MNI POLITICAL RISK - US And China Announce Trade Breakthrough

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Executive summary:

• US President Donald Trump will sign an Executive Order today to reduce pharmaceutical prices by “30% to 80%”.
• Trump will arrive in Saudi Arabia tomorrow to kick off a multi-stop trip aimed at securing investment pledges.
• Treasury Secretary Scott Bessent announced a major breakthrough in the trade standoff with China, following two days of talks in  Switzerland. The two countries agreed to reduce tariffs for the next three months as trade negotiations continue. Bessent told CNBC: “The consensus from both delegations is that neither side wanted a decoupling.”
• Commerce Secretary Howard Lutnick said that the 10% global baseline tariff is likely to remain in place for “the foreseeable future”.
• Japanese Prime Minister Shigeru Ishiba said Japan won't accept a trade agreement with the US that excludes autos.
• Bessent urged Congress to increase or suspend the debt limit by mid-July as Republicans begin a crucial week for the 'Big Beautiful' reconciliation bill.  
• House Speaker Mike Johnson (R-LA) and Ways and Means Chair Jason Smith (R-MO) will meet with SALT Republicans today ahead of a critical tax markup tomorrow.
• Trump urged Ukrainian President Volodymyr Zelenskyy to meet Russian President Vladimir Putin for ceasefire talks in Turkey.
• A 'US-brokered' ceasefire between India and Pakistan appears to be holding despite New Delhi's unease with the terms of the US intervention.
• Poll of the Day: “Economy-minded” Americans have “soured” on Trump. 

Please find the full article attached below: US DAILY BRIEF