The President's Daily Brief - May 5th, 2025: China’s Silent Retreat: Beijing Backpedals On U.S. Tariffs & U.S. Approves Ukraine F-16 Deal

Episode Date: May 5, 2025

In this episode of The President's Daily Brief: China quietly exempts over $40 billion worth of U.S. goods from tariffs, a major shift in its trade war strategy as economic strain mounts. A Houthi missile lands near Israel’s Ben Gurion airport, marking one of the group’s boldest strikes to date. The Trump administration deepens support for Ukraine with a $310 million F-16 training and support package. And in today’s Back of the Brief—UK counter-terror police arrest five Iranian nationals suspected of plotting an attack on British soil. To listen to the show ad-free, become a premium member of The President’s Daily Brief by visiting PDBPremium.com. Please remember to subscribe if you enjoyed this episode of The President's Daily Brief. YouTube: youtube.com/@presidentsdailybrief Birch Gold: Text PDB to 989898 and get your free info kit on gold TriTails Premium Beef: Visit https://TryBeef.com/PDB for 2 free Flat Iron steaks with your first box over $250True Classic: Upgrade your wardrobe and save on @trueclassic at trueclassic.com/PDB ! #trueclassicpod. Please review the “AD” disclosure requirements based on FTC legal regulations here: http://ftc.gov/influencers. Learn more about your ad choices. Visit megaphone.fm/adchoices

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turn your big business idea into... Sign up for your $1 per month trial at Shopify.com slash special offer. It's Monday, the 5th of May, Welcome to the President's Daily Brief. I'm Mike Baker, your eyes and ears on the world stage. All right. Let's get briefed. We'll start things off today in Beijing, where new reporting reveals the true scale of China's quiet backtrack in the trade war with the U.S. Over $40 billion in American goods are now exempt from tariffs.

Clear evidence that Beijing's, well, feeling the squeeze. Later in the show, a missile launched by Yemen's Hutschutjouz, Rebels lands near Israel's Ben-Gurian airport, the most sensitive target hit since the group began its campaign against the Jewish state. Plus, in the latest sign of growing cooperation between the Trump administration and Kiev, the U.S. has now approved a $310 million package to support Ukraine's F-16 program. And in today's back of the brief, British authorities arrest five Iranian nationals in a counter-terror operation, accusing them of plotting a terror attack on UK soil. But first, today's PDB spotlight. Last week, we reported

that the communist regime in Beijing had created a secret white list of U.S. made products, exempting them from China's 125 percent tariffs, retaliatory tariffs, might I add, and quietly notifying companies of this shift in policy. Now, we're getting more clarity on the scale of those exemptions, and what they reveal about the mounting strain on China's economy. According to new reporting from Bloomberg, China has already started allowing businesses to import U.S. goods from a list of 131 products without paying the steep tariffs. The estimated value of these exempted goods is roughly $40 billion. To put that in perspective, that's nearly a quarter of all Chinese imports from the U.S. this

year. So, this is not a minor tweak to China's trade policies. The exemptions cover a wide range of goods, from pharmaceuticals and industrial chemicals to aircraft leasing and critical inputs for electronic manufacturing. Analysts now believe this move was a deliberate mirror of U.S. exemptions on certain Chinese products rather than a goodwill gesture. Beijing is deliberately keeping the move quiet, likely to avoid the appearance of backing down. The list has not been published, and Chinese officials still haven't publicly acknowledged,

acknowledged the exemptions. Still, at least half a dozen companies have already taken advantage, importing U.S. goods tariff-free in recent days. Behind the scenes, Chinese officials reportedly began reaching out to foreign companies in early April, asking them to identify which U.S. imports were essential and difficult to replace. That feedback helped shape the White List, which Bloomberg says will be continuously updated based on domestic needs and supply pressures. A notable example is ethane. That's a type of natural gas used to make plastic. The U.S. is the world's top supplier, and China doesn't have an easy alternative. Two major Chinese plastic manufacturers have already been granted exemptions so that they can keep buying ethane from the U.S.

It's a clear reminder that as reliant as the U.S. is on China for manufacturing, China still depends on the U.S. for key materials, and its retaliatory tariffs are starting to do more harm. than good at home. And the damage is piling up. Factory activity and China has now slipped into its sharpest contraction since late 2023. Major global banks, including Goldman Sachs and UBS, have cut China's full-year growth forecast to around 4 percent, well below Beijing's official target. This all might be why on Thursday of last week, the Chinese Commerce Ministry publicly stated it's now open to resuming trade talks with the U.S., following several recent outreach attempts from American officials. But Beijing also made clear that any negotiation would require the U.S. to first remove all unilateral

tariffs, calling them a sign of bad faith that, quote, further compromise mutual trust, end quote. Bottom line, China is feeling the squeeze. Quiet exemptions, hidden lists, and economic back channels all point to a regime that wants to avoid a collapse in critical sectors, while, of course, trying not to lose face in a very public trade war. All right, coming up after the break, a Houthi missile lands near Israel's main airport in one of the group's boldest strikes yet, and the Trump administration deepens its military support for Ukraine with a $310 million F-16 aid package.

I'll be right back. Hey, Mike Baker here. Well, you know all about the tariffs probably by now and the trade wars, and I suspect you also know that all of that has thrown the global economy into some chaos. Potential widespread inflation tied to massive supply chain disruptions, well, it's weighing heavily on everybody. But I'm here to tell you that there's a silver and a gold lining that I think a lot of people have missed. And by that, what I mean is President Trump specifically exempted gold and silver. silver bullion from the sweeping tariffs. Now, while the new policies are certainly triggering significant financial chaos, the administration preserved your ability to diversify into precious metals. So,

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A missile fired by Yemen's Iran-backed Houthi rebels slammed into the grounds of Israel's Ben-Gurian airport on Sunday morning, wounding six and prompting immediate vows of retaliation from Prime Minister Netanyahu. According to Israeli authorities, the missile launched from Houthi-controlled territory, landed just outside Terminal 3 of Israel's busiest airport at a stone's throw from downtown Tel Aviv. Four civilians were injured in the blast, while two others were hurt scrambling for shelter as air raid sirens wailed across central Israel. In a televised address hours later, Houthi spokesman Yaya Yasseri warned, quote, the Israeli airport is no longer safe for air travel and promised more strikes to come. Netanyahu, in a video statement posted

to social media, pledged immediate retaliation, declaring, quote, we attacked in the past, we will attack in the future. Footage posted online, although still unverified, shows cars pulling over and drivers ducking for cover as a missile streaks across the sky, culminating in a plume of black smoke. For several tens hours, all flights were grounded. Lufthansa, Delta, and other major carriers canceled operations for the day. Service eventually resumed, but the symbolism of the strike, well, it was hard to miss. It marked the first successful Houthi hit on major Israeli civilian infrastructure since the terror group began launching missiles, in what it describes as support for Hamas amid the war in Gaza. While dozens of previous projectiles were intercepted by

Israel's Iron Dome, this one got through. It's a glaring lapse in what's considered one of the world's most sophisticated air defense systems. The Israeli Air Force said it's investigating how that happened. Defense officials have acknowledged that the breach was both rare and deeply concerning. On the ground, a senior police commander surveyed the blast site, pointing reporters to a crater, quote, tens of meters wide and deep in a parking area near the terminal. He said, quote, there was no significant damage, though the psychological impact was unmistakable. Defense Minister Israel Katz issued a blunt warning later that day stating, quote, anyone who hits us, we will hit them seven times stronger. Netanyahu convened its defense cabinet and top military leaders Sunday afternoon

to discuss potential retaliatory options. The timing of the attack is no coincidence. The strike comes as the U.S. continues hammering Houthi positions in Yemen, part of a broader effort to dismantle the Iran-backed group's missile and drone capabilities, following a months-long campaign of harassment targeting Red Sea shipping. As we've been reporting here on the PDB, British forces joined those operations just last week. Now, with the Houthis hitting an airport just outside Tel Aviv, Israel appears poised to ramp up its own operations. All right, switching to the Ukraine-Russia conflict. The Trump administration is doubling down on military aid to Ukraine, green lighting up to $310 million in F-16 training and support services. The Defense Security Cooperation Agency confirmed the proposed sale over the weekend,

outlining a package that includes aircraft upgrades, spare parts, and extensive instruction for Ukrainian pilots and maintenance crews. Congressional approval is still required before the deal is finalized. The move follows the March delivery of F-16s to Ukraine, with another shipment slated for later this spring. It's part of a broader multinational effort to modernize Ukraine's Air Force, Belgium, Denmark, and Norway, are among the NATO allies contributing jets and training. The New York Times also reports that a Patriot Air Defense system, currently stationed in Israel, will be transferred to Ukraine after refurbishment.

Additional Patriot systems from Germany and Greece are under discussion. Zelensky, meanwhile, told CBS News that Ukraine is prepared to purchase 10 Patriot Systems for a total of approximately $15 billion, saying, quote, we will find the money and pay for everything. Trump initially dismissed Zelensky's plea, accusing him of, quote, always looking to purchase missiles and warning that new shipments would only prolong the war. But after a face-to-face meeting with Zelensky at Pope Francis's funeral, Trump's tone shifted in the days that followed. Moscow, meanwhile, is escalating its rhetoric.

In a new state-produced film, marking his 25 years in power, has it only been 25 years? Seems like just yesterday. Putin said the use of nuclear weapons in Ukraine, get this, quote, has not been necessary, but left the option open. He cited Russia's updated 2024 nuclear doctrine, which allows for nuclear retaliation in response to conventional attacks by nuclear-backed states. Did you get that? He added that Russia retains the means to bring the war to a, quote, logical conclusion. Well, Zelensky isn't convinced. At a joint press conference with the Czech president,

he said Ukraine had offered a 30-day ceasefire, but Moscow continues to ignore the U.S.-backed proposal that's been on the table for over 50 days. He also rejected Russia's offer of a 72-hour truce tied to Russia's Victory Day commemorations, calling it a PR stunt and accusing the Kremlin of launching hundreds of attacks while talking peace. Overnight, Russian forces launched an aerial onslaught of 165 drones and two ballistic missiles. Ukraine's air defenses said they shot down 69 of those drones and jammed another 80. A drone strike on Kiev wounded 11. Two more civilians were killed by guided bombs and,

Ukraine's northern and southern regions. Now, whether Moscow's interest in a logical conclusion is genuine or just posturing remains to be seen. Here's a hint, it's just posturing. But Washington's F-16 training and support services, well, that could help shape not just the battlefield, but the terms of whatever comes next. All right. Coming up next in the back of the brief, UK counterterrorism police arrest five Iranian nationals suspected of plotting an attack, raising new concerns about Tehran-linked activity on British soil. I'll be right back. Hey, Mike Baker here. Now, eating smart, eating right, eating healthy, it means staying ahead of what's happening in the food world. And if you're still buying your beef from a big box store, well, you're already behind. We've seen food shortages,

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in one of the UK's most sweeping security operations in recent memory, over an alleged Islamic regime-linked plot to carry out an attack on UK's soil. The suspects were detained Saturday under the Terrorism Act on suspicion of preparing an attack. Authorities say the plot targeted a single, undisclosed location in the UK. Now the site has not been named, quote, for operational reasons, but officials confirmed it is now under heightened protection and receiving, quote, advice and support from authorities. The raids, coordinated across London, Swindon in Western England and Greater Manchester,

unfolded with the deployment of heavily armed units and were followed by sweeping property searches. None of the five men have been charged yet, but all remain in custody as questioning continues. The nationality of the fifth man is still being determined. At one home in Greater Manchester, forensic teams were seen scouring the property after one suspect was taken into custody. A neighbor told Sky News that he, quote, heard a massive bang before 20 or 30 police with guns stormed the house to later drag a man out. Commander Dominique Murphy of the Metropolitan Police's Counterterrorism Command said the investigation remains active

and that authorities are still assessing, quote, whether there may be any further risk to the public. But that wasn't the end of it. In a separate operation, described as unrelated but equally urgent, three more Iranian nationals were arrested. in London, for suspected breaches of the UK's national security laws. They also remain in custody. British Home Secretary, Yvette, didn't mince words. She called the arrests, quote, two major operations that reflects some of the biggest counter-state threat and counter-terrorism operations that we have seen in recent years, end quote. She confirmed that officials are approving whether any of the men were acting on behalf of the Iranian regime. Tehran has yet to respond.

The developments come as British intelligence grows increasingly concerned about the Iranian regime's escalatory behavior on UK soil. Last October, MI5 Director General Ken McCallum revealed that British agencies had disrupted 20 Iran-linked plots since 2022, with many targeting exile dissidents and critics of the Islamic regime. At the time, McCallum warned that rising tensions in the Middle East could translate into, quote, an increase in or broadening of Iranian state aggression in the UK. Well, now that warning appears to be materializing. As of now, the UK's terror threat level remains at, quote, substantial. And that, my friends, is the president's daily brief for Monday the 5th of May. If you have any questions or comments, please reach out to me at pdb at thefirsttv.com. And I hope you had a chance over

the weekend to check out our latest episode of the PDB Situation Report. As always, you can catch the latest and past episodes on our YouTube channel. You can find our YouTube channel at President's Daily Brief, as well as all the podcast platforms in podcast land. I'm Mike Baker, and I'll be back later today with the PDB afternoon bulletin. Until then, stay informed. Stay safe. Stay cool. the money. Because behind every headline is a bottom line. Whether it's the funds fueling AI or crypto's trillion dollar swings, there's a money side to every story. And when you see the money side, you understand what others miss. Get the money side of the story. Subscribe now at Bloomberg.com.