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      Judge blocks Trump executive order targeting law firm linked to Robert Mueller – US politics live

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      A US judge on Friday overturned a Trump executive order targeting Jenner & Block, a big law firm that employed a lawyer who investigated him.Trump’s executive order, called Addressing Risks from Jenner & Block, suspended security clearances for the firm’s lawyers and restricted their access to government buildings, officials and federal contracting work.Trump accused the law firm of engaging in activities that “undermine justice and the interests of the United States”, claiming that it participated in politically driven legal actions. In the executive order, Trump specifically criticized the firm for hiring Andrew Weissmann, an attorney who worked on Robert Mueller’s investigation into allegations of Russian influence in Trump’s 2016 campaign.The firm sued to block Trump’s order, arguing it violated the constitution’s first and fifth amendments.A US district judge ruled on Friday that Trump’s directive violated core rights under the US constitution, mirroring a 2 May ruling that struck down a similar executive order against law firm Perkins Coie.Apart from Jenner and Perkins Coie, two other firms – WilmerHale and Susman Godfrey – have sued the Trump administration to permanently block executive orders he issued against them.The US departments of state and treasury acted on Friday to lift sanctions on Syria, following Donald Trump’s meeting with the new Syrian leader, the former Islamist rebel Ahmad al-Sharaa, last week in Saudi Arabia.A statement from the treasury explained that the Office of Foreign Assets Control had issued a license “to provide immediate sanctions relief for Syria” which “ authorizes transactions prohibited by the Syrian Sanctions Regulations, effectively lifting sanctions on Syria”.The state department also issued a waiver required by the 2019 Caesar Syria Civilian Protection Act to suspend sanctions. “This is just one part of a broader U.S. government effort to remove the full architecture of sanctions imposed on Syria due to the abuses of the Bashar al-Assad regime”, the treasury said.The treasury secretary, Scott Bessent, said the authorizations would “encourage new investment into Syria. Syria must also continue to work towards becoming a stable country that is at peace”.The administration did not say how long it would waive the congressional sanctions, but the law limits any presidential waiver to six months.For more permanent relief, administration officials are debating the extent to which Syria’s transitional government should be required to meet tough conditions.After meeting Sharaa, Trump told reporters that he was impressed with the former commander of al Qaeda’s franchise in the Syrian civil war. Sharaa, he said, was a “young, attractive guy; tough guy, you know. Strong past. Very strong past. Fighter.”A US federal judge did not mince words when calling a Trump executive order unconstitutional, which sought to target Jenner & Block, a big law firm.According to the judge, the Trump administration went after the law firm because of the causes it champions, the clients it represents and a lawyer the firm once employed.“Going after law firms in this way is doubly violative of the Constitution,” US District Judge John D Bates said in a ruling on Friday.Trump signed an executive order in March, targeting Jenner & Block by suspending security clearances and restricting their access to government buildings, officials and federal contracting work. This was, Trump claimed, because of politically motivated “lawfare” the firm engaged in.By attempting to push forward this executive order, Trump attempted to “chill legal representation the administration doesn’t like, thereby insulating the Executive Branch from the judicial check fundamental to the separation of powers”.Bates added that the Trump executive orders against law firms “follow the same recipe: other than personalized touches in their first sections, they generally direct the same adverse actions towards each firm and decry the threat each firm poses to national security and the national interest.”Bates was appointed to the District of Columbia in 2001 by President George W Bush. He blocked Trump’s executive order completely.A US judge on Friday overturned a Trump executive order targeting Jenner & Block, a big law firm that employed a lawyer who investigated him.Trump’s executive order, called Addressing Risks from Jenner & Block, suspended security clearances for the firm’s lawyers and restricted their access to government buildings, officials and federal contracting work.Trump accused the law firm of engaging in activities that “undermine justice and the interests of the United States”, claiming that it participated in politically driven legal actions. In the executive order, Trump specifically criticized the firm for hiring Andrew Weissmann, an attorney who worked on Robert Mueller’s investigation into allegations of Russian influence in Trump’s 2016 campaign.The firm sued to block Trump’s order, arguing it violated the constitution’s first and fifth amendments.A US district judge ruled on Friday that Trump’s directive violated core rights under the US constitution, mirroring a 2 May ruling that struck down a similar executive order against law firm Perkins Coie.Apart from Jenner and Perkins Coie, two other firms – WilmerHale and Susman Godfrey – have sued the Trump administration to permanently block executive orders he issued against them.Cases of measles, a viral infection that was considered eliminated from the US since 2000, have climbed slightly to 1,046.There have been 22 new cases in the past week, the Centers for Disease Control and Prevention said, a small increase that signals outbreaks are slowing down.Ten of those cases came from Texas. Other states with active measles outbreaks include Michigan, Montana, North Dakota, Ohio, Pennsylvania and Tennessee. Indiana said its state’s outbreak was over.Two young children and an adult have died from measles-related illnesses this year, the AP reports. The virus that causes measles is airborne and highly contagious, although preventable through vaccines.Here are the key takeaways from Harvard’s legal battle over the Trump administration’s international student ban, from my colleague Anna Betts.Some of Harvard’s sports teams would be virtually wiped out by the Trump administration’s move to make the Ivy League school with the nation’s largest athletic program ineligible for international student visas.Harvard’s 42 varsity sports teams are the most in the nation, and Sportico reported last month that 21% of the players on the school’s rosters for the 2024-25 seasons – or 196 out of 919 athletes – had international home towns. The site noted that some could be US citizens or green card holders who wouldn’t need one of the international visas at issue in the Trump administration’s escalating fight with the university.Seven of the eight rowers on the men’s heavyweight crew team that just won the Eastern Sprints title – and is headed to the national championships – list international home towns on the school’s website. Mick Thompson, the leading scorer last season, and Jack Bar, who was a captain, are among a handful of Canadians on the men’s hockey roster; 10 of the 13 members of the men’s squash team and more than half of the women’s soccer and golf rosters also list foreign home towns.The supreme court temporarily paused judicial orders requiring the so-called “department of government efficiency”, established by Donald Trump and spearheaded by his billionaire adviser Elon Musk, to turn over records and answer questions in the coming days and weeks concerning its operations.The court put on hold Washington-based US district judge Christopher Cooper’s orders for Doge to respond to a government watchdog group’s requests for information after finding that Doge is probably a government agency covered by the federal Freedom of Information Act.The supreme court’s action, called an administrative stay, gives it additional time to consider the justice department’s formal request to block Cooper’s order while litigation proceeds in a lower court.This morning a federal judge in Boston swiftly blocked the Trump administration’s attempt to revoke Harvard’s ability to enrol international students, mere hours after the university sued the DHS. In its lawsuit Harvard condemned the administration for unconstitutional retaliation over its refusal to surrender to the White House’s political demands. It said the government’s move would “erase a quarter of Harvard’s student body”, force it to retract admissions for thousands of people, and has already thrown “countless” academic programs, clinics, courses and research laboratories into disarray. “Without its international students, Harvard is not Harvard,” the university wrote in its legal complaint.Harvard’s president Alan Garber wrote in a letter to the university’s community:
      The revocation continues a series of government actions to retaliate against Harvard for our refusal to surrender our academic independence and to submit to the federal government’s illegal assertion of control over our curriculum, our faculty, and our student body.
      We condemn this unlawful and unwarranted action. It imperils the futures of thousands of students and scholars across Harvard and serves as a warning to countless others at colleges and universities across the country who have come to America to pursue their education and fulfill their dreams.
      US district judge Allison Burroughs granted the university’s request for an immediate temporary restraining order, which she said was necessary because Harvard had “made a sufficient showing … that, unless its motion for a temporary restraining order … is granted, it will sustain immediate and irreparable injury before there is an opportunity to hear from all parties”. She has set a hearing for 29 May to consider the administration’s actions.Trump doubled down earlier, telling reporters that “Harvard’s going to have to change its ways” and said he was also “looking at a lot of things” when asked if his administration was looking at stopping other universities besides from taking in foreign students. Before Burroughs’s ruling, a White House spokesperson had also earlier dismissed Harvard’s lawsuit as “frivolous”.While there are now two weeks of reprieve, there were reports of Chinese students at Harvard cancelling flights home today and seeking legal advice on staying in the United States as the Trump administration continues to wage war on the Ivy League university – and others – and amid years of tensions between the two countries. Per the New York Times (paywall), Trump’s attacks on elite institutions like Harvard have the potential to “reshape the broader relationship between [the US and China] by cutting off one of the few remaining reasons that people in China still admire the United States”.

      The Trump administration accused Columbia University of violating the civil rights of Jewish students by “acting with deliberate indifference” toward what it described as a “hostile environment” for Jewish students on campus.

      Trump ordered the nation’s independent nuclear regulatory commission to narrow regulations and expedite new licenses for reactors and power plants, seeking to shrink a multi-year process down to 18 months. The requirement was part of a batch of executive orders signed by Trump earlier today aiming to boost US nuclear energy production amid a boom in demand from data centers and AI.

      Vice-president JD Vance said that the US under Trump will choose carefully when to use military force and will avoid involvement in open-ended conflicts in a speech that signalled a huge shift in 21st-century US foreign policy.

      Trump said that a 25% tariff he said he will impose on Apple will also apply to Samsung and other smartphone makers who don’t make their products in the United States. “When they build their plant here, there’s no tariffs,” he said.

      Trump said he’s not looking for a trade deal with the EU – which he announced earlier today will be slapped with 50% tariffs from 1 June – but said he’d be open to talking about a delay if companies were willing to build their plants in the US.

      US special envoy Steve Witkoff held more than two hours of talks with an Iranian delegation in Rome today about Tehran’s nuclear program and agreed to meet again in the near future, a senior US official said.
      US special envoy Steve Witkoff held more than two hours of talks with an Iranian delegation in Rome today about Tehran’s nuclear program and agreed to meet again in the near future, a senior US official said.“The talks continue to be constructive – we made further progress, but there is still work to be done. Both sides agreed to meet again in the near future. We are grateful to our Omani partners for their continued facilitation,” the official said.Trump says he’s not looking for a trade deal with the EU – who he announced earlier today will be slapped with 50% tariffs from 1 June.He says the EU is “too slow-moving” and “if they build their plants [in the US] then they have no tariff at all”.
      I’m not looking for a deal. We’ve set the deal, it’s at 50%. But there’s no tariff if they build their plant here … If somebody wants to build a plant here I can talk to them about a little bit of a delay, while they’re building their plant, which is something that might be appropriate, maybe.
      Trump says that a 25% tariff he said he will impose on Apple will also apply to Samsung and other smartphone makers.“Or it would not be fair,” he says, adding that the White House will “appropriately have that done by the end of June”.“When they build their plant here, there’s no tariffs. So they’re going to be building plants here,” he says.When Trump first announced the tariff Friday morning, he targeted Apple CEO Tim Cook, who said recently that the company was shoring up manufacturing in India.“I said that’s okay to go to India, but not going to sell into here without tariffs,” Trump says.Trump says his administration “will do something very soon” to make it possible for people to come to the US and “have a road towards” citizenship.Following the signing of those executive orderes, Trump has been taking questions from the media.Asked by a reporter if his administration was looking at stopping other universities besides Harvard from taking in foreign students, Trump said:
      We’re taking a look at a lot of things.
      Citing the “billions of dollars” Harvard receives, Trump adds:
      Harvard’s going to have to change its ways.
      Here’s the clip of JD Vance saying the Trump administration has “reversed course” on US foreign policy, affirming that there will be “no more undefined missions, no more open-ended conflicts”.Donald Trump has ordered the nation’s independent nuclear regulatory commission to narrow regulations and expedite new licenses for reactors and power plants, seeking to shrink a multi-year process down to 18 months, Reuters reports.The requirement was part of a batch of executive orders signed by Trump just now aiming to boost US nuclear energy production amid a boom in demand from data centers and AI.Licensing for reactors in the US can take over a decade at times, a process designed to prioritize nuclear safety but which has discouraged new projects.“With these actions, President Trump is telling the world that America will build again, and the American nuclear renaissance can begin,” said Michael Kratsios, director of the White House office of science and technology policy.The moves include a substantial overhaul of the Nuclear Regulatory Commission that includes looking at staffing levels and directing the energy and defense departments to work together to build nuclear plants on federal lands, a senior White House official said.The administration envisions the Department of Defense taking a prominent role in ordering reactors and installing them on military bases.The orders also seek to reinvigorate uranium production and enrichment in the United States, the senior White House official said.Trump declared a national energy emergency in January as one of his first acts in office, saying the US had inadequate supplies of electricity to meet the country’s growing needs, particularly for data centers that run artificial intelligence systems.Most of Trump’s actions have focused on boosting fossil fuels like coal, oil and natural gas, but administration officials also support nuclear power, which in recent years has attracted growing bipartisan support.I spoke too soon. Reuters is reporting that Donald Trump is making the nuclear announcement now and signing his executive orders.His secretary of the interior, Doug Burgum, said there will be four orders signed.Executive orders were on Donald Trump’s schedule for 1pm ET today. It’s obviously now way past that time but, as you may know, Trump often runs a tad late to these things. He has also been unusually quiet on Truth Social for the past six hours … so I’ll bring you the latest on what’s happening with the orders when we know more.Earlier, Reuters reported that as early as today Trump was due to sign executive orders meant to accelerate nuclear energy development. Trump is expected to streamline the regulatory process for new reactor approvals and enhance fuel supply chains, the news agency reported citing four sources familiar with the matter. The report saw shares of nuclear power companies surge. More

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      Trump says he is hitting EU with 50% tariff as trade talks are ‘going nowhere’

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      Donald Trump has said he will impose a 50% tariff on all EU imports to the US from 1 June after claiming trade talks between the two trading blocs were “going nowhere”.In a surprise announcement, the US president posted on his Truth Social platform that his long-running battle to secure concessions from the EU had stalled.He accused the EU of taking advantage of the US on trade, saying: “Our discussions with them are going nowhere! Therefore I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.”Speaking to reporters in the Oval Office, Trump claimed the EU had “taken advantage” of the US and claimed the new tariffs would be imposed unless EU companies moved their operations to the US.“It’s time that we play the game the way I know how to play the game,” said Trump.Stock markets slumped in response to the news, the tech-heavy Nasdaq closed down 1% as Trump also signalled plans to impose tariffs on Apple, Samsung and other phone manufacturers. The broader S&P 500 lost 0.68%. The STOXX Europe 600 index fell by 1.7%. In London the FTSE 100 closed down 0.2% after initially dropping as much as 1.5%. Germany’s car makers were particularly hard hit, with BMW down 3.7%, Volkswagen off 2.6% and Mercedes-Benz down 4%.The US imposed a 20% “reciprocal” rate on most EU goods on 2 April, but halved that rate a week later until 8 July to allow time for talks. It has retained 25% import taxes on steel, aluminium and vehicle parts and is threatening similar action on pharmaceuticals, semiconductors and other goods.skip past newsletter promotionafter newsletter promotion“This is a major escalation of trade tensions,” said Holger Schmieding, the chief economist at Berenberg, on Friday. “With Trump you never know but this would be a major escalation. The EU would have to react and it is something that would really hurt the US and European economy.”EU negotiators have been locked in meetings with White House representatives since Trump’s so-called “liberation day” tariffs were first announced. Dozens of countries have been holding discussions to try to bring down their own levies before the 90-day pause elapses.The White House has relented on many of its most onerous tariffs, including lowering total tariffs on Chinese goods from 145% to 30% after what Trump declared were constructive talks with Beijing, which lowered its retaliatory border taxes from 125% to 10% in response.A week ago the US president appeared to acknowledge that Washington lacked the ability to negotiate deals with scores of countries at once, saying the US would instead send letters to some trading partners to unilaterally impose new tariff rates.Perceptions of an easing back on a hardline approach to trade brought a period of calm to stock markets, but Friday’s threat of a 50% levy on EU goods, plus a separate threat made the same day of 25% tariffs on iPhones made abroad, have brought an end to the peace.The EU presented a fresh trade proposal to the US on Thursday. The offer included phased tariff cuts on non-sensitive goods, plus cooperation on energy, AI and digital infrastructure. The bloc was readying about $108bn in retaliatory tariffs if talks failed.To sweeten the deal, EU officials were also willing to extend a 2020 tariff-free arrangement on US lobster imports, according to the Financial Times. But it appears to have proved insufficient to persuade the US president to sign a deal allowing only his 10% universal tariff to apply to the EU, as it does the UK. More

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      Jon Stewart on CNN’s Biden book: ‘Selling you a book about news they should have told you’

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      Late-night hosts rip CNN for promoting a book on Joe Biden’s health and weigh in on Donald Trump attacking Taylor Swift and Bruce Springsteen.Jon StewartOn the Daily Show, Jon Stewart tore into CNN anchor Jake Tapper for promoting his book Original Sin, written with Alex Thompson, on his network. The host played several clips of Tapper teasing the book, which reports on Biden’s mental decline while still in the White House. In the final clip, Tapper says: “You will not believe what we found out.”“Don’t news people have to tell you what they know when they find it out?” Stewart wondered on Monday evening. “Isn’t that the difference between news and a secret? ‘You won’t believe what we found out’ – no, that’s why I watch breaking news.”Stewart noted real breaking news on Sunday, which was confirmation from Biden’s personal team that he was diagnosed with “aggressive” prostate cancer and was considering treatment options. “Doing the story seems almost disrespectful,” said Stewart. “Can CNN thread the needle? How do you pivot from excitedly promoting your anchor’s book to somberly and respectfully promoting your anchor’s book?”Well, as one CNN staffer put it: “This was already going to be a tough week, and this makes it much harder. And that is a reference to the fact that our colleagues, Jake Tapper and Alex Thompson have a book that’s set to be published on Tuesday.”“It’s so hard, it’s such a difficult time, so unfathomable in terms of the pain his family must be feeling,” Stewart mocked. “And yet, if you act now, you use the code ‘backslash tap that book’, it’s 20% off.”Jokes aside, Stewart acknowledged: “How fucking weird it is that the news is selling you a book about news they should have told you was news a year ago, for free.”“I understand the excitement over an insidious Democratic cover-up about Joe Biden’s mental decline,” he added. “The thing is though, it was a terrible cover-up, because we all fucking knew.”“There was no cover-up – poll after poll showed vast majorities of the public thought Biden was too old and too out of it to run again,” he continued. “Dean Phillips mounted an entire primary campaign because of it.”“He along with most of the public knew it was a bad idea for Biden to run. We knew it,” Stewart concluded. “And that’s what’s so hilarious about politicians. The cover-up doesn’t work when everyone knows you’re lying.”Stephen ColbertMeanwhile, Trump spent the weekend “settling back into the White House after his Mideast all-you-can-bribe buffet”, as Stephen Colbert put it on Monday’s Late Show.“He just loved it over there!” he continued. “He was having such a good time with the princes and the palaces and the marble and the gold, and the special souvenir he really wants to bring home: obedience to leaders on punishment of death.”Trump “spent this beautiful weekend viciously attacking anyone who dare defy him”, including Walmart, which recently said his tariffs were “too high” and would force the chain to raise prices. “Which means it’s going to cost you a lot more when you run out for milk, one Goodyear tire and a t-shirt that says ‘Shrek yourself before you wreck yourself,’” Colbert joked.Evidently, Trump did not like Walmart “accurately describing how he has personally affected your pocketbook”, so he posted on Truth Social: “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain … they should as is said, ‘EAT THE TARIFFS’”Colbert broke out his Trump impression: “As is said, I make a mess, you eat it. That’s how the world works. Which reminds me – JD, there’s some hot dog stuck in my golf cleats. Get over here with your tongue and a positive attitude.”Walmart wasn’t Trump’s only target on social media this weekend. On Friday, out of nowhere, he posted: “Has anyone noticed that, since I said ‘I HATE TAYLOR SWIFT,’ she’s no longer ‘HOT?’”“First of all, sir, keep my best friend Taylor Swift’s name out of your filthy nugget hole,” said Colbert. “Second, it’s possible people are talking about her a little less these days because her 149-date Eras Tour ended six months ago.”But attacking Swift was “just a warm-up”, because he also went after Bruce Springsteen, after the musician called him “corrupt, incompetent and treasonous” at a concert in Manchester, England.In a rambling Truth Social post, Trump called Springsteen “highly overrated”, said he “never liked him, never liked his music, or his Radical Left Politics” and claimed “he is not a talented guy”.“What are you doing? Attacking Bruce is like attacking America itself!” Colbert marveled.Trump went on: “This dried out ‘prune’ of a rocker (his skin is all atrophied!) ought to KEEP HIS MOUTH SHUT until he gets back into the Country.”“Pretty bold to say someone else’s skin is atrophied when your own complexion can best be described as Tandoori Catcher’s Mitt,” Colbert quipped. More

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      US treasury secretary says Walmart will ‘eat some of the tariffs’ after Trump demand

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      The US retail giant Walmart will “eat some of the tariffs” in line with Donald Trump’s demands, the president’s treasury secretary Scott Bessent insisted on Sunday, claiming he received the assurance in a personal phone call with the company’s chief executive, Doug McMillon.A spokesperson for Walmart said the company would not comment on conversations between its executives and administration officials. However, a source familiar with the conversation said the phone call between Bessent and McMillon was arranged many days prior to Trump’s post – and that the company’s position had not changed.Walmart said this week it had no alternative to raising prices for consumers beginning later this month because it could not absorb the cost of the president’s tariffs on international trade, which have caused turmoil in international markets.The statement provoked an angry response from Trump, who posted a rant to his Truth Social network on Saturday saying the company should “eat the tariffs and not charge valued customers anything”.According to Bessent, speaking on Sunday to NBC’s Meet the Press, Walmart is now promising exactly that.“I was on the phone with Doug McMillon, the CEO of Walmart, yesterday. And Walmart is, in fact, going to, as you describe it, eat some of the tariffs, just as they did in ‘18, ‘19, and ‘20,” Bessent said after host Kristen Welker asked if the president was asking American companies to be less profitable.“What you’re describing was Walmart’s earnings call. The other thing the companies have to do – they have to give the worst case scenario so that they’re not sued.”On Thursday, McMillon said in the earnings call that his company, a bellwether of US consumer health, was moving to protect itself against the impacts of Trump’s tariffs, despite the president’s administration announcing a pause in its trade war with China that analysts called “capitulation day”.“We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” he said.Walmart’s chief financial officer, John Rainey, told CNBC that the company, which has thousands of stores across the US, was “wired for everyday low prices”. But he said the tariffs were “more than any retailer can absorb” – and that consumers would begin to see higher prices towards the end of May and “certainly much more in June”.Trump announced plans for an unprecedented barrage of tariffs against numerous countries on 2 April, a date he called “liberation day”.For too long, he said, the US had been “looted, pillaged, raped and plundered by nations near and far”, and he presented a list of countries and territories that would receive tariffs, ranging from numerous US allies and longtime trade partners to barren, remote islands near Antarctica occupied only by penguins.The president’s strategy, which he insisted would lead to negotiations and trade deals with at least 150 countries, was variously ridiculed and condemned as flawed and unworkable. And it created an ongoing six weeks of chaos with higher prices, crashing stock markets and slowing economic growth.He has since attempted to walk back many of the excesses of the policy, including this week’s announcement that, for an initial 90-day period, tariffs on China – a dominant supplier to Walmart and myriad other US companies – would be cut from 145% to 30%.The White House called it a “total reset” in trade relations and followed up on Friday by announcing that it would not, after all, negotiate with many of the countries, but instead unilaterally impose new tariff rates.“[It is] not possible to meet the number of people that want to see us,” Trump told a meeting of business leaders in the United Arab Emirates during his tour of Gulf states.“We have 150 countries that want to make a deal, but you’re not able to see that many countries.”Bessent told CNN’s State of the Union in a later appearance on Sunday that the US was focused on its “18 most important trading relationships” – and that he expected trade talks to continue with a number of countries leading to a series of regional deals. More

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      This pause in the trade war will be brief. Small businesses, plan accordingly

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      Donald Trump’s massive Chinese tariffs are on pause. The media debated. Wall Street rejoiced. Many of my clients breathed a sigh of relief. Big retailers jumped for joy. But for how long?For starters, the tariffs that weren’t paused – a 10% levy on all Chinese goods, plus a bonus 20% tax that somehow relates to fentanyl, are still in place. When you take into consideration existing tariffs on steel from previous Trump and Biden administrations, the effective tariff rate on Chinese goods is actually closer to 40%, according to an analysis done by the Wall Street Journal.That’s a big number. Maybe that won’t deter people from buying underwear at Target. But for companies that rely on steel and aluminum, semiconductors, synthetic fabrics, plastics, minerals, coatings and solvents as well as certain bearings, motors, pumps and parts, a 30-40% hike is a major impact on their margins, which will affect their spending and investments. Ultimately, the costs of the end products that use these materials will also rise as companies simply pass them down.Just as important, Trump’s animosity towards China – unfounded or not – isn’t going to just magically disappear. He’s called the Chinese cheaters, polluters and thieves. And his past actions – particularly in his first administration – do not bode well for a quick resolution to this issue.In 2018, the Trump administration not only imposed onerous tariffs on China but also issued some very harsh requirements to address trading issues with its closest economic rival.There were specific quotas set to limit our trade deficit. There were demands made to reduce the Chinese requirement forcing American companies to share or transfer technology with their Chinese counterparts. There were rules aimed at stopping the alleged (ha, ha) stealing of data and intellectual property by the Chinese.The problem is that none of this happened. What happened – shortly after the negotiations started – was Covid. And then 2020 and a new administration. But don’t think that Trump won’t raise these issues again. He will, and when this happens we’ll be back to the same place we started: excessive tariffs and a trade war with China.That doesn’t mean that businesses are completely stuck. Many – those that have the funds – are using the tariff suspension to buy up products from China like it’s a fire sale at Costco on Black Friday. Others are contracting with bonded warehouses and storage facilities in free-trade zones to accept products that are temporarily tariff-free, hoping that when they pull materials from these storage units those rates will have come down.I have clients who are aggressively searching for alternative suppliers. I have others who are bringing their assembly and manufacturing back to the US. Those that aren’t able to make these kinds of investments are trying to work out how and how much they can change pricing and what the market will take. A few have already created special line items on their invoices to separate out the tariff charge in an effort to say: “Hey, don’t blame me for this stuff!”My smartest clients started doing this stuff the day after Trump was elected. They listened to what he’d said during the previous couple of years. They read the writing on the wall. Now they’re ahead of the game. Good for them.Companies that didn’t do this – especially small businesses that have fewer resources and are more reliant on just a supplier or two – are in trouble, particularly if they buy from China. For any business still reliant on Chinese suppliers and markets, this pause isn’t going to last as long as you think. There will be a lot more coming in this trade war – and let’s hope it doesn’t turn into an actual war. The outlook is precarious and risky. Trump is volatile and emotional and has a history of knocking China. Plan accordingly. More

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      Gone in 40 days: how Trump’s ‘liberation day’ tariff assault unraveled

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      Donald Trump hailed a new chapter in the US’s economic history on 2 April, dubbed “liberation day” by his administration, as he announced plans for an extraordinary barrage of US tariffs on the world. The chapter lasted 40 days.The page has already been turned. But the impact of those six chaotic weeks, from higher prices to slowing growth, is still unfolding – and the US president is already threatening further adjustments. The story continues.Trump had been steered away from his aggressive instincts on trade during his first term, and persuaded to walk back several tariff threats in the opening months of his second. But back in early April, he was determined to plough ahead.“April 2nd, 2025, will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to make America wealthy again,” Trump declared at an event in the White House Rose Garden, before an audience of his top officials and supporters.The measures were blunt and severe: a blanket 10% tariff on all imported goods, and higher individualized rates, of up to 50%, on dozens of markets – those of economic allies and rivals alike – deemed to have treated the US poorly on trade.‘Be cool’First came the questions. How exactly did the Trump administration come up with such an array of specific duties to impose upon goods from so many countries and territories? And why was a group of barren, uninhabited islands near Antarctica among them?Then came the panic. Global stock markets tanked, with Wall Street enduring its steepest falls since the onset of the Covid-19 pandemic five years ago, as the president repeatedly insisted he was serious this time.Trump’s officials were sent out to hold the line. “The announcement today is the most significant action on global trade policy that has taken place in our lifetimes,” said Stephen Miller, his deputy chief of staff for policy. “We’re just going to have to wait and see” what happens, the treasury secretary, Scott Bessent, told Bloomberg. One thing’s for sure, the commerce secretary, Howard Lutnick, told CNN: “The president is not going to back off.”On day five of the new chapter, the 10% baseline tariffs came into force. On day seven, the higher, individualized rates followed. Beijing vowed to retaliate. Business leaders, including some who had backed Trump’s run for the White House, urged him to reconsider.A sell-off in treasury bonds, typically deemed a safe haven during periods of economic volatility, took hold. “BE COOL! Everything is going to work out well,” Trump wrote on Truth Social, adding a few minutes later: “THIS IS A GREAT TIME TO BUY!!! DJT”This advice seemed prescient four hours later. Seven days into the new chapter, with his individualized tariffs imposed for all of 13 hours, Trump announced a 90-day pause – in effect reducing the universal duty on all US imports from almost all countries to 10% – and markets surged higher.Almost all countries, that is, except China. Beijing’s pledge to hit back infuriated the president, who blamed its “lack of respect” as he announced a new US tariff of 125% (in effect, once other duties were included, 145%) on Chinese goods. It retaliated in kind.Getting yippyThe same officials who had been dispatched to defend Trump’s initial plan were sent out again, to explain his latest climbdown.“You have been watching the greatest economic master strategy from an American President in history,” Miller claimed on X.“Many of you in the media clearly missed The Art of the Deal,” the press secretary, Karoline Leavitt, scolded reporters, referring to the president’s 1987 bestseller, in which the real estate tycoon presented himself as a consummate dealmaker.While his aides claimed that more than 75 countries had been in touch following his initial tariff announcement, even the president struggled to present the reversal as part of a carefully orchestrated negotiating strategy. Asked what had prompted it, Trump told reporters people had been “getting a little bit yippy” about his plan.But some of the US’s largest companies were still feeling pretty yippy. Apple, for example, relies on factories in China to churn out the iPhone, which is responsible for almost half its business.Late on day 10, away from the noisy press gaggles and all-caps social media posts, US Customs and Border Protection posted a list of products that would be exempt from the Chinese tariffs – including smartphones, computers and semiconductor chips.While the administration had walked back much of Trump’s initial plan, concern lingered over what remained. Trump maintained that high tariffs were the way forward, but fears of widespread shortages and dramatic price increases loomed large. Polling made clear consumers were increasingly concerned.On day 28, at the end of a cabinet meeting, the president tried to play down the risks of his assault on China. “Well, maybe the children will have two dolls instead of 30 dolls, you know,” he said. “And maybe the two dolls will cost a couple of bucks more than they would normally.”Blame gameEarlier that morning, dismal economic figures for the first quarter had underlined how – as the last chapter drew to a close – the mere threat of Trump’s economic assault appeared to dent growth. US gross domestic product (GDP) shrank for the first time in three years, abruptly turning negative after a spell of robust growth as imports surged 41% while companies scrambled to pre-empt tariffs.Trump raced to pin the blame on his predecessor. “I think the good parts are the Trump economy and the bad parts are the Biden economy,” he told NBC’s Meet the Press.Many economists said the growth decline in the first quarter, as firms braced for Trump’s new chapter, raised troubling questions about the second, when the president finally launched it at his “liberation day” event.Aside from dolls, the administration started to indicate it might be willing to adjust tariffs on China that were hitting goods – like baby car seats and cribs – that the US almost entirely imports from the country. Such exemptions were “under consideration”, Bessent told Congress, potentially averting a spike in prices for young families.But as the weeks drew on, after promising his trade strategy would prompt countries around the world to trip over themselves to strike deals with the US, Trump was finding it harder to explain why none had materialized.On day 34, as questions mounted, he complained the media had become fixated. “You keep writing about deals, deals,” he said, adding that he wished journalists would stop asking. “Some deals” would be signed, the president said, but tariffs were a “much bigger” focus.On day 36, the first deal was declared done. Trump summoned back reporters to unveil what he called a “maxed-out deal that we’re going to make bigger” with the UK. In reality, there was still work to do: both he and Keir Starmer, the British prime minister, conceded certain details had yet to be finalized.By the next morning, Trump’s focus had returned to China. Bessent was preparing for talks with the country’s officials in Geneva, fueling hopes that the world’s two largest economies might lower their eye-watering tariffs. “80% Tariff on China seems right! Up to Scott B,” the president wrote on social media.‘This is going to crush us’Trump was also watching the liberal MSNBC network, where the business commentator Stephanie Ruhle argued his strategy on tariffs was not working. “You’re seeing day in, day out, more business leaders – whether it’s Warren Buffett, or Jamie Dimon, or Ken Griffin, on big global stages – saying this is going to crush us economically,” she said. “And then you’ve got congressmen, senators, from every state saying to this White House: our small businesses are … dying here.“I’m not saying Donald Trump has changed what he thinks in his heart. But he’s backed into a corner, and he needs to get off this crazy tariff train, and he knows it.”Trump punched back. “Few people know Stephanie Ruhle, but I do, and she doesn’t have what it takes,” he wrote on Truth Social, accusing her of lies. “We’re going to make a fortune with Tariffs, only smart people understand that, and Stephanie was never known as a ‘High IQ’ person.”If only smart people understood the US stood to make a fortune from tariffs, they might have been surprised by what happened next.Away from TV studios, some of the most senior people in the White House, including the chief of staff, Susie Wiles, reportedly started to warn the president of risks not unlike those laid out by Ruhle. “The key argument was that this was beginning to hurt Trump’s supporters – Trump’s people,” one person briefed on internal conversations told the Washington Post. “It gave Susie a key window.”On day 40, after discussions in Geneva, Bessent confirmed that US and Chinese officials would drastically reduce the tariffs they had aggressively ratcheted up just a few weeks before. With US tariffs on Chinese goods falling to 30%, Trump hailed a “total reset” in relations between Washington and Beijing.The reversal, although far from a total reset, confined the latest “liberation day” measure to history.2 April 2025, is not yet remembered as the day American industry was reborn. Much of what was announced that afternoon has already died.The page has been turned. On Friday, Trump claimed about 150 countries would soon receive letters “essentially telling” them of new US duty rates on their exports. Many learned of similar rates last month, only for the plan to change in a matter of days.A new chapter, without pomp or ceremony, is now under way. What this one will entail – or how long it lasts – is anyone’s guess. More

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      Trump’s Hollywood ambassador Jon Voigt joins coalition asking for tax incentives

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      Donald Trump’s Hollywood ambassadors, including actor Jon Voight, joined labor unions and major studios in asking the US president to expand and extend tax incentives for film and television productions.In a letter addressed to Trump on Sunday, the studios and unions did not mention his threat to introduce 100% tariffs on films made abroad, but instead thanked him for supporting the industry through their “shared goal” of domestic production.“We appreciate and thank you for the support you have shown our industry. We also appreciate your understanding of the need to increase domestic film and television production to bring back American jobs,” the letter read.The letter also calls for Trump to back three tax provisions in the upcoming budget reconciliation bill being drafted by Congress that it argues would “immediately make America more competitive, expand the American media industry, brings jobs back to America, and support the independent spirit of American business”.They include reviving section 199 of the tax code, which provided deductions for manufacturing to film and TV production, expanding section 181 to double to $30m in production expenditures, and restoring the section 461 ability to allow companies to carry back their net operating losses.The letter was signed by the Motion Picture Association, which represents Hollywood studios, and unions including Sag-Aftra, the Writers Guild of America, the Directors Guild of America, the Teamsters, as well as Voight and actor Sylvester Stallone, two of Trump’s so-called “special ambassadors” to Hollywood.There is no mention of Trump’s tariff proposal on foreign film production, which sparked outcry and confusion in the entertainment industry. The White House has since insisted: “No final decisions on foreign film tariffs have been made.”Trump announced his 100% tariff on foreign films a day after a meeting with Voight at Mar-a-Lago, during which the Midnight Cowboy and Heat actor presented his “comprehensive plan” to “make Hollywood great again”.Voight has since defended Trump’s proposal and expressed surprise at the negative reaction from across the industry, arguing: “Something has to be done, and it’s way past time.” More

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      Brazil’s president seeks ‘indestructible’ links with China amid Trump trade war

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      The Brazilian president, Luiz Inácio Lula da Silva, has heralded his desire to build “indestructible” relations with China, as the leaders of three of Latin America’s biggest economies flew to Beijing against the backdrop of Donald Trump’s trade war and the profound international uncertainty his presidency has generated.Lula touched down in China’s capital on Sunday for a four-day state visit, accompanied by 11 ministers, top politicians and a delegation of more than 150 business leaders.Hours later Colombia’s president, Gustavo Petro, arrived, making a beeline for the Great Wall of China and declaring his desire for the South American country to not “only look one way” towards the US. “We have decided to take a profound step forward between China and Latin America,” Petro said.Chile’s Gabriel Boric has also travelled to Beijing to attend Tuesday’s meeting between members of the Community of Latin American and Caribbean States (Celac) and Chinese representatives.Addressing hundreds of Chinese and Brazilian business chiefs in the Chinese capital on Monday, Lula hit out at Trump’s tariffs, saying he could not accept the measures “that the president of the US tried to impose on planet Earth, from one day to the next”.The Brazilian leftist said he hoped to build an “indispensable” relationship with China – already Brazil’s top trading partner – and heaped praise on his Communist party hosts as his officials announced $4.6bn (£3.5bn) of Chinese investment in their country. On Tuesday, Lula is scheduled to meet China’s leader, Xi Jinping, who is expected to return the visit in July, when Xi travels to the Brics summit in Rio.“China has often been treated as though it were an enemy of global trade when actually China is behaving like an example of a country that is trying to do business with countries which, over the past 30 years, were forgotten by many other countries,” said Lula, who is expected to seek major Chinese investments in Brazilian infrastructure projects.The visit of the three South American leaders to China underlines the east Asian country’s rapidly growing footprint in a region where, over the past 25 years, it has become a voracious consumer of commodities such as soybeans, iron ore and copper. Chinese companies have also poured into the region. Electric cars made by the Chinese manufacturer BYD can be seen cruising the streets of Brazilian cities, from Brasília to Boa Vista, deep in the Amazon.The visits also come amid global jitters over Trump’s volatile presidency and Latin American anxiety and suspicion over the US president’s plans for a region where he has threatened to “take back” the Panama canal – by force if necessary.Matias Spektor, an international relations professor at the Getúlio Vargas Foundation, a Brazilian thinktank and university, said the presence of the three South American presidents in Beijing underscored how, in the Trump era, with the US in retreat, such leaders were increasingly reaching out to other parts of the world.“It tells us that countries around the world are willing to go out … to exploit all the opportunities that are there in the international system – and there are many. Because, as America turns away from free trade and as America adopts a policy that is … instead of transactional, predatory – countries have an incentive to engage with those who are transactional,” Spektor said, pointing to recent trips Lula made to Japan and Vietnam.“[Lula] is very proactively trying to open trade for Brazil at a time when America is undoing the previous rules of the game, and the new rules of the game are not yet born … These [Latin American] countries want to shape the norms that are likely to emerge now. And those rules are not going to emerge in Washington DC. They are going to be made globally,” Spektor added.Spektor said Latin American leaders such as Lula had long considered the world a multipolar place. “What happened on 20 January [with Trump’s return to power] is that the barrage of policy change coming from Washington DC has accelerated the belief that was already in place that the axis of global power has for a while been moving towards the east, and somewhat towards the south.” More