Today’s breaking update: former President Trump declared a major U.S.–China trade deal “done” while Elon Musk made a public apology, stepping back from their headline-grabbing feud. Here’s what’s unfolding:
In a Truth Social post early this morning, Trump proclaimed that after talks in London, a framework agreement with China is complete—though awaiting formal signatures from himself and Xi Jinping. The centerpiece: China will supply critical rare-earth minerals and magnets upfront, vital for U.S. industries like electric vehicles, while the U.S. will impose a 55% tariff on Chinese imports (factoring in existing duties and new fentanyl-related charges). In return, China will grant a 10% tariff on U.S. goods and continue allowing Chinese students to study in America.
The announcement came with a backdrop of modest market optimism: investors mostly welcomed the deal, waiting for finer details on duration—current reports suggest China’s export licenses may last only six months—while U.S. inflation held steady near 2.4% in May.
At the same time, wariness remains high. Critics point out that this is more of a renewed truce than a robust resolution—pending Xi’s nod and lacking permanent structure on perhaps more thorny issues like intellectual property, subsidies, and broader enforcement mechanisms
On X, Elon Musk took center stage, posting simply: “I regret some of my posts about President @realDonaldTrump last week. They went too far.” His sudden apology follows a heated spat in early June, where Musk criticized Trump’s flagship tax-and-spending bill, labeling it an “abomination.” Trump fired back, calling him “lost his mind” and threatening government backlash—sending Tesla stock tumbling nearly 10% and erasing around $150 billion in value
Musk’s concession appears to have soothed markets—Telsa shares rallied in Asia and Europe, though U.S. trading showed mixed movement . The timing—just as Trump was spotlighting his China deal—suggests a strategic thaw. Insiders believe Musk is recalibrating to prevent further harm to his companies’ government contracts and broader economic interests
Their relationship has had dramatic shifts:
- In 2024, Musk emerged as one of Trump’s biggest donors, with both actors trading public praise—Trump dubbed him a kindred spirit.
- Tensions peaked last week over policy clashes and public insults.
- Musk’s apology and Trump’s soft response signal a potential reset—as Trump said, he “could forgive Musk,” though fixing the country takes precedence
📌 Why this matters
Economically, the arrangement could help stabilize key supply chains by restoring access to rare-earths, easing pressure on manufacturers and defense industries.
Politically, Trump consolidates a notable foreign policy win while Musk secures calm around his businesses during a sensitive moment.
Together, this pairing—part strategic alliance, part public theater—underscores how technology leaders and political figures are increasingly intertwined on the world stage.
Next steps: Watch for Xi’s sign-off and whether this deal shifts into a durable agreement; and pay close attention to Musk’s next moves—will this apology herald long-term détente, or is it a tactical retreat?
