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Trade truce with China is hailed, but it may not be enough to stop shortages

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Trade truce with China is hailed, but it may not be enough to stop shortages

China and the United States retreated from an emerging economic crisis on Monday, agreeing to drastically reduce tariffs on each other for the next 90 days as they continue to negotiate a more permanent trade deal, providing welcome news for investors and retailers who increasingly feared a breakthrough was out of reach.

The temporary truce will see the United States lower tariffs on Chinese imports to 30% from 145%, and China reduce its import duties on U.S. goods to 10% from 125%, starting Wednesday. Wall Street rejoiced at the announcement of a deal, with the Dow Jones industrial average up 2.81%, the Standard & Poor’s 500 up 3.26%, and the Nasdaq up 4.35%, the largest market rally since President Trump last walked back rate hikes on other countries in mid-April.

Trump referred to the development as a “total reset with China.” But the end result of the provisional agreement is a return to tariff rates that were in place before the president launched a global trade war on April 2, in what he called “Liberation Day” — a move that brought the largest decline in commercial shipping traffic since the COVID-19 pandemic and prompted financial institutions to warn of an imminent recession.

Supply shortages and price increases on Chinese products may still hit American consumers in the coming weeks, a lingering effect of weeks of uncertainty, experts said. Many retailers have already increased their prices. And shipping costs are expected to skyrocket as manufacturers and wholesalers attempt to make up for lost time. The 90-day deadline for a more lasting trade deal could fuel further market volatility in the coming weeks.

Trump’s Treasury secretary, Scott Bessent, who led the negotiations with Beijing, also secured a commitment from China to cut non-tariff barriers it had put in place after April 2, including certain import restrictions and blacklisting of U.S. companies.

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“It de-escalates trade tensions and reduces the probability of a stagflation,” said Sung Won Sohn, a professor of finance and economics at Loyola Marymount University and a former commissioner at the Port of Los Angeles, referring to a phenomenon feared the world over by economists: a combination of slow economic growth, high inflation and increasing unemployment. “But this is a temporary truce. A tough road is ahead of us.”

Over the next three months, the Trump administration says it intends to develop a “mechanism” that will “rebalance” the U.S. trade relationship with China — a task that has eluded presidents for decades. Trump hopes to change Beijing’s policy of providing government subsidies to state-owned enterprises and to reduce a $400-billion U.S. trade deficit with China, both tall orders in such a short time frame.

“Supply chains have been disrupted and there are a lot fewer ships sailing the ocean,” Sohn added. “Supplies in stores won’t be as plentiful as it used to be. During the back-to-school season, for example, there will be shortages, stockouts and higher prices. If the negotiation progresses well, there will be more merchandise at retail stores for back-to-school and Christmas.”

After the deal concluded in Geneva, Bessent said he would draw inspiration in the upcoming talks from a preliminary agreement negotiated with Beijing at the end of the first Trump administration called Phase One, which included new rules governing the exchange of intellectual property, technology transfer and financial services. Bessent claimed that deal was not enforced by the Biden administration.

But the Treasury secretary acknowledged that the upcoming talks would be difficult. “Neither side wants a decoupling,” he said.

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“I don’t think anything’s going to be easy, because this has been going on for a long time,” Bessent told CNBC.

Before departing for an official visit to the Middle East, Trump said he expected to speak with Chinese President Xi Jinping and praised the agreement as a temporary step toward a permanent deal. The truce, Trump added, does not include tariffs on cars, steel and aluminum.

He also spoke with Apple Chief Executive Tim Cook shortly after announcing the deal, Trump said.

“The relationship is very good. We’re not looking to hurt China — China was being hurt very badly,” the president told reporters at the White House. “They were very happy to be able to do something with us.”

Trump said that pharmaceuticals may also be exempt from tariff reductions with China going forward, speaking at a signing ceremony for an executive order aimed at lowering drug prices.

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The majority of the world’s pharmaceuticals are manufactured in China and India. But Trump reserved his harshest critique at the event for the European Union, which produces several high-profile drugs, including Ozempic and Wegovy, weight loss medications that Trump said are heavily overpriced in the United States.

“The European Union is in many ways nastier than China,” Trump said, adding: “We’ve just started with them.

“We have all the cards,” he said. “They treated us very unfairly.”

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Dan Bongino officially leaves FBI deputy director role after less than a year, returns to ‘civilian life’

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Dan Bongino officially leaves FBI deputy director role after less than a year, returns to ‘civilian life’

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Dan Bongino returned to private life on Sunday after serving as deputy director of the Federal Bureau of Investigation (FBI) for less than a year.

Bongino said on X that Saturday was his last day on the job before he would return to “civilian life.”

“It’s been an incredible year thanks to the leadership and decisiveness of President Trump. It was the honor of a lifetime to work with Director Patel, and to serve you, the American people. See you on the other side,” he wrote.

The former FBI deputy director announced in mid-December that he would be leaving his role at the bureau at the start of the new year.

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BONDI, PATEL TAP MISSOURI AG AS ADDITIONAL FBI CO-DEPUTY DIRECTOR ALONGSIDE BONGINO

Dan Bongino speaks with FBI Director Kash Patel as they attend the annual 9/11 Commemoration Ceremony at the National 9/11 Memorial and Museum in New York City on Sept. 11, 2025. (Michael M. Santiago/Getty Images)

President Donald Trump previously praised Bongino, who assumed office in March, for his work at the FBI.

“Dan did a great job. I think he wants to go back to his show,” Trump told reporters.

FBI DIRECTOR, TOP DOJ OFFICIAL RESPOND TO ‘FAILING’ NY TIMES ARTICLE CLAIMING ‘DISDAIN’ FOR EACH OTHER

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“After his swearing-in ceremony as FBI Deputy Director, Dan Bongino paid his respects at the Wall of Honor, honoring the brave members of the #FBI who made the ultimate sacrifice and reflecting on the legacy of those who paved the way in the pursuit of justice and security,” the FBI said in a post on X. (@FBI on X)

Bongino spoke publicly about the personal toll of the job during a May appearance on “Fox & Friends,” saying he had sacrificed a lot to take the role.

“I gave up everything for this,” he said, citing the long hours both he and FBI Director Kash Patel work.

“I stare at these four walls all day in D.C., by myself, divorced from my wife — not divorced, but I mean separated — and it’s hard. I mean, we love each other, and it’s hard to be apart,” he added.

The FBI’s J. Edgar Hoover headquarters building in Washington on Nov. 2, 2016. (AP Photo/Cliff Owen, File)

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Bongino’s departure leaves Andrew Bailey, who was appointed co-deputy director in September 2025, as the bureau’s other deputy director.

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Commentary: Unhappy with the choices for California governor? Get real

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Commentary: Unhappy with the choices for California governor? Get real

California has tried all manner of design in choosing its governor.

Democrat Gray Davis, to name a recent example, had an extensive background in government and politics and a bland demeanor that suggested his first name was also a fitting adjective.

Republican Arnold Schwarzenegger, by contrast, was a novice candidate who ran for governor on a whim. His super-sized action hero persona dazzled Californians like the pyrotechnics in one of his Hollywood blockbusters.

In the end, however, their political fates were the same. Both left office humbled, burdened with lousy poll numbers and facing a well of deep voter discontent.

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(Schwarzenegger, at least, departed on his own terms. He chased Davis from the Capitol in an extraordinary recall and won reelection before his approval ratings tanked during his second term.)

There are roughly a dozen major candidates for California governor in 2026 and, taken together, they lack even a small fraction of Schwarzenegger’s celebrity wattage.

Nor do any have the extensive Sacramento experience of Davis, who was a gubernatorial chief of staff under Jerry Brown before serving in the Legislature, then winning election as state controller and lieutenant governor.

That’s not, however, to disparage those running.

The contestants include a former Los Angeles mayor, Antonio Villaraigosa; three candidates who’ve won statewide office, former Atty. Gen. Xavier Becerra, schools Supt. Tony Thurmond and former Controller Betty Yee; two others who gained national recognition during their time in Congress, Katie Porter and Eric Swalwell; and Riverside County’s elected sheriff, Chad Bianco.

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The large field offers an ample buffet from which to choose.

The rap on this particular batch of hopefuls is they’re a collective bore, which, honestly, seems a greater concern to those writing and spitballing about the race than a reflection of some great upwelling of citizens clamoring for bread and circuses.

In scores of conversations with voters over the past year, the sentiment that came through, above all, was a sense of practicality and pragmatism. (And, this being a blue bastion, no small amount of horror, fear and loathing directed at the vengeful and belligerent Trump administration.)

It’s never been more challenging and expensive to live in California, a place of great bounty that often exacts in dollars and stress what it offers in opportunity and wondrous beauty.

With a governor seemingly more focused on his personal agenda, a 2028 bid for president, than the people who put him in office, many said they’d like to replace Gavin Newsom with someone who will prioritize California and their needs above his own.

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That means a focus on matters such as traffic, crime, fire prevention, housing and homelessness. In other words, pedestrian stuff that doesn’t light up social media or earn an invitation to hold forth on one of the Beltway chat shows.

“Why does it take so long to do simple things?” asked one of those voters, the Bay Area’s Michael Duncan, as he lamented his pothole-ridden, 120-mile round-trip commute between Fairfield and an environmental analyst job in Livermore.

The answer is not a simple one.

Politics are messy, like any human endeavor. Governing is a long and laborious process, requiring study, deliberation and the weighing of competing forces. Frankly, it can be rather dull.

Certainly the humdrum of legislation or bureaucratic rule-marking is nothing like the gossipy speculation about who may or may not bid to lead California as its 41st governor.

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Why else was so much coverage devoted to whether Sen. Alex Padilla would jump into the gubernatorial race — he chose not to — and the possible impact his entry would have on the contest, as opposed to, say, his thinking on CEQA or FMAP?

(The former is California’s much-contested Environmental Quality Act; the latter is the formula that determines federal reimbursement for Medi-Cal, the state’s healthcare program for low-income residents.)

Just between us, political reporters tend to be like children in front of a toy shop window. Their bedroom may be cluttered with all manner of diversion and playthings, but what they really want is that shiny, as-yet unattained object — Rick Caruso! — beckoning from behind glass.

Soon enough, once a candidate has entered the race, boredom sets in and the speculation and desire for someone fresh and different starts anew. (Will Atty. Gen. Rob Bonta change his mind and run for governor?)

For their part, many voters always seem to be searching for some idealized candidate who exists only in their imagination.

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Someone strong, but not dug in. Willing to compromise, but never caving to the other side. Someone with the virginal purity of a political outsider and the intrinsic capability of an insider who’s spent decades cutting deals and keeping the government wheels spinning.

They look over their choices and ask, in the words of an old song, is that all there is? (Spoiler alert: There are no white knights out there.)

Donald Trump was, foremost, a celebrity before his burst into politics. First as a denizen of New York’s tabloid culture and then as the star of TV’s faux-boardroom drama, “The Apprentice.”

His pizzazz was a large measure of his appeal, along with his manufactured image as a shrewd businessman with a kingly touch and infallible judgment.

His freewheeling political rallies and frothy social media presence were, and continue to be, a source of great glee to his fans and followers.

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His performance as president has been altogether different, and far less amusing.

If the candidates for California governor fail to light up a room, that’s not such a bad thing. Fix the roads. Make housing more affordable. Help keep the place from burning to the ground.

Leave the fun and games to the professionals.

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Kamala Harris blasts Trump administration’s capture of Venezuela’s Maduro as ‘unlawful and unwise’

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Kamala Harris blasts Trump administration’s capture of Venezuela’s Maduro as ‘unlawful and unwise’

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Former Vice President Kamala Harris on Saturday evening condemned the Trump administration’s capture of Venezuelan dictator Nicolás Maduro and his wife, calling the operation both “unlawful” and “unwise.”

In a lengthy post on X, Harris acknowledged that Maduro is a “brutal” and “illegitimate” dictator but said that President Donald Trump’s actions in Venezuela “do not make America safer, stronger, or more affordable.”

“Donald Trump’s actions in Venezuela do not make America safer, stronger, or more affordable,” Harris wrote. “That Maduro is a brutal, illegitimate dictator does not change the fact that this action was both unlawful and unwise. We’ve seen this movie before.

“Wars for regime change or oil that are sold as strength but turn into chaos, and American families pay the price.”

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SEE PICS: VENEZUELANS WORLDWIDE CELEBRATE AS EXILES REACT TO MADURO’S CAPTURE

Vice President Kamala Harris had strong words for the Trump administration’s capture of Venezuelan leader Nicolás Maduro. (Montinique Monroe/Getty Images)

Harris made the remarks hours after the Trump administration confirmed that Maduro and his wife were captured and transported out of Venezuela as part of “Operation Absolute Resolve.”

The former vice president also accused the administration of being motivated by oil interests rather than efforts to combat drug trafficking or promote democracy.

“The American people do not want this, and they are tired of being lied to. This is not about drugs or democracy. It is about oil and Donald Trump’s desire to play the regional strongman,” Harris said. “If he cared about either, he wouldn’t pardon a convicted drug trafficker or sideline Venezuela’s legitimate opposition while pursuing deals with Maduro’s cronies.”

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SECOND FRONT: HOW A SOCIALIST CELL IN THE US MOBILIZED PRO-MADURO FOOT SOLDIERS WITHIN 12 HOURS

President Donald Trump shared a photo of captured Venezuelan President Nicolás Maduro aboard the USS Iwo Jima after Saturday’s strikes on Venezuela. (Donald Trump via Truth Social)

Harris, who has been rumored as a potential Democratic contender in the 2028 presidential race, additionally accused the president of endangering U.S. troops and destabilizing the region.

“The President is putting troops at risk, spending billions, destabilizing a region, and offering no legal authority, no exit plan, and no benefit at home,” she said. “America needs leadership whose priorities are lowering costs for working families, enforcing the rule of law, strengthening alliances, and — most importantly — putting the American people first.”

MADURO’S FALL SPARKS SUSPICION OF BETRAYAL INSIDE VENEZUELA’S RULING ELITE

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CIA Director John Ratcliffe, left, President Donald Trump and Secretary of State Marco Rubio watch U.S. military operations in Venezuela from Mar-a-Lago in Florida early Saturday. (Donald Trump via Truth Social)

Maduro and his wife arrived at the Metropolitan Detention Center in Brooklyn late Saturday after being transported by helicopter from the DEA in Manhattan after being processed.

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Earlier in the day, Trump said that the U.S. government will “run” Venezuela “until such time as we can do a safe, proper and judicious transition.”

Harris’ office did not immediately respond to Fox News Digital’s request for comment.

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Fox News Digital’s Jasmine Baehr contributed to this report.

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