Tariffs Slashed, Stocks Surge & Drug Prices Cut | 5.13.25

Summary

Morning Wire Podcast Summary

Episode: Tariffs Slashed, Stocks Surge & Drug Prices Cut
Release Date: May 13, 2025
Hosts: John Bickley and Georgia Howe
Guests: Amanda Presto Giacomo, Tim Rice, Scott Besant

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Executive Order Targets Prescription Drug Prices

In this episode, Morning Wire delves into President Donald Trump's landmark executive order aimed at dramatically reducing prescription drug prices in the United States. Announced on Monday, Trump declared, “Starting today, the United States will no longer subsidize the health care of foreign countries” (00:04). This move is part of a broader strategy to implement a Most Favored Nation (MFN) policy, which seeks to align American drug prices with those of other nations.

Georgia Howe introduces the topic by highlighting the administration’s initiative to “force Big Pharma to stop charging Americans more than their European counterparts” (00:08). Daily Wire reporter Amanda Presto Giacomo provides an in-depth analysis, explaining that the order intends to cut drug prices by up to 80% by eliminating middlemen, specifically Pharmacy Benefit Managers (PBMs). These PBMs have traditionally negotiated prices between drug manufacturers and insurance providers, but critics argue they lack transparency and do not effectively lower costs for consumers.

President Trump emphasized the administration's stance, stating, “We're subsidizing other countries' health care... And we'll no longer tolerate profiteering and price gouging from big pharma” (02:28). Dr. Marty Makary, leading the FDA, praised the order, asserting, “The fundamental problem in healthcare is that we've had non-competitive markets... And that's what this executive order does” (04:19).

HHS Secretary Robert F. Kennedy Jr. added that if the EU and other allies increased their contributions to research and development by just 20%, it would significantly lower prices for Americans (04:56). However, the response from Democrats has been muted. Senator Bernie Sanders acknowledged the high prices but did not support the order, expressing concerns about its legality, “I didn’t back this order. He argued that it's going to be blocked by the courts” (05:02). On the conservative side, while there is general support framed as an “America first” policy, some skepticism remains regarding the implementation process.

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US-China Trade Deal Spurs Market Optimism

The podcast shifts focus to the recent US-China trade agreement, which has had a positive impact on the stock markets. On Monday, following the announcement of the truce in the trade war, stocks surged significantly. Cabot Phillips reports that the Dow increased by over 1,000 points, the S&P 500 rose by more than 3%, and the Nasdaq climbed over 4%, marking a 20% rise from its April lows (10:08).

Tim Rice elaborates on the details of the deal, noting that China agreed to reduce tariffs on American imports from 125% to 10%, while the US reciprocated by lowering tariffs on Chinese goods from 145% to 10% (06:24). Additionally, China has agreed to suspend non-tariff barriers, including the long-standing ban on rare earth mineral exports, and remove numerous American companies from its blacklist—a move that opens the door for greater economic collaboration.

President Trump declared, “Yesterday, we achieved a total reset with China after productive talks in Geneva” (07:14), signaling a significant shift in US-China relations. This agreement, however, excludes certain sensitive imports. Notably, tariffs related to fentanyl remain in place. Trump explained that these additional tariffs are necessary to address China’s role in the production and distribution of the deadly opioid (08:25).

Scott Besant emphasizes the administration’s continued focus on strategic rebalancing to address supply chain vulnerabilities exposed during the COVID-19 pandemic, aiming for greater U.S. independence in critical industries (09:25).

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Qatar’s $400 Million Jet Offer Sparks Controversy

Another major topic discussed is the controversial offer from Qatar to President Trump—a $400 million Boeing 7478, described as a “flying palace,” intended to replace Air Force One (00:50). Georgia Howe introduces the story, prompting a discussion with Tim Rice.

ABC News initially reported that Qatar planned to gift the jet to Trump, potentially allowing its use during his term and later transferring it to his presidential library (11:01). President Trump responded, “They're giving us a free jet. I could say no... Thank you very much” (00:57). He further defended the gesture, stating, “If we can get a 747 as a contribution to our Defense Department... I think it's a great gesture from Qatar” (11:52).

However, the offer has not been without criticism. Tim Rice points out that Qatar’s wealth is often leveraged to gain political influence, citing their support for groups like Hamas and the funding of media outlets such as Al Jazeera (12:35). MAGA loyalists and pro-Trump activists, including Laura Loomer, expressed concerns about the optics and potential security risks of accepting such a lavish gift (13:05).

In response to the backlash, a Qatari media attache clarified that the transfer of the jet is still unfinalized and intended to be temporary (13:43). This leaves the situation unresolved, with the possibility that the story might evolve as President Trump’s trip to the Middle East progresses.

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Conclusion

The Morning Wire episode provides a comprehensive overview of significant developments impacting the political and economic landscape in the United States. From President Trump’s ambitious efforts to lower prescription drug prices and the optimistic market response to the US-China trade deal, to the contentious offer from Qatar, the podcast delivers critical insights and diverse perspectives on each issue. Notable quotes and expert analyses enrich the discussion, making the episode a valuable resource for listeners seeking to understand the latest news and its implications.

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Note: Advertisements and non-content sections have been omitted from this summary to focus on the key discussions and insights presented during the episode.

Transcript

[Donald Trump]

Starting today, the United States will no longer subsidize the health care of foreign countries.

[Georgia Howe]

President Trump signs an executive order forcing Big Pharma to stop charging Americans more than their European counterparts.

[Cabot Phillips]

Will the sweeping order stand up to legal scrutiny? And how will other nations respond?

[Georgia Howe]

I'm Georgia Howe with Daily Wire executive editor John Bickley. It's Tuesday, May 13th, and this is Morning Wire.

[Cabot Phillips]

Stocks surge after tariffs are slashed as the U.S. and China announce a truce in the trade war.

[Scott Besant]

The negotiations are a combination of tariffs, non tariff trade barriers, currency manipulation and subsidies of labor and capital.

[Georgia Howe]

And Air Force One needs an update. Will Trump accept an offer of a $400 million flying palace from Qatar?

[Donald Trump]

They're giving us a free jet. I could say no. No could say. Thank you very much.

[Cabot Phillips]

Thanks for waking up with MORNING wire. Stay tuned. We have the news you need to know.

[Brandon]

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[Cabot Phillips]

President Trump signed what he called one of the most consequential executive orders in our country's history on Monday to dramatically lower the prices of prescription drugs.

[Georgia Howe]

Here to discuss is Daily Wire reporter Amanda Presto Giacomo. So, Amanda, potentially a game changing move here. What is the president intending to do with this order?

[Amanda Presto Giacomo]

Yeah, a lot of attention being paid to this order and for good reason. Trump said that he's gonna lower drug prices in the US by up to 80%. He's gonna do that by implementing the most favored nation policy. He said he's going to cut out industry middlemen and he's basically gonna tell the European Union and other allied nations that they need to pay more for research and development, which is also called R and D. Here's the president.

[Donald Trump]

We're subsidizing others health care countries where they paid a small fraction of what for the same drug that what we pay many, many times more for. And we'll no longer tolerate profiteering and price gouging from big pharma but again, it was really the countries that forced Big Pharma to do things that frankly, I'm not sure they really felt comfortable doing.

[Amanda Presto Giacomo]

Now, specifically, this order is going to allow Americans to buy drugs directly from manufacturers, cutting out those middlemen. These so called middlemen are PBMs or pharmacy benefit managers. They work with insurance providers to negotiate prices with drug companies in exchange for including those drugs in their coverage. Now, critics have said that PBMs are not transparent and they don't actually have incentive to lower prices for Americans. The order also sets a 30 day deadline for HHS to work with these drug makers to lower prescription drug costs. If a deal is not reached in time, a new rule is going to kick in that will effectively make these drugs the same price as other nations are paying for them.

[Donald Trump]

It's going to happen because the other countries have no choice. Now the drug companies are going to have to say, listen, if you don't pay more, we're not going to give you the drug. And they're willing to do that. So that's it. They have to. We have to equalize.

[Amanda Presto Giacomo]

Trump was asked on Monday if this order now means that America is setting price controls. Here's how he responded.

[Donald Trump]

It's not price control. No, no. What was price control is before? If you want to talk about control is what they were doing. They were making us pay. They set a price and they said, here's what we're going to pay and anything else, charge America. Because at that time they had a very stupid president and it really went crazy. During the last four years, Dr. Marty.

[Amanda Presto Giacomo]

Makary, who's now leading the FDA, he spoke at the press conference too, and he was very passionate about this order.

[Dr. Marty Makary]

I've been a surgical oncologist at Johns Hopkins for 22 years and I have seen patients suffer. We didn't take an oath to heal patients and then watch their life get ruined financially. The fundamental problem in healthcare is that we've had non competitive markets. We can do little things around the edges or we can transform those markets to competitive markets. And that's what this executive order does.

[Amanda Presto Giacomo]

HHS Secretary Robert F. Kennedy Jr. Also at the presser, he targeted the EU as well. He said that if they were to chip in for R and D and raise their prices by just 20%, that would dramatically reduce prices for Americans.

[Georgia Howe]

Now, drug prices have been a bipartisan concern for a long time. What sort of reaction are we seeing from across the aisle?

[Amanda Presto Giacomo]

Yeah, we're not hearing a lot from Democrats at the moment. We did get a response from Senator Bernie Sanders, who talks a lot about these drugs. He said he did agree with Trump that prices are too high, but he didn't back this order. He argued that it's going to be blocked by the courts. As for the right, there's a little bit of skepticism about how this is all going to be implemented, but overall there is a lot of support, especially since this is all being framed by Trump as an America first policy.

[Georgia Howe]

Well, a lot of cautious optimism at least. Amanda, thanks for reporting.

[Amanda Presto Giacomo]

You're welcome.

[Brandon]

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[Georgia Howe]

Stocks soared Monday after the US And China formally agreed to a trade deal that will dramatically lower tariffs across the board.

[Cabot Phillips]

Daily Wire senior editor Cabot Phillips has the latest on this highly anticipated deal. Hey Cabot. So, a crucial agreement between China and the US Announced. We've got the details. Now tell us what we know.

[Tim Rice]

Well, if we've learned anything about Donald Trump in the last few years, it's that this is a man who loves cutting a good deal. And on Monday, we saw the most consequential deal of his second term come to fruition. After formal negotiations in Switzerland this weekend, China has now agreed to cut tariffs on American imports from 125% down to just 10%, while the US will cut rates from 145% to 10%. And importantly, Beijing has also agreed to suspend or outright cancel non tariff countermeasures against the U.S. that means their existing ban on rare earth mineral exports could be coming to an end. They'll also remove dozens of American companies from a blacklist that had kept them from operating within China's borders. The new rates will apply for the next 90 days. In the meantime, the two sides will work on making a permanent deal. Here's President Trump announcing the deal from the White House Monday.

[Donald Trump]

Yesterday, we achieved a total reset with China after productive talks in Geneva. Both sides now agreed to reduce the tariffs imposed after April 2 to 10% for 90 days as negotiators continue on the larger structural Issues.

[Tim Rice]

Now, this deal marks a stunning turnaround and reversal of hostilities ahead of this weekend's meetings. For example, even Treasury Secretary Scott Besant said the deal was a long ways off and that his goal heading in was de escalation, not a big trade deal. That's a direct quote. But clearly the Chinese were more willing to negotiate than many had expected. For their part, Beijing signed on to a joint statement that referenced a, quote, spirit of mutual opening, continued communication, cooperation, and mutual respect. So they're showing a little love there. That's quite a different message than we heard last month. Indeed, the Chinese were calling the US bullies, saying they were going to make us pay, etc. As more proof of these improving relations, the two sides also agreed to establish a formal process for future streamlined trade talks that includes the use of a third country as a mediator.

[Cabot Phillips]

Now, President Trump did keep certain tariffs in place related to fentanyl, which are significant. Tell us about that.

[Tim Rice]

Yeah, that's an important note. In February, President Trump implemented an additional 20% tariff on Chinese imports as retaliation for their involvement in the production and distribution of fentanyl. The White House says that Beijing knows the drug is being made there and that it's then being shipped to cartels who bring it to the US but that they've done nothing to stop it. To illustrate that point, during negotiations, Secretary Besant reportedly held up a grain of sugar, telling his Chinese counterparts, quote, this could kill a person if it were fentanyl. He then picked up a cube and said, this is enough to kill people across the entire city. The Trump administration says that until China proves that it's actually cracking down on the drug's production, that additional 20% tariff will remain in place. So that means that right now, the effective rate for Chinese imports is actually 30%, not 10%. And in a similar vein, the Trump administration has made clear that while they are willing to open up the flow of certain Chinese goods to the U.S. they want to break our reliance on essential imports like weapons technology, and importantly, pharmaceuticals. Here's Besant to that point.

[Scott Besant]

Monday, the United States will continue a strategic rebalancing in many areas that were exposed as supply chain weaknesses during COVID whether it's medicines, whether it's semiconductors, steel, the other. We've identified five or six strategic industries and supply chain vulnerabilities, and we will continue moving toward U.S. independence or reliable supplies from allies on those.

[Cabot Phillips]

Now, as expected, this is all very, very good news for Wall Street. How did the markets respond?

[Tim Rice]

Yeah, we've talked quite a bit in the last month about how markets have been up and down. On Monday, there was only one direction and that was up. The Dow shot up more than 1,000 points. The S&P 500 rose more than 3%, erasing all of its gains from the last month. And the Nasdaq shot up more than 4%, marking a 20% increase from its recent low in April.

[Cabot Phillips]

Wow.

[Tim Rice]

And we also saw similar massive gains across Asia and across Europe as well.

[Cabot Phillips]

A lot of people actually excited to look at their stock portfolio yesterday.

[Tim Rice]

Go look your 401k.

[Cabot Phillips]

Yeah, do. So, Kevin, thanks so much for reporting.

[Tim Rice]

Absolutely.

[Cabot Phillips]

Trump is off to the Middle east this week for what the White House promises to be a trip of deal making and diplomacy. But the president's trip is off to a controversial start thanks to a story about a $400 million Qatari plane.

[Georgia Howe]

Here with a look at the saga is Daily Wire deputy Managing editor Tim Rice. So, Tim, a lot of media buzz on this. What's going on?

[Tim Rice]

Hey, good morning, guys. So on Sunday, ABC News reported that the Qatari royal family was planning to give Trump a $400 million super luxury Boeing 7478 jumbo jet. It's been described as a floating palace. The plan would reportedly be available for Trump to use in lieu of Air Force One by the end of his term and then according to some initial reports, transferred to his presidential library. For those watching on video, these images are from a similar 747 luxury jet.

[Georgia Howe]

So a very generous gift. What's in it for the Qataris?

[Tim Rice]

Well, Trump says it's merely the Qataris helping us replace Air Force one, which is 40 years old and according to the president, in need of some serious upgrades. Speaking to reporters before departing for the Middle east yesterday, Trump said the Qataris new Boeing had delayed production of the new jet he wanted and simply stepped in to help.

[Donald Trump]

If we can get a 747 as a contribution to our Defense Department to use during a couple of years while they're building the other ones, I think that was a very nice gesture. Now I could be a stupid person and say, oh no, we don't want a free plane. We give free things out. We'll take one too. And it helps us out because again, we're talking about we have 40 year old aircraft. The money we spend, the maintenance we spend on those planes to keep them tippy top is astronomical. You wouldn't even believe it. So I think it's a great gesture from Qatar. I appreciate it very much. I would never be one to turn down that kind of an offer.

[Tim Rice]

Now, not everyone sees this as just a goodwill gesture. Qatar is one of the richest nations in the world and uses its wealth to gain influence in the United States and many, many other countries. It frequently invites politicians on luxurious state funded junkets to the Middle East. But that influence buying raises eyebrows because Qatar also uses its oil money to bankroll Hamas and the Middle Eastern news powerhouse Al Jazeera.

[Georgia Howe]

Well, Trump said the crooked Democrats were upset about the transaction, but a lot of Republicans were as well.

[Tim Rice]

Yeah, lots of MAGA loyalists were quick to condemn the decision, warning that accepting the plane was bad optics at best and a security risk at worst. No less than the very pro Trump activist Laura Loomer took to X. To say accepting the gift would be a stain on the administration. Trump, for his part, is staying on the offensive, calling accusations of a conflict of interest fake news. Mr. President, what do you say to.

[Brandon]

People who view that luxury jet as.

[Donald Trump]

A personal gift to you? Why not leave it? You're ABC fake news. Right? Because only, only abc. Well, a few of you would. Let me tell you, you should be embarrassed asking that question. They're giving us a free jet.

[Tim Rice]

But speaking of fake news, there's a chance this whole story may have been much ado about nothing. Qatar's media attache to the United States has been making the rounds since the ABC story broke, telling reporters that the aircraft transfer would only be temporary and that nothing has been finalized yet. So we'll see what happens when Trump gets to Qatar later this week. Something tells me this story is far from over.

[Georgia Howe]

Yeah, well, I would be very wary of a gift like that. Tim, thanks for reporting.

[Tim Rice]

You bet.

[Cabot Phillips]

Thanks for waking up with us. We'll be back tomorrow morning with more news. You need to know.

[Brandon]

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