The Latest: Global tariff battle escalates as China retaliates with 125% tariffs on US goods

China announced Friday that it will raise tariffs on U.S. goods from 84% to 125% — the latest salvo in an escalating trade war between the world’s two largest economies that has rattled markets and raised fears of a global slowdown.

While U.S. President Donald Trump paused import taxes this week for other countries, he raised tariffs on China and they now total 145%. China has denounced the policy as “economic bullying” and promised countermeasures. The new tariffs begin on Saturday.

Here’s the latest:

White House says to ‘trust’ Trump as tariffs plan plays out

“As he said, this is going to be a period of transition,” White House press secretary Karoline Leavitt said at Friday’s news briefing. “He wants consumers to trust in him, and they should trust in him.”

The University of Michigan’s index of consumer sentiment plunged 11% to an April reading of 50.8, the second lowest level in the survey’s history.

Leavitt didn’t address the index numbers that were released on Friday, but she said: “There’s great optimism in this economy.”

Immigration officers can continue enforcement actions in sensitive locations

U.S. District Judge Dabney Friedrich in Washington, D.C., denied a request for a preliminary injunction in a lawsuit challenging the enforcement policy, filed by more than two dozen Christian and Jewish groups representing millions of Americans.

Under previous administrations in both parties, immigration enforcement could only take place in sensitive locations like houses of worship under exceptional circumstances, such as a threat to public safety.

The religious groups sued over the Trump administration’s new policy, announced in January, which authorizes enforcement in such settings under a broader set of reasons. The religious groups said this has had a chilling effect, driving down attendance by people who fear being arrested.

Despite some isolated examples, Friedrich said there isn’t evidence “that places of worship are being singled out as special targets.”

The new policy implemented by the Department of Homeland Security reflects only a “modest change” and doesn’t require enforcement activities in houses of worship, Friedrich added.

White House gives no details about facilitating return of Maryland man

White House press secretary Karoline Leavitt did not offer any details about what steps the administration will take to comply with a Supreme Court order to bring back a Maryland man who was mistakenly deported to prison in El Salvador.

Leavitt said the court’s ruling made it “very clear that it’s the administration’s responsibility to facilitate the return, not to effectuate the return” of Kilmar Abrego Garcia.

Leavitt did not offer any details and referred reporters to court filings made by the Justice Department.

Leavitt was asked if Trump wanted El Salvador President Nayib Bukele to bring Abrego Garcia with him to the U.S. when he visits Washington on Monday, but she said Bukele will be visiting to speak about the cooperation between the two countries “that is at an all-time high.”

US says it needs more time to provide information on mistakenly deported Maryland man

Lawyers for the Trump administration on Friday said they’re unable to provide information on the location and status of a Maryland man who was mistakenly deported last month to a notorious prison in El Salvador.

The attorneys said they haven’t had enough time to review the U.S. Supreme Court’s ruling on Thursday that directed the administration to return of Kilmar Abrego Garcia to the U.S.

A federal judge in Maryland directed the Trump administration to “take all available steps to facilitate the return” of Abrego Garcia following Thursday’s high court order.

U.S. District Judge Paula Xinis had also set a Friday morning deadline for a declaration from the administration addressing Abrego Garcia’s location and custodial status and what steps the administration has taken and will take to facilitate his return. An in-person status conference was set for Friday afternoon.

Federal judge refuses to block immigration enforcement operations in houses of worship

A federal judge refused on Friday to block immigration agents from conducting enforcement operations at houses of worship in a lawsuit filed by religious groups over a new policy adopted by the Trump administration.

U.S. District Judge Dabney Friedrich in Washington, D.C., handed down the ruling in a lawsuit filed by more than two dozen Christian and Jewish groups representing millions of Americans.

She found that there have been few such enforcement actions and the faiths had not shown they had suffered legal harm.

White House promises ‘readout’ on Trump’s health after his physical

White House press secretary Karoline Leavitt says Trump is undergoing his “routine and long scheduled physical” and promised a “readout from the White House physician.”

As Leavitt spoke to reporters during a briefing on Friday, Trump was at Walter Reed National Military Medical Center in Bethesda, Maryland.

Trump’s medical records carry the same privacy protections as all citizens, so how much information he authorizes the White House to release once his physical is completed remains to be seen.

Through the years, Trump has long been reticent to release even basic information about his health.

Trump announces deals with 4 more law firms

The deals require them to together provide hundreds of millions of dollars in free legal services to causes championed by the administration.

The resolutions reflect Trump’s continued success in bending prominent law firms to his will as they seek to cut deals with the administration to avoid being targeted by executive orders carrying punishing sanctions.

The latest firms to reach agreements with the White House include:

1. Kirkland & Ellis

2. Allen Overy Shearman Sterling US

3. Simpson Thacher & Bartlett

4. Latham & Watkins

The White House announced a deal with Cadwalader, Wickersham & Taft earlier today.

The spate of executive orders directed at the legal community and top law firms over the past two months has been part of a broader effort by Trump to reshape civil society and to extract concessions from entities whose work he opposes.

White House announces new deal with law firm

The deal with Cadwalader, Wickersham & Taft requires it to provide at least $100 million in free legal services to causes supported by the Trump administration.

As in other agreements, the law firm has agreed to disavow any “illegal” diversity, equity and inclusion considerations in its hiring and employment practices.

Cadwalader is the former firm of Deputy Attorney General Todd Blanche, who resigned to take on President Donald Trump as a client.

The spate of executive orders directed at the legal community and top law firms over the past two months is part of a broader effort by Trump to reshape civil society and extract concessions from entities whose work he opposes.

The orders have threatened to upend the day-to-day business of the firms by stripping their lawyers’ security clearances, barring their employees from access to federal buildings and terminating federal contracts held by the firms or their clients.

Several major firms — including WilmerHale, Perkins Coie and Jenner & Block — have won court rulings that have temporarily halted enforcement of most provisions of those orders.

Other firms, including Cadwalader, have sought to avert punishment by striking a deal with the White House.

Audits find lack of tracking of DEI spending at Wisconsin university system, state agencies

Republican-ordered audits released on Friday found that Wisconsin state agencies and the University of Wisconsin system failed to track the millions of dollars they spent on diversity, equity, and inclusion efforts, making it difficult to fully assess the initiatives.

The highly anticipated reports come amid a push by Trump to end federal government support for DEI programs. There have been similar efforts in Wisconsin by Republicans who control the Legislature. The reports’ findings are likely to further increase pressure from Republicans to do away with anything related to DEI.

DEI practices at the University of Wisconsin-Madison in particular have come under scrutiny.

The school is one of 50 universities across the country that Trump said are under investigation for alleged racial discrimination related to DEI programs.

UW-Madison also is one of 60 schools federal education officials are investigating because of accusations that they failed to protect Jewish students during campus protests last year over the war in Gaza.

Judge refuses to dismiss Central Park Five’s defamation case against Trump

U.S. District Judge Wendy Beetlestone in Philadelphia denied Trump’s motion to dismiss in a brief Thursday night order.

The five men, formerly known as the Central Park Five, sued Trump during last fall’s presidential election campaign, accusing him of making “false and defamatory statements” about them during the Sept. 10 debate in Philadelphia with then-Vice President Kamala Harris.

Trump misstated key facts of the case when Harris brought up the matter, saying, “They admitted, they said, they pled guilty. And I said, ‘well, if they pled guilty they badly hurt a person, killed a person ultimately. And if they pled guilty — then they pled we’re not guilty,’” Trump said.

The men were exonerated after spending more than a decade in prison for the 1989 rape and beating of a woman who was jogging.

Trump once again wants to stop the semiannual changing of clocks

The president posted on social media on Friday a call for Congress to “push hard for more Daylight at the end of a day.”

Trump said it would be “Very popular and, most importantly, no more changing of the clocks, a big inconvenience and, for our government, A VERY COSTLY EVENT!!!”

The Republican’s position calling for more daylight would push the schedule forward, keeping the country on daylight saving time.

Trump in the past has called for the Republican Party to eliminate daylight saving time, but last month backed off the threat in a post on his social media network, calling it a “50-50 issue” and saying “it’s hard to get excited about it.”

Trump’s Friday schedule

At 11 a.m. ET, Trump will have his annual physical appointment at Walter Reed Medical Center.

At 4 p.m., he will head to Joint Base Andrews where he will then fly to Mar-a-Lago to spend the weekend, according to the White House.

At 1 p.m., White House press secretary Karoline Leavitt will deliver a press briefing.

Rep. Marjorie Taylor Greene bought stocks hit hard by tariffs during market meltdown

As stocks tanked on tariff fears, Marjorie Taylor Greene showed her faith in the president not just with words but with dollar bills.

The Republican congresswoman, an avid supporter of the Trump administration’s trade policies, not only bought stocks last week as others dumped them in a panic — she scooped up some of the biggest losers.

Lululemon, Dell Computer, Amazon, the parent of Restoration Hardware and a few others hit hard by Trump’s tariff threats were down 40% on average late last week when she pounced.

Data from a required three-page financial holdings document doesn’t disclose exactly how much she paid for the stocks, only ranges and dates.

China says it is standing up against the US for global interests

Chinese Foreign Minister Wang Yi said China stands firm against Trump’s tariffs not only to defend its own rights and interests but also to “safeguard the common interests of the international community to ensure that humanity is not dragged back into a jungle world where might makes right.”

Wang made the remarks on Friday when he met with Rafael Mariano Grossi, director general of the International Atomic Energy Agency, in Beijing.

Wang said China will “work together with other countries to jointly resist all retrogressive actions in the world.”

Consumers’ economic outlook worsens for fourth month as trade war fuels worries

The University of Michigan’s closely watched consumer sentiment index fell 11% to 50.8, the lowest since the depths of the pandemic.

The decline was “pervasive and unanimous across age, income, education, geographic region and political affiliation,” said Joanne Hsu, director of the survey.

The share of respondents expecting unemployment to rise in the coming months increased for the fifth straight month and is now the highest since 2009, during the Great Recession.

Americans also now expect long-term inflation to reach 4.4%, up from 4.1% last month, a move that may be of particular concern for the Federal Reserve.

The Fed pays close attention to inflation expectations because they can become self-fulfilling.

If people expect prices to rise, they often take steps that can push up prices, such as accelerating purchases or seeking higher wages.

Falling sentiment suggests Americans will cut back on spending, though in recent years, consumers have at times kept spending despite the gloom. Whether they will do so again remains to be seen.

Trump tells Russia to ‘get moving’ with ending the war

“Russia has to get moving. Too many people ere DYING, thousands a week, in a terrible and senseless war — A war that should have never happened, and wouldn’t have happened, if I were President!!!” Trump wrote on social media on Friday.

His post came as his special envoy Steve Witkoff was in St. Petersburg, Russia, where he was expected to meet with Russian President Vladimir Putin.

Wall Street opens lower as Trump’s trade war with China escalates

U.S. stocks are shaky as Wall Street’s monstrous week heads toward its close.

The S&P 500 fell 0.7% in early trading Friday. The Dow Jones Industrial Average dropped 306 points, and the Nasdaq composite sank 0.4%.

The drops erased more of the huge gains stocks made in the middle of the week after Trump paused tariffs on many countries outside of China. The rising price of gold, falling value of the U.S. dollar and moves in other financial markets indicate more fear after China’s latest escalation in the trade war.

Senate confirms Trump nominee Caine for chairman of Joint Chiefs of Staff in overnight vote

Retired Air Force Lt. Gen. Dan “Razin” Caine was confirmed on Friday, almost two months after Trump fired Caine’s predecessor.

Trump nominated Caine to become the top U.S. military officer in February after abruptly firing Gen. CQ Brown Jr., the second Black general to serve as chairman, as part of his Republican administration’s campaign to rid the military of leaders who support diversity and equity in the ranks.

The Senate confirmed Caine 60-25 in an overnight vote before heading home for a two-week recess.

Caine is a decorated F-16 combat pilot who served in leadership in multiple special operations commands, in some of the Pentagon’s most classified programs, and in the CIA.

But he does not meet prerequisites for the job set out in a 1986 law, such as being a combatant commander or service chief.

Trump administration to refer Maine to DOJ over transgender participation in sports

The deadline arrived Friday for Maine officials to reach a resolution with the U.S. Education Department over a finding that the state violated antidiscrimination laws by allowing transgender athletes to participate in girls’ sports.

The Education Department said in March that an investigation concluded the Maine Department of Education violated the federal Title IX law by allowing transgender girls to participate on girls’ teams. The investigation followed a public disagreement between Democratic Maine Gov. Janet Mills and Trump at a February meeting of governors.

The U.S. Education Department’s Office for Civil Rights issued a final warning on March 31 telling the state it needed to comply with the law within 10 business days or face enforcement from the U.S. Justice Department. That deadline arrived Friday.

Maine officials have not responded to requests for comment on the investigation.

US wholesale inflation fell last month as price pressures eased, but trade war clouds outlook

The Labor Department said on Friday that its producer price index, which tracks inflation before it hits consumers, fell 0.4% from February.

Compared with a year earlier, producer prices rose 2.7% — down from a 3.2% year-over-year gain in February and much lower than the 3.3% economists had forecast.

The report comes a day after the Labor Department delivered good news on inflation at the consumer level.

Its consumer price index rose just 2.4% last month from March 2024, the smallest year-over-year gain since September. Core consumer prices posted the smallest year-over-year increase in nearly four years.

The inflation outlook is muddied by Trump’s trade wars. He’s imposing a 145% tax — a tariff — on Chinese imports and is hitting most of the rest of the world’s imports with a 10% levy that might increase after 90 days.

The trade barriers are widely expected to raise prices as importers attempt to pass along their higher costs.

Space Force Base commander in Greenland fired after Vance visit

In a statement late Thursday, the U.S. Space Force said Col. Susan Meyers, who served as commander of Pituffik Space Base in Greenland, was removed due to “loss of confidence in her ability to lead.”

In a rare follow-up statement, the Space Force said, “Commanders are expected to adhere to the highest standards of conduct, especially as it relates to remaining nonpartisan in the performance of their duties.”

Military.com reported that Meyers sent a base-wide email following Vice President JD Vance’s March visit, defending the base’s relationship with Denmark and Greenland. The Associated Press could not immediately confirm the contents of that email.

“Actions to undermine the chain of command or to subvert President Trump’s agenda will not be tolerated at the Department of Defense,” Pentagon spokesman Sean Parnell said in a separate statement posted to the social platform X.

States sue over Trump administration’s sudden halt of pandemic relief aid for schools

Public officials in 16 states and the District of Columbia sued the Trump administration on Thursday to restore access to pandemic relief aid for schools, saying the Education Department’s abrupt halt of hundreds of millions of dollars of promised funding will force cuts to vital services.

The lawsuit was filed in U.S. District Court in Manhattan by a coalition of 16 Democratic attorneys general, led by New York’s Letitia James, plus Pennsylvania Gov. Josh Shapiro, also a Democrat. It claims the administration’s refusal to release the aid violates federal law because it reversed a prior decision to allow states to access the money through March 2026.

States were notified late last month that the Education Department would not honor deadline extensions granted by the Biden administration to spend the remainder of COVID relief aid approved by Congress to help schools and students recover from the lasting impacts of the pandemic. Schools were supposed to spend the last of the relief by January but many sought, and were granted, more time.

Trump will undergo his annual physical Friday after years of reluctance

Trump is undergoing his annual physical on Friday, potentially giving the public its first details in years about the health of a man who in January became the oldest in U.S. history to be sworn in as president.

Despite long questioning predecessor Joe Biden’s physical and mental capacity, Trump has routinely kept basic facts about his own health shrouded in secrecy — shying away from traditional presidential transparency on medical issues.

If history is any indication, his latest physical is likely to produce a flattering report that’s scarce on details. It will be conducted at Walter Reed National Military Medical Center and will be the first public information on Trump’s health since an assassination attempt against him in Butler, Pennsylvania, last July.

Rather than release medical records at that time, Texas Rep. Ronny Jackson — a staunch supporter who served as his White House physician and once joked in the White House briefing room that Trump could live to be 200 if he had a healthier diet — wrote a memo describing a gunshot wound to Trump’s right ear.

Where things stand for Trump in global tariff battle

In the aftermath of this week’s tariff whiplash, Trump is deciding exactly what he wants out of trade talks with as many as 75 nations in the coming weeks.

Trump is also figuring out next steps with China. He upped his tariffs on Chinese goods to 145% after China placed retaliatory taxes of 84% on imports from the U.S. While his 90-day pause on other tariffs caused the stock market to rally on Wednesday, countries still face a baseline 10% import tax instead of the higher rates announced on April 2.

Kevin Hassett, director of the White House National Economic Council, told Fox News’ “Fox and Friends” on Thursday that the administration already has “offers on the table from more than 15 countries.”

Hassett said the next step will be determining exactly what Trump wants out of the negotiations.

China hits back at US and will raise tariffs on American goods from 84% to 125%

China announced on Friday that it will raise tariffs on U.S. goods from 84% to 125% — the latest salvo in an escalating trade war between the world’s two largest economies that has rattled markets and raised fears of a global slowdown.

While Trump paused import taxes this week for other countries, he raised tariffs on China and they now total 145%. China has denounced the policy as “economic bullying” and promised countermeasures. The new tariffs begin Saturday.

China’s Commerce Ministry said it would file another lawsuit with the World Trade Organization against the U.S. tariffs.

Trump’s on-again, off-again measures have caused alarm in stock and bond markets and led some to warn that the U.S. could be headed for a recession. There was some relief when Trump paused the tariffs for most countries, but concerns remain since the U.S. and China are the world’s No. 1 and No. 2 economies, respectively.