Good morning. Markets breathe a sigh of relief as the US and China agree to a temporary truce in their trade war. Donald Trump vows to cut US drug prices. And the president may get a very luxurious gift from Qatar. Listen to the day’s top stories.

The US and China agreed to slash levies on each other’s products in a move to de-escalate a tariff war that led to a slump in trade across the Pacific Ocean. Treasury Secretary Scott Bessent hailed the trade discussions as “very robust and productive.”

Markets across the world cheered the move, with investors rushing back into stocks and powering a surge in S&P 500 futures. US Treasuries and gold tumbled, while the dollar hit a one-month high versus the euro and the yen. Read our explainer on what Trump’s tariff campaign meant to achieve.

Next in Trump’s sights: prescription drug costs. The president’s set to sign an executive order mandating that Americans pay no more than people in countries that have the lowest price. He predicted that costs may drop as much as 80% in the US, triggering a slump in the shares of pharmaceutical firms across the world. Here’s why prescription drugs are so expensive.

US efforts to secure peace in Ukraine ramped up as Volodymyr Zelenskiy challenged Vladimir Putin to engage in direct talks this week in Turkey, but it’s unclear whether the Russian president will show up. In Gaza, Hamas said it’ll release the last living American hostage. Meanwhile, the US and Iran agreed to continue nuclear talks. All this comes as Trump visits the Middle East this week, starting with Saudi Arabia.

A departure board at Newark Liberty International Airport on May 6. Photographer: Bing Guan/Bloomberg

Newark airport’s troubles got even worse. It’ll reduce capacity for several weeks as officials grapple with spiraling delays and safety lapses but experts warned that won’t fix long-term challenges. Transportation Secretary Sean Duffy told NBC that it may take three to four years to build necessary new infrastructure. 

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Deep Dive: Road Tripping

Hitting the road. With Trump’s trade war shaking consumer confidence and stoking inflation fears, Americans are ditching the skies for the open road.

• About 39.4 million people are expected to hit the highway this Memorial Day weekend—the most in two decades, according to the American Automobile Association. Just 3.61 million people plan to fly, only a 1.7% gain. 
• Adding to the allure of road trips, gasoline costs have fallen and recent high-profile airline safety scares aren’t helping the case for air travel. Several carriers have even scrapped their full-year profit forecasts.
• The trend is steering travelers toward destinations like the Gulf Coast, Gold Coast, and Smoky Mountains, leaving overseas trips on the back burner. Joining them? Check out these exciting new places to stay near national parks.

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The Big Take

A damaged house after cross-border shelling along the Line of Control between India and Pakistan. Photographer: Muzammil Ahmed/AFP

A fragile ceasefire has taken hold between India and Pakistan after their most dangerous military escalation in over five decades. But Trump’s Truth Social announcement of the sudden halt in hostilities left Indian officials both stunned and furious.

Opinion

US airlines and hotels are bearing the brunt of Trump’s trade policies and declining consumer confidence, Andrea Felsted writes. European tour operators should buckle up too amid a slowdown in the luxury market.

Before You Go

The motorcade of Trump is parked next to a Boeing 747 on the tarmac of Palm Beach International airport in February.  Photographer: Roberto Schmidt/AFP

Luxury gift. Trump may accept a Boeing 747-8 from Qatar’s royal family to replace the aging Air Force One—possibly the most valuable gift ever from a foreign government, ABC News reported. An announcement may come this week though Qatar said no decision has been made about “temporary use” of the plane.

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