25.05.13 WSJ

1. Macroeconomics

Title: What the U.S.-China Tariff Rollback Means for the American Economy
Source: The Wall Street Journal
Date: May 13, 2025
Key Takeaways:

• The U.S. and China have agreed to a temporary rollback of tariffs, reducing the rate on Chinese goods from a peak of 145% to approximately 35%, easing trade tensions.
• Economists anticipate this move will lower recession risks and slightly boost GDP growth forecasts for 2025, though concerns about long-term investment and inflation persist.
• The rollback may hinder efforts to reshore manufacturing and could reduce government tariff revenue, impacting economic strategies.
• While the agreement offers immediate relief, analysts caution that underlying issues in U.S.-China relations remain unresolved.
  Link: Read the article

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2. M&A / Private Equity

Title: TPG’s $13 Billion Buyout Fund Target Reflects Tough Market
Source: The Wall Street Journal
Date: May 13, 2025
Key Takeaways:

• TPG has set a $13 billion fundraising target for its latest private-equity fund, TPG Partners X, lower than the $14–$15 billion goal for its predecessor, reflecting challenging market conditions.
• The tougher environment is attributed to the Federal Reserve's interest rate hikes, leading to higher borrowing costs and decreased dealmaking.
• Despite these challenges, TPG has shown growth in its buyout strategies, with recent funds exceeding their predecessors in size.
• Fundraising timelines are expected to extend as institutional investors navigate continued economic uncertainty and shifting policies.
  Link: Read the article

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3. Opinion 

Title: The New Right’s Zombienomics
Author: Andy Kessler
Source: The Wall Street Journal – Opinion (Inside View column)
Date: May 11 2025
Key takeaways

• Kessler critiques populist conservatives for reviving “industrial-policy zombies”—subsidies, tariffs and credit controls—that distort capital allocation. 
• He argues these policies create “walking-dead” companies kept alive by state aid, crowding out innovative firms and dampening productivity growth. 
• The column warns that blending left-wing spending with right-wing protectionism could erode U.S. competitiveness just as global capital gets more mobile. 
• Kessler urges policymakers to focus on tax simplicity and deregulation—letting markets, not mandates, pick winners—if they want durable, broad-based prosperity.
  Link: Read the article