Trump Trade: ‘Very substantial framework’ of China trade deal reached

Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump with this daily recap compiled by The Fly:

CHINA TRADE DEAL: Treasury Secretary Scott Bessent told NBC that a “very substantial framework” for a trade deal with China has been reached. Bessent said during the taping of an interview with “Meet the Press” that the framework reached will allow President Trump and China’s Xi Jinping to discuss a further trade cooperation next week. Asked if he anticipated that the U.S. would proceed with Trump’s threat of 100% tariffs on Chinese goods, Bessent said, “No, I’m not, and I’m also anticipating that we will get some kind of a deferral on the rare earth export controls that the Chinese had discussed.”

REAGAN AD: President Trump announced on social media, “Canada was caught, red handed’ putting up a fraudulent advertisement on Ronald Reagan’s Speech on Tariffs. The Reagan Foundation said that they, “created an ad campaign using selective audio and video of President Ronald Reagan. The ad misrepresents the Presidential Radio Address,” and “did not seek nor receive permission to use and edit the remarks. The Ronald Reagan Presidential Foundation and Institute is reviewing its legal options in this matter.’ The sole purpose of this FRAUD was Canada’s hope that the United States Supreme Court will come to their “rescue” on Tariffs that they have used for years to hurt the United States. Now the United States is able to defend itself against high and overbearing Canadian Tariffs (and those from the rest of the World as well!). Ronald Reagan LOVED Tariffs for purposes of National Security and the Economy, but Canada said he didn’t! Their Advertisement was to be taken down, IMMEDIATELY, but they let it run last night during the World Series, knowing that it was a FRAUD. Because of their serious misrepresentation of the facts, and hostile act, I am increasing the Tariff on Canada by 10% over and above what they are paying now. Thank you for your attention to this matter!”

TIKTOK DEAL: In a Sunday morning appearance on CBS’ Face the Nation, Treasury Secretary Scott Bessent said the U.S. and China have reached “a final deal on TikTok.” “We reached one in Madrid, and I believe that as of today, all the details are ironed out, and that will be for the two leaders to consummate that transaction on Thursday in Korea,” Bessent said. He declined to discuss the details of the agreement, but added, “My remit was to get the Chinese to agree to approve the transaction, and I believe we successfully accomplished that over the past two days.” TikTok is expected to sell its U.S. assets to a consortium of investors, likely to include Oracle (ORCL), Silver Lake Management and MGX, according to media reports. ByteDance, TikTok’s global parent, is expected to maintain a minority stake in the U.S. business. Publicly traded companies in the social media space include Meta Platforms (META), Pinterest (PINS), Reddit (RDDT) and Snap (SNAP).

TRADE, CRITICAL MINERALS DEAL: The U.S. signed several deals on trade and critical minerals with four Southeast Asian partners, looking to address trade imbalances and expand supply chains as China tightens export curbs on rare earths, Reuters reports. U.S. President Donald Trump signed reciprocal trade deals with Malaysia and Cambodia as well as a framework trade pact with Thailand. The U.S. will maintain a 19% tariffs rate on exports from all three countries, while reducing the levy to 0 for some goods. The Fly notes that companies involved in the development and mining of rare earth minerals include Nova Minerals (NVA), Ioneer (IONR), Lynas Rare Earths (LYSCF), MP Materials (MP), Energy Fuels (UUUU), NioCorp (NB) and VanEck Vectors Rare Earth/Strategic Metals ETF (REMX).

COPPER SMELTER EMISSIONS: U.S. President Donald Trump reversed a pollution rule made during the Biden-era that imposed stricter limits on copper smelter emissions, Jarrett Renshaw and Ernset Scheyder of Reuters report. The rule was finalized in May 2024 and required smelters to curb their pollutants under updated federal air standards. Trump’s proclamation grants a two-year compliance exemption. Publicly traded companies in the aluminum space include Alcoa (AA) and Century Aluminum (CENX).

DELAYS, CANCELLATIONS: Embraer (ERJ) has warned it will be battling with order cancellations and delays if U.S. President Donald Trump’s tariffs are implemented, Ambereen Choudhury and Danny Lee of Bloomberg report. In an interview with Bloomberg Television, CEO Francisco Gomes Neto said it would be bad for “the US industry because if we make fewer aircraft, we buy fewer equipments from the US. That’s why the zero tariffs is important.” Additionally, Neto estimated the tariffs could add on $2M per aircraft.