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US stocks tick higher and yields leap as Wall Street sees little chance for a July rate cut (UPDATED)

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

NEW YORK (AP) — U.S. stocks are climbing further into record heights on Thursday after a report showed the U.S. job market looks stronger than Wall Street expected.

The was up 0.8% in midday trading and on track to set an all-time high for the fourth time in five days. The Dow Jones Industrial Average was up 334 points, or 0.8%, as of 11:35 a.m. Eastern time, and the Nasdaq composite was 1% higher.

Stocks of companies whose profits can get the biggest boosts when workers are feeling confident helped lead the way, including travel providers. Expedia climbed 4.1%, United Airlines rose 2.1% and Norwegian Cruise Line steamed 3.2% higher.

Bank stocks were also strong, with Wells Fargo up 1.6%, and JPMorgan Chase up 1.6%.

The reaction was bigger in the bond market following the report from the U.S. government, which said employers added 147,000 more jobs to their payrolls last month than they cut. The unexpected acceleration in signals the U.S. job market is holding up despite worries about how President Donald ‘s  may hurt the economy and inflation.

“There is nothing to complain about here,” according to Carl Weinberg, chief economist at High Frequency Economics. “You cannot find any evidence of a nascent recession in these figures.”

A separate report, meanwhile, said fewer U.S. workers applied for benefits last week, an indication of easing .

Yields jumped in the bond market as investors bet the better-than-expected data could keep the on hold when it comes to , instead of cutting them like Trump has been loudly calling for.

Traders in the futures market now see less than a 5% chance that the Fed could cut its main interest rate at its next meeting later this month. That’s down sharply from the nearly 24% chance they saw just a day earlier, according to data from CME Group.

The Fed’s chair, Jerome Powell, has been insisting that he wants to wait and see how Trump’s tariffs affect the economy and inflation before making its next move. While lower rates give a boost to the economy by making it easier to borrow money, they can also give inflation more fuel. And that could be dangerous if Trump’s tariffs are about to send inflation higher.

Many of Trump’s stiff proposed taxes on imports are currently on pause, but they’re scheduled to kick into effect next week unless Trump reaches deals with other countries to lower them.

Many U.S. companies in the services industries are still saying they’re concerned about the impacts of tariffs, even if they returned to growth last month following May’s contraction, according to the most recent survey by the Institute for Supply Management.

“Increased cost from tariffs and the potential for tariffs is impacting cost increases,” one company in the agriculture, forestry, fishing and hunting industry said in the survey.

The yield on the 10-year Treasury rose to 4.33% from 4.30% late Wednesday. The two-year Treasury yield, which moves more closely with expectations for the Fed, jumped even more. It climbed to 3.87% from 3.78%.

On Wall Street, Datadog rallied 15% after learning that its stock will join the widely followed S&P 500 index before trading begins on Wednesday. Many managers of funds either directly mimic or at least compare themselves against the S&P 500, which drives investment into any stock that joins the index.

Datadog will replace Juniper Networks, which combined with Hewlett Packard Enterprise in a merger.

On the losing side of Wall Street were companies that can feel pain from interest rates staying high.

Homebuilders would like rates to fall in order to make mortgages cheaper to get, for example, and Lennar sank 3.7%, while D.R. Horton dropped 2.7%.

In stock markets abroad, indexes rose across much of Europe and Asia. South Korea’s Kospi climbed 1.3%, and Hong Kong’s Hang Seng fell 0.6% for two of the bigger moves.

___

AP Writers Teresa Cerojano and Matt Ott contributed.

Notes: Eds: UPDATES: with close of US trading;

Average long-term US mortgage rate falls to 6.67%, the lowest level since early April

NEW YORK (AP) — The average rate on a 30-year U.S. mortgage fell for the fifth straight week to its lowest level since early April, an encouraging sign for potential buyers who have wrestled with rising home prices.

The long-term rate fell to 6.67% from 6.77% last week, mortgage buyer said Thursday. A year ago, the rate averaged 6.95%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners their home loans, fell to 5.80% from 5.89% last week. A year ago, it was 6.25%, Freddie Mac said.

High can add hundreds of dollars a month in costs for borrowers and reduce their purchasing . That’s helped keep the U.S. in a sales slump that dates back to 2022, when mortgage rates began to climb from the rock-bottom lows they reached during the pandemic.

Last year, sales of previously occupied U.S. homes sank to their lowest level in nearly 30 years. They’ve remained sluggish so far this year, as many prospective have been discouraged by elevated mortgage rates and home prices that have continued to climb, albeit more slowly.

High borrowing costs are also putting pressure on the new home market. Last week, the government reported that sales of new U.S. homes fell nearly 14% in May from the previous month.

Recent data suggests sales could pick up in the coming months, especially with the recent decline in mortgage rates. A seasonally adjusted index of pending U.S. home sales rose 1.8% in May from the previous month and increased 1.1% from May last year, the National Association of Realtors said last week.

There’s usually a month or two lag between a contract signing and when the sale is finalized, which makes pending home sales a bellwether for future completed home sales.

Mortgage rates are influenced by several factors, from the ‘s interest rate policy decisions to bond market investors’ expectations for the economy and inflation.

The key barometer is the 10-year Treasury yield, which lenders use as a guide to pricing home loans. The yield was at 4.33% at midday Thursday, down from 4.58% just a few weeks ago.

The average rate on a 30-year mortgage has remained relatively close to its high so far this year of just above 7%, set in mid-January. The 30-year rate’s low point this year was in early April when it briefly dipped to 6.62%.

Mortgage rates have now fallen five weeks in a row, reflecting the recent pullback in .

The recent decline in mortgage rates appears to have encouraged some home shoppers. Last week, mortgage applications rose 2.7% from a week earlier, according to the Mortgage Bankers Association.

Economists generally expect mortgage rates to stay relatively stable in the coming months, with forecasts calling for the average rate on a 30-year mortgage to remain in a range between 6% and 7% this year.

The US labor market continues to surprise and the unemployment rate, against the odds, is falling

Summary

  • U.S. added 147,000 jobs in June, above forecast.
  • rate fell to 4.1% from 4.2% in May.
  • remains strong despite policy uncertainty.
  • Job growth led by health care, hospitality, and finance.
  • Some caution remains due to inflation and .

U.S. employers added 147,000 jobs in June as the American market continues to show surprising resilience despite uncertainty over President Donald ‘s economic policies. The unemployment rate ticked down to 4.1% from 4.2% in May, the said Thursday.

rose modestly from a revised 144,000 in May and beat economists expectations of fewer than 118,000 new jobs and a rise in the unemployment rate

The U.S. job market has cooled considerably from red-hot days of 2021-2023 when the economy bounced back with unexpected strength from COVID-19 lockdowns and companies were desperate for workers. So far this year, employers have added an average 130,000 jobs a month, down from 168,000 in 2024 and an average 400,000 from 2021 through 2023.

But the June numbers were surprisingly strong. Healthcare jobs increased by 39,000. State governments added 47,000 workers and local governments 33,000. But the federal government lost 7,000, probably reflecting Trump’s hiring freeze. Manufacturers shed 7,000 jobs.

Labor Department revisions added 16,000 jobs to April and June payrolls. The number of unemployed people fell by 222,000.

Average hourly wages came in cooler than forecasters expected, rising 0.2% from May and 3.7% from a year earlier. The year-over-year number is inching closer to the 3.5% year-over-year number considered consistent with the ‘s 2% inflation target.

The U.S. labor force — the count of those working and looking for work — fell by 130,000 last month following a 625,000 drop in May. Economists expect Trump’s immigration deportations — and the fear of them — to push foreign workers out of the labor force.

Hiring decelerated after the Fed raised its benchmark interest rate 11 times in 2022 and 2023. But the economy did not collapse, defying widespread predictions that the higher borrowing costs would cause a recession. Companies kept hiring, just at a more modest pace.

Employers are now contending with fallout from Trump’s policies, especially his aggressive use of import taxes – .

Mainstream economists say that tariffs raise prices for businesses and consumers alike and make the economy less efficient by reducing competition. They also invite retaliatory tariffs from other countries, hurting U.S. exporters.

The erratic way that Trump has rolled out his tariffs — announcing and then suspending them, then coming up with new ones — has left businesses bewildered.

The upside surprise in June payrolls likely will encourage the Fed to continue its wait-and-see policy of leaving rates unchanged until it has a better idea of how Trump’s tariffs and other policies will affect inflation and the job market. The Fed cut rates three times last year after inflation cooled but has turned cautious in 2025.

“Today’s results are more than positive enough to reduce expectations for Fed rate cuts in the wake of tariffs and policy chaos, at least for now,” Carl B. Weinberg, chief economist at High Frequency Economics, wrote in a commentary.

Nvidia-backed AI startup to curb hungry data centers’ appetite for power

SUMMARY:

  • launches with $24.5M in seed funding to make AI data centers more -efficient and reduce strain on electric grids
  • The ‘s software allows data centers to reduce energy consumption during peak grid demand without sacrificing AI computing performance
  • Backed by major investors like Nvidia and ‘s Jeff Dean, Emerald AI is ramping up efforts to test and demonstrate what its technology can do nationwide

As growth continues to explode across Virginia and the nation, so do fears that the centers are gobbling up too much energy and straining already overtaxed electric grids.

However, backed by Nvidia and other heavy hitters, a new AI startup with offices in Arlington County emerged from stealth Tuesday, stating that it aims to alleviate some of these concerns through software that will help data centers adjust energy consumption, making them more efficient in their energy usage during periods of peak demand.

Emerald AI, which was incorporated last year in , D.C., but has its primary offices in , revealed Tuesday that it has secured $24.5 million in seed funding. The round was led by Canadian venture capital fund Radical Ventures, with participation from NVentures (Nvidia’s venture capital arm), AMPLO, CRV and Neotribe. The company’s individual backers include former Secretary of State John Kerry; Google Chief Scientist and Google AI head Jeff Dean; and Kleiner Perkins Chairman John Doerr.

Emerald AI’s founder and CEO is , formerly chief strategy and innovation officer for global offshore wind energy company Ørsted and also former chief technology officer for ReNew, the largest renewable energy company in India. Early in the Biden administration, Sivaram worked for Kerry, who was then special presidential climate envoy, as managing director and senior adviser for clean energy and innovation. Sivaram’s CV also includes a three-year stint as a consultant at McKinsey & Co. and a year as a senior research scholar at Columbia University’s SIPA Center for Global Energy Policy.

“We’re at a critical inflection point as exponential growth of AI computing pressures our electrical infrastructure,” Sivaram said in a statement. “To unshackle AI technology progress from power constraints, Emerald AI transforms data centers from grid liabilities into flexible assets, enabling grid operators to swiftly interconnect AI, bolster reliability and energy security, and more efficiently harness the massive spare capacity on today’s grids.”

A Joint Legislative Audit and Review Commission report on data centers from last year indicates that the unconstrained demand for power in Virginia is expected to double within the next 10 years, with the data center industry being the primary driver. The North American Electric Reliability Corp. (NERC) has warned that increased demand poses challenges to grid stability.

Furthermore, Emerald AI notes that substantial investments in building electricity infrastructure over the coming decades will likely lead to higher energy prices for American communities.

The startup’s solution is an AI conductor software platform that enables data centers to adjust and reduce their energy consumption during periods of peak grid demand to support grid stability while ensuring acceptable AI computing performance.

This method of managing energy consumption will prevent issues that now occur when data centers consume electricity that is needed elsewhere. The company says by allowing data centers to require less power to operate, its platform will help data centers bypass yearslong waits for grid interconnection.

Sivaram first conceived the idea for Emerald AI’s technology a few years ago while working for Ørsted.

Although the company was registered last year, Emerald AI’s first hire took place in January. The company now has nine full-time employees, including academics, researchers and Big Tech software engineers.

On Tuesday, Emerald AI released results of a demonstration that took place in May as part of the Electric Power Research Institute’s DCFlex Initiative in Phoenix. Nvdia reported that Emerald AI’s conductor platform demonstrated that it can reduce power consumption of AI workloads by 25% for 3 hours in response to a grid stress event, such as a hot summer day when people are using more energy, while maintaining computing service quality.

Emerald AI plans to conduct larger-scale demonstrations in Phoenix and around the country in the future.

“We have some projects planning in Virginia that we are over-the-moon excited about,” said Jack Megrue, Emerald AI’s chief of staff and business operations associate. However, he wasn’t able to offer more specifics.

In an emailed statement, Varun said Emerald AI is actively ramping up its activities in Pennsylvania, including major investments in data center flexibility. He said this would enable Pennsylvania to turbocharge its economic development and AI data center deployment while limiting cost increases for local communities and improving the reliability of the for energy and national security.

The company has not yet announced any partnerships or collaborations with utilities like Dominion Energy.

Former Secretary of Commerce and Emerald AI Advisor Gina Raimondo stated that Emerald AI’s approach will accelerate AI deployment, enhance grid reliability and protect consumers from rising energy costs.

“Enabling faster innovation without putting additional strain on our existing power systems is critical for maintaining America’s competitive edge in AI development,” she said in a statement.

Parsons acquires CTI for $89M

Chantilly contractor announced Tuesday that it has acquired Maryland-based for $89 million.

Founded in 2000, CTI is a portfolio company of Bluestone Investment Partners, focusing on the development of advanced, warfighter-focused solutions for military and security applications. CTI says its products enable warfighters to sense, evaluate and deliver effects within “invisible battle spaces” such as cyberspace and the electromagnetic spectrum. Parsons says these capabilities are critical for modern warfare and align with President Donald ‘s administration’s spending priorities.

CTI has expertise in the electromagnetic spectrum, cyberspace, autonomous systems and specialized communications.

Parsons says the will allow it to expand its offerings and enhance its position in the Indo-Pacific Command area of operations. Through the acquisition, CTI’s more than 225 employees will be aligned to Parsons’ defense and intelligence business unit.

“Acquiring CTI is a logical addition to our growth strategy, enhancing our mission-ready solutions for the Department of Defense,” Parsons Chair, President and CEO Carey Smith said in a statement. “CTI’s spectrum dominance solutions strengthen our portfolio and position us to capture a larger share of the full-spectrum operations market, which is poised for increased government funding due to evolving near-peer threats.”

Parsons expects CTI to generate about $89 million in revenue next year.

Founded in 1944, Parsons provides technology solutions in the defense, intelligence and critical infrastructure markets. It posted $6.8 billion in 2024 revenue and has more than 19,000 employees worldwide.

Emerson to lay off 87 workers in Charlottesville

Emerson Electric — the St. Louis-based Fortune 500 multinational corporation that provides engineering services and manufactures items such as industrial automation equipment and climate control systems — plans to lay off 87 workers working at its facility, starting Dec. 31.

Automation Solutions, in compliance with the (WARN) Act, notified the state last week of plans to lay off employees due to the decision to permanently reduce operations at the Emerson subsidiary’s Charlottesville site.

The permanent , which include both hourly and salaried personnel, will commence on Dec. 31 and conclude on or about Dec. 31, 2026. Emerson Automation Solutions Human Resources Manager Megan Ambrose wrote that neither hourly nor salaried employees are represented by a union.

In the letter, she said that Emerson’s business has declined and a strategic decision  was made to “reduce overhead costs through ‘rooftop’ consolidation.”

“We hope you understand that this action is being taken strictly due to business economics,” she wrote. “We have communicated this decision to all employees at the Charlottesville facility. They have been informed verbally and they are receiving written information as to when their jobs will be eliminated.”

She added that the company has designed a severance plan based on each employee’s length of service. She assured that each employee will be paid wages for all hours worked up to the time of separation.

Emerson did not immediately return requests for comment.

According to Emerson, the Charlottesville location at 2500 Austin Drive is one of 24 North America sites that has been used as a training center, featuring on-site instructor-led courses, virtual classroom, eLearning and blended learning options.

 

Google agrees to buy power from planned Chesterfield fusion plant

SUMMARY:

Google has signed an agreement to buy from Commonwealth Fusion Systems’ planned facility — expected to be the world’s first grid-scale commercial fusion power plant.

The Massachusetts-based fusion company announced in December 2024 its plans to build the 400-megawatt facility, dubbed ARC, in Chesterfield. The power plant will likely cost more than $2.5 billion, according to Chesterfield’s economic development director, Garrett Hart.

CFS expects ARC to begin generating carbon-free power for the grid in the early 2030s. Google signed a power purchase agreement for 200 megawatts (half the facility’s expected electric power output), according to a Monday announcement.

According to the announcement, Google — now CFS’ first customer — will also have the option to offtake power from future ARC plants.

The tech giant, which has been an investor in the company since 2021, is also increasing its stake in CFS, although the companies did not disclose financial terms. Since its 2018 funding, CFS has raised more than $2 billion from high-profile investors including Jeff Bezos, Bill Gates, Tiger Global Management, Khosla Ventures and Lowercarbon Capital.

The project would be located at 1201 Battery Brooke Parkway in the James River Industrial Center, a site owned by Dominion Energy. CFS has signed an option-to-lease agreement for the site, according to spokesperson Christine Dunn.

CFS filed an application with Chesterfield County in May for a permit to build the plant. The company plans to begin construction in the late 2020s.

Spun out of MIT in 2018, CFS is one of more than 40 companies currently pursuing fusion technologies and says it is the largest private fusion company in the world. CFS’ Series B2 round has raised more than $1 billion and is now targeting between $1 billion and $1.5 billion, Axios Pro reported in mid-May.

The company is building a fusion demonstration machine, nicknamed SPARC, at its headquarters in Devens, Massachusetts. CFS began assembling the machine’s tokamak — a fusion device that uses electromagnets to create the right conditions for fusion energy — in March. SPARC will begin commissioning in 2025 and start operations in 2026, according to CFS’ zoning application.

Google’s power purchase agreement with CFS “is anchored in CFS’ SPARC achieving net fusion energy, known as Q>1,” according to a news release. CFS expects SPARC to achieve net fusion energy in 2027, according to a Monday blog post from CFS CEO Bob Mumgaard.

ARC will use magnetic fields for the fusion process. In the process, two forms of hydrogen — deuterium and tritium — fuse, creating helium and releasing neutrons. A “molten salt liquid ‘blanket’ surrounding the plasma will capture the energy of the neutrons in the form of heat,” according to CFS’ zoning application. The molten salt then circulates through heat exchangers — systems that transfer heat between fluids — to produce steam, which turns a turbine connected to an electricity generator.

Gary Lowenthal Joins Focused Ultrasound Foundation’s Council

The Focused Ultrasound Foundation is pleased to welcome Gary Lowenthal to its Council, a dedicated group of goodwill ambassadors who work closely with the Board of Directors and staff to provide advice and assist with raising funds and building awareness.

Mr. Lowenthal is a retired educator, entrepreneur, and executive with a career spanning education, international service, and business leadership.

He began his professional journey as a teacher serving in the Peace Corps, teaching in underserved communities in Fiji. Upon returning to the US, he held an executive position at Bloomingdale’s before founding The Boyds Collection Ltd. in 1979, a company that became a leader in the plush and figurine market renowned for its lovingly crafted handmade collectibles.

“Gary’s unique blend of creativity, entrepreneurial spirit, and dedication to service makes him a tremendous asset to the Foundation’s Council,” said Foundation Chairman Neal F. Kassell, MD. “His insight and will strengthen our efforts to advance this transformative technology and expand its access to patients.”

“It’s an honor to join the Foundation’s Council and support such groundbreaking work,” Mr. Lowenthal said. “I’m inspired by the potential of focused ultrasound to revolutionize medicine, and I look forward to contributing to a mission that has real, lasting impact on people’s lives.”

 

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Del Monte, the 139-year-old canned fruits and vegetables company, seeks bankruptcy protection

Summary

  • Foods files for protection.
  • 139-year-old brand hit by falling sales.
  • U.S. consumers shifting to fresher, lower-cost options.
  • Company plans to sell assets as part of restructuring

Del Monte Foods, the 139-year-old company best known for its canned fruits and vegetables, is filing for bankruptcy protection as U.S. consumers increasingly bypass its products for healthier or cheaper options.

Del Monte has secured $912.5 million in debtor-in-possession financing that will allow it to operate normally as the sale progresses.

“After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods,” CEO Greg Longstreet said in a statement.

Del Monte Foods, based in Walnut Creek, California, also owns the tomato brand, and Kitchen Basics broth brands and the bubble tea brand.

The company has seen sales growth of Joyba and broth in fiscal 2024, but not enough to offset weaker sales of Del Monte’s signature canned products.

“Consumer preferences have shifted away from preservative-laden canned food in favor of healthier alternatives,” said Sarah Foss, global head of legal and restructuring at Debtwire, a financial consultancy.

Grocery inflation also caused consumers to seek out cheaper store brands. And President Donald ‘s 50% tariff on imported steel, which went into effect in June, will also push up the prices Del Monte and others must pay for cans.

Del Monte Foods, which is owned by Singapore’s , was also hit with a lawsuit last year by a group of lenders that objected to the company’s debt restructuring plan. The case was settled in May with a loan that increased Del Monte’s interest expenses by $4 million annually, according to a company statement.

Del Monte said late Thursday that the bankruptcy filing is part of a planned sale of company’s assets.

Analysis shows Trump’s tariffs would cost US employers $82.3 billion

Summary

  • says Vietnam will pay 20% on U.S.-bound exports.
  • Transshipped goods, often from China, to face 40% tariffs.
  • U.S. gains “total access” to Vietnamese market under new .
  • Announcement comes amid broader tariff hikes from Trump.
  • : $82.3B projected cost to key U.S. employers.
  • Companies may offset costs via price hikes, job cuts or freezes.

(AP) — An analysis finds a critical group of U.S. employers would face a direct cost of $82.3 billion from President Donald Trump’s current tariff plans, a sum that could potentially be managed through price hikes, , freezes or lower profit margins.

The analysis by the JPMorganChase Institute is among the first to measure the direct costs created by the import taxes on businesses with $10 million to $1 billion in annual revenue, a category including roughly a third of private-sector U.S. workers. These companies are more dependent than other businesses on imports from China, India and Thailand — and the retail and wholesale sectors would be especially vulnerable to the import taxes being levied by the Republican president.

The findings show clear trade-offs from Trump’s import taxes, contradicting his claims foreign manufacturers would absorb the costs of the tariffs instead of U.S. companies that rely on imports. While the tariffs launched under Trump have yet to boost overall inflation, large companies such as Amazon, Costco, Walmart and Williams-Sonoma delayed the potential reckoning by building up their inventories before the taxes could be imposed.

The analysis comes just ahead of the July 9 deadline by Trump to formally set the tariff rates on goods from dozens of countries. Trump imposed that deadline after the financial markets panicked in response to his April tariff announcements, prompting him to schedule a 90-day negotiating period when most imports faced a 10% baseline tariff. China, Mexico and Canada face higher rates, and there are separate 50% tariffs on steel and aluminum.

Had the initial April 2 tariffs stayed in place, the companies in the JPMorganChase Institute analysis would’ve faced additional direct costs of $187.6 billion. Under the current rates, the $82.3 billion would be equivalent on average to $2,080 per employee, or 3.1% of the average annual payroll. Those averages include firms that don’t import goods and those that do.

Asked Tuesday how trade talks are faring, Trump said simply: “Everything’s going well.”

The president has indicated he’ll set tariff rates given the logistical challenge of negotiating with so many nations. As the 90-day period comes to a close, only the United Kingdom has signed a trade framework with the . Trump announced Wednesday he’d reached a deal with Vietnam, while India has signaled it’s close to agreeing on a trade framework.

Trump said on his social media site Vietnam will pay the U.S. a 20% tariff on all goods sent “into our Territory” and a 40% tariff on any , which usually means exports that come from China but pass through Vietnam to dodge tariffs on Chinese goods.

In return, Vietnam will grant the U.S. “TOTAL ACCESS” to its market for trade, Trump said, meaning “we will be able to sell our product into Vietnam at ZERO Tariff.” He added he thinks SUVs “will be a wonderful addition to the various product lines within Vietnam.”

There’s a growing body of evidence suggesting more inflation could surface. The investment bank Goldman Sachs said in a report it expects companies to pass 60% of their tariff costs onto consumers. The Atlanta has used its survey of businesses’ inflation expectations to say companies could on average pass along roughly half their costs from a 10% tariff or a 25% tariff without reducing consumer demand.

The JPMorganChase Institute findings suggest the tariffs could cause some domestic manufacturers to strengthen their roles as suppliers of goods. But it noted companies need to plan for a range of possible outcomes and wholesalers and retailers already operate on such low profit margins they might need to spread the tariffs’ costs to their customers.

The outlook for tariffs remains highly uncertain. Trump had stopped negotiations with Canada, only to restart them after the country dropped its plan to tax digital services. He similarly on Monday threatened more tariffs on Japan unless it buys more rice from the U.S.

Treasury Secretary Scott Bessent said on Fox News Channel’s “Fox & Friends” on Tuesday the concessions from the trade talks have impressed career officials at the Office of the U.S. Trade Representative and other agencies.

The treasury secretary said the Trump administration plans to discuss the contours of trade deals next week, prioritizing the tax cuts package passed on Tuesday by the Republican majority in the Senate. Trump has set a Friday deadline for passage of the multitrillion-dollar package, the costs of which the president hopes to offset with tariff revenues.