S&P 500 soars 9.5% after Trump announces 90-day pause on tariffs, raises taxes on China

By Associated Press

Despite a shove from President Trump, House Republicans abruptly postponed a vote late Wednesday on their budget framework, unable to convince conservative GOP holdouts who had raised grave misgivings over allowing trillions of dollars in tax breaks without deeper spending cuts.

Speaker Mike Johnson almost dared the Republican hardliners to defy Trump and risk upending what the president calls the “big, beautiful bill,” which is central to his agenda of tax cuts, mass deportations and a smaller federal government. In the end, he had to hit pause, but vowed to try again Thursday.

“Don’t doubt us,” Johnson said, after a more than hourlong huddle with GOP lawmakers. “Just give us a little space to do our work.”

By Wednesday afternoon, at least a dozen conservative Republicans stood firmly against the plan. Several of them, including leaders of the ultraconservative Freedom Caucus, made the unusual move of walking across the Capitol to meet privately with Senate GOP leaders to insist on deeper cuts.

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By Associated Press

The House passed legislation Wednesday mostly along party lines that limits the authority of federal district judges to issue nationwide orders, as Republicans react to several court rulings against the Trump administration.

In many cases, the courts are questioning whether the firings of federal workers, freezing of federal funds, and shuttering of long-running federal offices are unlawful actions by the executive branch and Elon Musk’s Department of Government Efficiency.

The bill passed by a vote of 219-213. It limits the scope of injunctive relief ordered by a district judge to those parties before the court, rather than applying the relief nationally. But the bill is unlikely to advance through the Senate, where at least some Democratic support would be needed.

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By Associated Press

The floor has been stuck on a vote for over half an hour as Republican leaders try to win over hard-line conservatives on the GOP’s budget framework.

Speaker Mike Johnson pulled a handful of holdouts into a room off the House chamber, leaving the rest of the members waiting. Democrats periodically yelled “regular order” to try and prod the chamber to move forward with the vote.

The difficulty of securing enough votes for the resolution, which would let Congress get to work on what President Trump calls the “big, beautiful bill” of tax breaks and spending cuts, showed how challenging it will be for Republicans to hold together to eventually pass the final package.

By Associated Press

When Trump offered some financial advice Wednesday morning, stocks were wavering between gains and losses. That was about to change.

“THIS IS A GREAT TIME TO BUY!!! DJT,” he posted online at 9:37 a.m.

Less than four hours later, Trump announced a 90-day pause on nearly all his tariffs. Stocks soared, closing up 9.5%. The market, measured by the S&P 500, gained back about $4 trillion, or 70%, of the value it lost over the previous four trading days.

“He’s loving this, this control over markets, but he better be careful,” said Trump critic and former White House ethics lawyer Richard Painter, noting that securities law prohibits trading on insider information or helping others do so. “The people who bought when they saw that post made a lot of money.”

The question: Was Trump already contemplating the tariff pause when he made that post?

By Associated Press

US Attorney General Pam Bondi announced the seizure of roughly $510 million worth of cocaine and marijuana from vessels headed for the United States, seeking to highlight the government’s efforts to take down sophisticated cartel networks.

Bondi traveled to Florida to tout the seizure by U.S. Coast Guard crews and spotlight a key Trump administration priority of going after drug traffickers helping to fuel America’s addiction crisis.

By Associated Press

It sent recommendations for President Trump’s “Golden Dome” system to Defense Secretary Pete Hegseth for his review and approval.

The futuristic system was ordered by Trump during his first week in office, and if successful, it would mark the first time the U.S. would place weapons in space that are meant to destroy ground-based missiles within seconds of launch.

Gen. Stephen Whiting, head of U.S. Space Command, said at a conference this week in Colorado that the system is needed “to deter a space conflict and to be successful if we end up in such a fight.”

Officials did not give details on what the options for the system look like.

By Associated Press

A Whitmer spokesperson said she was “surprised” that she was brought into the Oval Office during Trump’s news conference Wednesday “without any notice of the subject matter.”

“Her presence is not an endorsement of the actions taken or statements made at that event,” the spokesperson said in a statement.

Trump praised Whitmer during the encounter before signing orders directing the Justice Department to investigate two of his critics and targeting a law firm whose work he opposes.

By Associated Press

The US Citizenship and Immigration Services said Wednesday that it will begin screening the social media activity of immigrants who request benefits, including those who apply for lawful permanent resident status, foreign students, and people affiliated with educational institutions “linked to antisemitic activity.”

The guidance is “effective immediately,” USCIS said in a statement.

The Trump administration is focusing on “antisemitic activity” on social media and “physical harassment of Jewish individuals” as grounds for denying immigration benefits requests. The announcement does not say what it is considered as “antisemitism” or identify any educational institutions. USCIS did not immediately respond to an Associated Press request for information.

USCIS says it will consider social media content that indicates “endorsing, espousing, promoting, or supporting antisemitic terrorism, antisemitic terrorist organizations, or other antisemitic activity as a negative factor.”

“There is no room in the United States for the rest of the world’s terrorist sympathizers, and we are under no obligation to admit them or let them stay here,” said DHS Assistant Secretary for Public Affairs Tricia McLaughlin.

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By Associated Press

Department of the Interior employees have until the end of Wednesday to respond to the latest offer to take buyouts or early retirement, according to a document obtained by AP, as the administration continues its efforts to reduce the federal workforce.

The offer for deferred resignation, often described as a buyout, or early retirement was sent April 4 — one day after Interior Secretary Doug Burgum ordered national parks to “remain open and accessible” and directed officials to ensure proper staffing.

The memo says the department is also planning for reductions “to maximize workforce efficiency,” but some positions will be exempt because they are “critical to public safety” or “directly linked to the highest priority programs.”

The document, sent to assistant secretaries and heads of bureaus and offices, said the offers were department-wide.

Among the exemptions are wildland firefighters, law enforcement officers, aviation jobs and cyber security positions.

By Associated Press

The House voted to overturn a rule that would have limited bank overdraft fees to $5, following the Senate in moving to dismantle the regulation that the Biden administration estimated would save consumers billions of dollars.

The resolution killing the rule, which passed the House 217-211, will now head to the White House for President Donald Trump’s signature.

Republicans argued that the “disastrous” regulation issued in the final days of President Joe Biden’s term would have forced banks to stop offering overdraft protection altogether and made it harder for Americans to access credit.

Democrats strongly opposed the effort and said the rule would help consumers who can’t afford the fees.

By Associated Press

The tariff fight between the world’s two largest economies spiraled into greater peril Wednesday as President Donald Trump tried to narrow his global trade war into a direct — and risky — faceoff with Beijing.

As Trump reversed his larger “reciprocal” tariffs on most of the world in the face of recession fears, he nonetheless hiked his tariffs on China once again — to 125 percent. The move locks the strategic rivals into a deepening standoff that endangers both their economies and interests around the world. The stakes are higher than ever, as the US and China are already embroiled in competition on everything from artificial intelligence to monetary policy to overall global influence.

Each nation dares the other to blink first. But the rounds of escalation are raising concerns that the window for diplomacy has narrowed even further, while the economic pain on both economies intensifies.

By Associated Press

The Trump administration and Elon Musk’s Department of Government Efficiency have notified thousands of local staffers employed by the US Agency for International Development for missions overseas that they will lose their jobs by Aug. 15.

The group had been one of the last spared from layoffs at USAID.

The administration says it will move about 1,000 surviving humanitarian and development programs under the State Department, after ending 5,000 others. The email notices, which were sent Wednesday and reviewed by AP, invited the newly laid-off workers abroad to apply for State Department jobs.

All but a few hundred of thousands of other USAID staffers have already been fired or been given severance notices effective this summer.

By Associated Press

President Trump has launched tariff wars with almost all of America’s trading partners. But his track record of on-again, off-again new levies continued Wednesday with a 90-day pause for most nations targeted by the latest volley of import taxes, hours after they went into effect.

With so many back-and-forth tariff actions and threats, it can be tough to keep track of where things stand. And a number of other sweeping new import taxes are still in place.

Here’s a rundown of what you need to know.

By Associated Press

Asked by a reporter about when he arrived at the decision to pause the tariffs on most countries for 90 days, Trump gave a muddled answer.

“For a period of time. I would say this morning. Over the last few days, I’ve been thinking about it,” the president said. He added, “Fairly early this morning.”

Earlier in the day, before announcing the pause, Trump on social media urged people to “BE COOL” and said “THIS IS A GREAT TIME TO BUY!!!”

After members of his administration gave conflicting answers in recent days about whether the tariff hikes were a negotiating ploy, Trump said Wednesday, “A lot of times it’s not a negotiation until it is.”

Commerce Secretary Howard Lutnick, who was in the Oval Office with Trump, said the European Union did not face further retaliatory tariffs like China did because the tariffs that the bloc announced Wednesday do not take effect immediately.

“I’m glad that they held back” Trump said.

By Associated Press

Trump said Israel would be the “leader” of a potential military strike against Iran if Tehran doesn’t give up its nuclear weapons program.

Trump made the comments ahead of this weekend’s scheduled talks involving US and Iranian officials in the Middle East sultanate of Oman. Earlier this week he said the talks would be “direct,” while Iran has described the engagement as “indirect” talks with the US.

The United States is increasingly concerned as Tehran is closer than ever to a workable weapon.

By Associated Press

Trump told reporters at the White House that he “can’t imagine” he would need to increase tariffs on China again to get them to the negotiating table.

“We calculated it very carefully,” the president said.

By Associated Press

Trump has signed another executive order targeting a law firm whose work he opposes.

The latest one applies to Susman Godfrey, whose lawyers represented Dominion Voting Systems in a lawsuit that accused Fox News of falsely claiming that the company rigged the 2020 presidential election. Fox News ultimately agreed to pay nearly $800 million to avoid trial.

White House staff secretary Will Scharf said the order will mean that the firm cannot use government resources or buildings.

Trump has issued a series of orders meant to punish firms, including by ordering the suspension of lawyers’ security clearances and revoking federal contracts. He has succeeded in extracting concessions from some that have settled, but others have successfully challenged the orders in court.

By Associated Press

The president called Whitmer a “very good person” who has done an “excellent job.”

The remark came with the governor in the Oval Office as Trump signed executive orders and attacked political opponents.

The remarks marked a sharp departure from his tone in his first presidency toward Whitmer, once one of his fiercest critics.

Since his reelection Whitmer has signaled a willingness to find common ground. Hours before the meeting, she delivered a speech voicing partial support for tariffs — though she criticized how Trump had carried them out.

By Associated Press

The Supreme Court allowed the Trump administration to oust two board members who oversee independent agencies, for now.

Chief Justice John Roberts signed an order pausing a ruling from the federal appeals court in Washington that had temporarily restored the two women to their jobs. They were separately fired from agencies that deal with labor issues, including one with a key role for federal workers as President Donald Trump aims to drastically downsize the workforce.

Roberts handles emergency appeals from the nation’s capital.

By Associated Press

Trump’s 90-day pause limiting tariffs, imports from Mexico and Canada will still get taxed by as much as 25 percent.

That’s according to a White House backgrounder. Unlike the tariffs that Trump temporarily took down to 10 percent to give time for negotiations, the taxes on the United States’ two largest trading partners are a separate matter. Mexico and Canada are being tariffed ostensibly to stop fentanyl smuggling and illegal immigration.

The backgrounder contradicted an earlier statement by Treasury Secretary Scott Bessent, who said Mexico and Canada would also be tariffed at 10 percent.

By Associated Press

US stocks are soaring on a euphoric Wall Street after Trump said he would temporarily back off on most of his global tariffs, as investors had so desperately hoped he would.

The S&P 500 was up 8.3 percent with less than an hour remaining in trading, heading toward one of its best days in decades. It had been sinking earlier in the day amid worries about whether Trump’s trade war would drag the global economy into a recession.

By Samantha J. Gross, Globe Staff

Governor Maura Healey was sitting in a roomful of business leaders Wednesday when her phone pinged with the news that President Trump was pausing many of the tariffs that were supposed to go into effect Wednesday.

She said the vacillating plans have left business owners with a whiteboard that “is all white,” and hinted her administration may soon roll out a program to help businesses weather the economic storm, though she offered no details.

“There’s no action,” she said of the federal government. “Nothing’s happening.”

Jim Rooney, chief executive of the Greater Boston Chamber of Commerce, said to his 1,300 members in the business community, “the uncertainty is paralyzing.”

Massachusetts is “incredibly integrated into the global economy,” he said, and that connection has caused businesses to hesitate on capital investments and think more carefully about contracts so that the price of steel or aluminum aren’t passed along to contractors.

Brooke Thomson, chief executive of Associated Industries of Massachusetts, echoed the sentiment, saying her 3,400 members are starting to question whether they can continue operating.

A paper manufacturer in Berkshires, for example, purchases $15 million worth of paper products every year from Canada, she said. They estimated as much as $5 million in additional costs per year under Trump’s proposed tariffs.

An industrial contractor in Western Massachusetts, Thomson said, entered 2025 with their best year on record. By the first week in April, 50 percent of their contracts were put on hold.

“That is completely devastating to a business that is small and medium sized, and let’s be honest, even some of our larger employers,” she said. “The conversation now is, can they stay open? Can they keep their workers?”

By Associated Press

Trump said he was watching the markets the past few days and said that “it looked pretty glum,” and that he saw on Tuesday that on the bond market, “people were getting a little queasy.”

“The bond market right now is beautiful,” the president told reporters at the White House.

Trump defended his decision to launch the tariffs, sending shocks into the market, because the situation with the U.S.’s trading partners “wasn’t sustainable.”

“Somebody had to pull the trigger. I was willing to pull the trigger,” he said.

The president said he would consider exempting some companies hit particularly hard by the tariffs, but when asked how he would make those determinations, he said, “Just instinctively.”

“You almost can’t take a pencil to paper. It’s really more of an instinct,” he said.

By Associated Press

Trump hosted champions from NASCAR, IndyCar, and IMSA in the Oval Office, then chatted with them outside, near race cars parked on the White House driveway.

Trump asked how fast NASCAR champions Joey Logano and Ryan Blaney could go in cars like the one parked by the South Portico. When told it was 190 miles per hour, “One ninety? You can have it,” Trump said.

Informed that other vehicles for IndyCar and international motorsports were even faster, the president said he wouldn’t ride in those “if you paid me.”

Trump said he was a racing fan, adding that many people “don’t realize what great athletes they are.”

By Samantha J. Gross, Globe Staff

Governor Maura Healey railed against President Trump’s chaotic tariff strategy Wednesday, comparing his plan to place levies on other countries to a rollercoaster on “a steady drop and a plummet.”

“At the end of the day I wish somebody could reach the president and get him to stop because enough is enough,” she said at a news conference at the State House in front of a podium with a placard that said “Standing Up For Businesses and Families.”

“We cannot continue to have our economy in Massachusetts and around this country held hostage,” she said. “We cannot continue to gamble with people’s livelihoods. There really is no excuse for this chaos.”

Trump announced on Truth Social that he would issue a 90-day pause for many of the “Liberation Day” tariffs that had gone into effect Wednesday, impacting countries around the world. In the same post, however, he said he would raise tariffs on China to 125 percent.

Other countries have started to retaliate. China announced that it would increase its levies on all U.S. exports to 84 percent beginning Thursday, and the European Union and Canada had also announced its own levies on American goods, according to the AP.

Healey, who met privately with business leaders before speaking to the press, said she calls on the White House and Congress to act, but that Massachusetts leaders are “not going to sit back and sit on our hands.”

By Associated Press

The whipsaw-like nature of Wednesday could be seen in the social media posts of Bill Ackman, a hedge fund billionaire and Trump supporter.

“Our stock market is down,” Ackman posted on the social platform X. “Bond yields are up and the dollar is declining. These are not the markers of successful policy.”

Ackman repeated in the post his call for a 90-day pause. When Trump embraced that idea several hours later, an ebullient Ackman posted that Trump had “brilliantly executed” his plan and it was “Textbook, Art of the Deal,” a reference to Trump’s bestselling 1987 book.

By Associated Press

Trump was asked about volatile markets and his decision to back off on many tariffs after previously suggesting he wouldn’t do so.

His comments came as he was chatting with reporters during an event with racing champions on the White House driveway.

By Associated Press

African nations account for only a sliver of America’s trade balance, yet they stood on the brink of crushing tariffs. Nations including Lesotho, Madagascar and Ivory Coast may now breath a sigh of relief after Trump’s Tuesday announcement.

Many impoverished nations export goods such as vanilla, cocoa, and blue jeans but lack the means to import much in return. They were staring down tariffs as high as 60 percent, but now will have 90 days to make a case to White House officials that trade deficits are a poor measure for weighing the worth of a relationship.

Karen Mathiasen of the Center for Global Development said the effects of tariffs in parts of sub-Saharan Africa could be devastating, costing tens of thousands of jobs and risking the meltdown of entire sectors.

“What they could focus on i disproportionate impact,” she said. “The case they could make is, ‘It will be devastating for us and for the United States, it won’t even be measurable. Trying to focus on incredibly uneven outcomes might be one way for them to be persuasive.”

By Associated Press

“He keeps changing things from day to day. His advisors are fighting among themselves, calling each other names, and you cannot run a country with such chaos,” said Senate Democratic Leader Chuck Schumer at a news conference that had originally been scheduled to call attention to the stock market plunge.

Schumer added that the danger from Trump’s tariffs had not passed and attributed his backing down to the reaction from across the country.

“Donald Trump is feeling the heat from Democrats and across America about how bad these tariffs are,” Schumer said. “He is reeling, he is retreating, and that is a good thing.”

By Associated Press

About 7 in 10 voters believed that Trump imposing tariffs on dozens of countries was going to hurt the US economy in the short-term, according to a Quinnipiac Poll conducted before the president announced a 90-day pause on most of those tariffs.

But there was less consensus that the long-term impact would be negative.

About half of voters believed the tariffs would hurt the US economy in the long term.

Republican voters were about evenly divided on whether the tariffs would help or hurt the US economy in the short term: 46 percent said they would help, and 44 percent said they would cause short-term pain.

Almost all Democrats and about three-quarters of Independents believed the tariffs would harm the economy in the short term.

By Associated Press

In a written statement, the first lady called the House Energy & Commerce Committee’s 49-1 vote a “significant step in our bipartisan efforts to safeguard our children from online threats.”

She urged the full House to “swiftly pass” the “Take It Down Act.” In March, Trump made a rare appearance on Capitol Hill by a first lady to personally lobby for the bill.

The Senate passed the measure in February.

The bill would make it a federal crime to knowingly publish or threaten to publish intimate imagery online without an individual’s consent. Social media platforms would have 48 hours to remove such images and take steps to delete duplicate content after a victim’s request.

By Associated Press

GOP senators were attending a luncheon when Senator Roger Marshall stood up and announced that Trump was backing down on most tariffs.

The room responded with applause, some cheers and relief, said senators who were in the meeting.

“It really lightened up the lunch discussion,” said Senator Mike Rounds, a South Dakota Republican, adding that there were “a lot of smiles.”

Senator Ron Johnson, R-Wisc., said he was relieved by the announcement and “we all would rather see the market rise than fall.”

Republicans in recent days have become louder with their concerns that Trump’s sweeping tariffs would harm the economy.

In the Senate, they have pushed the White House to negotiate trade deals rather than double down on the tariffs.

By Associated Press

General Motors rose 5.7 percent, Ford gained 5.6 percent and Stellantis rose 11.9 percent.

The companies have supply chains and production facilities that span North America. Tariffs mean more costly production for the companies and higher prices for consumers. Their stocks are all still down for the year.

Tesla rose 14.1 percent. The electric vehicle maker is less exposed to tariffs because it assembles all vehicles sold in the US within the US But the company has faced a backlash amid CEO Elon Musk’s work with Trump to lead efforts in slashing government spending. Tesla’s shares are down 40 percent since Trump’s inauguration.

By Associated Press

“This just accentuates the policy uncertainty and sense of unreliability Trump is creating,‘’ said William Reinsch, a former US trade official now at the Center for Strategic and International Studies. “Sure it’s good news, but how does anybody know that he won’t change his mind on Friday or next week? Countries are going to drift away from the US and, more important, from the dollar.‘’

By Associated Press

Passenger airlines, cruise lines, travel booking companies and hotels are surging in afternoon trading. Companies tied to travel and tourism had seen their shares slump the past few days amid fears of a possible recession.

Delta Air Lines and United Airlines built on earlier gains, with Delta up more than 18 percent and United rising 17 percent.

Cruise line operators Carnival Corp. and Royal Caribbean also posted double-digit increases.

Booking Holdings, operator of the online travel sites Booking.com, Priceline and Kayak, rose more than 7 percent. Expedia jumped 16 percent.

Hotel and casino companies also surged, with Marriott rising 8 percent and MGM Resorts gaining more than 10 percent. Airbnb also rose more than 10 percent.

By Associated Press

“Many of you in the media clearly missed the ‘Art of the Deal,‘” White House press secretary Karoline Leavitt told reporters, in a nod to the Trump’s 1987 memoir and advice book.

“You clearly failed to see what President Trump is doing here. You tried to say that the rest of the world would be moved closer to China, when in fact, we’ve seen the opposite effect the entire world is calling the United States of America, not China, because they need our markets.”

By Associated Press

The Trump administration asked the Supreme Court for an emergency order to oust board members who oversee independent agencies, as a constitutional fight about presidential power plays out.

The quick appeal to the high court follows a ruling two days earlier in which a divided appeals court in Washington restored two board members to their jobs for now. They were separately fired from agencies that deal with labor issues, including one with a key role for federal workers as Trump aims to drastically downsize the workforce.

The immediate issue confronting the justices is whether the board members can stay in their jobs while the larger fight continues over what to do with a 90-year-old Supreme Court decision known as Humphrey’s Executor.

In that case from 1935, the court unanimously held that presidents cannot fire independent board members without cause.

The ruling has long rankled conservative legal theorists, who argue it wrongly curtails the president’s power. The current conservative majority on the Supreme Court already has narrowed its reach in a 2020 decision.

By Associated Press

The Trump administration says it will appeal a federal court decision in a case brought against it by The Associated Press. That’s the ruling Tuesday that ordered it to re-admit AP journalists to White House events on First Amendment grounds.

The government filed a notice of appeal early Wednesday afternoon on behalf of the three White House officials sued by the AP. The one-page notice of appeal gave no other details.

On Tuesday, US District Judge Trevor N. McFadden, an appointee of President Donald Trump, ruled in favor of the AP, whose reporters and photographers had been excluded from White House events since February because the news agency had decided not to follow the president’s executive order to rename the Gulf of Mexico.

By Associated Press

“The market didn’t understand, those were maximum levels. The countries can think about those levels as they come to us to bring downtheir tariffs, their non-trade barriers,” Treasury Secretary Scott Bessent told reporters at the White House.

He said Trump “created maximum negotiating leverage for himself,” and the Chinese have “shown themselves to the world as the bad actors.”

By Associated Press

Treasury Secretary Scott Bessent said Trump will keep a 10 percent baseline tariffs on most countries while escalating action against China.

By Associated Press

Trump announced that he is pausing his hiked-up tariffs on most countries for 90 days because of their interest in negotiating trade deals with the US but is slapping another high tariff on China, citing a “lack of respect.”

The president made the announcement in a post on his Truth Social media network, causing stocks to quickly surge and the Dow Jones Industrial Average to shoot up 1,800 points.

By Associated Press

Adm. Samuel Paparo, head of US Indo-Pacific Command, told the House Armed Services Committee that the US Agency for International Development has historically provided critical necessities, food, water and medicine to nations in the region that particularly help poor areas. Such assistance, he said, enables the US to compete against China in the region.

While rescue teams from China and other nations have been prominent in the Myanmar earthquake responses, the US has had no known presence on the ground beyond a three-member assessment team. America’s six-decade-old USAID has largely been dismantled by Trump through Elon Musk’s Department of Government Efficiency teams.

Asked about the lack of USAID assistance to the crisis, Paparo said, “The People’s Republic of China sees these opportunities, and they seize them.”

By Associated Press

House Democrats pressed military and defense leaders on Wednesday about the national security impact of Trump’s new tariffs, saying the increased costs are pushing allies in the Pacific away from the US and closer to China.

Speaking during a House Armed Services Committee hearing, US Representative Joe Courtney, said the recent economic meeting between Japan, Korea and China underscores that concern. He added, “This is driving our allies in the wrong direction.”

Democrats on the panel questioned John Noh, who is currently working as the assistant defense secretary for Indo-Pacific affairs, about whether the tariffs are hurting longtime military allies in the region such as Australia, Japan, South Korea and Vietnam.

“We have launched a trade war against every single one of our partners in the Asia region,” said the panel’s ranking democrat, Represenetative Adam Smith, of Washington.

Noh repeatedly avoided answering, saying at one point, “I’m not here to talk about tariffs.”

The Trump administration calls China the key national security challenge and has vowed to focus more on the region.

By Alyssa Vega, Globe Staff

As President Trump’s sweeping tariffs on global imports to the US took effect Wednesday, escalating the global trade war, he urged Americans to remain calm.

“BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!” Trump posted on Truth Social Wednesday morning.

In a separate post, Trump said, “THIS IS A GREAT TIME TO BUY!!!”

READ MORE

By Associated Press

Business executives are warning of a potential recession caused by Trump’s policies, some of the top US trading partners are retaliating with their own import taxes and the stock market is quivering after days of decline.

Trump’s tariffs kicked in shortly after midnight on Wednesday, including 104 percent on products from China, 20 percent on the European Union, 24 percent on Japan and 25 percent on South Korea.

Administration officials have tried to reassure voters, Republican lawmakers and CEOs that the rates are negotiable — but by their own admission, that process could take months.

When a downturn appears on the horizon, investors typically crowd into U.S. Treasury notes as a safe haven, viewing the federal government as a source of stability. Not this time. Government bond prices are down, pushing up the interest rate on the 10-year US. Treasury note to 4.39 percent in a sign that the world is increasingly leery of Trump’s moves.

By Associated Press

A judge in Texas temporarily barred the US government from deporting three Venezuelan men under a rarely-invoked law that gives the president the power to imprison and deport noncitizens in times of war.

All three men were identified as belonging to the Tren de Aragua gang, a claim the legal defense disputes.

The three plaintiffs are being detained in a facility in Texas and face possible deportation, including a man who is HIV positive and fears lacking access to medical care if deported.

The men were identified as gang members by physical attributes using the “Alien Enemy Validation Guide,” in which a US Immigration and Customs Enforcement agent tallies points by relying on tattoos, hand gestures, symbols, logos, graffiti, and manner of dress, according to the ACLU.

Experts who study the gang have told the ACLU the method is not reliable.

By Associated Press

The US Citizenship and Immigration Services says in a press release that it will begin screening the social media activity of immigrants who request benefits, including those who apply for lawful permanent resident status, foreign students and people affiliated with educational institutions “linked to antisemitic activity.”

The guidance is “effective immediately,” USCIS says.

The administration is focusing on “antisemitic activity” on social media and “physical harassment of Jewish individuals” as grounds for denying immigration benefits requests.

The announcement does not say what it is considered as “antisemitism” or identify any educational institutions. USCIS did not immediately respond to an Associated Press request for information.

USCIS says it will consider social media content that indicates “endorsing, espousing, promoting, or supporting antisemitic terrorism, antisemitic terrorist organizations, or other antisemitic activity as a negative factor” when processing immigration benefit requests.

By Associated Press

This afternoon, at 2 p.m., Trump will participate in a photo opportunity with NASCAR racing champions and team owners ahead of his expected trip to the 2025 Daytona 500.

At 2:30 p.m., he will sign more executive orders.

By Associated Press

Delta Air Lines, which believed as recently as January that it was on track for its best financial year in company history, said Wednesday that disruptions in global trade have created such enormous uncertainty that it scratched its performance expectations for 2025.

It is a remarkable walk-back for the nation’s most profitable airline, and other companies are following suit. Hours after Delta removed its guidance for the year, Walmart dropped the first-quarter operating profit guidance it had provided to investors, citing tariff risks.

Delta is cutting its flight schedule in anticipation of a slowdown in spending as businesses and households brace for higher prices.

By Associated Press

The European Chamber in China said Wednesday that the latest US tariffs will necessitate a strategic rethink of business models and supply chains for many.

This will lead to a substantial increase in operational costs and inefficiencies, and ultimately higher prices for consumers.

Some companies that currently produce in China for export to the US will need to identify alternative markets, while others may need to move production from China in order to continue servicing the US market.

China’s countermeasures will also have a negative impact on some foreign-invested enterprises in China that import certain components from the US for their production. For companies that are unable to source alternatives, this could also result in them having to move their production out of China altogether.

By Associated Press

Gold futures rose for a second straight day, with futures climbing more than 3 percent to $3,085 per ounce Wednesday morning.

Interest in buying gold typically spikes in times of uncertainty, as anxious investors seek a “safe haven” for parking their money.

Copper prices rose for the first time in five days, gaining 1.4 percent to $4.20 per pound.Silver gained nearly 2 percent to $30.22 per ounce.

By Associated Press

As the White House grapples with the economic fallout of Trump’s new tariffs, the president is shifting his focus to loosening regulations.

He is expected to sign a slew of executive orders later Wednesday that are centered around deregulation, according to a White House official. That person was granted anonymity to preview Trump’s plans.

By Associated Press

Beijing today issued a travel advisory asking its citizens to evaluate risks of visiting the US as tourists and to exercise caution.

The advisory, issued by the Chinese Ministry of Culture and Tourism, cited the deterioration of the China-US economic and trade relations as well as the “safety situation” in the US. The advisory came shortly after China raised its tariffs on the US to 84 percent, as the trade war between the two countries escalated.

By Associated Press

Oil prices slid to a multiyear low Wednesday as fears of a global recession grew amid the latest round of tariff increases.

Prices for US crude were down $2.17 per barrel, or 3.7 percent, to $57.41 per barrel after the opening bell on Wall Street. Prices recovered some of the overnight losses that pushed them to their lowest level since February of 2021, when the US and global economies were still emerging from the COVID-19 economic downturn.

Brent crude, the European standard, fell $2.36 to $60.46 per barrel.

Rapidly falling oil prices often signal investor pessimism about economic growth and can be a harbinger of a recession as companies use less fuel to produce goods.

Major US oil companies’ shares also fell in morning trading Wednesday. Chevron was down 1.6 percent, while Exxon Mobil lost 1.9 percent.

By Associated Press

US Secretary of Defense Pete Hegseth again put China at the center of US priorities in the western hemisphere on Wednesday, one day after calling the world power a threat to the Panama Canal.

Speaking at a regional security conference in Panama City, Hegseth said that China-based companies were controlling land and critical infrastructure in strategic sectors.

“China’s military has too large of a presence in the western hemisphere,” Hegseth said. “Make no mistake, Beijing is investing and operating in this region for military advantage and unfair economic gain.”

He called on the region’s governments to work together to deter China and address threats posed by transnational drug cartels and mass immigration.

By Associated Press

European Union member states voted to approve the retaliatory tariffs on $23 billion in goods in response to Trump’s 25 percent tariffs on imported steel and aluminum.

The tariffs will go into effect in stages, with some on April 15 and others on May 15 and Dec. 1. The EU executive commission didn’t immediately provide a list of the goods Wednesday.

Members of the 27-country bloc repeated their preference for a negotiated deal to settle trade issues: “The EU considers US tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The EU has stated its clear preference to find negotiated outcomes with the US, which would be balanced and mutually beneficial.”

The head of the EU’s executive commission, Ursula von der Leyen, has offered a zero-for-zero tariffs deal on industrial goods including cars. But Trump has said that’s not enough to satisfy US concerns.

By Associated Press

The US stock market is quivering but holding relatively steady in early Wednesday trading after other markets worldwide swung sharply as Trump’s trade war keeps escalating.

The S&P 500 was nearly unchanged after futures markets had earlier indicated it could be heading for a much steeper loss. It swung between gains and losses in the first five minutes of trading. The Dow Jones Industrial Average was down 170 points, or 0.5 percent, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.5 percent higher.

Financial markets have been prone to huge swings recently, though, not just day to day but hour to hour. On Tuesday alone, the S&P 500 careened between a gain of 4.1 percent and a loss of 3 percent for its second day of stunning reversals.

Wall Street’s latest moves came after Trump’s latest round of tariffs kicked in after midnight for imports from around the world. That included a 104 percent tax on things coming from China, and the world’s second-largest economy quickly retaliated by saying it would raise tariffs on US goods to 84 percent on Thursday.

By Associated Press

President Trump is promising to impose tariffs on pharmaceuticals so that more medications would be made in the US Some investors aren’t waiting around to find out the exact details.

“We’re going to be announcing, very shortly, a major tariff on pharmaceuticals,” Trump said Tuesday night.

Eli Lilly shares dropped 2.7 percent early Wednesday, while Pfizer shares gave back 2.4 percent. Merck and Johnson & Johnson each fell almost 2 percent. In overseas trading, Novartis shares fell 5.8 percent and Roche Holding dropped 4.6 percent.

Trump lamented that the US no longer produces many of the pharmaceuticals that Americans take, and said new tariffs would change that by bringing production of medication back to the US.

By Associated Press

Some of Wednesday’s strongest action was in the normally staid US bond market.

The yield on the 10-year Treasury jumped to 4.44 percent from 4.26 percent late Tuesday and from just 4.01 percent at the end of last week. That’s a huge move for the bond market and could be an indication of stress.

Analysts say several reasons could be behind the move, including hedge funds and other investors having to sell their Treasury bonds to raise cash in order to make up for losses in the stock market and elsewhere. Investors outside the United States may also be selling their US Treasurys because of the trade war.

Regardless of the reasons behind it, the higher yields on Treasurys add pressure on the stock market and could push up rates for mortgages and other loans for US households.

By Associated Press

China has used a meeting of the World Trade Organization to lash out at the Trump administration’s tariffs, accusing the United States of setting the global trading system “ablaze.”

A Chinese envoy at a WTO council meeting on Wednesday said the US tariffs infringed on the right of countries to develop, and noted for example that earthquake-hit Myanmar was facing an “exorbitant” 44 percent tariff and even an “uninhabited island, home only to penguins and seals” faced a 10 percent tariff.

The official said President Trump’s tariffs contravened the US’s commitments under WTO rules, and the “so-called ‘reciprocal tariff” has set the very architecture of the multilateral trading system ablaze.”

The Chinese mission provided a copy of the statement in the closed-door session to The Associated Press but declined to identify the speaker by name.

Contacted by the AP, the US diplomatic mission in Geneva declined to comment.

By Associated Press

Walmart, the nation’s largest retailer, is standing behind its full-year sales and operating income outlook even as President Trump has launched tariff wars with China and nearly every trading partner.

The Bentonville, Arkansas-based company said Wednesday it still expects first-quarter sales growth of 3 percent to 4 percent. But it walked away from guidance for first-quarter operating profit growth of between 0.5 percent to 2 percent, citing the risk of tariffs.

Walmart said it wants “to maintain flexibility to invest in price as tariffs are implemented.”

The retailer has built in hedges against some tariff threats. Two-thirds of Walmart’s merchandise is sourced in the US, with groceries driving much of that. Groceries account for roughly 60 percent of Walmart’s US business.

By Associated Press

Trump says tariffs will be “ZERO” for companies that come back to America.

“This is a GREAT time to move your COMPANY into the United States of America,” the

Republican president wrote on his social media site as he continues to defend sweeping global tariffs he announced last week that have roiled the stock market.

US stock futures were sinking again in premarket trading on Wednesday after massive US tariffs against China kicked in overnight, followed by China retaliating with a huge tariff increase on US imports.

By Associated Press

Whitmer is in Washington to give a speech Wednesday on the economy and will meet with Trump at the White House in the afternoon, according to the governor’s spokesperson.

Whitmer is among a handful of Democratic governors who have spoken about finding ways to work with a Republican president who pushes policies they disagree with.

Whitmer and Trump also met at the White House last month.

By Associated Press

Manufacturers struggling to make long-term plans. Farmers facing retaliation from Chinese buyers. US households burdened with higher prices.

Republican senators are confronting the Trump administration with those worries and many more as they fret about the economic impact of the president’s sweeping tariff strategy that went into effect on Wednesday.

In a Senate hearing and interviews with reporters this week, Republican skepticism of Trump’s policies ran unusually high. While GOP lawmakers directed their concern at Trump’s aides and advisers — particularly US Trade Rep. Jamieson Greer, who appeared before the Senate Finance Committee on Tuesday — it still amounted to a rare break from a president they have otherwise championed.

Lawmakers had reason to worry: the stock market has been in a volatile tumble for days, and economists are warning that the plans could lead to a recession.

By Associated Press

The Trump administration has reversed sweeping cuts in emergency food aid to several nations while maintaining them in Afghanistan and Yemen, two of the world’s poorest and most war-ravaged countries, officials said Wednesday.

The United States had initially cut funding for projects in more than a dozen countries, part of a dramatic reduction of foreign aid led by billionaire Elon Musk’s Department of Government Efficiency. Aid officials warned the cuts would deny food to millions of people and end health programs for women and children.

The administration informed the World Food Program of its reversal on Tuesday, according to two UN officials.

The WFP said Monday it had been notified that USAID was cutting funding to the UN agency’s emergency food program in 14 countries.

It was not immediately clear Wednesday how many of those cutoffs still stood.

By Associated Press

More than $1 billion in federal funding for Cornell University and around $790 million for Northwestern University have been frozen while the government investigates alleged civil rights violations at both schools, the White House says.

It’s part of a broader push to use government funding to get major academic institutions to comply with Trump’s political agenda. The White House confirmed the funding pauses late Tuesday night, but offered no further details on what it entails, or what grants to the schools are being affected.

The moves come as the Trump administration has increasingly begun using governmental grant funding as a spigot to try and influence campus policy — previously cutting off money to schools including Columbia University and the University of Pennsylvania.

That has left universities across the country struggling to navigate cuts to grants for research institutions.

By Associated Press

China has again vowed to “fight to the end,” raising tariffs on American goods to 84 percent to match Trump’s addition of a 50 percent tariff, while adding an array of additional countermeasures Wednesday.

The 84 percent tariff will go into effect Thursday, and comes as a 104 percentt tax on the country’s exports to the US came into effect. “If the US insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end” the Ministry of Commerce wrote in a statement introducing the white paper.

The government declined to say whether it would negotiate with the White House, as many other countries have started doing.

“If the US truly wants to resolve issues through dialogue and negotiation, it should adopt an attitude of equality, respect and mutual benefit,” said Ministry of Foreign Affairs spokesman Lin Jian Wednesday.

READ MORE

By Associated Press

As part of a flurry of countermeasures, China has said it will levy its own 84 percent tariff on all US goods — up from 34 percent — starting Thursday.

Trump was quick to criticize China’s move — but China has maintained that it will “fight to the end” and take countermeasures against the US to protect itself.

The trade war between the US and China isn’t new. The two countries had exchanged a series of tit-for-tat levies in recent months — on top of tariffs imposed during Trump’s first term, many of which were preserved or added to under former President Joe Biden.

While China has taken the toughest approach so far, several countries signaled that they are evaluating their own responses to Trump’s levies.

It’s possible that we’ll see more retaliation in the future, but some have signaled hopes to negotiate. The head of the European Union’s executive commission is among those offering a mutual reduction of tariffs — while warning that counter measures are still an option.

By Associated Press

President Trump has launched tariff wars with nearly all of America’s trading partners. And there’s no end in sight.

A number of sweeping new taxes on goods from other countries are already here — and more took effect on Wednesday. Trump has promised higher rates for his latest and most severe volley of duties, which he calls “reciprocal” tariffs.

Trump announced his latest — and most sweeping — round of tariffs on April 2, which he dubbed “Liberation Day,” as part of his “reciprocal” trade plan. In a fiery speech claiming that other countries had “ripped off” the US for years, Trump declared that the US would now tax nearly all of America’s trading partners at a minimum of 10 percent — and impose steeper rates for countries that he says run trade surpluses with the US.

The 10 percent baseline already went into effect Saturday. And when the clock struck at midnight, the higher import tax rates on dozens of countries and territories took hold.

By Associated Press

China has raised tariffs on American goods to 84 percent to match Trump’s addition of a 50 percent tariff, while adding an array of additional countermeasures Wednesday.

The 84 percent tariff will go into effect Thursday, and comes as a 104 percent tax on the country’s exports to the US came into effect.

“If the US insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end” the Ministry of Commerce wrote in a statement introducing the white paper.

The government declined to say whether it would negotiate with the White House, as many other countries have started doing.

By Associated Press

Pakistan’s Prime Minister Shehbaz Sharif on Wednesday said he is sending a delegation to the United States for talks with the Trump administration over 29 percent tariffs on Pakistani imports.

According to a government statement, the delegation will include prominent business leaders and key exporters.

It said the decision was made during a high-level meeting chaired by Sharif in Islamabad to discuss how to enhance exports and review the impact of US tariffs on Pakistan.

Pakistan heavily relies on foreign loans, and any decline in its exports will harm its already fragile economy.

By Shirley Leung and Larry Edelman, Globe Columnist

It’s not just corporate giants like General Motors, Apple, and Target that are grappling with President Trump’s upending of global trade.

Across New England, small businesses of all kinds — from wholesalers to restaurants to startups — are having to decide whether to stick to their plans or hunker down. How they respond will be pivotal in whether the economy can survive the shock of the trade war and the stock market meltdown it triggered.

Some businesses are cutting budgets amid fears of a recession. Others are staying the course, hoping the confusion subsides so they can plot their next moves.

READ MORE

By Christopher Muther, Globe Staff

Canadians are booing the US national anthem at hockey and baseball games. They’re canceling vacations to the United States en masse. In grocery stores, Canadian-made products are proudly marked with red maple leaves, while shoppers are flipping US-made products upside down on shelves to signal other shoppers to avoid them.

Since President Trump took office in January and began threatening Canada with a 25 percent tariff and repeatedly remarking that the country was “meant to be the 51st state,” Canadian public opinion of the United States has dropped precipitously. A survey from the Association for Canadian Studies found that just one-third of Canadians have a favorable view of the United States, a 50 percent drop since last summer. Meanwhile, Trump’s actions have whipped up a frenzy of Canadian patriotism.

In shops, you can find “Canada is Not for Sale” T-shirts and hats. MAGA-subversive “Make America Go Away” hats are also popular. Canadian comedian Mike Myers has been signaling “Elbows up” to viewers during the goodnights of “Saturday Night Live.” “Elbows up” is said to have been inspired by Canadian hockey legend Gordie Howe, who threw his elbows up in the rink to defend himself in fights. In Canada, it has become a rallying cry against the United States.

READ MORE

By the Associated Press

China again vowed to “fight to the end” against President Trump’s tariffs in a lengthy policy statement published Wednesday, arguing that trade between the two countries is in balance as a 104 percent tax on the country’s exports to the US came into effect.

The government declined to say whether it would negotiate with the White House, as many other countries have started doing.

READ MORE

By The New York Times

Behind President Trump’s decision to hit some of America’s largest trading partners with stiff tariffs is his fixation on the trade deficit that the United States runs with other nations. But many economists say that is a poor metric for judging the quality of a trade relationship.

The steep tariffs, which went into effect on nearly 60 trading partners on Wednesday, were calculated based on bilateral trade deficits, or the gap between what the United States sells to each country and what it buys.

Trump has long viewed that gap as evidence that America is being “ripped off” by other countries. He argues that other countries’ unfair behavior has made trade so skewed and that the United States needs to be able to manufacture more of what it consumes. But economists argue this is a flawed way to approach the issue, given that bilateral trade deficits crop up for many reasons beyond unfair practices.

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By The New York Times

President Trump’s next round of punishing tariffs on some of America’s largest trading partners went into effect Wednesday, including stiff new levies that will increase import taxes on Chinese goods by at least 104 percent.

Trump acknowledged Tuesday that his tariffs had been “somewhat explosive.” But throughout the day he continued to defend his approach, saying that it was encouraging countries with what he calls “unfair” trade practices to offer concessions.

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By the Associated Press

Manufacturers struggling to make long-term plans. Farmers facing retaliation from Chinese buyers. US households burdened with higher prices.

Republican senators are confronting the Trump administration with those worries and many more as they fret about the economic impact of the president’s sweeping tariff strategy that went into effect Wednesday.

In a Senate hearing and interviews with reporters this week, Republican skepticism of President Trump’s policies ran unusually high. While GOP lawmakers made sure to direct their concern at Trump’s aides and advisers — particularly US Trade Representative Jamieson Greer, who appeared before the Senate Finance Committee Tuesday — it still amounted to a rare Republican break from a president they have otherwise championed.

READ MORE

By the Associated Press

By declaring a trade war on the rest of the world, President Trump has panicked global financial markets, raised the risk of a recession and broken the political and economic alliances that made much of the world stable for business after World War II.

Trump’s latest round of tariffs went into full effect at midnight Wednesday, with higher import tax rates on dozens of countries and territories taking hold.

Economists are puzzled to see Trump trying to overhaul the existing economic order and doing it so soon after inheriting the strongest economy in the world. Many of the trading partners he accuses of ripping off US businesses and workers were already floundering.

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