Trump talks tough on China, but early focus elsewhere
Voicing frustration over the lack of success in ending Russia's invasion of Ukraine, US Secretary of State Marco Rubio called for renewed focus on "our number-one geopolitical foe" -- China.
"Not that a war in Ukraine is not important, but I would say what's happening with China is more important in the long term for the future of the world," Rubio told Fox News host Sean Hannity.
President Donald Trump's inner circle has long spoken of China as the arch-enemy, with some suggesting that ending the Ukraine war will free up resources to counter Beijing -- especially if it seeks to move on Taiwan.
Yet more than 100 days into Trump's term, observers also notice a surprising lack of attention on China. Trump has hit China hard with tariffs, but otherwise, there has been little by way of articulated strategy.
Rubio, who in his Senate confirmation hearing warned that China could affect "virtually everything that matters to us in life" within a decade, has yet to visit East Asia, focusing attention on Trump's priority of deporting mostly Latin American migrants as well as to diplomacy on Ukraine.
"I think that the White House thought that they'd be in a different place with China now than where they are," said Wendy Cutler, a former top US trade negotiator who is now vice president at the Asia Society Policy Institute.
Trump's tariff war "escalated so quickly that it's hard to unwind now," she said.
China, she said, is "playing a longer game" with President Xi Jinping rallying the population by blaming the United States for economic pain.
- Faith in Xi ties -
Trump is surrounded by reputed hawks such as Rubio, who is now also interim national security advisor, but Trump himself is transactional and appears "enamored with Xi Jinping," Cutler said.
"He thinks that they get along well, and that if it's leader to leader, they can figure out this relationship and put it back on track," she said.
The United States and China plan their first formal trade talks this week in Switzerland, over a month after Trump unveiled his sweeping levies.
Trump, who has vowed to remake the global economic system, has slapped 145 percent tariffs on products from China, which has responded with 125 duties on imports from the United States.
"Their economy is suffering greatly because they're not doing trade with the US," Trump told reporters Tuesday.
- 'Nuanced'? -
Trump has shown himself to be far more radical than in his first term on a host of issues. But he has shown signs of pragmatism on China, despite heated rhetoric against Beijing on the campaign trail.
David Perdue, a former senator and Trump's pick for ambassador to Beijing, wrote about China during the campaign that "America is at war" -- but in his confirmation hearing said that the US approach should be "nuanced, non-partisan and strategic."
Former president Joe Biden's administration also identified China as the top rival but sought to work together on targeted areas, such as fighting climate change and curbing fentanyl.
Yet the Biden administration also pursued a broader regional strategy of facing down China through alliances.
It began a shift of US forces in southern Japan and northern Philippines -- within proximity of Taiwan -- and pursued coalitions to reject the use of Chinese high-technology.
Trump has derided allies, especially in Europe, as freeloaders, and has hit even US friends with tariffs, although he relented at least temporarily on higher rates.
China has quickly reached out to Japan and South Korea, among the closest US allies, to explore a free-trade deal.
"By undercutting core US alliances and partnerships across Europe and Asia, he is reducing the leverage that the United States can bring to bear vis-a-vis China," said Ali Wyne, who follows China for the International Crisis Group.
He also questioned how the tariff war fit into a considered strategy on China, which now has an incentive to double down on achieving greater self-sufficiency and has been able to project itself as "a more stabilizing geopolitical force than the world's preeminent power."
"Despite his alleged friendship with Xi and his stated desire for the United States and China to collaborate more robustly, he has created a trade impasse from which neither leader has an easy face-saving off-ramp," Wyne said.
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The chief operating decision maker ('CODM') uses Adjusted EBITDA for each segment predominantly: to forecast and assess the performance of the segments, individually and comparatively; to set pricing strategies for the segments; and to make decisions about the allocation of operating and capital resources to each segment strategically, in the annual budget and in the quarterly forecasting process. The CODM considers budget, or forecast, -to-actual variances on a quarterly and annual basis for segment Adjusted EBITDA to inform these decisions. Financial information by segment is summarized below (in $ millions, except margins). Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Net sales (aggregate) North America $ 4,755 $ 438 $ 9,424 $ 850 Europe, MEA and APAC 2,778 2,211 5,360 4,405 LATAM 518 340 1,031 681 Total $ 8,051 $ 2,989 $ 15,815 $ 5,936 Less net sales (intersegment) North America $ 103 $ 1 $ 194 $ 1 Europe, MEA and APAC 5 4 11 8 LATAM 3 15 14 28 Total $ 111 $ 20 $ 219 $ 37 Net sales (unaffiliated customers) North America $ 4,652 $ 437 $ 9,230 $ 849 Europe, MEA and APAC 2,773 2,207 5,349 4,397 LATAM 515 325 1,017 653 Total $ 7,940 $ 2,969 $ 15,596 $ 5,899 Segment Adjusted EBITDA North America $ 752 $ 61 $ 1,537 $ 120 Europe, MEA and APAC 372 362 761 747 LATAM 123 87 238 141 Total $ 1,247 $ 510 $ 2,536 $ 1,008 Adjusted EBITDA Margin Adjusted EBITDA/Net sales (aggregate) North America 15.8% 13.9% 16.3% 14.1% Europe, MEA and APAC 13.4% 16.4% 14.2% 17.0% LATAM 23.7% 25.6% 23.1% 20.8% Expand Condensed Consolidated Balance Sheets (Unaudited) (in $ millions, except share data) June 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents (amounts related to consolidated variable interest entities of $5 million and $2 million at June 30, 2025 and December 31, 2024, respectively) $ 778 $ 855 Accounts receivable, net (amounts related to consolidated variable interest entities of $893 million and $767 million at June 30, 2025 and December 31, 2024, respectively) 4,844 4,117 Inventories 3,774 3,550 Other current assets 1,583 1,533 Total current assets 10,979 10,055 Property, plant and equipment, net 23,097 22,675 Goodwill 7,207 6,822 Intangibles, net 1,107 1,117 Prepaid pension asset 677 635 Other non-current assets (amounts related to consolidated variable interest entities of $389 million and $389 million at June 30, 2025 and December 31, 2024, respectively) 2,679 2,455 Total assets $ 45,746 $ 43,759 Liabilities and Equity Current liabilities: Accounts payable $ 3,380 $ 3,290 Accrued compensation and benefits 872 882 Current portion of debt 1,034 1,053 Other current liabilities 2,305 2,108 Total current liabilities 7,591 7,333 Non-current debt due after one year (amounts related to consolidated variable interest entities of $296 million and $8 million at June 30, 2025 and December 31, 2024, respectively) 13,329 12,542 Deferred tax liabilities 3,482 3,600 Pension liabilities and other postretirement benefits, net of current portion 746 706 Other non-current liabilities (amounts related to consolidated variable interest entities of $334 million and $335 million at June 30, 2025 and December 31, 2024, respectively) 2,274 2,191 Total liabilities 27,422 26,372 Equity: Preferred stock; $0.001 par value; 500,000,000 shares authorized; 10,000 shares outstanding - - Common stock; $0.001 par value; 9,500,000,000 shares authorized; 522,058,394 and 520,444,261 shares outstanding at June 30, 2025 and December 31, 2024, respectively 1 1 Deferred shares; €1 par value; 25,000 shares authorized; Nil and 25,000 shares outstanding at June 30, 2025 and December 31, 2024, respectively - - Treasury stock; at cost; 1,459,832 and 2,037,589 common stock at June 30, 2025 and December 31, 2024, respectively (65) (93) Capital in excess of par value 16,018 15,948 Accumulated other comprehensive loss (428) (1,446) Retained earnings 2,771 2,950 Total shareholders' equity 18,297 17,360 Noncontrolling interests 27 27 Total equity 18,324 17,387 Total liabilities and equity $ 45,746 $ 43,759 Expand Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Operating activities: Net (loss) income $ (26) $ 132 $ 356 $ 323 Adjustments to reconcile consolidated net (loss) income to net cash provided by operating activities: Depreciation, depletion and amortization 613 160 1,216 308 Impairment charges 184 - 184 - Cash surrender value increase in excess of premiums paid (15) - (20) - Share-based compensation expense 36 16 79 31 Deferred income tax benefit (98) (8) (127) (10) Pension and other postretirement funding more than cost (36) 4 (59) (4) Other 5 (2) 6 (1) Change in operating assets and liabilities, net of acquisitions and divestitures: Accounts receivable (92) (40) (434) (236) Inventories 7 (28) (55) (20) Other assets - (54) (47) (105) Accounts payable 82 90 (35) (12) Income taxes 79 3 9 63 Accrued liabilities and other 90 67 (9) 45 Net cash provided by operating activities 829 340 1,064 382 Investing activities: Capital expenditures (522) (177) (999) (385) Cash paid for purchase of businesses, net of cash acquired (1) (28) (5) (28) Proceeds from sale of property, plant and equipment - 3 - 3 Other 3 (1) 8 - Net cash used for investing activities (520) (203) (996) (410) Financing activities: Additions to debt 203 2,757 498 2,812 Repayments of debt (56) (6) (121) (33) Debt issuance costs (1) (29) (6) (29) Changes in commercial paper, net (264) - (18) - Other debt repayments, net (2) (4) (18) (4) Repayments of finance lease liabilities (7) - (23) (1) Tax paid in connection with shares withheld from employees (3) - (67) - Purchases of treasury stock - - - (27) Cash dividends paid to shareholders (225) (335) (450) (335) Other - (1) 1 (1) Net cash (used for) provided by financing activities (355) 2,382 (204) 2,382 Effect of exchange rate changes on cash and cash equivalents 27 (5) 59 (29) (Decrease) increase in cash and cash equivalents (19) 2,514 (77) 2,325 Cash and cash equivalents at beginning of period 797 811 855 1,000 Cash and cash equivalents at end of period $ 778 $ 3,325 $ 778 $ 3,325 Expand Non-GAAP Financial Measures and Reconciliations Smurfit Westrock plc ('Smurfit Westrock') reports its financial results in accordance with accounting principles generally accepted in the United States ("GAAP"). However, management believes certain non-GAAP financial measures provide Smurfit Westrock's Board of directors, investors, potential investors, securities analysts and others with additional meaningful financial information that should be considered when assessing its ongoing performance. Smurfit Westrock management also uses these non-GAAP financial measures in making financial, operating and planning decisions, and in evaluating company performance. Non-GAAP financial measures are not intended to be considered in isolation of or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP and should be viewed in addition to, and not as an alternative for, the GAAP results. The non‑GAAP financial measures we present may differ from similarly captioned measures presented by other companies. Smurfit Westrock uses the non-GAAP financial measures 'Adjusted EBITDA,' 'Adjusted EBITDA Margin,' and 'Adjusted Free Cash Flow.' We discuss below details of the non-GAAP financial measures presented by us and provide reconciliations of these non‑GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP. Definitions Smurfit Westrock uses the non-GAAP financial measures 'Adjusted EBITDA' and 'Adjusted EBITDA Margin' to evaluate its overall performance. The composition of Adjusted EBITDA is not addressed or prescribed by GAAP. Smurfit Westrock defines Adjusted EBITDA as net (loss) income before income tax expense, depreciation, depletion and amortization, interest expense, net, pension and other postretirement non-service income (expense), net, share‑based compensation expense, other (expense) income, net, amortization of fair value step up on inventory, transaction and integration-related expenses associated with the Combination, impairment and restructuring costs and other specific items that management believes are not indicative of the ongoing operating results of the business. Management believes Adjusted EBITDA and Adjusted EBITDA Margin measures provide Smurfit Westrock's management, Board of directors, investors, potential investors, securities analysts and others with useful information to evaluate Smurfit Westrock's performance relative to other periods because it adjusts out non‑recurring items that management believes are not indicative of the ongoing results of the business. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Net Sales. Smurfit Westrock uses the non-GAAP financial measure 'Adjusted Free Cash Flow'. Smurfit Westrock defines Adjusted Free Cash Flow as net cash provided by operating activities as adjusted for capital expenditures and to exclude certain costs not reflective of underlying ongoing operations. Management utilizes this measure in connection with managing Smurfit Westrock's business and believes that Adjusted Free Cash Flow is useful to investors as a liquidity measure because it measures the amount of cash generated that is available, after reinvesting in the business, to maintain a strong balance sheet, pay dividends, repurchase stock, service debt and make investments for future growth. It should not be inferred that the entire free cash flow amount is available for discretionary expenditures. By adjusting for certain items that are not indicative of Smurfit Westrock's underlying operational performance, Smurfit Westrock believes that Adjusted Free Cash Flow also enables investors to perform meaningful comparisons between past and present periods. Reconciliations to Most Comparable GAAP Measure Set forth below is a reconciliation of the non-GAAP financial measures Adjusted EBITDA and Adjusted EBITDA Margin to Net (Loss) Income and Net (Loss) Income Margin, the most directly comparable GAAP measures, for the periods indicated (in millions, except margins). Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Net (loss) income $ (26) $ 132 $ 356 $ 323 Income tax expense 84 55 92 131 Depreciation, depletion and amortization 613 160 1,216 308 Impairment and restructuring costs (1) 280 - 295 - Transaction and integration-related expenses associated with the Combination 21 60 57 83 Interest expense, net 182 33 349 58 Pension and other postretirement non-service (income) expense, net (7) 29 (16) 39 Share-based compensation expense 36 16 79 31 Other expense (income), net 18 (5) 23 - Other adjustments (2) 12 - 14 (18) Adjusted EBITDA $ 1,213 $ 480 $ 2,465 $ 955 Net Sales $ 7,940 $ 2,969 $ 15,596 $ 5,899 Net (Loss) Income Margin (Net (Loss) Income/Net Sales) (0.3)% 4.4% 2.3% 5.5% Adjusted EBITDA Margin (Adjusted EBITDA/Net Sales) 15.3% 16.2% 15.8% 16.2% Expand (1) Impairment and restructuring costs for the three months ended June 30, 2025, include impairment charges of $176 million, severance and other restructuring costs of $54 million associated with previously announced closures and costs associated with other individually immaterial restructuring plans totaling $50 million (three months ended June 30, 2024: $- million). Impairment and restructuring costs for the six months ended June 30, 2025, include impairment charges of $176 million, severance and other restructuring costs of $54 million associated with previously announced closures and costs associated with other individually immaterial restructuring plans totaling $65 million (six months ended June 30, 2024: $- million). Expand (2) Other adjustments for the three months ended June 30, 2025, include losses at closed facilities of $12 million (three months ended June 30, 2024: $- million). Other adjustments for the six months ended June 30, 2025, include losses at closed facilities of $14 million (six months ended June 30, 2024: $- million). Other adjustments for the six months ended June 30, 2024, include a reimbursement of a fine from the Italian Competition Authority of $18 million. Expand Set forth below is a reconciliation of the non-GAAP financial measure Adjusted Free Cash Flow to Net cash provided by operating activities, the most directly comparable GAAP measure, for the periods indicated (in millions). Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Net cash provided by operating activities $ 829 $ 340 $ 1,064 $ 382 Capital expenditures (522) (177) (999) (385) Free Cash Flow $ 307 $ 163 $ 65 $ (3) Adjustments: Transaction and integration costs 21 23 97 57 Restructuring costs 68 4 112 7 Tax on above items (9) (1) (31) (2) Adjusted Free Cash Flow $ 387 $ 189 $ 243 $ 59 Expand Ciarán Potts Smurfit Westrock T: +353 1 202 71 27 E: ir@ FTI Consulting T: +353 1 765 0800 E: smurfitwestrock@
The Hill
17 minutes ago
- The Hill
Trump faces bipartisan warnings over Gaza
In today's issue: ▪ Turning tides on Israel, Gaza ▪ President raises more Epstein questions ▪ Booker says Dems 'complicit' with Trump ▪ The US-China AI race heats up The worsening humanitarian crisis in Gaza is testing President Trump 's Middle East policy, as the president faces pressure from lawmakers on both sides of the aisle and the international community amid reports of famine in the besieged enclave. Trump notably disagreed with Israeli Prime Minister Benjamin Netanyahu,acknowledging Monday that 'real starvation' is happening. A United Nations-affiliated organization that tracks food security worldwide this week issued a dire alert confirming a 'worst-case' famine scenario is unfolding across Gaza. Sen. Thom Tillis (R-N.C.) said the crisis in Gaza 'could be' a political problem for Trump, The Hill's Alexander Bolton reports. 'I think that the American people at the end of the day are a kind people. They don't like seeing suffering, nor do I think the president does,' Tillis said. 'If you see starvation, you try to fix it.' Trump told reporters Tuesday while capping his trip to Scotland that he was 'trying to get things straightened out' with Netanyahu and Gaza. U.S. Ambassador to Israel Mike Huckabee pushed back on the idea the president's remarks this week represent a break in their relationship. 'Let me assure you that there is no break between the prime minister of Israel and the president,' Huckabee said Tuesday on Fox News. 'Their relationship, I think, [is] stronger than it's ever been, and I think the relationship between the U.S. and Israel is as strong as it's ever been.' Images of starving children — and reports of Israeli attacks on civilians lining up for humanitarian aid — have led some members of Trump's base to speak out about the unfolding crisis in Gaza, adding to pressure on the administration to intervene. Trump has said the U.S. will partner with Israel to run additional food centers. The increasing unease among some of Trump's staunchest supporters puts a spotlight on the administration's close ties with Israel and raises additional questions about what exactly Trump will do to get aid into Gaza. Rep. Marjorie Taylor Greene (R-Ga.), Rep. Lance Gooden (R-Texas) and MAGA-friendly podcast host Theo Von are among those in Trump's orbit who have expressed alarm at the situation. Greene on Tuesday referred to the Israeli campaign in Gaza as 'genocide.' Similar criticism has so far been confined to the left, where academics and activists in pro-Palestinian spaces have accused the Israeli government of 'ethnic cleansing.' The White House earlier this year cracked down on pro-Palestine protests on university campuses, accusing schools of enabling antisemitism and pledging to screen international students' social media accounts for anti-Israel sentiment in their visa applications. The U.N. estimates nearly 1 in 3 people in Gaza are going without food for days at a time. At least 24 children younger than 5 have died from hunger-related causes in July, according to the World Health Organization. 'Immediate, unimpeded' humanitarian access into Gaza is the only way to stop rapidly rising 'starvation and death,' the leading international authority on food crisis said this week. ▪ The Hill: U.K. Prime Minister Keir Starmer said Tuesday his country will recognize a Palestinian state in September if Israel does not agree to a ceasefire in Gaza. ▪ Bloomberg News: Netanyahu and Trump criticized Starmer's pledge to recognize the state of Palestine, saying it would reward Hamas. ▪ NPR: His name is Mohammad Al-Motawaq. He is 18 months old. And he is starving in Gaza. ▪ The Atlantic: The bargain behind Gaza's catastrophe. A new Gallup poll measures Americans' approval of Israel's military action in Gaza at 32 percent, the lowest point recorded since the question was first asked in November 2023. While a majority of surveyed Republicans approve of Israel's military actions in Gaza, the wide divergence among political parties is viewed as threatening the longstanding bipartisan support for the U.S.-Israel relationship. Democrats are stepping up pressure on the administration while criticizing Netanyahu's largely passive stance in response to the unfolding crisis in Gaza. A group of 40 Democrats wrote a letter to Secretary of State Marco Rubio and special envoy Steve Witkoff urging the Trump administration to replace the Gaza Humanitarian Foundation, an American non-profit established to deliver food aid, and work with experienced multilateral groups. Progressives have been the most critical of Israel's conduct in its war against Hamas, which followed the militant group's Oct. 7, 2023, terror attacks. Twenty-one months later, Israeli hostages remain in Gaza and the death toll of Palestinians in the enclave has eclipsed 60,000. Sen. Angus King (I-Maine) broke with many Democrats on Monday when he announced he would not support any additional aid to Israel until the humanitarian crisis is addressed in a meaningful way. Rep. Ritchie Torres (D-N.Y.) is warning that Netanyahu has done 'irreparable damage' to Israel's relationship with Democrats. ▪ The Hill: A group of prominent Jewish Democrats, including Senate Minority Leader Chuck Schumer (N.Y.) and Sen. Adam Schiff (Calif.), are leading an effort to press the Trump administration to secure a ceasefire agreement in Gaza. King warned that Israel's harsh tactics in Gaza are 'disastrous' for its support among global leaders and its standing among Americans. 'They're losing the support of a whole generation of Americans. These young people who are protesting 10 or 15 years from now are going to be in Congress. It's a self-inflicted wound, it's unnecessary,' King said in a statement, adding he thinks this sentiment is shared by colleagues on both sides of the aisle. 'I think everybody is concerned about this,' he said. 'The president made a pretty straightforward statement.' Smart Take with Blake Burman Texas Democratic state Rep. James Talarico is gaining national attention after appearing on Joe Rogan 's podcast, with Rogan at one point even suggesting a presidential run for the 36-year-old from Austin. However, a run for Senate is what could come next. Talarico told me he will make a decision soon, after Texas's legislative session ends in August. 'I am looking at the U.S. Senate seat, and so I'm hoping to focus on that after I get through my current job,' Talarico said. Turning Texas blue is a dream for Democrats. It sounds like we will know later this summer if former Rep. Colin Allred (D), who lost to Sen. Ted Cruz (R) last cycle and is running again, has a new primary challenger or not. Burman hosts 'The Hill' weeknights, 6p/5c on NewsNation. 3 Things to Know Today Hawaii came away largely unscathed after an overnight tsunami warning prompted evacuations following a massive 8.8-magnitude earthquake in the Pacific. President Trump urged people in the affected areas to 'STAY STRONG AND STAY SAFE!' More details are emerging about the gunman who killed four people, including a New York City police officer, in a shooting at a Manhattan office building on Monday. The Food and Drug Administration 's top vaccine and gene therapy regulator was ousted Tuesday. Vinay Prasad, who had been in the role since May, was a prominent critic of pandemic-era vaccine policy. Leading the Day TRUMP TALKS EPSTEIN: The president offered new details — and raised more questions — about his history with convicted sex offender Jeffrey Epstein when he told reporters aboard Air Force One on Tuesday that the disgraced financier 'stole' employees from the spa at Trump's Mar-a-Lago resort and that's what led to their falling-out years ago. 'People were taken out of the spa hired by him … when I heard about it, I told him, I said, 'Listen, we don't want you taking our people, whether it was spa or not spa. I don't want you taking people,'' Trump said. 'And then not too long after that, he did it again. And I said, 'Out of here.'' The administration has faced weeks of mounting pressure to produce more information about the Epstein case, which has long been the subject of conspiracy theories. The DOJ and FBI's insistence earlier this month that Epstein died by suicide and kept no 'client list' has fallen flat among many of Trump's supporters while Democrats also demand more info. Trump's latest revelations come as the Justice Department (DOJ) and members of Congress have sought more information from Epstein's ex-girlfriend and accomplice Ghislaine Maxwell, who is serving 20 years behind bars for her role in the sex trafficking scheme. Maxwell's attorney has said she would only speak with the GOP-led House Oversight and Government Reform Committee if granted immunity for her testimony, an idea the panel swiftly rejected Tuesday. ▪ ABC News: Trump says Epstein 'stole' Virginia Giuffre and other young women from Mar-a-Lago spa. ▪ The Hill: Trump says Wall Street Journal wants to settle defamation lawsuit. FED UP: The Federal Reserve will set interest rates Wednesday and is expected to keep rates steady, following an aggressive pressure campaign from Trump to lower rates. Up next: The latest inflation figures come out Thursday, and the July jobs report will come out Friday. HELPING HANDOUT: Sen. Josh Hawley (R-Mo.) wants to give $600 'tariff rebates' to almost all Americans and their dependent children — a proposal that could translate to a $2,400 boost for a family of four. But Hawley insists it's not aimed at relieving Americans from Trump's tariffs — it's about former President Biden. 'Americans deserve a tax rebate after four years of Biden policies that have devastated families' savings and livelihoods,' Hawley said in a statement. 'Like President Trump proposed, my legislation would allow hard-working Americans to benefit from the wealth that Trump's tariffs are returning to this country.' The Trump administration's dramatic tariff hikes this year have generated nearly $130 billion in federal revenue, which will grow by the end of the year — depending on where rates stick as the administration tries to hash out deals with additional countries. ON THOSE TRADE DEALS: The clock is ticking on Trump's Friday deadline for countries to reach agreements or face the hefty 'reciprocal tariff' rates the White House rolled out, and then delayed, earlier this year. 'I think the trade deals are working out well,' Trump told reporters aboard Air Force One on Tuesday during his return from Scotland. 'Hopefully, for everybody, but for the United States, they're very, very good.' CHINA: U.S. and Chinese negotiators left their latest meeting without finalizing an agreement to extend a temporary tariff truce past Aug. 12, but Trump denied reports that he is seeking a one-on-one with Chinese President Xi Jinping to work out a deal with Beijing. 'The Fake News is reporting that I am SEEKING a 'Summit' with President Xi of China. This is not correct, I am not SEEKING anything!' Trump posted to Truth Social. ' I may go to China, but it would only be at the invitation of President Xi, which has been extended. Otherwise, no interest! Thank you for your attention to this matter.' INDIA: While speaking to reporters on Air Force One, the president warned that tariffs on India could go as high as 25 percent. 'India has charged basically more tariffs than almost any other country. You know that, right? Over the years,' Trump said. 'But now I'm in charge, and you just can't do that.' ▪ Axios: The global economy is surviving Trump's trade wars with stronger-than-expected growth, according to the International Monetary Fund. ▪ The Associated Press: Employers posted 7.4 million job vacancies last month, a sign that the American job market continues to cool. ▪ The New York Times: The president's vision for reshaping global trade is falling into place, but he is embarking on an experiment that economists say could still produce damaging results. Where and When The president will participate in a bill signing ceremony in the Roosevelt Room at 1:30 p.m. At 4 p.m., he will speak about 'Making Health Technology Great Again' in the East Room. The Senate will convene at 10 a.m. The House is in recess and resumes work in Washington on Sept. 2. Zoom In APPROPRIATIONS RACE: Senate Republicans are moving swiftly to clear key hurdles in order to pass the first tranche of spending bills by the start of the August recess and get the ball moving toward avoiding a government shutdown in two months. The Hill's Al Weaver and Aris Folley write that appropriators are crafting a three-bill package that covers full-year funding for the departments of Agriculture, Veterans Affairs, Justice, the Food and Drug Administration, rural development, military construction and science agencies — a decision that came after much hemming and hawing across the chamber. Republicans took a major step on Tuesday by clearing two key holds on the package, giving them a clear path on their side as they await word from Democrats in what they hope will keep up a bipartisan effort to get the measure across the finish line in the coming days. '[We] have essentially resolved the holds that have to do with appropriations,' Appropriations Committee Chair Susan Collins (R-Maine) told reporters, lauding the 'great progress.' WHISTLEBLOWER: The Senate on Tuesday confirmed Emil Bove to the Third Circuit Court of Appeals, launching Trump's former personal lawyer to a lifetime appointment on the bench amid a series of whistleblower complaints about his conduct. His nomination was confirmed with a 50-49 vote, with Republican Sen. Lisa Murkowski (Alaska) and Collins crossing the aisle to join all Democrats in opposing his nomination. 'They reward a man, credibly accused of wanting to lie to judges, with a black robe and gavel of his own,' Schumer said on the floor after the vote. 'And they're confirming him for one reason only: Mr. Bove is loyal to Donald Trump, therefore Donald Trump wants him on the bench. The calculus is as simple as that.' Bove, currently in the No. 3 role at the Justice Department, is the subject of three different complaints in recent weeks, with two alleging he suggested violating court orders and a third saying he reportedly misled Congress on the dropping of bribery charges against New York Mayor Eric Adams (D). ▪ The Hill: Democrats on the Senate Health Committee launched an investigation on Tuesday into Health and Human Services Secretary Robert F. Kennedy Jr. 's firing of all members of a Centers for Disease Control and Prevention (CDC) vaccine advisory panel. ▪ The Hill: The Senate on Tuesday confirmed Susan Monarez, a longtime government scientist, to lead the CDC. FLOOR FIGHT: Sen. Cory Booker (N.J.) blew up at fellow Democratic Sens. Catherine Cortez Masto (Nev.) and Amy Klobuchar (Minn.) in a heated back-and-forth on the Senate floor Tuesday, accusing members of his party of being 'willing to be complicit' with Trump. Booker, a potential 2028 presidential candidate, said the Democratic Party needs a 'wake-up call' and that some colleagues who are elected to defend the Constitution are willing to 'look the other way' and let some blue states suffer as long as their states don't get dinged as well. CAMPAIGN: Rep. Greg Casar (D-Texas) called it a 'five-alarm fire.' As Texas Republicans move forward with a highly unusual plan to redraw congressional lines in the middle of the decade, Lone Star State Democrats see it as an effort to shut them out of federal power. There's clear precedent: A questionably legal campaign of mid-decade redistricting in 2003 is a big part of the reason why Texas's state government is both utterly red and its politics so thoroughly polarized. GOP efforts that year shifted Texas' congressional delegation from a solid Democratic majority to one that has been 2-to-1 Republican ever since. Now as Democrats make gains in formerly Republican suburbs, the state GOP — with a strong push from Trump — is racing to lock in their dominance by destroying at least four or five Democratic districts. ▪ The Hill: Former North Carolina Gov. Roy Cooper 's (D) Senate campaign announced it raised more than $3.4 million in the 24 hours since launching Monday. ▪ CNN: Cooper gave Democrats a top Senate recruit in North Carolina. Now they're trying to find more. ▪ The 19th: Michigan has been a pipeline for women in power. Will that continue in 2026? Elsewhere TECHY SUBJECTS: Artificial intelligence (AI) could become more prevalent in schools, but questions remain about the best ways to encourage students' use of the powerful technology. Trump unveiled multiple AI plans, including for K-12 schools, last week — a move advocates say could either be a turning point or fleeting fascination. The Hill's Lexi Lonas Cochran reports that the next steps will depend on private market buy-in, addressing ethical and data concerns and ensuring educators have the proper training with AI. 'This is really the first time the U.S. government has explicitly positioned AI education as a national security issue, and it's really a long time coming,' said Alex Kotran, co-founder and CEO of the AI Education Project. Kotran noted that China — not the U.S. — has been leading AI in education since 2017. HOW THE WHITE HOUSE SEES IT: The Trump administration's view that the U.S. is locked in a fierce battle with China over AI dominance has permeated the administration's major policies on the powerful technology. 'The United States is in a race to achieve global dominance in artificial intelligence,' an introduction to the plan from several key Trump officials reads. 'Whoever has the largest AI ecosystem will set global AI standards and reap broad economic and military benefits.' ▪ The Wall Street Journal: AI Is wrecking an already fragile job market for college graduates. ▪ TechCrunch: OpenAI launches Study Mode in ChatGPT. ▪ The New York Post: 21 states warn JPMorgan's Jamie Dimon, BlackRock's Larry Fink to scrap 'woke' environmental goals. Opinion The Trump presidency takes a better turn, by columnist Bret Stephens, The New York Times. Hamas will never surrender, by columnist William A. Galston, The Wall Street Journal. The Closer And finally … 🌎 It's a bird, it's a plane — it's a new radar satellite, built by NASA and India's space agency! The NASA-ISRO Aperture Radar mission, or NISAR, set to launch this morning, will take flight from Satish Dhawan Space Center on India's southeastern coast. The satellite's mission? To precisely map nearly all of Earth's land and ice regions, down to the inch. Because NISAR uses radar signals, it can sense deformations in Earth's surface and could provide early warning of impending natural disasters — including volcanic eruptions and landslides. The satellite will also track ice sheets and flood zones, helping rescue teams in impacted areas.
