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      Crucial Week for Trump: New Tariffs and Elections Will Test His Momentum

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      Down-ballot races in Florida and Wisconsin are seen as a referendum on the White House, while the president’s to-be-announced reciprocal tariff plan is increasingly worrying investors and consumers.President Trump’s political momentum will face a major test this week as Democrats try to turn various down-ballot races into a referendum on the White House, and Mr. Trump’s long-promised tariffs risk rattling allies and consumers alike.A State Supreme Court election in Wisconsin on Tuesday is seen as an indicator of support for Mr. Trump, particularly after Elon Musk and groups he funds spent more than $20 million to bolster Mr. Trump’s preferred candidate. White House officials have also been increasingly concerned with the unusually competitive race on Tuesday for a deep-red House seat in Florida left vacant after Representative Michael Waltz stepped down to serve as Mr. Trump’s national security adviser.The White House is hoping victories in those races will tighten Mr. Trump’s grip on the Republican Party as his team seeks to overcome the backlash from its inadvertent sharing of military plans on a commercial app with a journalist.The Florida election is critical for Republicans, who hold a narrow majority in the House as they try to pass the president’s agenda. The outcome of the Wisconsin race, in a battleground state that Mr. Trump narrowly won last year, could be a reflection of voters’ views on the president’s gutting of the federal work force, his crackdown on illegal immigration and his moves to purge diversity, equity and inclusion initiatives.“It’s a big race,” Mr. Trump said of the Wisconsin judicial contest on Monday while signing executive orders in the Oval Office. “Wisconsin is a big state politically, and the Supreme Court has a lot to do with elections in Wisconsin.”Mr. Trump is also expected to reveal the details of his reciprocal tariff plan on Wednesday. He has labeled it “Liberation Day,” saying the nation will finally break free of past trade relationships that he argues have cheated the United States. Investors, however, are growing more concerned that the tariffs could fuel inflation and slow consumer spending, potentially driving up economic anxieties among voters.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Stocks Sink as Trump’s Tariff Threats Weigh on Confidence

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      Stocks in Japan tumbled nearly 4 percent as investors braced for a week of market turmoil caused by an expected announcement of more tariffs.Stocks in Asia tumbled Monday as investors braced for a week of market tumult caused by an expected announcement of more tariffs by President Trump on America’s biggest trading partners.Japan’s Nikkei 225 index fell nearly 4 percent in early trading. Stocks in South Korea and Taiwan were down more than 2 percent.Stocks in Hong Kong and mainland China were mostly unchanged, bolstered by a report signaling that China’s export-led industrial sector continues to expand despite Mr. Trump’s initial tariffs.Futures on the S&P 500, which allow investors to trade the benchmark index before exchanges reopen in New York in the morning, slumped 0.5 percent on Sunday evening. On Friday, the S&P 500 dropped 2 percent on concerns about inflation and weak consumer sentiment.Since taking office a little over two months ago, Mr. Trump has kept investors and companies guessing with his haphazard rollout of what he calls an “America First” trade policy.In some cases, Mr. Trump has imposed tariffs to make imports more expensive in industries like automobiles, arguing that the trade barriers will spur investment and innovation in the United States. He has also used tariffs, and their threat, to try to extract geopolitical concessions from countries. He has further unnerved investors by saying he does not care about the fallout of his actions on markets or American consumers, who will have to pay more for many goods if import prices rise.Over the weekend, Mr. Trump ramped up the pressure, threatening so-called secondary sanctions on Russia if it does not engage in talks to bring about a cessation of fighting in Ukraine. The tactic echoes similar sanctions concerning Venezuela. He said last week that any country buying Venezuelan oil could face another 25 percent tariff on its imports to the United States. The threats over the weekend add to tariffs of 25 percent on imported cars and some car parts set to be implemented this week, barring any last minute reprieve. That’s in addition to previously delayed tariffs on Mexico and Canada, as well as the potential for further retaliatory tariffs on other countries.Adding to investors’ angst is the scheduled release on Friday of the monthly report on the health of the U.S. jobs market. It could provide another reading of how the Trump administration’s policy pursuits are weighing on the economy.Keith Bradsher More

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      Trump Says He ‘Couldn’t Care Less’ if Auto Tariffs Raise Car Prices in the U.S.

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      President Trump has said that “tariffs are the greatest thing ever invented.” For someone who once called himself a “tariff man,” tariffs are the solutions to many economic problems.He has argued that imposing tariffs would protect American factories, spur manufacturing, create new jobs and bend uncooperative governments to his will. Since his inauguration, while imposing and then suspending and then imposing tariffs again, Mr. Trump has upended the global trading system.But over that time Mr. Trump has also begun conceding that tariffs could cause financial discomfort for Americans. That possibility came up in stark terms in an interview with NBC’s “Meet the Press” from Saturday, when Mr. Trump said that he “couldn’t care less” about the prospect of higher car prices.The president repeated the sentiment twice when asked about the 25 percent tariffs on imported cars and auto parts that he has promised will go into effect on Thursday. He told the NBC News host Kristen Welker that the tariffs were permanent, and that he would encourage auto companies and their suppliers to move to the United States.In one exchange, Ms. Welker asked Mr. Trump if he was at all concerned with the effect of tariffs on car prices, which experts have said could go up by thousands of dollars. “No, I couldn’t care less,” he said, “because if the prices on foreign cars go up, they’re going to buy American cars.”After the interview, an aide to the president told NBC that Mr. Trump was referring to the increase in foreign car prices.While the White House sought to emphasize foreign-made vehicles, the tariffs will affect American companies like Ford Motor and General Motors, which build many of their vehicles in Canada and Mexico. Nearly half of the vehicles sold in the United States are imported, according to S&P Global Mobility data, and almost 60 percent of auto parts in cars assembled in the country.A study by the Yale Budget Lab, a nonpartisan research center, forecast that tariffs would cause vehicle prices to increase by an average of 13.5 percent — an additional $6,400 to the price of an average new 2024 car.On Sunday, Shawn Fain, the president of the United Automobile Workers union, said that the tariffs were indeed a “motivator” for carmakers to bring jobs back to the United States. But, he said on CBS’s “Face the Nation,” they were not an “end-all solution” to help American auto workers. If jobs are being brought back to the United States, Mr. Fain said, they need to be “good paying union jobs that set standards.”Peter Navarro, a senior trade adviser to Mr. Trump, defended the tariffs and said they would raise about $100 billion, which would translate to tax credits for people who buy American cars. He, too, told Americans not to worry about the effects of the tariffs.Instead, he said on Sunday, they should “trust in Trump.” More

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      Trump Auto Tariffs: How Major Car Brands Would Be Affected

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      The tariffs on cars and auto parts that President Trump announced on Wednesday will have far-reaching effects on automakers in the United States and abroad.But there will be important differences based on the circumstances of each company.TeslaThe company run by Mr. Trump’s confidant, Elon Musk, makes the cars it sells in the United States in factories in California and Texas. As a result, it is perhaps the least exposed to tariffs.But the company does buy parts from other countries — about a quarter of the components by value in its cars come from abroad, according to the National Highway Traffic Safety Administration.In addition, Tesla is struggling with falling sales around the world, in part because Mr. Musk’s political activities and statements have turned off moderate and liberal car buyers. Some countries could seek to retaliate against Mr. Trump’s tariffs by targeting Tesla. A few Canadian provinces have already stopped offering incentives for purchases of Tesla’s electric vehicles.General MotorsThe largest U.S. automaker imports many of its best selling and most profitable cars and trucks, especially from Mexico where it has several large factories that churn out models like the Chevrolet Silverado. Roughly 40 percent of G.M.’s sales in the United States last year were vehicles assembled abroad. This could make the company vulnerable to the tariffs.But unlike some other automakers, G.M. has posted strong profits in recent years and is considered by analysts to be on good financial footing. That could help it weather the tariffs better than other companies, especially if the levies are removed or diluted by Mr. Trump.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump Floats Chinese Tariff Cuts in Exchange for TikTok Deal

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      President Trump on Wednesday raised the possibility that he could relax steep upcoming tariffs on China in exchange for the country’s support on a deal to sell TikTok to a new owner supported by the United States.Acknowledging that Beijing is “going to have to play a role” in any transaction, Mr. Trump signaled to reporters at the White House that he could be open to negotiation. “Maybe I’ll give them a little reduction in tariffs or something to get it done,” he said.Under a law enacted before Mr. Trump took office, the Chinese-based parent company of TikTok must either sell the social media app’s U.S. operations or face what essentially amounts to a domestic ban. Lawmakers adopted that policy in response to growing, bipartisan concerns that the app posed threats to U.S. national security, which TikTok denies.Congress originally set a January deadline for its ultimatum. But no sale occurred, prompting Mr. Trump — as one of his first executive actions — to delay enforcement of the law for 75 days in the hopes of securing a buyer.The new deadline arrives on April 5, just three days after Mr. Trump separately plans to announce what he has described as “reciprocal” tariffs, imposing new duties on foreign nations based on the trade barriers that they erect to U.S. imports. The president has already subjected Chinese goods to a 20 percent tariff, on top of those he enacted during his first term in office.“Every point in tariffs is worth more than TikTok,” Mr. Trump said about the prospects of a negotiation, adding: “Sounds like something I’d do.”Mr. Trump on Wednesday said he could issue another order that grants the government additional time to find a buyer for TikTok, stressing the goal is an outcome “that’s best for our country.” The president has raised the possibility that the U.S. government could acquire a stake in the app.”If it’s not finished, it’s not a big deal. We’ll extend it,” Mr. Trump said.Chinese officials, for their part, maintain that any sale or divestiture must comply with local export laws, potentially giving Beijing power over any arrangement brokered by Mr. Trump. More

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      U.K. Boosts Military Spending and Cuts Welfare in ‘Uncertain World’

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      The changes come as President Trump’s tariff threats have disrupted global trade and added pressure to the British government’s already strained budget.The British government on Wednesday laid out plans for higher military spending and cuts to social benefits, as it sought to keep the nation’s finances on track in what it called a “more uncertain world.”Rachel Reeves, the chancellor of the Exchequer, said there would be an extra 2.2 billion pounds ($2.8 billion) for defense in the fiscal year that begins next month. And she reiterated recently announced reductions to the benefits system that were expected to save about £5 billion by 2030.The changes come as President Trump’s economic policies have disrupted the global economy, putting more demands on the British government’s already stretched budget. Like many other European countries, Britain has pledged to spend more on defense to support Ukraine against Russia. At the same time, the threat of a global trade war is lurking and interest rates have increased, pushing up government borrowing costs.“Our task is to secure Britain’s future in a world that is changing before our eyes,” Ms. Reeves said in Parliament on Wednesday.“The job of a responsible government is not simply to watch this change,” she added. “This moment demands an active government.”Adding to the hurdles, the British economy slowed in the second half of last year, and the Office for Budget Responsibility, an independent watchdog, halved its forecast for growth this year to 1 percent from 2 percent.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump’s Tariffs Against Canada Can’t Be About Trade

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      I’ll admit that I was sympathetic to Donald Trump’s heresy on trade, during his first term. His tariffs on China and his bid to renegotiate NAFTA prompted much pearl clutching from economists and pundits, but I knew from my reporting how many people in factory towns across America wanted him to do those things. The renegotiation of NAFTA was, ultimately, a bipartisan success story. It passed overwhelmingly. By the end of his first term, many people — including Democrats — acknowledged quietly that tariffs on China and updating NAFTA were necessary. President Joe Biden didn’t reverse them. He built on them. But now Trump seems to have lost the plot.He is tearing up that deal that he himself created by imposing 25 percent tariffs on Mexico and Canada, our largest trading partners. What gives?In the case of Mexico, there have been legitimate concerns that China is getting around U.S. tariffs by building or taking over factories in Mexico. That’s one of a few reasons the U.S. trade deficit with China has declined — to $295 billion last year from $418 billion in 2018 — at the same time the trade deficit with Mexico ballooned to $172 billion last year from roughly $78 billion in 2018, according to Census Bureau data.If you worry about chronic trade deficits, as Trump does, that’s a problem. But Trump’s ire at Canada is a mystery. The U.S. trade deficit with Canada is one of the smallest that we have — it was about $19 billion in 2018 and $63 billion last year. Virtually all of it can be explained by U.S. purchases of oil, gas and electricity, a reminder that Canada is critical to U.S. energy security.Without energy, the United States actually runs a trade surplus with Canada. Canada is the top export market for 34 states — or at least it was.Trump’s targeting of Canada has bewildered even his own political allies on trade. “On Canada, he’s just wrong,” one told me. I can’t pretend to understand what goes on in Trump’s brain. But this much is clear: It ain’t about trade.If you listen to his words, Trump is declaring economic war on Canada, our loyal and peaceful neighbor, because he wants to bring it to its knees and take it over as a 51st state. He’s wielding tariffs as a weapon, not to defend American workers, but to execute a hostile takeover of a country. It is a move so bizarre and shocking that nobody can quite believe it is happening.I was in Indiana this week, which is full of factory towns that supported Trump. Canada is the state’s largest trading partner by far. I didn’t met a soul who thinks beating up on Canada is a good idea. More

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      Trump’s Tariffs Have Sown Uncertainty. That Might Be the Point.

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      Since taking office, President Trump and his advisers have explained the president’s aggressive economic approach to tariffs with a litany of conflicting ideas. Other countries are “ripping off” America and need to be stopped. The United States is fighting a drug war with Canada, Mexico and China. Tariffs will help pay down the nation’s $36 trillion debt load.The messaging hodgepodge comes as the U.S. economy shows signs of strain in response to Mr. Trump’s steep tariffs on Canada, Mexico and China and as he prepares to enact “reciprocal” tariffs on imports from around the world on April 2.The tariffs have sowed uncertainty and dampened business investment and consumer sentiment while sending markets gyrating daily. They are also likely to prevent the Federal Reserve from cutting rates as policymakers wait to see exactly what measures Mr. Trump follows through with and how they affect the economy.But rather than trying to provide more coherence about their economic strategy, Mr. Trump and his advisers seem to be embracing the uncertainty of his approach as a feature, not a bug.“Absolutely, between now and April 2, there’ll be some uncertainty,” Kevin Hassett, the director of the White House’s National Economic Council, said on CNBC this week amid questions about what investors are to make of Mr. Trump’s trade agenda.Mr. Trump, when asked whether he would give the business community more clarity about his overall approach, largely dismissed concerns that corporations needed predictability.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More