Civil Unrest?
What has President Trump said this week?
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What has President Trump said this week? 〰️
1. “Deal is done”
Following President Trump’s accusation last week that China had violated its agreement with the U.S., he announced on June 11 that a new deal had been reached after bipartisan negotiations in London. In his Truth post, Trump confirmed a combined 55% tariff on Chinese imports, alongside a 10% reciprocal tariff on U.S. goods. President Trump also stated that China would resume shipments of rare-earth magnets and that the U.S. would continue admitting Chinese students to American universities
While Trump hailed the agreement as a major win—declaring the “relationship is excellent!”—the deal remains subject to approval by President Xi. China's six-month licensing cap on rare-earth mineral exports also casts doubt on the deal’s long-term stability (Reuters, 2025).
Markets responded with cautious optimism: U.S. and European equities rose as inflation dipped slightly to 2.4%. Still, analysts caution that without a legally binding framework—especially around critical mineral exports—this relief may be short-lived. Chinese exports to the U.S. plunged 34.5% in May, highlighting the need for a more durable resolution (CNN, 2025). At the same time, American consumers are already bearing the brunt of both existing and newly imposed tariffs..
2. The Military in LA
This week, protests erupted across Los Angeles after ICE raids in agricultural regions led to dozens of arrests, sparking widespread outrage among immigrant communities. Demonstrators blocked freeways and occupied public spaces to demand justice and express fears over mass deportations. In response, President Trump posted on Truth Social:
He later vowed during a Fort Bragg speech to “liberate” the city, calling the unrest an “invasion.” The federal response included the deployment of 4,000 National Guard troops and 700 Marines, at an estimated cost of $134 million over 60 days (NYT, 2025). This marks the first time in decades the National Guard was activated in a state without a governor’s request—a move last seen in 1965 under President Johnson (CBS News, 2025).
Governor Gavin Newsom has vocally opposed the deployment. In a primetime speech, he condemned it as a “manufactured crisis” and an “illegal act” designed to inflame tensions rather than resolve them, warning that it “threatens the very core of our democracy” (Time, 2025). In response, President Trump posted again:
On June 9, California filed legal action asserting that the federal intervention violated the state’s authority and breached constitutional limits on military involvement in domestic affairs (The Washington Post, 2025). This confrontation underscores a deepening state-federal divide over immigration enforcement, civilian authority, and the limits of executive power.
3. Trump on interest rates, again
Last week, President Trump intensified pressure on the Federal Reserve, urging a full percentage-point interest rate cut and calling current monetary policy “monetary malpractice” (WSJ, 2025). He argued that the May jobs report—which showed 139,000 new jobs, steady 4.2% unemployment, and a better-than-expected CPI—justified aggressive easing. Trump warned that a rate hike now would be a “mistake”, and contrasted the Fed’s inaction with the European Central Bank’s eight rate cuts since last June, saying the U.S. economy deserves similar support (Reuters, 2025).
However, the Federal Reserve is in no hurry. A Reuters poll shows that nearly all economists expect the Fed to hold rates at 4.25–4.50% through at least September, citing persistent inflation and trade uncertainty. Analysts also warn that Trump’s pressure could increase market volatility and undermine the Fed’s credibility.
It’s also important to note that while lower interest rates might stimulate growth, funding Trump’s proposed $2.4 trillion tax-and-spending package could increase federal debt costs and push long-term rates higher, potentially offsetting the intended stimulus.