Key takeaways:
- China quietly issuing list of US products exempt from tariffs as trade war impacts economy
- Trump and Zelensky's Vatican meeting may lead to tougher US stance against Putin
US Economy Feeling Trade War Effects The US economy shrank by 0.3% in Q1 2023, the first quarter of negative growth since early 2022. Cargo volumes to the US have fallen dramatically, with LA port shipments expected to drop 35% next week. Major retailers warn of higher prices and empty shelves. The import decline could trigger layoffs in retail, trucking, and logistics sectors.
Trump-Zelensky Meeting May Shift Russia Policy During a 15-minute meeting at the Vatican, Ukrainian President Zelensky pushed Trump for a harder line on Putin and renewed ceasefire calls. Zelensky warned Putin would only respond to pressure and urged Trump to reconsider his approach. Following the meeting, Trump posted on social media suggesting Putin may not want to end the war, floating sanctions as a possible next step.
US-Ukraine Minerals Deal Progress Trump pressed Zelensky on finalizing a stalled US-Ukraine minerals deal, which could be signed imminently. The agreement would give the US access to Ukraine's mineral reserves in exchange for investment in Ukraine's war effort. Ukraine's economy minister is reportedly headed to Washington, potentially to finalize the deal.