Trump admin live updates: Trump strikes deals with law firms totaling $600M

President Donald Trump was set to meet with his Cabinet on Thursday in the 11 a.m. hour, according to the White House schedule.

It comes after Trump changed course on tariffs on Wednesday, abruptly backing down on most of his severe levies against dozens of trading partners for 90 days while leaving in place a baseline 10% tariff on nearly every nation.

But tensions between the United States and China, the world's two largest economies, only escalated. Trump slapped Beijing with a new 125% tariff rate on Wednesday after China imposed its own retaliatory tariffs on U.S. goods. That tax comes in addition to the 20% fentanyl-related tariffs Trump placed on China in early February, for a total 145% Trump tariff on China.

The House narrowly voted to approve the GOP's budget blueprint by a vote of 216-214.

After drama and delay, House Speaker Mike Johnson, R-La., with the help of President Donald Trump was able to lock down the votes and persuade holdouts to back the measure.

Reps. Thomas Massie, R-Ky., and Victoria Spartz, R-Ind., voted against the measure, in addition to all Democrats present.

Since the Senate and House have now approved the same budget resolution, committees in both chambers can begin drafting legislation on cutting taxes, raising the debt ceiling and increasing border security -- just the first step in a long reconciliation process.

-ABC News' Lauren Peller

The White House is touting Thursday's inflation report, saying in a statement that "America is back -- but inflation is not."

"President Trump is making good on his promise to deliver lower costs for Americans, with prices for everyday goods seeing across-the-board declines," the White House said.

White House press secretary Karoline Leavitt also sang praises of the new data in an X post claiming Trump's "aggressive economic agenda" is decreasing prices.

-ABC News' Michelle Stoddart

Johnson and Thune publicly committed to enact at least $1.5 trillion in deficit reduction within a final budget package full of Trump's domestic policy priorities -- a key breakthrough after hardline conservatives in the House balked at the Senate-approved resolution that aimed at cutting a minimum of just $4 billion.

Thune seemed less enthusiastic about the target for deficit reduction, but meekly endorsed the House’s lofty goal for budget savings -- announcing the Senate’s ambition for fiscal sustainability is "aligned with the House."

"We have got to do something to get the country on a more fiscally sustainable path and that entails us taking a hard scrub of our government, figuring out where we can find those savings," Thune said.

-ABC News' Lauren Peller, John Parkinson and Allison Pecorin