Morning Brief: Trump Suspends Iran Sanctions Relief, US and China Strike Trade Agreement

· Guy D. McCardle

Khamenei talked tough on camera—Trump killed the sanctions deal, reminded the world he saved the Ayatollah’s life, and dared him to try enriching uranium again. Image Credit: Times of Israel

Trump Pulls Back Iran Sanctions Relief After Khamenei Speech

President Trump has suspended plans for possible sanctions relief for Iran following a speech from Supreme Leader Ayatollah Ali Khamenei that the White House interpreted as defiant and insulting.

In the wake of the recent 12-day conflict involving Israel, the U.S., and Iran, the Trump administration had been exploring the idea of easing some sanctions. The goal was to lure Tehran back to the negotiating table, with ideas like letting China buy Iranian oil floated as part of a potential deal. That effort ended abruptly after Khamenei released a video downplaying the effectiveness of the U.S. and Israeli airstrikes on Iran’s nuclear infrastructure, and claiming Iran had come out on top. He described the attacks as having “no major effect” and bragged about striking a U.S. base in Qatar.

Trump didn’t hold back in his reaction. In a post on Truth Social, he slammed Khamenei for “foolishly” declaring victory and accused him of lying. Trump said he had been working on a relief package that could have accelerated Iran’s economic recovery, but was instead met with “anger, hatred, and disgust.” He immediately scrapped the plan.

He also made a stunning claim: that during the conflict, he personally stopped Israel from assassinating Khamenei. “I SAVED HIM FROM A VERY UGLY AND IGNOMINIOUS DEATH,” Trump wrote, clearly annoyed at what he viewed as a lack of gratitude.

The president issued a stern warning that if Iran resumes enrichment of uranium to weapons-grade levels, the U.S. could return to military action. He made it clear that any future talks would require Iran to open its nuclear facilities to international inspectors.

Iran’s foreign ministry quickly hit back, rejecting any suggestion of resumed talks and criticizing the U.S. for what it called a “disrespectful tone” toward its leadership. Meanwhile, Israeli officials are expected in Washington soon for discussions on how to move forward with regional security and the Iranian threat.

Key Points at a Glance:

  • Trump scraps sanctions relief plan after Khamenei’s speech.
  • Claims he stopped an Israeli plot to kill the Iranian leader.
  • Threatens further airstrikes if Iran restarts high-level uranium enrichment.
  • Demands international inspections as a precondition for diplomacy.
  • Iran rejects talks and criticizes U.S. rhetoric.

Diplomatic hopes are on pause. The U.S. is leaning hard again on pressure tactics while keeping military options on the table.

 

U.S. and China Strike New Trade Deal: Rare Earths, Tariff Cuts, and a Thaw in Tensions

President Trump and Commerce Secretary Howard Lutnick announced a fresh trade agreement with China this week, aimed at cooling tensions and easing pressure on American manufacturers. At the heart of the deal is a move to secure more reliable access to rare earth minerals—materials that are vital for everything from electric vehicles to advanced weapons systems.

China has agreed to fast-track approvals and exports of these rare earth elements and magnets, a big win for U.S. industries that rely heavily on these hard-to-source materials. Washington has long complained that Beijing uses these exports as leverage, and this agreement marks a shift—at least for now.

Tariffs are getting a haircut, too. Both countries agreed to lower their standard tariff rates to 10%, a welcome drop from the trade war highs that once soared to 145%. That said, the real-world impact is a bit more complicated. Due to overlapping duties—like those tied to fentanyl control and longstanding Section 301 penalties—the average tariff on Chinese goods coming into the U.S. still sits north of 30%.

Beijing will also suspend or eliminate a range of retaliatory tariffs it slapped on American exports since April. These measures had hit U.S. farmers and manufacturers hard, and their removal opens the door for some relief. As for opening up the Chinese market to more American goods, the two sides agreed to keep talking—though there’s no hard timeline or specific sectors named just yet.

The new measures will start rolling out by mid-July, with China’s commerce ministry already approving licenses for rare earth exports.

This deal doesn’t solve all the problems—technology transfers, intellectual property theft, and deeper market barriers are still sticking points—but it’s a notable de-escalation. For now, it gives U.S. companies a bit of breathing room and stabilizes a relationship that had been veering toward the economic equivalent of a fistfight.

 

Senate Rejects Effort to Rein in Trump’s War Powers on Iran

The Senate has voted down a resolution that would have forced President Trump to get Congress’s permission before launching any new military strikes against Iran. The measure, led by Senator Tim Kaine of Virginia, failed in a 53–47 vote on Friday, with most Republicans lining up against it and most Democrats backing it. Only one Republican, Rand Paul, crossed the aisle to support it, while Democrat John Fetterman voted no.

Kaine’s proposal was built on the War Powers Act of 1973, and it came in direct response to Trump’s recent order to bomb three Iranian nuclear facilities—an action he took without notifying Congress. Kaine emphasized that the resolution wouldn’t tie the president’s hands when it came to self-defense or helping Israel, but he made it clear that decisions about war shouldn’t be made by one person acting alone.

Supporters of the resolution argued that Congress had been shut out of key decisions and warned against unchecked presidential power. Opponents fired back, saying the president needs the ability to move quickly, especially when nuclear threats are on the table.

With the resolution defeated, Trump keeps the authority to take further military action against Iran without needing to check in with Capitol Hill. Kaine, for his part, isn’t giving up—he said he’ll keep pushing to restore Congress’s role in authorizing military action. This vote lays bare the deep partisan divide over who should control the country’s war-making powers, especially with U.S.-Iran tensions still running high.