U.S. Lowers China Tariffs and Enforces Drug Price Caps
The Weighing of Burdens and Blessings by DALL-E 3
U.S. Lowers China Tariffs and Enforces Drug Price Caps
Bread and Circus: The Complete Record of American Governance
Today’s newsletter covers official U.S. government happenings from the executive, legislative, and judicial branches yesterday, as well as key economic indicators. Below, you’ll find concise summaries of each document, with links to the original sources for further reading.
🏛️ Legislative Branch: 2 documents (1 Congressional Record - Daily Digest, 1 Congressional Record - Senate Section)
⚖️ Judicial Branch: No activity
📊 Economic Indicators: No activity
Total words condensed: 39,416 into 1,493
The Big Picture
This week, the U.S. government took several notable steps to address economic, trade, and law enforcement issues. President Trump signed an executive order lowering tariffs on many Chinese goods to 10 percent for 90 days starting May 14, 2025, signaling a willingness to ease trade tensions amid ongoing talks with China. At the same time, the administration pushed to reduce high prescription drug prices by requiring companies to offer Americans the lowest prices paid by other developed countries, with a 30-day deadline for cooperation. These moves reflect a shift toward more pragmatic trade and health policies aimed at easing costs for consumers and businesses, while still emphasizing national security and economic protection.
On the domestic front, the government also reinforced its law-and-order stance by officially recognizing Peace Officers Memorial Day and Police Week, and proposing a death penalty for those who kill police officers. Meanwhile, the Senate advanced key nominations and debated bills affecting Native American health services, water rights, and financial regulation, though partisan divisions slowed progress on the stablecoin regulation bill. Additionally, a new rule effective June 11, 2025, tightens government purchasing to favor American-made products, supporting domestic industries and jobs. Together, these developments show a government balancing economic competitiveness, public safety priorities, and legislative challenges in a politically divided environment.
Pattern to Watch
A clear trend emerging from these developments is the government’s focus on strengthening domestic economic resilience while cautiously engaging in international trade negotiations. The tariff reductions on Chinese goods, combined with tighter rules to prioritize American-made products in government procurement starting June 11, 2025, indicate a dual approach: easing trade tensions to reduce costs but also protecting U.S. industries and jobs. Similarly, the push to lower drug prices by benchmarking against other countries’ costs shows an effort to use government power to control prices domestically. If future actions include extended tariff adjustments, expanded domestic procurement rules, or further regulatory steps on pricing and trade, it would confirm a sustained policy direction aimed at balancing global engagement with stronger economic self-reliance. This pattern could reshape supply chains, trade relations, and consumer costs in the months ahead.
🦅 Executive Branch
White House
On May 12, 2025, President Donald J. Trump signed an executive order that changes the extra taxes (called tariffs) on goods coming from China, including Hong Kong and Macau. Starting May 14, 2025, the order lowers the extra tax rate on many Chinese products from a higher amount down to 10 percent for 90 days. This change happens because the U.S. and China have started talks to fix trade problems that the order says hurt the U.S. economy and security. The order also lowers some other high taxes on certain low-value shipments from China, reducing one from 120 percent to 54 percent. The government departments responsible for trade and security are told to make sure these changes happen. The order says these steps are needed to protect the U.S. but does not create any new legal rights for anyone. Read full document →
On May 12, 2025, President Donald J. Trump officially declared May 15, 2025, as Peace Officers Memorial Day and the week of May 11 to May 17, 2025, as Police Week. This proclamation, based on laws passed by Congress, asks all Americans and state leaders to honor police officers who serve and remember those who died protecting communities. The President also mentioned his request to Congress to make a law that would require the death penalty for anyone who kills a police officer, reflecting his focus on stronger punishments for crimes against law enforcement. This action affects law enforcement officers, their families, and the public by encouraging respect and support for police, and it signals the administration’s priority on law and order policies. Read full document →
On May 12, 2025, President Donald J. Trump signed an executive order aiming to lower the high prices Americans pay for prescription drugs by making sure they pay no more than the lowest prices paid by other developed countries. The order directs government officials, including the Secretary of Health and Human Services and the Secretary of Commerce, to work with drug companies to set these “most-favored-nation” prices within 30 days. If drug makers do not cooperate, the government may propose new rules, allow importation of cheaper drugs from other countries, and take legal action against unfair business practices. This affects American patients who buy medicines, drug manufacturers, and government agencies involved in health and trade. The order says it matters because Americans currently pay much more for the same drugs than people in other countries, and it seeks to stop this by using the government’s power to negotiate prices and enforce fair competition. Read full document →
Federal Register
The government changed a rule about which products are considered not made enough in the United States and can be bought from other countries. This rule affects companies that sell things to the government and government buyers. Starting June 11, 2025, many items like certain metals, oils, nuts, and other materials were removed from the list of products that are not available in the U.S., meaning the government will now check more carefully if these items can be bought from American businesses first. This change helps support American workers and businesses by encouraging the government to buy more from inside the country, which can create jobs and make supply chains stronger and safer for everyone. Read full document →
🏛️ Legislative Branch
Congressional Record
On May 12, 2025, the Senate worked on several important government appointments and bills. They introduced 14 new bills and 3 resolutions, and reported on bills like S.632, which helps Indian Health Service workers fulfill their service duties part-time, and S.689, which settles water rights for the Tule River Tribe. The Senate also started talking about the Genius Act (S.1582), a bill to regulate digital money called stablecoins. They voted to approve Monica Crowley as Chief of Protocol by 52 to 45 and agreed to end debate on Reed Rubinstein’s nomination to be Legal Adviser of the State Department by the same vote count, with a confirmation vote planned for the next day. Other nominations, including for defense and energy positions, were also being considered with votes on ending debate (called cloture) scheduled soon. These actions matter because they fill key government roles and move forward laws affecting health services for Native Americans, financial technology, and water rights, which impact many communities and government functions. Read full document →
Random excerpts from the Senate
On Thursday afternoon, Democrats abruptly ended extensive bipartisan work on the GENIUS Act and filibustered the Senate’s attempt to move this bill. Democrats, I should say, who had voted for the bill in committee, inexplicably chose to vote against it here on the Senate floor. That is pretty difficult to understand. Providing a regulatory framework for stablecoins is a bipartisan issue. The bill is the product of a bipartisan negotiation, and the vote in the Banking Committee was definitely bipartisan--which leads you to wonder, of course, if this was really about the bill at all or if this was about wanting to deny President Trump or Republicans, more generally, a legislative victory, which might be nice for Democrats but leaves stablecoin issuers and Americans who use stablecoins in the same difficult spot that they are currently in. But unfortunately, it is pretty clear that obstructing, not legislating, is the Democrats’ priority right now.
— Sen. John Thune (R-SD), Majority Leader
Yesterday, House Republicans spent Mother’s Day scheming on how to advance these Medicaid cuts, finally releasing a copy of their legislation so we could see the detail. It is as catastrophic as we feared. It is the largest cut in Medicaid in the Nation’s health history, ripping health insurance away from millions of Americans in every single State. But it is not too late for a few Republicans--and it only takes a few: four in the House, four in the Senate--to step up and say they don’t want to be part of this, if they will stand up and say: No, we will not risk the healthcare for millions of Americans as bargaining chips for billionaire tax breaks. Medicaid provides health insurance for 1 out of every 4 people in my State of Illinois--3.4 million people, including 1.5 million children. Medicaid pays to deliver half of all the babies in my State--half of them. Two-thirds of the seniors in nursing homes depend on Medicaid. If Medicaid is not helping to pay for that nursing home or care for seniors, what is going to happen to grandma, grandfathers, those that are affected by it? It is the largest funder of opioid addiction treatment.
