Trumps 45% Tariff Cut + Medicaid in Peril

Friday Edition | May 9, 2025

Welcome back! It’s Friday, May 9th

Trump is signaling a dramatic rollback on tariffs just as GOP infighting threatens his domestic policy agenda. Abroad, the U.S. is stepping back from one of the world’s most volatile conflicts, and at home, Medicaid and weather infrastructure are straining under political and environmental pressure.

The Anxiety Forecast? Subtle shifts, bigger consequences. Scroll down to catch up!

Fast Fact: In 2022, over 150,000 people in Jackson, Mississippi lost access to clean water for weeks after flooding wrecked the city’s water system. Residents were told to shower with their mouths closed and stores ran out of bottled water in hours. Don’t wait for that moment, store early.

Top Stories 

Trump Floats Tariff Cut Ahead of China Talks


President Trump says he’s open to lowering the current 145% tariff on Chinese imports to 80%, just days before trade officials from both countries meet in Geneva. The signal came via a Truth Social post, where he called 80% “about right” and left the decision to Treasury Secretary Scott Bessent and Trade Rep. Jamieson Greer. The proposed cut follows weeks of uncertainty after the U.S. imposed sweeping duties tied to fentanyl concerns and manufacturing pressure

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WHY IT MATTERS

The potential shift comes ahead of a key meeting where U.S. and Chinese negotiators will discuss the future of trade between the two largest economies. Even at 80%, tariffs are still much higher than what most importers planned for and are already causing some goods to be rerouted through other countries. For consumers, this can mean higher prices on everyday items like electronics, tools, clothing, and household goods. For small businesses, it adds more cost pressure and less predictability when ordering inventory. What happens this weekend could decide whether those costs ease up or keep climbing through the rest of the year.

U.S. Steps Back from India-Pakistan Conflict

Vice President JD Vance says the U.S. will not intervene in the escalating military conflict between India and Pakistan, calling it “none of our business” and stressing that America will rely on diplomacy rather than force. The statement reflects the Trump administration’s broader foreign policy approach, though Trump himself has said he hopes both countries step back and has offered to mediate if needed. Meanwhile, cross-border strikes continue, raising fears of further escalation between two nuclear powers.

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WHY IT MATTERS

India and Pakistan are exchanging missiles, and the potential for escalation between two nuclear powers is real. The U.S. has often stepped in during moments like this, but Vice President JD Vance now says it’s “none of our business.” Trump said he hopes both sides find a resolution and that he’s willing to help if asked, though no formal offer has been made. Analysts have said de-escalation is less likely without U.S. involvement. Meanwhile, China is gathering military intelligence through its partnership with Pakistan, giving it a clearer view of India’s capabilities. Some see this as a missed opportunity for the U.S. to maintain influence in a region where power is shifting fast.

Medicaid Cuts Threaten Trump’s Agenda

Republican infighting over Medicaid is holding up Trump’s major domestic policy bill, which includes tax cuts, immigration changes, and energy reforms. Conservative lawmakers want deep spending cuts, including work requirements and new caps on Medicaid expansion, while moderates in swing districts warn that millions could lose coverage. Speaker Mike Johnson says the goal is to protect care for vulnerable groups, but internal divisions and budget math are making that a difficult promise to keep.

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WHY IT MATTERS

Medicaid supports over 80 million people, including families, seniors, and those with limited income. The proposed changes could make it harder to stay enrolled, easier to lose coverage, and more expensive to get care. CBO estimates show millions may lose insurance over time, depending on how the final bill is structured. Supporters argue the shift is needed to control long-term federal spending and ensure the program prioritizes the most vulnerable. Critics say it risks leaving people behind in states already struggling with access and cost.

Market Watch

Why it Matters:

Oil is climbing as investors bet on a possible trade breakthrough between the U.S. and China. Both are major energy consumers, and hopes around the weekend talks are giving crude a lift even with tariffs still in play. Gold is also rising as the dollar weakens and global tension builds, especially with India and Pakistan exchanging fire for a third straight day. When markets get nervous, people move toward safe bets.

Terrain Watch

Heavy spring storms brought real relief to parts of the Northeast, Oklahoma, Texas, and eastern New Mexico, where over two inches of rain cooled things down and helped ease drought conditions. But the break wasn’t nationwide. Florida is now facing severe to extreme drought, with streamflows and soil moisture crashing hard. In the Northern Plains, drought deepened across North Dakota and Nebraska, where wildfire risks and dust storms are back in play. The West saw mixed signals. Arizona and parts of Montana improved slightly, but other areas stayed dry. California remains stable for now, though it’s heading into its dry season. Alaska and Puerto Rico continue to avoid drought completely.

News Highlights

Tens of thousands of buildings in 28 major U.S. cities are sitting on sinking ground, putting them at high risk for structural damage. A new study links the subsidence to excessive groundwater use and rapid urban growth in places like New York, Dallas, and Seattle. Researchers warn the damage may remain hidden until it becomes dangerous or irreversible.

A thick magma lid just 2.3 miles beneath Yellowstone is holding back pressure from the supervolcano below. It’s allowing gases to vent slowly through underground cracks, preventing a major eruption. If the lid failed, it could trigger a catastrophic event capable of altering global climate and devastating large parts of North America—though scientists say that risk remains low for now.

The National Weather Service is severely understaffed as hurricane season nears, with 30 offices missing their lead meteorologists, including in Houston and New York. Equipment failures and technician shortages are disrupting forecasts and cutting back critical weather balloon launches. Experts warn that delayed alerts during major storms could put lives at risk.

Why it Matters:

Reports are showing that cities across the U.S. are sinking, drought is spreading, and critical weather systems are falling behind just as multiple risks begin to converge. These shifts often overlap in ways that compound the damage. Drought weakens crops and drains groundwater, while sinking land cracks roads, buildings, and flood protections. At the same time, gaps in forecasting make it harder to issue timely warnings during hurricanes, wildfires, or flash floods. The result is growing pressure on food systems, water access, and emergency response in areas already under stress. Understanding where these changes are happening helps you track real risks before they escalate and decide where to focus your attention.

SEE YOU MONDAY!

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