The US and China agreed to a framework and implementation plan to ease tariff and trade tensions on Tuesday. President Trump signaled his approval, saying the deal was “done” pending sign-off from him and Chinese President Xi Jinping.

Trump and other US officials indicated the deal should resolve issues between the two countries on rare earths and magnets. Trump said Wednesday that the US will allow Chinese students in US colleges, a sticking point that had emerged in the weeks following the countries’ mid-May deal in Geneva.

Trump, however, made no mention of loosening US export controls, particularly on the design and manufacture of semiconductors.

Meanwhile, though Trump’s most sweeping tariffs continue to face legal uncertainty, on Tuesday, the president received a favorable update. A federal appeals court held a decision saying his tariffs can temporarily stay in effect. The US Court of International Trade had blocked their implementation last month, deeming the method used to enact them “unlawful.”

Trump celebrated the ruling as a “great and important win.”

Read more: What Trump’s tariffs mean for the economy and your wallet

The latest twists and turns in Trump’s trade policy come as the president pushes countries to speed up negotiations. The US sent a letter to partners as a “friendly reminder” that Trump’s self-imposed 90-day pause on sweeping “reciprocal” tariffs is set to expire in early July.

White House advisers have for weeks promised trade deals in the “not-too-distant future,” with the only announced agreement so far coming with the United Kingdom. US and Indian officials held trade talks this week and agreed to extend those discussions on Monday and Tuesday ahead of the July 9 deadline.

New tariffs are coming into play: Effective Wednesday, June 4, Trump doubled tariffs on steel and aluminum from 25% to 50%.

Here are the latest updates as the policy reverberates around the world.

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NHS is the big winner but the Home Office and schools are being squeezed

Sky News’ political editor Beth Rigby says Rachel Reeves used today’s spending review to reframe the work of the Labour government so far.

She explains that the chancellor set out that Labour’s first year in government was about fixing the economy, and now she is hoping to frame the upcoming year as about growing the economy.

Beth also picks up on Reeves’ own acknowledgement that not enough people across the UK are feeling tangible improvements to their lives.

She says it’s interesting that when the chancellor did make political attacks, these blows were largely rained down on Reform UK rather than the Conservatives.

Just a few weeks ago, Reeves said Reform wasn’t a proper party, which suggests a change in tone from the government.

The winners and the losers

Turning to the numbers themselves, Beth says that “the big winner is clearly the NHS”.

The chancellor’s 3% uplift for the health service every year will mean that “other budgets are suffering”, Beth says.

The Home Office seems to be having a real-terms cut, down 1.7%. She says Yvette Cooper’s department is “really being squeezed”.

Beth also points out that the Department of Education’s core school budget is only rising by 0.4% over the next three years, falls well below the average increase.

“You’re seeing some squeezes in departments in the day-to-day spending”, Beth points out.

Another area that she thinks could be taking a hit is local government – councils – and Beth wonders whether spending increases will be pushed back onto the public through council tax increases.

Beth says: “Politically, what’s going on here, this is a government and a chancellor that have put their eggs in the NHS basket.

“They have decided that NHS waiting lists and improving the national health service is clearly where they want to put their money in order to try and prove at the time of the election that those services are improving.

“You can see very clearly in this document that that is the choice Rachel Reeves has made”, she adds.

Shadow chancellor Mel Stride branded Rachel Reeves a “tinfoil Chancellor” who is “weak, weak, weak”.

The Shadow Chancellor also claimed that tax rises will surely come later this year to pay for Wednesday’s spending commitments.

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Sir Mel said: “The lesson of the last year has been that when the going gets tough, (Rachel Reeves) blinks.

“She presented herself as the iron Chancellor, but what we have seen is the tinfoil Chancellor. Flimsy and ready to fold in the face of the slightest pressure.

“She said she would not fiddle her fiscal rules. Then she did. She said she wouldn’t make any unfunded commitments, but with the humiliation of the winter fuel U-turn, she just has.

“She looked business leaders in the eye and said ‘no more taxes’. But we all know what happened next, and we all know what is coming in the autumn.

“Her own backbenchers, her Cabinet colleagues, Labour’s trade union paymasters, even the Prime Minister himself, they have all seen that she is weak, weak, weak.”

He also called Rachel Reeves’ spending review a “fantasy” that is “not worth the paper that it is written on”.

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NHS is the big winner but the Home Office and schools are being squeezed

Sky News’ political editor Beth Rigby says Rachel Reeves used today’s spending review to reframe the work of the Labour government so far.

She explains that the chancellor set out that Labour’s first year in government was about fixing the economy, and now she is hoping to frame the upcoming year as about growing the economy.

Beth also picks up on Reeves’ own acknowledgement that not enough people across the UK are feeling tangible improvements to their lives.

She says it’s interesting that when the chancellor did make political attacks, these blows were largely rained down on Reform UK rather than the Conservatives.

Just a few weeks ago, Reeves said Reform wasn’t a proper party, which suggests a change in tone from the government.

The winners and the losers

Turning to the numbers themselves, Beth says that “the big winner is clearly the NHS”.

The chancellor’s 3% uplift for the health service every year will mean that “other budgets are suffering”, Beth says.

The Home Office seems to be having a real-terms cut, down 1.7%. She says Yvette Cooper’s department is “really being squeezed”.

Beth also points out that the Department of Education’s core school budget is only rising by 0.4% over the next three years, falls well below the average increase.

“You’re seeing some squeezes in departments in the day-to-day spending”, Beth points out.

Another area that she thinks could be taking a hit is local government – councils – and Beth wonders whether spending increases will be pushed back onto the public through council tax increases.

Beth says: “Politically, what’s going on here, this is a government and a chancellor that have put their eggs in the NHS basket.

“They have decided that NHS waiting lists and improving the national health service is clearly where they want to put their money in order to try and prove at the time of the election that those services are improving.

“You can see very clearly in this document that that is the choice Rachel Reeves has made”, she adds.

Three-year-old Eddie laughs as he whizzes down a slide. His mother Jodie Poole is relieved to see him smiling.

A few weeks ago, he developed a painful abscess in his mouth. After being told there’d be up to a year’s wait for the NHS to remove the affected tooth, Jodie paid around £250 for it to be done privately.

An example, she says, of how public services are letting down families like hers.

“I feel like I’m paying twice,” she says. “I’m paying through my taxes, the money that I should be paying, and then I’m paying extra money that looks quite expensive because I can’t get the things that we need that we should do for our taxes.”

As Chancellor Rachel Reeves decides how much to fund each of the public services that people across the country rely on for their everyday needs, it’s people like Jodie who’ll need persuading that they’re getting a return for their taxes.

There’ll be winners and losers, with health and defence set to be prioritised.

Jodie works as a childminder and runs a mother and toddler group in Peterborough, Cambridgeshire, which is where we met her for a chat.

She voted for Labour at the last general election but has been disappointed so far.

“I don’t think Britain’s working well for anyone right now,” is her verdict on the state of public services.

‘I don’t think they have a clue’

Running around with the younger children is seven-year-old LJ. It’s the middle of the school day, but her mother Rachel Lawrence, 46, explains she no longer attends school due to concerns her additional needs weren’t being met.

She believes funding for education needs to be prioritised.

“My daughter’s home educated because they can’t keep up with the SEN (special educational needs) needs of children,” she says.

Rachel used to work in a care home but had to give up due to childcare demands. She now works three jobs to pay the bills.

She can’t remember exactly how long LJ has been on a waiting list for an autism assessment but says it’s been “years”.

As well as schools, she wants her taxes to be spend on extra funding for the NHS and more money for the police.

“I think they seem to be very underfunded as well,” she says. “Here, there’s thefts all the time.”

She believes government ministers are out of touch with what life is really like.

“I don’t think they have a clue,” she says. “They’re too high up to kind of see what’s happening to what I would call us little people down here”.

Hard to book appointments with GP

In a nearby cafe, Eddie Bromley, 72, is enjoying a morning coffee. Asked if he’s happy with local services, he shakes his head.

“You can’t ring your doctor up now and say, ‘Can I book an appointment?'” he says.

He dislikes being told to book online. “For a lot of people, you know, that’s difficult,” he says.

Local pharmacist, Kishore Banda says inability to book GP appointments when they’re needed is the biggest complaint he hears from customers.

He says people then seek help at A&E departments instead. “At the end of the day it will cost more for the NHS,” he says.

But among the steady stream of people coming in to collect prescriptions we found people supportive of at least some of what they’re hearing from the government.

Whitney stops to chat briefly. “I’m quite alright with everything at the moment, obviously that’s not the same for everyone,” she says.

Michael Lamb, who is in his 80s, thinks prioritising defence spending is key. “I can see a third world war coming,” he says, genuinely concerned.

The chancellor has talked about tough choices when it comes to deciding how to allocate spending. It’s clear, here in Peterborough, that it will be impossible to please everyone.

(c) Sky News 2025: ‘I don’t think Britain’s working well’: Mum pays £250 for son’s tooth