WSJ What’s News: First American Pope Elected to Lead Catholic Church
Release Date: May 8, 2025
Host: The Wall Street Journal
Episode Overview:
In this episode of WSJ What’s News, The Wall Street Journal delves into significant global and domestic developments, including a landmark trade agreement between the US and the UK, escalating trade tensions with the European Union, the profound impact of US-China tariffs on businesses, the historic election of the first American pope, and key updates from the Trump administration.
1. US-UK Trade Agreement and EU Trade Tensions
Outline of the US-UK Trade Deal:
President Donald Trump announced a new trade agreement with the United Kingdom, marking the first major trade deal under his administration. British Prime Minister Keir Starmer, alongside his administration, joined President Trump in outlining the deal's framework.
- Key Provisions:
- Most UK goods remain subject to the global 10% US tariff imposed last month.
- Exemptions for certain products, notably a reduction in auto tariffs from 25% to 10%.
- UK commitments include increasing imports of American goods, such as Boeing planes, and reducing tariffs on US beef and ethanol.
Notable Quote:
"Today's agreement with the UK is the first in a series of agreements on trade that my administration has been negotiating over the past four weeks. With this deal, the UK joins the United States in affirming that reciprocity and fairness is an essential and vital principle of international trade."
— GMC Representative [01:47]
EU's Counteractions and Potential Tariffs:
In response to the US-UK deal, the European Union released a list of approximately $107 billion worth of American products that could face new tariffs if negotiations falter. This includes sensitive sectors like aviation, automotive, health, agriculture, and alcoholic beverages.
WSJ Reporter Kim McRail from Brussels provides insight:
- Current Status:
- The EU is not imminently imposing these tariffs but keeps them as a contingency.
- A 90-day pause on higher tariffs is in place, after which the EU may consider making tariffs more permanent if fair trade terms aren’t achieved.
Notable Quotes:
"They really are not looking at doing this in the near term. This is something they want to have on hand in case they get to that point."
— Kim McRail [03:13]
"The talks are ongoing. What we're hearing from them are that the EU has come up with a few different offers or suggestions of things that it could do."
— Kim McRail [03:54]
Despite the US securing a trade deal with the UK, which is a smaller, unified economy compared to the EU’s 27-member bloc, McRail notes the complexity of applying this success to broader EU negotiations.
Notable Quote:
"Some European officials, they look at this and they say, well, maybe there is something we could learn from what worked for the UK, but not necessarily that this is a template for a European deal."
— Kim McRail [04:41]
2. Impact of US-China Tariffs on Global Supply Chains
With President Trump’s decision to impose a 145% tariff on Chinese imports, businesses in both the US and China are grappling with significant disruptions.
Business Challenges:
Chinese manufacturers and American importers reliant on Chinese goods are experiencing chaos. This includes factory shutdowns, supply bottlenecks, and canceled or paused orders.
Notable Quotes:
"For a lot of Chinese manufacturers that mainly export to the US and for American businesses that heavily rely on Chinese imports into this country, it really has been a chaotic time."
— Natasha Khan [05:53]
Impact on Major Retailers and Manufacturers:
Large corporations like Walmart, Target, Costco, and Hasbro face uncertainty. For example, Hasbro, which sources 50% of its US toys from China, is actively seeking alternative supply chains—a move complicated by the global competition for manufacturing capacity.
Notable Quote:
"If you were alive in 2016, you remembered it when Pope Francis said that a Christian doesn't build walls, and this was a rebuke to then candidate Trump. Leo XIV said something to the effect of that Christians build bridges and that he wants to be a bridge builder."
— Drew Hinshaw [11:16]
Holiday Season Concerns:
Despite it being May, early indications show that the tariffs are already affecting the holiday supply chains. Retailers froze shipments following the tariff announcements, exemplified by the anecdote of inflatable snowmen stranded in China without buyers.
Notable Quote:
"Now in the States, we've also spoken to importers that once they learned of the 145% tariff, basically have stopped or canceled or paused orders."
— Natasha Khan [06:45]
3. Election of the First American Pope
In a historic moment for the Catholic Church, Roberto Francesco Prevost, an American, was elected as Pope Leo XIV, marking the first time an American leads the global Catholic community.
Scene at the Vatican:
The election was met with jubilation and surprise. Vatican crowds witnessed moments of confusion turning into celebration as the first American pope was announced.
Notable Quote:
"And then a bunch of Americans are cheering and people are digesting the fact that for the first time in the history of the Catholic Church, it is being led by someone from the United States."
— Drew Hinshaw [10:19]
Significance of His Nationality:
Prevost's American background is particularly noteworthy given the previous assumption that a US cardinal was unlikely to be elected due to the country's global influence dynamics.
Notable Quote:
"This is a cardinal who could stand on two grounds. He, of course, is American, but he also spent his life in Latin America, in Peru."
— Drew Hinshaw [11:00]
Choice of Papal Name:
Choosing the name Leo XIV connects him to Leo XIII, a pope known for advocating workers’ rights and opposing authoritarianism during the Industrial Revolution. This choice signals Prevost's intent to continue a legacy of social advocacy and bridge-building within the Church.
Notable Quote:
"He hasn't said what his logic is, but it's a little bit of a hint and a signal that he sees his role as continuing that legacy of Leo XIII."
— Drew Hinshaw [11:23]
Approach to Church Issues:
Pope Leo XIV has maintained a moderate stance on divisive issues like same-sex blessings and priestly celibacy, emphasizing unity and bridge-building over contentious debates.
Notable Quote:
"He was very careful not to take a strong stand either way for some of the issues that have been quite divisive within the Catholic Church."
— Drew Hinshaw [11:59]
4. US Domestic Policy Developments
Air Traffic Control Overhaul:
Transportation Secretary Sean Duffy announced a potential revamp of the US air traffic control system within the next three to four years, contingent on congressional approval for billions in funding. The plan aims to modernize outdated radar, telecommunications, surveillance systems, and control towers.
Industry Reactions:
A coalition of industry and labor groups is advocating for at least $31 billion in emergency funding over the next three years to support this initiative.
Federal Prosecutor Nomination Withdrawal:
President Trump rescinded the nomination of Ed Martin for the top federal prosecutor position in Washington, following concerns that Martin was perceived as a figure aligning with Trump’s broader campaign against adversaries. Republican senators withdrew support, prompting the administration to seek a new candidate.
FEMA Leadership Changes:
Homeland Security Secretary Kristi Noem appointed David Richardson as the new FEMA director, replacing Cameron Hamilton. Hamilton had previously opposed the Trump administration's efforts to eliminate the U.S. Disaster Response Agency.
Notable Quote:
"The Transportation Department outlined a plan to replace antiquated radar, telecommunications surveillance systems and air traffic control towers and other facilities."
— Victoria Craig [12:35]
5. Cryptocurrency Sector Developments
In a significant move within the cryptocurrency market, Coinbase announced the acquisition of Deribit, the world's largest bitcoin and ether options trading platform, in a deal valued at $2.9 billion. This acquisition is the latest in a series of high-profile crypto transactions, reflecting the sector's ongoing dynamism and consolidation.
Notable Quote:
"Coinbase has agreed to buy Deribit, the world's biggest bitcoin and ether options trading platform. The $2.9 billion deal is the latest in a flurry of crypto dealmaking."
— Victoria Craig [12:39]
6. Market Reactions
Following the trade agreement announcement and President Trump’s optimistic outlook on US-China negotiations, Wall Street saw an extension of its upward trend. Major indices recorded gains:
- Dow Jones: +0.5%
- S&P 500: +0.5%
- Nasdaq: +1.0%
This market optimism reflects investor confidence in the potential for stabilized trade relations and economic growth.
Notable Quote:
"On Wall street today, stocks extended their rise after President Trump detailed that UK Trade deal and expressed high hopes for the talks with China."
— Victoria Craig [08:49]
Conclusion
This episode of WSJ What’s News provided a comprehensive overview of pivotal developments shaping global trade, religious leadership, domestic policy, and financial markets. The election of the first American pope marks a historic shift for the Catholic Church, while ongoing trade negotiations and tariff implementations continue to influence international business dynamics. Domestically, significant policy shifts and leadership changes within the Trump administration highlight the evolving political landscape. Additionally, the cryptocurrency sector's rapid evolution underscores the shifting paradigms in modern finance.
Produced by: Anthony Banci
Supervising Producer: Pierre Bienname
Host: Victoria Craig
Reporting by: Kim McRail, Natasha Khan, Drew Hinshaw