Let's make a deal

Welcome to The Money, where we break down financial news and provide the TL;DR version of how decisions by the Federal Reserve, government and companies impact you.

The U.S. has finally gotten China to the table, with U.S. Treasury Secretary Scott Bessent and U.S. trade representative Jamieson Greer heading to Switzerland this weekend to talk to Chinese officals to deescalate the trade war. It's the first step in what investors hope will lead to a reduction in President Donald Trump's 145% tariff on Chinese goods.

Trump suggested in a social media post on Friday morning that China's tariff could drop to 80%, but that's still higher than the 50% to 60% some had expected.

On Thursday, Trump announced a trade agreement with the UK, the first officially announced trade deal by the White House so far. Trump said to expect many more, but China's still the big one.

Garnishment returns for student loan borrowers

The Department of Education resumed on Monday collections on defaulted student loans. That means borrowers in default could see their wages, pensions and tax refunds garnished to cover unpaid loans. As many as 5.3 million Americans may be affected.

Additionally, borrowers may see a big hit to their credit scores. A credit score drop means future borrowing may cost more and borrowing amounts could be limited.

Taxing the rich

President Donald Trump said he could accept higher taxes on the rich – a reversal from his previous opposition – as his fellow Republicans in Congress grapple with broader tax-cut legislation.

Trump has repeatedly rejected raising taxes on the wealthy as a bad strategy because they would leave the country. He said in a social media post May 9 that “Republicans should probably not do it, but I’m OK if they do!!!”

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