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U.S., China agree to 90-day tariff reduction after negotiations

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Quick Hit:

The United States and China have agreed to reduce tariffs for 90 days following trade negotiations in Geneva, offering temporary relief to global markets. The deal marks a pause in the escalating economic conflict, with both countries pledging to resume talks during the truce.

Key Details:

  • The U.S. will lower tariffs on Chinese imports from April levels by 24 percentage points, maintaining a 10% base rate.
  • China will implement a matching reduction and suspend additional non-tariff measures targeting American goods.
  • S&P 500 futures jumped 3%, while U.S. bond yields climbed as investors reacted to signs of de-escalation.

Diving Deeper:

After weeks of mounting economic tension, the United States and China on Monday jointly announced a 90-day reduction in tariffs, signaling a temporary easing of the trade war that has unnerved businesses, investors, and policymakers across the globe.

The agreement, reached during weekend negotiations in Geneva, was confirmed by U.S. Treasury Secretary Scott Bessent. “We had very robust discussions. Both sides showed great respect to what was a very positive process,” Bessent said in remarks to reporters. According to Bessent, the U.S. will lower its tariffs to 30%, while China will cut its rates to 10% during this period—a proportional rollback from their respective April highs.

The White House clarified that the reduction affects tariffs announced by President Trump on April 2, cutting them by 24 percentage points while keeping the base ad valorem rate of 10%. In response, Beijing agreed not only to match the tariff rollback but also to lift administrative barriers and non-tariff measures it had imposed since April.

Both countries are expected to implement the agreed measures by Wednesday. The joint statement released following the talks indicated that discussions will continue over the coming months as the two sides explore a longer-term resolution.

Markets reacted quickly and positively. S&P 500 futures surged over 3% on the news, providing a shot of optimism after weeks of uncertainty. The U.S. Dollar Index, which had been under pressure due to investor anxiety about America’s trade posture, rose more than 1%. Meanwhile, bond markets adjusted sharply, with the yield on the 10-year Treasury climbing to 4.445%, its highest point since early April.

While the 90-day pause offers breathing room, the underlying issues remain unresolved. Businesses that had delayed orders due to tariff costs may now rush to restock, a move that could cause short-term volatility or even a demand shock in some sectors. Economists warn that without a longer-term agreement, the reprieve may prove fleeting.

For now, though, the breakthrough offers a glimmer of hope. It’s a notable win for President Trump’s strategy of tough negotiations, underscoring his administration’s commitment to putting American interests first while forcing adversaries to the table. The outcome stands in stark contrast to the previous administration’s conciliatory tone and may reinforce the argument for a more assertive U.S. economic posture on the world stage.

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Red Deer

Scott Robinson and the Red Deer District Chamber of Commerce agree to part ways

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The Red Deer District Chamber announces a change in executive leadership, effective June 19, 2025. Following discussions the Red Deer District Chamber Board of Directors and Scott Robinson have agreed to part ways. This decision reflects a mutual agreement that new leadership is needed to guide the organization into its next chapter.

As part of this transition, Chamber President Mike Szyszka will assume the role of Interim Chief Executive Officer. This interim appointment will ensure continuity of leadership and provide operational stability while the Board initiates the process to recruit a new permanent CEO.

Szyszka, a longtime Chamber member of over 17 years and current Board President in his second consecutive term, is a respected local business owner with deep roots in Central Alberta’s business community. In keeping with Chamber policy, he will serve in this interim capacity on a volunteer basis as an act of service to the organization.

“Our focus is on supporting our staff, members, and partners through this transition while reaffirming our commitment to the mission and values that have guided the Chamber for over a century,” said Szyszka. “We remain dedicated to advancing the interests of our business community and
strengthening the Chamber’s long-standing role as a champion for economic development in Central Alberta.”

The Board has struck a hiring committee that will lead the search for new leadership. Updates regarding this process will be shared in the weeks ahead. The Chamber would like to thank all stakeholders for their continued support as we move through this period of change.

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Business

Potential For Abuse Embedded In Bill C-5

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From the National Citizens Coalition

By Peter Coleman

“The Liberal government’s latest economic bill could cut red tape — or entrench central planning and ideological pet projects.”

On the final day of Parliament’s session before its September return, and with Conservative support, the Liberal government rushed through Bill C-5, ambitiously titled “One Canadian Economy: An Act to enact the Free Trade and Labour Mobility in Canada Act and the Building Canada Act.”

Beneath the lofty rhetoric, the bill aims to dismantle interprovincial trade barriers, enhance labour mobility, and streamline infrastructure projects. In principle, these are worthy goals. In a functional economy, free trade between provinces and the ability of workers to move without bureaucratic roadblocks would be standard practice. Yet, in Canada, decades of entrenched Liberal and Liberal-lite interests, along with red tape, have made such basics a pipe dream.

If Bill C-5 is indeed wielded for good, and delivers by cutting through this morass, it could unlock vast, wasted economic potential. For instance, enabling pipelines to bypass endless environmental challenges and the usual hand-out seeking gatekeepers — who often demand their cut to greenlight projects — would be a win. But here’s where optimism wanes, this bill does nothing to fix the deeper rot of Canada’s Laurentian economy: a failing system propped up by central and upper Canadian elitism and cronyism. Rather than addressing these structural flaws of non-competitiveness, Bill C-5 risks becoming a tool for the Liberal government to pick more winners and losers, funneling benefits to pet progressive projects while sidelining the needs of most Canadians, and in particular Canada’s ever-expanding missing middle-class.

Worse, the bill’s broad powers raise alarms about government overreach. Coming from a Liberal government that recently fear-mongered an “elbows up” emergency to conveniently secure an electoral advantage, this is no small concern. The lingering influence of eco-radicals like former Environment Minister Steven Guilbeault, still at the cabinet table, only heightens suspicion. Guilbeault and his allies, who cling to fantasies like eliminating gas-powered cars in a decade, could steer Bill C-5’s powers toward ideological crusades rather than pragmatic economic gains. The potential for emergency powers embedded in this legislation to be misused is chilling, especially from a government with a track record of exploiting crises for political gain – as they also did during Covid.

For Bill C-5 to succeed, it requires more than good intentions. It demands a seismic shift in mindset, and a government willing to grow a spine, confront far-left, de-growth special-interest groups, and prioritize Canada’s resource-driven economy and its future over progressive pipe dreams. The Liberals’ history under former Prime Minister Justin Trudeau, marked by economic mismanagement and job-killing policies, offers little reassurance. The National Citizens Coalition views this bill with caution, and encourages the public to remain vigilant. Any hint of overreach, of again kowtowing to hand-out obsessed interests, or abuse of these emergency-like powers must be met with fierce scrutiny.

Canadians deserve a government that delivers results, not one that manipulates crises or picks favourites. Bill C-5 could be a step toward a freer, stronger economy, but only if it’s wielded with accountability and restraint, something the Liberals have failed at time and time again. We’ll be watching closely. The time for empty promises is over; concrete action is what Canadians demand.

Let’s hope the Liberals don’t squander this chance. And let’s hope that we’re wrong about the potential for disaster.

Peter Coleman is the President of the National Citizens Coalition, Canada’s longest-serving conservative non-profit advocacy group.

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