Trade Talks Today: What U.S. Really Wants From China

Welcome back!

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• Tech

• Freedom

Here’s your must-read news this morning:

• Apple WWDC 2025 preview

• U.S.-China trade talks in London

• Bessent warns Newsom over "tax evasion”

I’ve got all the details for you, so let’s dive in.

MARKETS

💰 U.S., China Officials to Hold High-Stakes Trade Talks in London

The Scoop: Trump’s top trade officials are meeting Chinese counterparts in London to defuse escalating trade tensions between the U.S. and China.

The Details: 

• Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer are leading the U.S. delegation.

• China's Vice Premier He Lifeng, its top trade negotiator, will visit the U.K. from June 8 to 13 to lead his country's trade talks with the U.S.

• The talks follow a recent call between Trump and Chinese President Xi Jinping aimed at preventing a full-scale trade war.

• The U.S. and China accuse each other of breaching the Geneva agreement, with Washington citing Beijing’s lithium and rare earth export delays, disrupting 30% of U.S. electronics output, and Beijing pointing to U.S. visa and chip export curbs.

What’s Next: The London talks aim to stabilize trade relations, with U.S. officials pushing for concrete commitments on mineral exports and China likely seeking relief from visa and tech restrictions. National Economic Council Director Kevin Hassett told CBS News on Sunday that the U.S. aims to restore the supply of critical rare earth minerals, essential for electronics manufacturing, to pre-April levels, before the U.S.-China trade dispute intensified.

Markets Roundup

🏦 Economy & Public Policy

• ⭐ Editor’s Pick: Chinese exports to the U.S. fell 34.5% year-over-year, the steepest decline since February 2020, while imports from the U.S. dropped over 18%, narrowing China’s trade surplus with the U.S. by 41.55% to $18 billion. (CNBC)

• China’s Ministry of Commerce announced a “green channel” to fast-track rare earth export license approvals for eligible EU firms, easing concerns over supply constraints. (CNBC)

• Global investors' hesitation to buy long-term U.S. debt has turned Thursday's $22 billion 30-year Treasury bond auction into a high stakes Wall Street event. (BBG)

• Taiwan’s exports to the U.S. soared to a record $15.5 billion in May, an 87.4% surge, as firms rushed shipments ahead of potential tariffs. (BBG)

• Trump announced that a decision on the next Federal Reserve chair is imminent, praising former Fed governor Kevin Warsh as "very highly thought of" and emphasizing that a strong chair would prioritize lowering interest rates. (RTS)

📈 Stock Market

• ⭐ Editor’s Pick: U.S. stocks neared record highs as a robust rally positioned the S&P 500 just 2.3% shy of its February peak as of Friday’s close, with investors eyeing upcoming economic data and trade policy shifts that could determine whether the rally extends further. (RTS)

• Baird analysts downgraded Tesla from Outperform to Neutral, cutting the price target to $320, and expressed skepticism about Musk’s optimistic robotaxi ramp-up projections, suggesting these expectations may already be priced into the stock. (MW)

• Morgan Stanley and Goldman Sachs strategists join JPMorgan and Citigroup in raising S&P 500 targets, citing resilient economic growth as a buffer against summer pullbacks and easing trade war concerns. (BBG)

• Small-cap stocks remain undervalued and are poised for a long-term rebound, driven by U.S. reshoring, peak globalization, and increased capital spending, Bank of America analysts say. (INV)

💵 Currencies & Commodities

• ⭐ Editor’s Pick: The Trump administration has greenlit the expansion of Montana’s Bull Mountains coal mine, releasing 60 million tons of coal for export to Japan and South Korea, projected to boost Montana’s economy by over $1 billion. (OP)

• Venezuela’s government plans to raise fuel prices by 50%, increasing the cost from $0.25 to $0.75 per liter nationwide, according to state officials. (BBG)

• The U.S. imposed sanctions on 10 individuals and 27 entities tied to Iran’s “Shadow Banking Network,” accused of laundering billions through front companies in the UAE and Hong Kong to fund nuclear weapons development. (JP)

• Global food commodity prices fell in May, led by sharp declines in cereal, sugar, and vegetable oil prices, with the FAO Food Price Index dropping 0.8% to 127.7 points, the UN’s Food and Agriculture Organization reported. (INV)

🌕 Crypto

• ⭐ Editor’s Pick: Bitcoin blockchain transactions have slid to a seven-day moving average of 317,000, the lowest since October 2023, even as BTC hovers near all-time highs, according to The Block’s data. (TB)

• Argentina’s Anti-Corruption Office ruled that President Javier Milei was acting in a personal capacity when he promoted the Libra cryptocurrency, which surged and crashed in February, and did not violate public ethics laws. (TB)

• A 15-day streak propelled the nine spot Ethereum ETFs to a record $3.33 billion in cumulative inflows as of Friday, up $820 million since the streak began. (TB)

• Tether’s CEO Paolo Ardoino dismissed IPO speculation, calling a $515 billion valuation “a bit bearish,” citing the company’s expanding Bitcoin and gold treasury as a key driver of its value. (CT)

• World, the biometric identity verification venture co-founded by OpenAI CEO Sam Altman, will launch in the U.K. this week. (CNBC)
  

TECH

💻 Apple WWDC 2025 Preview: iOS 19, macOS, AI, and Beyond

The Scoop: Apple is poised to unveil iOS 19 at WWDC 2025 today, with rumors of a potential rebrand to iOS 26, a Vision Pro-inspired design overhaul, and new AI-driven features like a virtual health coach and gaming hub, signaling a major update with market-moving potential. 

The Details:

• Bloomberg reports Apple may rename iOS 19 to iOS 26, aligning with the release year, a change extending to iPadOS, macOS, watchOS, tvOS, and visionOS.

• The update, dubbed “Liquid Glass,” could feature translucent panels and circular app icons inspired by Vision Pro, with major visual updates to the Phone, Camera, and Safari apps.

• A new app may integrate Apple Arcade and App Store games, offering achievements and leaderboards, following Apple’s acquisition of RAC7.

• An AI-powered chatbot is rumored to provide personalized health advice using Health app data, with new food-tracking features.

• 9to5Mac reports AI-driven message translation and polling for Messages, while AI-powered battery management and reverse wireless charging for iPhone 17 Pro are in testing.

• A macOS Preview app for PDF editing and a Genmoji feature for custom emoji combinations are also expected.

What’s Next: At WWDC, don’t expect major hardware announcements, as most Apple product lines (consumer Macs, iPads, iPhones, Apple Watches) have recently been updated or are slated for fall updates. The Mac Pro might be an exception, but its infrequent updates make changes uncertain.

Tech Roundup

🧠 AI

• ⭐ Editor’s Pick: Meta is in discussions to invest approximately $10 billion in artificial intelligence startup Scale AI, a deal that could rank among the largest funding rounds for a private company, according to people familiar with the matter. (BBG)

• Apple released a research paper over the weekend asserting that large reasoning models (LRMs) in AI struggle with complex tasks, revealing gaps in reasoning quality and a lack of general problem-solving ability. (AT)

• Nvidia CEO Jensen Huang praised the U.K. as a “Goldilocks” hub for AI, committing to increased investment and securing pledges from Nscale and Nebius to build facilities with thousands of Nvidia’s Blackwell GPU chips. (CNBC)

• Mistral AI is finalizing several commercial contracts, each valued at over $100 million across three to five years, as the company scales its infrastructure. (FT)

• Former Apple employees say integrating LLMs into Siri has triggered bugs, unlike companies that built GenAI-based voice assistants from the ground up, fueling delays in the full rollout of the tech giant’s “Apple Intelligence” features. (FT)

🤖 Hardware & Robotics

• ⭐ Editor’s Pick: Milan Kovac, head of Tesla’s Optimus humanoid robot program, will step down immediately to focus on family, with Ashok Elluswamy, current leader of Tesla’s autopilot teams, assuming his role. (YF)

• Wandercraft, a Paris-based exoskeleton developer, introduced Calvin, a voice-operated, self-balancing humanoid robot developed in just 40 days, harnessing its exoskeleton expertise for challenging industrial applications. (RR)

• Astral Systems, a UK fusion company, claims to be the first to breed tritium in its reactor, a breakthrough that could address a key challenge in fusion energy development by enabling self-sustaining fuel production. (IE)

• MIT and NVIDIA researchers created an algorithm enabling robots to “think ahead,” evaluating thousands of potential motion plans at once. (MIT)

• Skolkovo and AIRI Institute researchers achieved a solid-state battery breakthrough, potentially boosting EV range by 50% while improving safety and lifespan. (IE)

🚀 Defense & Space

• ⭐ Editor’s Pick: Axiom Space’s fourth mission, Ax-4, set for Tuesday, marks the company’s first break-even flight and its second “fully national mission” involving only national government customers. (TC)

• NASA’s ESCAPADE Mars smallsat mission, bumped from Blue Origin’s first New Glenn launch, is now scheduled for the rocket’s second flight this summer. (SN)

• China’s Tianwen 2 spacecraft has transmitted its first image en route to Kamo'oalewa, a mysterious near-Earth “quasi-moon” asteroid, as part of its mission to rendezvous and collect samples. (SP)

• The U.S. Air Force’s 53rd Wing activated the Experimental Operations Unit as a full squadron at Nellis Air Force Base to sets up a new experimental unit to test drone and fighter jet teamwork. (AR)

• The U.S. Army’s 101st Airborne Division unveiled the MV-75 tiltrotor aircraft at a ceremony, designed to double the speed and range of current air assault capabilities, surpassing the UH-60 Black Hawk. (USA)

📱 Business

• ⭐ Editor’s Pick: Apple is poised to introduce iOS 19 at WWDC 2025 on Monday, with rumors suggesting a potential name change, a new gaming app, a virtual health coach, and a striking Vision Pro-inspired redesign, positioning it as a significant update. (TC)

• Qualcomm will acquire U.K.-based chipmaker Alphawave IP Group for $2.4 billion, the company announced. (DJ)

• Westinghouse is discussing plans with U.S. officials and industry partners to deploy 10 large nuclear reactors in response to presidential executive orders. (FT)

• In the Gulf, Careem, Talabat, Botim, and Noon are intensifying the race for super apps, consolidating ride-hailing, payments, and delivery into single platforms, from Dubai to Riyadh. (ROW)

FREEDOM

💸 Bessent Accuses Gavin Newsom of Threatening “Tax Evasion”

The Scoop: Bessent has accused California Gov. Gavin Newsom (D-CA) of threatening tax evasion after Newsom warned he might withhold over $80 billion in federal taxes amid a dispute with President Trump over transgender athletes in girls’ sports.

The Details:

• Newsom’s threat follows Trump’s vow to impose hefty fines on California for allowing biological male AB Hernandez to compete and win titles in girls’ state track finals, despite Trump’s warnings.

• Trump posted on Truth Social, condemning California’s policy and promising “large scale fines” for Newsom.

• Newsom retorted, claiming Californians pay $80 billion more in federal taxes than they receive and threatened to “cut that off.”

• Bessent called Newsom’s plan “extremely reckless,” warning that withholding taxes would be tax evasion, with personal liability for state officials and payroll managers.

What’s Next: Bessent urged Newsom to adopt a tax plan modeled on Trump’s Tax Cuts to ease state burdens, warning that tax evasion would defraud U.S. taxpayers and leave Californians liable. The escalating feud could spark legal battles or federal enforcement actions, with markets watching for disruptions to California’s economy or federal funding.

Freedom Roundup

🏛️ Economic Policy

• ⭐ Editor’s Pick: Treasury Secretary Scott Bessent accused California Gov. Gavin Newsom of threatening tax evasion after Newsom vowed to withhold $80 billion in federal taxes, opposing Trump’s fines for allowing a biological male to win girls’ sports titles. (FBN)

• The Small Business Administration (SBA) will move its Los Angeles regional office, citing the city’s lack of cooperation with Immigration and Customs Enforcement (ICE). (X)

• Some conservative House members are confident that Trump’s $9.4 billion spending cut proposal will pass, with Rep. Lance Gooden (R-TX) saying, “This is low-hanging fruit, and I don’t anticipate problems.” (FOX)

💻 Business & Tech Policy

• ⭐ Editor’s Pick: Trump signed three executive orders Friday to advance U.S. leadership in drones, supersonic air travel, and flying car innovation. (AP)

• The U.K.’s Financial Conduct Authority partnered with Nvidia to enable banks to test artificial intelligence through a Supercharged Sandbox, offering enhanced data, expertise, and regulatory support. (CNBC)

• The Congressional Robotics Caucus has relaunched, led by co-chairs Reps. Bob Latta (R-OH), Jay Obernolte (R-CA), Haley Stevens (D-MI), and Jim McGovern (D-MA), to promote robotics research, industry engagement, and U.S. economic competitiveness. (RR)

💬 Free Speech & Woke Overreach

• ⭐ Editor’s Pick: Apple, Delta Air Lines, Microsoft, Sephora, and Costco continue or expand DEI initiatives, prompting Consumers’ Research to urge its tens of thousands of members to contact these companies and demand an end to “discriminatory DEI programs.” (WE)

• McDonald’s retains core inclusion programs, dropping DEI targets and terms but keeping employee resource groups and diversity reports. (GM)

• Nike joins JPMorgan Chase, Constellation Brands, and Akamai Technologies in canceling or delaying sustainability and corporate impact reports for shareholders. (BT)

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