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Biden administration pushes to stabilize U.S./China relations ahead of Trump’s presidency... The New York Times reports that the Biden administration is engaging in a final round of high-level talks with China, aiming to fortify communication channels amid mounting economic tensions and before President-elect Donald Trump assumes office. Senior Treasury officials will meet with their Chinese counterparts in Nanjing and at a G20 summit in South Africa to discuss persistent issues like China’s green energy surplus, export restrictions and support for Russia.
“The American people expect that we should be able to communicate directly with Chinese officials on both areas where we agree and especially on areas where we don’t,” said Jay Shambaugh, Treasury’s undersecretary for international affairs.
Despite increased dialogue, long-standing disputes persist. The Biden administration has maintained tariffs from Trump’s first term and imposed new restrictions on Chinese technologies. China has retaliated by banning exports of critical minerals.
Mark Sobel, a former Treasury official, emphasized the need for continued dialogue, stating: “Whether they like each other or not, they absolutely should be speaking with one another, if for no other reason than to avoid potentially harmful misunderstandings.”
Bottom line: As Trump prepares to resume a harder stance on trade with China, including the possibility of heightened tariffs, the Biden administration hopes its groundwork for economic communication will mitigate future disruptions in the world’s most pivotal economic relationship.
U.S. consumer prices rise the most in seven months in November... The U.S. consumer price index (CPI) rose 0.3% last month, the largest monthly gain since April after advancing 0.2% for four straight months. On an annualized basis, consumer prices climbed 2.7%, up from 2.6% the previous month. Core CPI, minus food and energy prices, increased 0.3% from the previous month and 3.3% over the past year.
Food costs increased 2.4% over the past year, with grocery prices up 1.6% and restaurant prices up 3.6%.
Punchbowl News: Seems like Scott is done leading House Ag Panel... House Ag Committee ranking member David Scott (D-Ga.) appears increasingly vulnerable in his bid to retain the top Democratic slot on the committee, concludes Punchbowl News. Amid mounting health concerns and missed votes, Scott has been absent from key candidate forums, leaving the field open for challengers Reps. Angie Craig (D-Minn.) and Jim Costa (D-Calif.). Based on our sources, Costa seems to have the inside track if there is a change. Scott faces mounting speculation that he may withdraw from the race, a potential conclusion to an already beleaguered campaign.
Trump to issue over 25 executive orders on first day in office... President-elect Donald Trump is expected to sign more than 25 executive orders and directives on January 20, according to Reuters, citing two sources familiar with the situation. These actions are anticipated to focus on reversing Biden-era policies on the U.S. southern border, boosting U.S. energy production, reviewing federal hiring practices and addressing protections for transgender students. Additional directives are planned in the following weeks. Trump’s team is reportedly preparing to counter legal challenges to some of these orders. For comparison, President Joe Biden signed 17 executive orders on his first day in 2021, many aimed at overturning Trump-era policies.
GOP faces internal struggles on 2025 tax bill strategy... The Republican Party is divided over its approach to the 2025 tax bill, with Senate Republicans backing Majority Leader-elect John Thune’s (R-S.D.) proposal to address border security and defense priorities before tackling tax reform. However, House Republicans, grappling with a slim majority, remain unconvinced. This delay raises uncertainty about the extension of the 2017 tax code overhaul, potentially impacting taxpayers and preparers.
Sen. Lindsey Graham (R-S.C.) supports prioritizing border security, while House Ways and Means Committee Chair Jason Smith (R-Mo.) warns that delaying tax legislation risks legislative inaction. The Wall Street Journal editorial board endorsed Thune’s strategy, cautioning against Smith’s approach as politically risky.
House Speaker Mike Johnson (R-La.) Johnson plans to meet with Donald Trump at the Army/Navy football game this weekend to discuss Republican strategies for the budget reconciliation process. House Budget Chair Jodey Arrington (R-Texas) suggests that if the Senate plan is adopted, the initial bill must be targeted and expedited, allowing time for the more complex economic package involving tax cuts and spending reductions.
DGA report sparks debate over nutrition guidelines... The government’s Dietary Guidelines Advisory (DGA) Committee released its report, recommending reduced consumption of added sugars and red meat. The report highlights what it says is the link between unhealthy eating and rising rates of chronic diseases, calling for a shift in dietary habits to improve public health across the lifespan.
The report will guide updates to the 2025 Dietary Guidelines, giving the next administration, potentially led by Trump appointee Robert F. Kennedy Jr., significant influence over the final recommendations. Kennedy is expected to prioritize reducing added sugars and ultra-processed foods in American diets.
Agriculture groups and industry stakeholders, such as the National Cattlemen’s Beef Association, criticized the report’s focus on reducing red meat consumption. Ethan Lane from the association called the process “arbitrary,” citing insufficient scientific evidence.
Public health experts like Philip Kahn-Pauli praised the report for emphasizing produce, whole grains and legumes. However, he acknowledged challenges in defining and evaluating the health impacts of ultra-processed foods, which could become a contentious issue under the incoming Trump administration.
Organizations like the National Potato Council and International Fresh Produce Association expressed mixed reactions. While welcoming recommendations to increase fruit and vegetable intake, they opposed reductions in starchy vegetable consumption, questioning the practicality for everyday meal planning.
Public comments on the report are open for 60 days. Meanwhile, stakeholders are preparing to influence the guidelines, ensuring their voices are heard before the report’s recommendations are finalized.