HAPPY CHRISTMAS, WAR IS OVER: Donald Trump’s dramatic trade war with China is over — for the time being — after details of the deal struck in Switzerland at the weekend were unveiled. Treasury Secretary Scott Bessent announced at a 3 a.m. ET press conference in Geneva that U.S. tariffs on Chinese imports will be scaled right back from their punitive 145 percent rate to just 30 percent for the next three months. In return, China has agreed to scale back its own 125 percent retaliatory tariffs on U.S. imports to just 10 percent for the same period. It looks like Christmas for doll-loving American children isn’t canceled, after all. Needless to say: This is massive news for the global economy — a far more significant scaling-back of trade barriers than had been anticipated. And the language around further talks is suddenly warmer, with Bessent stating that “neither side wants a decoupling” of the world’s two largest economies. Get ready for the stock market to go bananas when trading opens at 9:30 a.m. So who won the war? Critics will inevitably see this as yet another capitulation from Trump, who — let’s not forget — had been insisting in the run-up to “Liberation Day” that he planned to bring in “billions and billions of dollars” from his reciprocal tariffs. Having swiftly paused most of them following wobbles in the bond market, he focused his efforts on China instead. Now, one month later, amid fears of rising inflation and warnings of empty shelves in the run-up to Christmas, Trump has pulled the plug again. Flip side: Trump, however, will no doubt spin this as a win for U.S. trade — and in fairness we don’t yet know the details of what’s to be agreed. “We want more balanced trade, and I think both sides are committed to achieving that,” Bessent said this morning. The new 30 percent U.S. tariff rate appears to be Trump’s 10 percent “baseline” level, plus a further 20 percent on top to punish China for the fentanyl trade. There will be further talks between the two sides during the 90-day pause. Today’s big winners: Stock market investors … Kids who want more than five pencils … Adults who want cheap clothing … U.S. soybean farmers … and Scott Bessent. Indeed … The mild-mannered Treasury secretary emerges from this whole episode — once again — as one of the most influential figures in the administration. (It was Bessent who talked Trump into the initial “Liberation Day” climbdown last month, remember.) “80% Tariff on China seems right!” Trump had suggested on Truth Social last Friday morning, before adding: “Up to Scott B.” In the end, Bessent went way lower than that. LEAVING ON A JET PLANE DEAL OR NO DEAL: Trump embarks on the first overseas tour of this presidency today with several huge diplomatic and political deals at make-or-break moments. Trump departs for the Middle East at lunchtime with plans to unveil a series of mega-bucks investment deals during his three-day tour of Saudi Arabia, Qatar and the UAE, my POLITICO colleagues Eli Stokols and Felicia Schwartz report. “I think the stakes are high,” one administration official told Playbook’s Dasha Burns last night. “It’s [Trump’s] first real foreign trip and he’s using it to go to the Middle East … It’s a sign of more big things to come. … I mean, when was the last president to do such a heavy foreign trip focused almost exclusively on investment and business development?” “He needs to accomplish more steps toward peace,” a White House ally tells Dasha. “We’ve seen Trump work closely with the Qataris to free more hostages and pursue the end of the conflict in Gaza. [And] he needs to accomplish more economic deals and investment in the United States.” But after a blizzard of weekend developments, Trump finds his presidency — and his self-styled reputation as the “dealmaker-in-chief” — at a critical juncture. Just consider the following:
- Trump heads to the Middle East today with his erstwhile friend and ally, Israeli PM Benjamin Netanyahu, having set a deadline of the end of this week for a hostage deal with Hamas — and threatening a full-scale invasion and occupation of Gaza. The stakes could hardly be higher.
- Ukrainian President Volodymyr Zelenskyy is demanding a Russian ceasefire today and has offered face-to-face talks with Russian President Vladimir Putin in Turkey later this week. The ball is now firmly in Putin’s court. Trump has staked so much political capital on peace in Ukraine — and suddenly it’s coming to a head.
- Trump’s GOP allies in Congress are this week looking to finalize the main elements of the primary tax and spend legislation of Trump’s second term. Huge and contentious cuts to Medicaid were announced last night — and full details of Trump’s proposed tax cuts are coming this afternoon.
- Trump himself is today trying to force the pharmaceutical industry to slash its prices by forcing through his previously abandoned “most favored nation” policy of price controls. But can he really get this through the courts — or even past the GOP?
- Today’s agreement with China offers only a temporary pause in the trade war, with intensive negotiations to continue in the weeks ahead. And after last week’s U.S.-U.K. trade deal, Trump has promised other such deals are imminent. There is still much to do.
- And don’t forget the most jaw-dropping (potential) deal of all. Political social media was lit up yesterday following ABC News’ scoop that Qatar is planning to gift the U.S. government a $400 million luxury jet to replace Air Force One — and that Trump hopes to maintain its use after he leaves the White House. It would be the most expensive gift ever received by a U.S. president from a foreign government.
Let’s start with that jet plane. QATAR HERO: There’s a *lot* of news out there today, but this story was cutting through like nothing else last night. ABC’s Jonathan Karl and Katherine Faulders got the scoop Sunday morning that the Trump administration is poised to accept a $400 million gift from the Qatari government — a presidential jet so opulent it’s been dubbed the “Palace in the Sky.” Semafor’s Shelby Talcott and Ben Smith have pics of the interior, and there’s a lot of cream leather. The killer detail: ABC reports plans are in place for the plane to be transferred to Trump’s presidential library when he departs office … so that Trump can continue to use it in his retirement. Can it be true? The WSJ revealed the bones of the plan earlier this month, with Trump seeking alternatives amid frustration that an order with Boeing for new Air Force One planes has been delayed. But the WSJ clearly never dreamed any replacement plane might come as a personal gift for the president. Sure enough, Trump confirmed on Truth Social last night that the U.S. government “is getting a GIFT, FREE OF CHARGE, of a 747 aircraft to replace the 40 year old Air Force One, temporarily,” via “a very public and transparent transaction.” He made no comment on what may happen to the plane after he leaves office, but attacked “the Crooked Democrats” for complaining about the deal. But it’s hardly just the Dems: “This is really going to be such a stain on the admin if this is true,” posted far-right activist Laura Loomer. “And I say that as someone who would take a bullet for Trump. I’m so disappointed.” There were plenty of MAGA faithful posting similar messages all over X. And who can blame them? The optics of accepting a $400 million luxury jet while cutting Medicaid is only one part of it. And there’s a reason why the Constitution says explicitly that “no person holding any office” may “without the consent of the Congress” accept a gift “of any kind whatever from any King, Prince, or foreign state.” It’s because people generally don’t hand over $400 million gifts for no reason. Reminder: The Qataris are famous for using their wealth to try to buy political influence — as just two examples, check out the 2022 “Qatargate” scandal in the European parliament and the 2025 “Qatargate” scandal now unfolding in Israel. Let the lawyers decide: A statement from the Qatari government said “the matter remains under review by the respective legal departments, and no decision has been made.” But ABC reports AG Pam Bondi and Trump's top White House lawyer David Warrington will indeed sign off on the structure of the $400 million jet plane deal. There’s been no U.S. government comment on that as yet. Unrelated: Bondi used to work as a highly paid lobbyist for … the Qatari government, NYT’s Ken Vogel notes. BEYOND THE JET PLANE: There’s no Middle East peace deal on the horizon at this point, with Trump choosing not to even visit Netanyahu in Israel. But there’s still big news coming, as Trump’s Middle East envoy Steve Witkoff heads to Tel Aviv to secure the release of the last living American hostage in Gaza — Edan Alexander, an Israeli-American soldier who grew up in New Jersey. “Hopefully this is the first of those final steps necessary to end this brutal conflict,” Trump wrote on Truth Social. A person close to the administration tells Dasha there may be other plane deals to watch for this week. “The Qatar Airways deal with Boeing and GE is a massive deal — and last I checked, the paperwork hadn’t been signed yet. Especially interesting in light of the AF1 kerfuffle,” they said. Dasha’s thought bubble: “From the president’s close allies to administration critics, it’s clear to all that Trump is making his first (literal) move on the world stage at a pressure-cooker kind of moment. And right now, he’s personally ensuring that he’s an integral character in just about every major plotline playing out around the globe. This is a critical chapter.” Trump watch: The president will be in the Oval Office at 9:30 a.m. to sign his executive order cracking down on Big Pharma, alongside HHS Secretary Robert F. Kennedy Jr. Expect Trump to take plenty of questions on jet planes, trade deals, peace negotiations and much else. He’ll then head to Air Force One for a lunchtime flight to Saudi Arabia, where he should arrive soon after midnight. He’ll likely gaggle with reporters on the plane this afternoon.
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