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      Trump Tariffs and Shrinking GDP Raise Political Stakes

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      The report that the economy contracted in the first quarter underscored how much President Trump has at risk as he pursues an aggressive trade war.President Trump took office 101 days ago after a campaign in which voters bought his argument that he could skillfully manage the economy and that his policy prescriptions could both bolster growth and eradicate inflation.So the news on Wednesday that the nation’s gross domestic product had contracted in the first three months of the year was a sharp political jolt as well as a blinking economic warning.It came at the end of a quarter in which stock prices were down sharply, Wall Street’s worst performance at the start of a new presidential term since Gerald R. Ford tried to steer the country out of scandal and inflation 51 years ago. And it only added to the widespread uncertainty among businesses and consumers about what the rest of the year might hold as Mr. Trump pursues a trade war that is already choking off supply chains and threatening to push prices up and lead to shortages of critical components and products on shelves.It is too soon to predict where the American economy is headed for the rest of the year, and Mr. Trump remains insistent that he will produce a flurry of trade deals that will bring manufacturing back to the United States and usher in a new age of prosperity.But the first-quarter figures brought the political risks for him into focus. For Mr. Trump, what is at stake is a question of fundamental competence on an issue that he has always used to define himself.If the report proves to be a harbinger of an extended slowdown or recession, the situation could become the economic analog of President Joseph R. Biden Jr.’s fumbled withdrawal from Afghanistan four years ago this summer. Mr. Biden’s job approval ratings never recovered from that early debacle. Nothing he did later — not the millions of jobs created, not the big legislative victories, not the rapid response to Russia’s invasion of Ukraine — could restore the sense among voters that he could be trusted to carry out the job with the skill they assumed he brought to it.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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      Senate Rejects Bipartisan Measure to Undo Trump’s Tariffs

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      Only three Republicans joined Democrats in voting to end the national emergency President Trump declared to impose tariffs on most U.S. trading partners, leaving the measure short of the support needed to pass.The Senate on Wednesday rejected an effort to undo President Trump’s sweeping tariffs on most U.S. trading partners, even as a small group of Republicans joined Democrats in delivering a rebuke to a trade policy that many lawmakers fear is causing economic harm.The vote deadlocked at 49 to 49, meaning it failed despite three Republicans joining Democrats in favor of a measure that sought to terminate the national emergency declaration Mr. Trump used this month to impose 10 percent reciprocal tariffs.Senator Rand Paul, Republican of Kentucky and a cosponsor of the resolution, crossed party lines to support it, as well as Senators Susan Collins of Maine and Lisa Murkowski of Alaska. But the defections were not enough to make up for the absences of two supporters: Senators Sheldon Whitehouse, Democrat of Rhode Island, and Mitch McConnell, Republican of Kentucky, who backed a similar measure this month.“It’s still a debate worth having,” Mr. Paul said of the failed resolution. He noted that many of his Republican colleagues are privately expressing consternation over Mr. Trump’s trade war but have carefully calibrated their public responses to defer to the president.A subsequent procedural vote on the measure prompted Vice President JD Vance to go to Capitol Hill on Wednesday evening to cast the deciding vote to table it, formally ending the effort to challenge Mr. Trump’s use of the emergency power for wide-ranging tariffs.Even if the resolution had passed the Senate, it had no path to enactment. The White House has threatened a veto, and House Republican leaders moved pre-emptively to prevent any such measure from being forced to the floor until the fall at the earliest. The maneuver was aimed at shielding their members from politically tricky votes on the matter.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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      Under Trump, Stocks Have the Worst Start to a Presidential Term Since 1974

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      During the first 100 days of the Trump administration, shock waves from the chaotic tariff rollout continue to send tremors through the global financial system.One hundred days of President Trump. Seventy days of whipsaw trading in financial markets. Thirty three days of losses. More than $6.5 trillion wiped from the value of public companies.For financial markets, the 9 percent drop in the S&P 500 is on track for the worst start to a presidential term since Gerald R. Ford took over from Richard M. Nixon in August 1974 after the Watergate scandal. The slump is worse even than when the tech bubble burst at the turn of the century, and George W. Bush inherited a market already in free fall.In contrast, Mr. Trump inherited an economy on solid footing and a stock market rising from one record high to another.That swiftly changed when Mr. Trump unveiled his marquee suite of tariffs on April 2 — not the first new import taxes announced by his administration, but by far the most sweeping. Volatility erupted. Wall Street frantically began to grapple with the economic consequences of the new government’s policies.The S&P 500 tumbled more than 10 percent in two days, a drop comparable to some of the worst days of the pandemic-induced sell-off in March 2020 and, before that, the financial crisis in 2008.Stocks have since stabilized, but the shock waves from the chaotic tariff rollout continue to send tremors through the global financial system.Trump’s Astonishing 100 Days, in 8 ChartsBy many measures, the opening months of President Trump’s second term stand apart from those of essentially any modern president.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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      Eight Charts That Sum Up Trump’s First 100 Days

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      <!–> [–><!–> –><!–> [–><!–> –><!–> [–><!–> –><!–> –>He issued more executive orders than any modern president …<!–> –><!–> [!–> <!–> Executive orders [!–><!–> –> <!–> –> <!–> –><!–> [–><!–>On his first day in office, Mr. Trump signed a record 26 executive orders — and he didn’t stop there. The executive order has become something of […] More

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      Mark Carney Has to Deliver on Trump and the Economy After Canada Election Win

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      The Canadian prime minister achieved a stunning political upset, running on an anti-Trump platform and promising to revive the economy. Now, he needs to deliver. Canada’s banker-turned-prime-minister pulled off a political miracle, leading his party from polling abyss to a rare fourth term in power, and securing the top government job after entering electoral politics just three months ago.Mark Carney, the country’s new leader, told Canadians that he was the right person to stand up to President Trump and that, with his economics expertise, he knew how to boost the country’s lackluster economy and fortify it in turbulent times. Now he has to actually do all of that, and quickly, as his country moves from a prolonged period of political turmoil and faces the fallout of a trade war with its closest ally and economic partner: the United States. Mess at HomeWhen Mr. Carney’s predecessor, Justin Trudeau, announced in January that he would resign after 10 years leading Canada, he created a rare opportunity that Mr. Carney jumped at. But after Mr. Carney won the race to replace Mr. Trudeau in March as prime minister and leader of the Liberal Party, he also inherited a messy situation at home that he must now urgently take on. The Canadian Parliament has not been in session since before Christmas, after Mr. Trudeau suspended its activities to be able to hold the Liberal leadership election that elevated Mr. Carney. 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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      White House Assails Amazon, Citing Tariff Pricing Report

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      The White House press secretary, Karoline Leavitt, attacked the retail giant over a report that suggested Amazon would display the cost of tariff-related price increases. Amazon said it never considered doing so on its main website.There’s a fresh spat brewing between the White House and Amazon.Karoline Leavitt, the White House press secretary, on Tuesday accused the online retail giant of being “hostile and political,” citing a report — disputed by Amazon — from Punchbowl News saying that the company would start displaying the exact cost of tariff-related price increases alongside its products.Displaying the import fees would have made clear to American consumers that they are shouldering the cost of President Trump’s tariff policies rather than China, as he and his top officials have often claimed would be the case.An Amazon spokesman said the company had considered a similar idea on part of its site, Amazon Haul, which competes with Temu, a Chinese retailer. Temu primarily ships directly to consumers and has begun displaying “import charges” to reflect the end of a customs loophole that had exempted low-priced items from tariffs.“Teams discuss ideas all the time,” the spokesman, Ty Rogers, said in a statement. “This was never a consideration for the main Amazon site and nothing has been implemented on any Amazon properties.”Standing beside Treasury Secretary Scott Bessent during a briefing at the White House on Tuesday morning, Ms. Leavitt tore into the retailer. She said that she had just been on the phone with the president about the report, and she asked why Amazon hadn’t done such a thing when prices increased during the Biden administration because of inflation.Ms. Leavitt said it was “not a surprise” coming from Amazon, as she held up a copy of a 2021 article from Reuters with the headline, “Amazon partnered with China propaganda arm.” Mr. Trump’s aggressive tariffs on Chinese goods have touched off an escalating trade war, even as his administration has backed off its broader global levies amid what it said were negotiations with dozens of nations on new trade deals.Ms. Leavitt’s attack on Amazon was all the more noteworthy because the company’s founder, Jeff Bezos, has lately gone to great lengths to curry favor with this White House. Amazon donated $1 million to Mr. Trump’s inaugural fund, securing seats for Mr. Bezos and his bride-to-be in the Capitol Rotunda for the inauguration.In December, Mr. Bezos explained his Trump-ward turn while speaking at The New York Times DealBook conference. “What I’ve seen so far is he is calmer than he was the first time,” Mr. Bezos said of Mr. Trump, “more confident, more settled.”He added, “I’m very hopeful. He seems to have a lot of energy around reducing regulation.”Ms. Leavitt was asked whether the White House still considered Mr. Bezos to be a Trump supporter, given the latest report.“Look, I will not speak to the president’s relationships with Jeff Bezos,” Ms. Leavitt said, “but I will tell you that this is certainly a hostile and political action by Amazon.” More

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      Adidas Warns Sneakers Will Cost More in the U.S. as Trump’s Tariffs Take Effect

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      The chief of the German sportswear giant said that unpredictability surrounding the tariffs prevented the company from issuing a full-year forecast, but he predicted a price increase for American consumers.The German sportswear company Adidas said on Tuesday that the increase in tariffs would lead to higher prices for its sneakers and sportswear for U.S. customers.“Since we currently cannot produce almost any of our products in the U.S., these higher tariffs will eventually cause higher costs for all our products for the U.S. market,” Bjorn Gulden, the company’s chief executive, said Tuesday on a call with analysts.Mr. Gulden said Adidas had sent extra inventory to the United States to clear customs before tariffs took effect, but he added that the company would eventually feel President Trump’s 10 percent base-line duty increase for all imports.“Cost increases due to higher tariffs will eventually cause price increases,” he said. “But it is currently impossible to quantify these or to conclude what impact this could have on the consumer demand for our products.”Adidas also rerouted some products that were made in China and destined for the United States to other markets, which are expected to become more important for the company in the wake of the growing trade war between the global superpowers.U.S. sales in the first three months of the year increased just 3 percent, because of the phasing out of the last sneakers in the popular Yeezy line, which were developed with the rapper Ye, formerly known as Kanye West, as part of a collaboration that ended in 2022.In Europe, sales increased 14 percent in the first three months of the year, while sales in China grew 13 percent.The company, which is based in Herzogenaurach in southern Germany, said that it was refraining from issuing a profit outlook for the full year, citing the unpredictability that tariffs have caused, which affect many countries, including Indonesia and Vietnam, where Adidas produces many of its shoes and sportswear.“In a ‘normal world,” Mr. Gulden said, the company’s first-quarter results would have led it to raise the outlook for revenue and operating profit for 2025, but “the uncertainty regarding the U.S. tariffs has currently put a stop to this.” More

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      Trump Administration Looks to Take Steps to Ease Pain From Car Tariffs

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      The planned concessions to give automakers more time to relocate production to the United States would still leave substantial tariffs on imported cars and car parts.The Trump administration said it plans to announce measures as early as Tuesday to ease the impact of tariffs on imported cars and car parts to give automakers more time to relocate production to the United States.Tariffs of 25 percent on imported vehicles and on auto parts will remain in place. But the tariffs will be modified so that they are not “stacked” with other tariffs, for example on steel and aluminum, a White House spokesman said. Automakers will not have to pay tariffs on those metals, widely used in automobiles, on top of the tariffs on cars and parts.In addition, automakers will be reimbursed for some of the cost of tariffs on imported components. The reimbursement will amount to up to 3.75 percent of the value of a new car in the first year, but will be phased out over two years, the spokesman confirmed.A 25 percent tariff on imported cars took effect April 3. On Saturday, the tariffs are set to be extended to include imported parts.“President Trump is building an important partnership with both the domestic automakers and our great American workers,” Howard Lutnick, the commerce secretary, said in a statement. “This deal is a major victory for the president’s trade policy by rewarding companies who manufacture domestically, while providing runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing.”But even with these changes, there will still be substantial tariffs on imported cars and auto parts, which will raise prices for new and used cars by thousands of dollars and increase the cost of repairs and insurance premiums.The modification to the tariffs was reported earlier by The Wall Street Journal. Mr. Lutnick helped automakers secure a major exemption from tariffs in March and has taken on a role advocating relief for some industries hit by the levies.Automakers welcomed the change. “We believe the president’s leadership is helping level the playing field for companies like G.M. and allowing us to invest even more in the U.S. economy,” Mary T. Barra, the chief executive of General Motors, said in a statement on Monday. “We appreciate the productive conversations with the president and his administration and look forward to continuing to work together.” More