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Trump Targets $163B in Cuts + Tariffs Hit Online Shoppers
Friday Edition | May 2, 2025
Prepper Perry
May 02, 2025
 | Welcome back! It’s Friday, May 2nd This week, the White House is aiming to cut $163 billion from key federal programs while new tariffs are quietly driving up prices on everything from bulk goods to everyday electronics. Inflation may not be spiking, but the pressure is shifting—slowly, and unevenly. Budget cuts, climate rollbacks, and unstable supply chains are moving under the surface, and most people won’t feel it until they’re already paying more or getting less. The Anxiety Forecast? Holding steady. But economic cracks are starting to widen. |
Top Stories
Tariffs Hit Online Shopping
The $800 duty-free rule for imported goods just ended. Known as the “de minimis” exemption, it let Americans buy cheap products from sites like Temu, Shein, and AliExpress without extra fees. Now, shipments from China and Hong Kong face steep tariffs—up to 145% depending on the carrier—and some buyers will pay flat fees of $100 to $200 per package. Major shippers are adjusting, but price increases are already rolling out.
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WHY IT MATTERS
Millions of Americans who turned to discount sites to stretch their budgets will now pay more at checkout. With nearly 4 million of these shipments processed each day, the impact could be huge across retail, shipping, and inflation data. Expect delivery delays, higher prices, and more frustration as the ripple effects hit both households and the broader economy.
White House Wants $163 Billion in Cuts
The Trump administration is releasing a budget request that proposes $163 billion in federal spending cuts for the next fiscal year. The plan targets nondefense programs including environmental protection, education, foreign aid, and healthcare. Agencies like the EPA, Energy Department, and HUD are all on the chopping block. While the full budget will be released later this month, this “skinny” version outlines the administration’s core priorities.
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WHY IT MATTERS
This would slash nearly a quarter of nondefense discretionary spending. Cuts to programs like the National Science Foundation and foreign aid could affect everything from local education grants to international stability efforts. With Republicans holding both chambers of Congress, this proposal has a real shot at reshaping federal funding—and the public services millions rely on.
Israel Strikes Near Syrian Presidential Palace
Early Friday, Israeli fighter jets conducted airstrikes near Syria’s presidential palace in Damascus. This marked the second Israeli intervention this week, following deadly sectarian clashes involving the Druze minority and Sunni extremist groups. Israeli officials stated the strikes were a direct warning to Syria’s new leadership to halt aggression against the Druze community.
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WHY IT MATTERS
The Druse are a small but politically significant religious minority spread across Syria, Lebanon, and Israel. With over 100 people killed in recent fighting, their safety has become a flashpoint in a country still fractured by civil war. Israel has vowed to defend Druse communities near its border, signaling it is willing to escalate militarily to do so. The deeper risk is that Syria’s instability could spill over, dragging regional powers further into direct conflict as sectarian tensions boil over and governance collapses in key areas.
Market Watch
Markets & Sentiments
S&P 500
U.S. stocks jumped on Friday following a stronger-than-expected jobs report and signs of progress in U.S.–China trade talks. The S&P 500 rose 1.6%, marking its ninth straight gain, the longest winning streak since 2004. The Dow added over 600 points and the Nasdaq climbed 1.8%, reflecting broad investor confidence.
Energy & Commodities
Oil (WTI)
WTI crude dropped to $58.16 per barrel, down 1.82% for the day. Prices continue to fall due to slowing global demand, weak U.S. growth data, and uncertainty surrounding upcoming OPEC+ supply decisions. This decline represents the sharpest monthly drop in oil since 2021.
Gold
Gold is trading at $3,233.30 per ounce, down slightly today and on track for a 2.6% loss this week. Prices have pulled back from recent highs as improving economic sentiment and reduced safe-haven demand weigh on bullion. Investors are also adjusting their expectations for interest rate cuts following the strong labor report.
Currency
The Dollar Index fell to 99.77, down 0.47% on the day. Although the dollar gained briefly earlier in the week, it remains under pressure following a weak April and continued uncertainty around U.S. trade policy and the Federal Reserve’s next move.
Why it Matters:
Markets are up, but that doesn’t mean everything’s fine. Stocks jumped because job numbers were strong and there’s talk that China might come back to the table on trade. But at the same time, oil prices are crashing—usually a sign that people expect the economy to slow down. Gold prices are falling too, which tells us investors are pulling some money out of “safe” places, but they’re still keeping one eye on risk. And the U.S. dollar? It’s weak, even after good news. That means people still aren’t fully confident in where the economy is headed. Bottom line: this rally feels good, but it doesn’t mean the storm is over. It just means the pressure eased for a day.
Terrain Watch
Climate & Weather Highlights
The European Space Agency just launched the Biomass satellite, a powerful radar tool designed to scan Earth’s forests and measure how much carbon they actually store. Scientists say it will help track how deforestation and wildfires are changing the climate, filling a massive gap in how we monitor the planet’s “lungs” in real time.
The Trump administration has removed nearly 400 scientists from working on the next National Climate Assessment, a congressionally required report that helps governments and businesses prepare for climate impacts. Officials say they are reevaluating the scope of the report, but experts worry this could weaken the quality and reliability of future climate planning.
The U.S. Justice Department filed lawsuits this week against Hawaii, Michigan, New York, and Vermont, claiming their climate laws unlawfully target fossil fuel companies and interfere with federal authority. The cases argue these state actions could disrupt national energy policy and overstep legal limits on regulating emissions.
President Trump signed an executive order to fast-track deep-sea mining permits in U.S. and international waters, aiming to boost access to minerals like cobalt and nickel used in batteries. Scientists warn the move could harm fragile marine ecosystems and disrupt international efforts to create shared rules for seabed mining. Some experts also question the need for mining the ocean floor, pointing to newer battery technologies that use little or no cobalt.
Drought Snapshot
Storms brought some relief to the Midwest and parts of the South, but much of the country is still dry. Drought is getting worse in Florida, Texas, New Mexico, and Arizona, and the West continues to miss out on needed rain. About one-third of the continental U.S. is now dealing with moderate drought or worse. Rain is on the way for Texas, the Ohio Valley, and the Northeast. But Central Florida, Southern California, and the Four Corners region remain dry. At the same time, heat is building across the Plains and East Coast, raising the risk for early wildfires and water shortages.
Why It Matters
Drought conditions are deepening across the South and West, with Florida, Texas, New Mexico, and Arizona showing the most concerning trends. Rain is helping parts of the Midwest and Northeast, but the forecast shows dry zones holding in the Southeast and Southwest, where water levels and soil moisture are already low. Warmer temperatures are expected to expand across much of the country, raising the risk of early wildfires, crop stress, and water shortages, especially if May rain underperforms. These shifts are coming at a time when key federal climate tools are being scaled back, and legal battles over state-level climate efforts could slow future response planning. The next few weeks will be important for watching how these patterns develop, particularly in high-risk areas where heat, dryness, and fire conditions may compound.
SEE YOU MONDAY!
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