truce
In a significant de-escalation of trade tensions, the US and China announced on Monday they will reduce tariffs on each other’s goods starting May 14, creating a 90-day window to pursue a broader agreement.
US tariffs on most Chinese imports — which had climbed as high as 145% — will drop to 30%, including duties related to fentanyl-linked products. China will cut its retaliatory tariffs on US goods from 125% to 10%, according to a joint statement issued after talks in Geneva.
“Both sides agree we do not want a generalized decoupling,” said Treasury Secretary Scott Bessent in a Bloomberg Television interview. “The US will pursue a strategic decoupling in areas deemed vital to national security — semiconductors, pharmaceuticals, steel.”
Bessent noted that the reductions won’t affect sector-wide tariffs levied on all US trading partners and that Trump-era tariffs imposed during his first term remain intact. Asked what happens after the 90-day reprieve ends, Bessent said the ceasefire could be extended if progress is made.
While concerns remain that US trade policies could fuel inflation and hurt the job market, recent housing data indicate resilient demand. New-home sales in March exceeded forecasts, and contract signings for existing homes rose by the most in over a year.
Source: Bloomberg – US, China to Slash Tariffs During 90-Day Reprieve for Talks
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2. Trump Defends Qatar’s Gift of $400M Jet
President Donald Trump on Sunday defended a plan for the US to accept a Boeing 747-8 jumbo jet from Qatar “free of charge,” calling it a transparent solution to replace the aging Air Force One. The move has triggered backlash from Democrats, who denounced the gift as “corruption in plain sight.”
In a social media post, Trump said the Department of Defense would temporarily use the Qatar-supplied aircraft while Boeing’s delayed replacement for the current 40-year-old Air Force One remains unfinished.
Reports also indicated that the jet may eventually be donated to the Trump presidential library foundation once he leaves office, raising potential concerns over the Constitution’s emoluments clause and making it one of the most significant gifts from a foreign state to a US president in modern history.
Trump brushed aside the criticism, stating, “This is a very public and transparent transaction,” and accused Democrats of wanting to “pay top dollar” instead. “Anybody can do that!” he wrote.
ABC News first reported the proposed arrangement. Qatar called the report “inaccurate” but acknowledged that “the possible transfer of an aircraft for temporary use as Air Force One is currently under consideration.”
Ali Al-Ansari, a spokesperson at the Qatari embassy in Washington, said the matter is still under legal review and “no decision has been made.”
Source: Financial Times – Donald Trump defends gift of 747 jet from Qatar as new Air Force One
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3. Americans Opt for Road Trips Over Overseas Travel
As the US economy wobbles under the pressure of President Donald Trump’s global trade war and inflation fears mount, many Americans are trading expensive international vacations for more affordable road trips.
This Memorial Day weekend, about 39.4 million Americans are expected to drive — the highest in 20 years and a 3.1% increase from last year — according to the American Automobile Association. Air travel will see a smaller rise, with 3.61 million people flying, up just 1.7%.
Cheaper gas is making road trips even more appealing. The national average for gasoline is $3.14 per gallon, nearly 50 cents lower than a year ago. The Energy Information Administration projects prices will stay near that level through the summer.
Meanwhile, domestic flights are 2% more expensive than last Memorial Day, with average round-trip fares at $850. Budget airlines have been raising prices as they scale up, and safety concerns from recent high-profile aviation incidents are also making travelers wary. Several airlines have withdrawn full-year earnings forecasts due to the turmoil.
Beyond cost concerns, recent stock market volatility has prompted nearly 68% of Americans to change travel plans — from prepaying to offset a weakening dollar to canceling trips altogether, according to travel tech firm Histoury.
Source: Bloomberg – Americans Embrace Road Trips as Economic Fears Discourage Flying
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4. One World Trade Center Opens Highest Office Floors for Lease
For the first time since opening a decade ago, One World Trade Center — the tallest building in the Western Hemisphere — is leasing its 89th and 90th floors, marking a major milestone in Lower Manhattan’s recovery and transformation.
Perched 1,100 feet above ground, the newly available office space offers sweeping 360-degree views of New York City, the Statue of Liberty, and the Atlantic Ocean. The Durst Organization, which co-developed the tower with the Port Authority, is marketing the 46,000 square feet of space at rents up to $160 per square foot — a price more typical of Midtown’s elite towers than Lower Manhattan.
The offering is being pitched as a unique opportunity to occupy the highest office space available for lease in the Western Hemisphere. A ride up two elevators in just 75 seconds delivers tenants to an exclusive vantage point high above the city’s bustle, with direct sightlines to the 9/11 Memorial pools below.
The 3.1 million square foot skyscraper is currently 95% leased to major tenants such as Conde Nast, Wunderkind Corp., and Energy Capital Partners. The Durst Organization hopes that the ultra-premium floors may entice top-tier finance or tech firms back downtown from Midtown Manhattan.
Source: Bloomberg – NYC’s Tallest Tower Leases Its Highest Floors for the First Time
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5. CATL to Raise at Least $4 Billion in Hong Kong’s Largest Listing of 2025
Chinese battery giant CATL is set to raise a minimum of $4 billion through a secondary share sale in Hong Kong, marking the city’s biggest equity offering of the year and the largest global listing so far in 2025.
According to a prospectus filed Monday, shares will be priced this week and begin trading on May 20. The listing is backed by more than 20 cornerstone investors, including Sinopec, the Kuwait Investment Authority, Hillhouse Capital, Taikang Life, and multiple Chinese provincial government funds.
Already listed on the Shenzhen Stock Exchange, CATL is the world’s largest supplier of batteries for electric vehicles and energy storage systems. The Hong Kong listing is poised to surpass the $3 billion IPO of Japan’s JX Advanced Metals in March, with total proceeds possibly exceeding $5 billion if the greenshoe option is exercised.
As of Friday’s close, the maximum offer price for CATL’s Hong Kong shares is just 1.4% below its Shenzhen-traded “A” shares, suggesting robust investor demand. Shares in CATL rose 3.5% in Shenzhen on Monday to RMB 257.
Source: Financial Times – EV battery maker CATL to raise at least $4bn
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6. Newsom Urges Cities to Clear Homeless Encampments Under New State-Backed Ordinance
California Governor Gavin Newsom on Monday urged cities across the state to begin removing homeless encampments from sidewalks, bike paths, and other public spaces, unveiling a model ordinance designed to accelerate local action on the homelessness crisis.
The ordinance, supported by $3.3 billion in state funding from 2024’s voter-approved Proposition 1, gives municipalities a legal framework to clear encampments while ensuring alternative shelter is offered. It bans long-term camping in the same location and encampments that obstruct public access. Local governments are required to provide advance notice and offer shelter options before removal.
“This is about taking action — urgently and humanely,” Newsom said. “Cities now have a clear roadmap to resolve encampments and connect people to housing, shelter, and care.”
California continues to face a growing homelessness crisis, with more than 187,000 individuals unhoused in 2023 — representing over 24% of the national total.
Source: Bloomberg – Newsom Urges California Cities to Ban, Remove Homeless Camps
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7. Interlune to Supply Moon-Harvested Helium-3
Washington and Beijing are set to hold their first high-level trade talks this week since President Donald Trump launched a sweeping trade war that has rattled global financial markets and raised alarms over supply chain security.
US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet with their Chinese counterparts in Geneva, with Chinese Vice Premier He Lifeng — the country’s top economic policymaker — leading Beijing’s delegation.
This marks the first formal engagement between the two sides since Chinese Vice President Han Zheng attended Trump’s inauguration in January.
Bessent told Fox News on Tuesday that the meetings would take place over the weekend and that both sides had a “shared interest” in engaging because the current 145% US tariff level “isn’t sustainable.” However, he emphasized that the talks are aimed at easing tensions rather than striking a comprehensive trade deal.
“My sense is that this will be about de-escalation, not about the big trade deal,” Bessent said. “We’ve got to de-escalate before we can move forward.”
This diplomatic thaw offers a glimmer of hope to businesses on both sides of the Pacific that have been struggling with unprecedented trade barriers. It also follows several occasions where Trump claimed negotiations were ongoing — only to be contradicted by his own advisers.
The talks represent the first substantive step toward resolving a tariff standoff that has seen the US impose a 145% levy on Chinese imports, with China responding with a 125% duty on American goods.
Source: Bloomberg – Venture-Backed US Firm Inks Deals to Harvest Moon Resources
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