Page 172 – Virginia Business

The Latest: Asia and European shares sink as US tariffs take effect

Facing a global market meltdown, President Donald Trump on Wednesday abruptly backed down on his tariffs on most nations for 90 days but raised his tax rate on Chinese imports to 125%.

U.S. markets surged in response.

The S&P 500 was up 7.8% in afternoon trading. It had been down earlier in the morning amid worries about Trump’s trade war and whether it would cause a recession, as economists fear. But it spiked immediately after Trump sent the social media posting that investors have been waiting for. The Dow Jones Industrial Average was up 2,476 points, or 6.6%, as of 1:35 p.m. Eastern time, and the Nasdaq composite was 9% higher.

Investors have been desperate for Trump to ease up on his tariffs, which economists say could cause a global recession and increase inflation.

___

Here’s the latest:

Trump acknowledges markets were ‘pretty glum’ but said bond market now looks ‘beautiful’

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

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

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

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

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

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

Trump says he pulled back on many global tariffs — but not on China — because people were getting ‘yippy,’ ‘afraid.’

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

Trump says he pulled back on many tariffs on U.S. trading partners — but not on China — because people were getting ‘yippy’ and ‘afraid.’

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

World Trade Organization head says wading into trade war could ‘severely damage’ global economic outlook

The head of the World Trade Organization says the rising trade tensions between the United States and China could curb merchandise trade between the two countries by as much as 80%.

Director-General Ngozi Okonjo-Iweala, wading into the rising trade war between the world’s top two economies, said the “tit-for-tat approach” by the U.S. and China “could severely damage the global economic outlook.”

“Of particular concern is the potential fragmentation of global trade along geopolitical lines,” she wrote in a statement late Wednesday. “A division of the global economy into two blocs could lead to a long-term reduction in global real GDP by nearly 7%.”

Citing WTO projections, she warned the negative effects could ripple through to other economies, especially developing ones.

She urged countries to ensure an open global trading system and resolve differences through cooperation.

Wall Street takes a dramatic turn after days of uncertainty and turmoil

In a week of wild swings, Wall Street pulled off perhaps the most dramatic turn Wednesday when the Dow Jones Industrial Average went from a loss of about 350 points to a gain of 2,700 points in a matter of minutes.

At 2:30 p.m., the S&P 500 was up more than 7%, the Nasdaq composite gained nearly 10% and the Dow was up nearly 2,400 points, or 6.3%. Moves like this hadn’t been seen since the early days of the global pandemic in 2020.

Shares of automakers, travel companies, technology giants and retailers surged after some sharp declines in previous days amid predictions of dire consequences for the economy. Companies that sourced parts and materials from countries in Asia and Europe sank on expectations of sharply higher costs.

Tesla jumped nearly 18%, Apple gained 9.5%, JPMorgan added more than 7%, and Warner Bros. jumped almost 17%. Travel-related companies in particular skyrocketed, with United Airlines and Delta gaining more than 20% and Norwegian Cruise Line up almost 18%.

“In this twilight zone week since the tariff slate was announced last week this was the first sign that the Trump Administration would need to back off quickly,” analyst Dan Ives of Wedbush Securities wrote in a note to clients.

Ives notes that Trump did not remove the 104% tariffs he imposed on China, would could still be an issue for companies such as Apple.

African nations breath sigh of relief after Trump walks back tariffs

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

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

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

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

Treasury secretary says markets “didn’t understand” Trump’s tariff strategy

Treasury Secretary Scott Bessent told reporters at the White House that the tumult in the market came because investors didn’t understand Trump’s tariff strategy.

“The market didn’t understand, those were maximum levels. The countries can think about those levels as they come to us to bring down their tariffs, their non-trade barriers,” Bessent said.

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

Automakers surge after tariff pause

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

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

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

Former US trade official says countries will now drift from the dollar

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

Travel stocks surge

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

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

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

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

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

Treasury Secretary announcement to keep a 10% baseline tariffs on most countries seemingly narrows trade war

Treasury Secretary Scott Bessent told reporters that Trump was pausing his so-called ‘reciprocal’ tariffs on most of the country’s biggest trading partners, but maintaining his 10% tariff on nearly all global imports.

It was seemingly an attempt to narrow what had been an unprecedented trade war between the U.S. and most of the world to one between the U.S. and China.

Imports tariffs on goods from China, though, would surge to 125% “effective immediately” Trump said on social media.

Trump pauses tariffs on most nations for 90 days, raises taxes on Chinese imports

President Donald Trump on Wednesday abruptly backed down on his tariffs on most nations for 90 days, but raised his tax rate on Chinese imports to 125%.

It was seemingly an attempt to narrow what had been an unprecedented trade war between the U.S. and most of the world to one between the U.S. and China.

Global markets surged on the development, but the precise details of Trump’s plans to ease tariffs on non-China trade partners were not immediately clear.

Irish businesses are already seeing an impact from the US tariffs

Prime Minister Taoiseach Micheal Martin said Wednesday the 20% tariff on EU exports could have a significantly negative impact on the Irish economy.

“There is no way to sugar coat it,” Martin told members of parliament. “We are already hearing from some who are seeing orders from the United States slowing or even drying up entirely, putting valuable and skilled jobs at risk, and there may be more to come.”

Ireland is in a unique situation because it shares a border and trade with Northern Ireland, which is part of the U.K., and only subject to a 10% tariff.

Martin said their supply chains were interconnected, particularly in the farm sector, and he would continue to be in close touch with northern leaders.

Mary Lou McDonald, leader of Sinn Fein, a minority party, said the two governments need to be lockstep because ordinary people will be hit hardest by the higher prices and threats to their jobs.

“It’s a serious issue that we now have two different tariff rates on this small island of ours, and potentially two very different responses to those rates and the dynamic that is now unfolding around us,” McDonald said.

Martin said he was he was confident a settlement could be reached to avoid disrupting the significant pharmaceutical and medical-tech industries.

Meanwhile, deputy premier Simon Harris was in Washington to meet with U.S. Commerce Secretary Howard Lutnick.

Peabody mines market gains

Peabody Energy‘s stock is heating up after President Donald Trump signed executive orders meant to bolster the coal mining industry in the U.S.

Peabody’s stock is up 3.8%, following a 9.2% jump on Tuesday. It’s still down nearly 50% for the year, though.

Trump is using his emergency authority to allow some older coal-fired power plants set for retirement to keep producing electricity. He is directing federal agencies to lift barriers to coal mining and prioritize coal leasing on U.S. lands. He is also temporarily exempting coal-fired plants from emissions standards on toxic chemicals including mercury and arsenic. Demand for coal and other energy sources has been rising amid the need to power growing data centers.

Trade war brings uncertainty for Delta, the most profitable airline in the US

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

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

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

European Chamber in China says the tariffs necessitate new strategies that may lead to higher prices for consumers

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

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

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

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

Monitoring metals

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

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

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

Beijing asks its citizens to think twice before visiting the US

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

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

EU imposes new tariffs on $23 billion in US goods in retaliation for Trump’s steel, aluminum tariffs

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

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

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

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

US stocks quiver but hold relatively steady as bonds show more stress following tariff escalations

The New York Stock Exchange, Monday, Jan. 27, 2025, in New York. (AP Photo/Julia Demaree Nikhinson, File)

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

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

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

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

Pharma shares tumble on Trump’s tariff pledge

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

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

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

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

Volatility hits bond market

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

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

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

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

China uses World Trade Organization meeting to lash out at Trump

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

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

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

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

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

Walmart pulls back its 1Q profit view amid tariff uncertainty

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

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

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

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

Trump promotes investing in US as antidote to higher tariffs

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

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

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

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

China retaliates with 84% tariffs on US goods

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

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

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

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

Tata Steel to cut around 20% of workforce

Tata Steel said Wednesday it was cutting 20% of its Dutch workforce, citing in part geo-political developments. Some 1,600 workers are set to lose their jobs

Facing rising energy prices and Chinese competition, the Indian-owned firm has been struggling for several years. During the last financial year, which ended in March 2024, it booked a 556 million euro ($613 million) loss.

The company is also facing a 25% tariff imposed by the Trump administration. Around 12% of what the company produces in the Netherlands is exported to the United States.

“The challenging demand conditions in Europe driven by geo-political developments, trade and supply chain disruptions and escalating energy costs have affected the operating costs and financial performance,” Tata said in a statement.

‘We are a little worried about the future’

François-Xavier Huard, the head of the French dairy federation, says the impact of U.S. tariffs on the sector will be significant, with likely greater losses than in 2019 when the previous Trump administration already imposed heavy duties on cheese and other European Union products.

Speaking to The Associated Press on Wednesday, Huard said losses on French cheese exports at the time amounted to 15 million euros ($16.6 million). He said food price inflation in the U.S., combined with the new tariffs, was likely to have an even greater impact on cheese sales, including high-end varieties.

“It is expected to be in the tens of millions of euros,” he said, insisting on the need for a response at EU level. “So we are vigilant and also a little worried about the future. The idea is that we have to react, but be careful not to overreact, as world trade is a highly inflammable matter.”

Pakistan sending high-level delegation to the US

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

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

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

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

France says ‘nothing has been ruled out’

French businesses should suspend their investments in the United States “at least during the first weeks and months of negotiations” about trade tariffs, government spokesperson Sophie Primas said, echoing a similar call last week by President Emmanuel Macron.

‘We need to stand united,” Primas said, while she acknowledged Paris and Brussels can’t prevent European companies “from moving elsewhere.”

“But I think a pause (in investments) is welcome,” she said.

Europe’s response to the tariffs will be “united, proportionate and determined,” Primas said. “Nothing is set in stone at this stage as we obviously need to negotiate with all our European partners. But nothing has been ruled out,” she added.

Primas said it’s only through maintaining a power struggle with the U.S. that “we’ll be able to protect our interests,” even though she stressed the EU would prefer a “negotiated solution.”

Japanese officials aim for stability as tariffs rock markets

Japanese Finance Ministry official Atsushi Mimura told reporters Wednesday his ministry had agreed with Bank of Japan and the Financial Services Agency “to do their utmost to keep stability in the global financial markets.”

Mimura made the comment to Kyodo and other reporters after he met with Koji Nakamura and Seiichi Shimizu, directors at the Bank of Japan, and other financial officials at the ministry’s offices.

Although the name of U.S. President Donald Trump was not mentioned, the hastily called meeting appeared to be a response to recent volatility in global stock markets, including the Tokyo Exchange, that has followed Trump’s tariffs, as well as worries about possible damage to the Japanese economy.

China vows to fight to the end, saying trade with US is already balanced

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

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

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

The paper says that the U.S. has not honored the promises it made in the phase 1 trade deal concluded during Trump’s first term, and argues that taking into account trade in services and U.S. companies’ domestic Chinese branches, economic exchange between the two countries is “roughly in balance.”

During Vietnam visit, Spanish PM says all will lose from trade war

On a visit to Hanoi, Spanish Prime Minister Pedro Sánchez is strengthening commercial ties with Vietnam amid the global economic turmoil caused by the United States’ sweeping tariffs.

The U.S. has slapped Spain, as a European Union member, with a 20% blanket tariff that rises to 25% for cars, steel and aluminum. Vietnam fared even worse and faces a crippling 46% duty.

Sánchez, making a first ever visit by a Spanish president to the southeast Asian country, said that “Spain and Vietnam are advancing toward a strategic, integral relationship” and announced a credit line of 305 million euros for Spanish companies to invest in Vietnam, especially in transport, infrastructure, energy and water resources.

Sánchez said that both countries were committed to the multilateral trade status quo that is being shaken by Donald Trump’s tariffs.

“We are firm believers in free trade to achieve development and prosperity,” Sánchez said after meeting with Vietnamese Prime Minister Pham Minh Chinh. “A trade war favors no one. We all will lose.”

Spain’s government wants to offer cheap credit for domestic companies whose export business to the U.S. could be harmed by Trump’s tariffs. Spain’s economy minister said Tuesday that 80% of Spain’s total of 18.6-billion euros worth of exports to the U.S. could be impacted.

After his stops in Hanoi and Ho Chi Minh City, Sánchez will visit China on Friday seeking closer economic and diplomatic ties with Trump’s No. 1 tariff target.

European shares slide

Germany’s DAX lost 2.1% to 19,857.36. In Paris, the CAC 40 declined 2.1% to 6,949.92. Britain’s FTSE 100 gave up 2% to 7,753.42.

The future for the S&P 500 lost 0.7% while that for the Dow Jones Industrial Average was down 0.5%.

China says it will take “resolute measures” to defend its trading rights

China said it will take “resolute measures” to defend its trading rights, but gave no details on how it will respond to U.S. moves that have pushed tariffs on Chinese goods to an unprecedented 104%.

Foreign Ministry spokesperson Lin Jiang said at a daily briefing Wednesday that China would “by no means” accept the U.S. tariff hikes and extreme pressure exerted on China.

Lin repeated China’s assertion that it would “fight to the end” against what it has described as trade bullying by the U.S., but did not say whether it would add to the 34% tariffs earlier announced on U.S. imports or apply other means. And Lin repeated Beijing’s belief that the U.S. must first “demonstrate sincerity for talks.”

India’s Central Bank cuts key repo rate by 25 basis point

India’s Central Bank cut its key repo rate by 25 basis points on Wednesday, in a move to aid the sluggish economy that faces heat from the U.S reciprocal tariffs which are set to dampen New Delhi’s aspirations for an export-led recovery. That is the interest rate at which the institution lends money to commercial banks when there is a need for short-term needs.

The Monetary Policy Committee of the Reserve Bank of India unanimously voted to lower the repo rate to 6% for the second consecutive time this year, and changed its monetary policy stand from “neutral” to “accommodative.”

Governor Sanjay Malhotra said in a statement the latest tariffs have “exacerbated uncertainties clouding the economic outlook across regions, posing new headwinds for global growth and inflation.”

India continues to make steady progress though towards its goals of price stability, economic growth and inflation, but the Bank remains vigilant to the possible risks from global uncertainties, said Malhotra.

Bank of Japan calls meeting on global economy and markets.

Top officials from the Bank of Japan, the Finance Ministry and the Financial Services Agency met Wednesday to discuss the nation’s response to what they said were the recent shifts in the global economy and markets.

The unexpectedly called meeting was believed to be over Trump’s recent tariffs, which have set off gyrations in global financial markets, including the Tokyo Stock Exchange. Trump was not mentioned in the announcement about the meeting.

Attending the meeting were Koji Nakamura and Seiichi Shimizu, directors at the Bank of Japan, and two officials each from the ministry and the agency.

Asia markets close down

Japan’s Nikkei 225 lost 3.9% to 31,714.03. In Hong Kong, the Hang Seng lost 0.4% to 20,041.03, while the Shanghai Composite index reversed early losses, gaining 0.9%. to 3,173.56.

Taiwan led losses in Asia, as its Taiex plunged 5.8%. Big tech manufacturers were among the biggest decliners. Computer chip giant TSMC Corp. dropped 3.8% while iPhone maker Hon Hai Precision Industry plunged 10%.

South Korea’s Kospi lost 1.7% to 2,293.70, and the government said it would provide help for its beleaguered automakers.

The S&P/ASX 200 in Australia declined 1.8% to 7,375.00. Shares in New Zealand also fell.

In India, the Sensex declined 0.5% as the central bank cut its benchmark interest rate, while Bangkok’s SET shed 0.8%.

Notes:

Eds: UPDATES: Updates with new items;

Trump’s latest round of tariffs have taken effect — and more retaliation is coming. What we know

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

Just after midnight, dozens of countries began facing steeper duties from the U.S. as part of Trump’s sweeping — and self-described “reciprocal” — tariffs on foreign goods. But by Wednesday afternoon, his administration abruptly said it would suspend these higher rates for 90 days, and instead maintain a recently-imposed 10% levy on nearly all global imports.

China, however, is an exception. Trump said on social media that he would raise import taxes on China to 125% “effective immediately” — escalating tit-for-tat levies that have piled up between the two countries.

With so many back-and-forth tariff actions and threats, it can be tough to keep track of where things stand. And a number of other import taxes are still in place. Here’s a rundown of what you need to know.

What tariffs took effect on Wednesday — and are now delayed?

Before announcing a 90-day pause, higher rates for Trump’s latest — and most sweeping — round of tariffs took effect early Wednesday.

Trump announced these new import taxes on April 2, which he dubbed “Liberation Day,” as part of a sweeping “reciprocal” trade plan. Claiming that others had “ripped off” the U.S. for years, Trump declared that the U.S. would tax nearly all of America’s trading partners at a minimum of 10% and impose individualized, steeper rates for dozens of countries that he said run trade surpluses with the U.S.

The 10% baseline already went into effect Saturday — and will now stay in place for most trading partners going forward. Wednesday’s 90-day pause means that those steeper levies, which ran as high as 50%, will be delayed.

The Trump administration has signaled that it will use this time to negotiate with individual countries. In a post on Truth Social Wednesday afternoon, Trump said he was declaring the pause because “more than 75 Countries” had reached out to the U.S. government for trade talks and not retaliated in a meaningful way.

Meanwhile, more aggressive tariffs on China still went into effect Wednesday. After following through on a threat to raise levies against China to a combined 104% by 12:01 a.m. ET, Trump said he was upping that figure to 125% Wednesday afternoon.

“China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” Trump wrote on Truth Social.

Economists warn that the levies will raise prices for goods consumers buy each day, particularly as these new tariffs build on previous trade measures, all of which have already plunged markets into turmoil. And even for countries eligible for the current pause on Trump’s steeper, “reciprocal” rates, 10% still represents an increase in the tariffs previously charged by the U.S. government.

Are more tariffs coming?

Yes. Starting Thursday, China has already said it will tax American goods at 84%.

China announced a flurry of countermeasures in response to the “Liberation Day” tariffs last week, including plans for its own 34% levy on U.S. goods to match what was then Trump’s “reciprocal” rate. But after Trump threatened — and then followed through — on adding an additional 50% early Wednesday, China said it would raise its tariffs to 84%.

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

Whether China will increase its tariffs even further has yet to be seen. The country announced the 84% levy prior to Trump raising the U.S. tax on Chinese goods to a collective 125%.

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

While China has taken the toughest approach so far, a number of countries are evaluating their own responses to Trump’s levies — and some have promised, if not already taken, more retaliation.

Also earlier Wednesday, EU members voted to approve retaliatory tariffs on $23 billion in goods in response to Trump’s previous 25% tariffs on imported steel and aluminum. The EU’s counter tariffs will come in stages, with some arriving April 15 and others on May 15 and Dec. 1. The executive commission didn’t immediately specify which goods would be effected.

Members of the 27-country bloc repeated their preference for a negotiated deal to settle trade issues — calling the U.S. tariffs “unjustified and damaging.” Prior to Trump pausing his higher “reciprocal” tariff rates, Ursula von der Leyen, head of the EU’s executive commission, had offered a zero-for-zero tariffs deal on industrial goods.

Trump could also roll out more product-specific tariffs down the road. The president has previously threatened import taxes on goods like copper, lumber and pharmaceutical drugs — all of which are currently exempt from Trump’s “reciprocal” levies.

During a speech Tuesday night, Trump boasted he was offering “breaking news” before vowing, “We’re going to be announcing, very shortly, a major tariff on pharmaceuticals.” In the same remarks, the president lamented that the U.S. no longer produces many of the pharmaceuticals its citizens take, and said new tariffs would change that — bringing production of medication back to the U.S.

What other import taxes are already here?

A handful of tariffs are already in effect — including, again, Trump’s 10% baseline tax which took effect on Saturday.

Prior to that sweeping levy, Trump had rolled out several other rounds of tariffs targeting particular countries and products. His 25% tariffs on auto imports began last Thursday, with taxes on fully-imported cars. Those levies are set to expand to applicable auto parts in coming weeks, through May 3.

Canada responded with a 25% levy on auto imports from the U.S., effective Wednesday, for products that do not comply with the 2020 US-Mexico Canada Agreement.

Trump’s expanded steel and aluminum tariffs went into effect last month. Both metals are now taxed at 25% across the board, with Trump’s order to remove steel exemptions and raise aluminum’s levy from his previously-imposed 2018 import taxes taking effect March 12.

Beyond previous levies on China, Trump also targeted Mexico and Canada earlier this year. They were spared from last week’s heightened rates, Trump imposed — and later partially suspended — 25% duties on goods from both countries.

Meanwhile, goods complying with the USMCA can continue to enter the U.S. duty-free, according to the White House. Other imports are still levied at 25%, as well as a lower 10% duty on potash and Canadian energy products.

Once the two countries have satisfied Trump’s demands on immigration and drug trafficking, the White House said the tariff on non-USMCA compliant imports will drop from 25% to 12%.

AP Writers Huizhong Wu in Bangkok and Lorne Cook in Brussels contributed to this report.

Notes:

Eds: UPDATES: adds French dairy federation, Tata jobs cuts, updates China countermeasures.

China raises its retaliatory tariff on the US to 84% as it vows to ‘fight to the end’

BANGKOK (AP) — China is boosting tariffs on American goods to 84% and vowed Wednesday to “fight to the end” in an escalating battle that threatens to disrupt trade between the world’s two largest economies.

The new rate, which takes effect Thursday, comes in response to President Donald Trump‘s move to raise the tariff on Chinese products to 104% as part of increases that hit U.S. trading partners worldwide. Europe and Canada also hit back Wednesday with new tariffs on imports from America.

The hikes are the latest in an ongoing trade war that threatens to raise prices for consumers in America and derail China’s attempts to reinvigorate its sluggish economy. The response from the Chinese government signals its determination not to bend to Trump’s pressure, despite the risks.

Beijing also imposed restrictions on doing business with nearly a dozen American companies and said it was launching a new challenge to the American tariffs at the World Trade Organization.

China is a major exporter to US but no longer No. 1

The United States sent a record $199 billion in exports to China last year, while China exported $463 billion in goods and services to the United States, third behind Mexico and Canada, according to the U.S. Commerce Department.

China was the top source of U.S. imports as recently as 2022 but it has lost ground to America’s neighbors amid heightened tensions with the United States.

The European Chamber of Commerce in China accused the U.S. of rolling back many of the principles that have underpinned its approach to trade and investment. It said that Trump’s tariffs would have a significant impact on European companies exporting from China to the U.S., forcing them to rethink their business models and supply chains.

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

No ‘easy path’ to restarting U.S.-China trade talks

Though the U.S. and China may want to find a way back to the negotiating table, “this won’t be an easy path to navigate with both countries doubling down and bilateral engagement at a virtual standstill,” said former U.S. trade official Wendy Cutler, a vice president at the Asia Society Policy Institute.

China does not appear interested in bargaining, as some other countries have started doing.

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

The Chinese Ministry of Culture and Tourism issued a travel advisory asking its citizens to evaluate the risks of visiting the U.S. as tourists and to exercise caution. The advisory, which came shortly after the announcement of the tariff hike, cited the deterioration in economic and trade relations as well as the “safety situation” in America.

China’s response has gone from measured to tough

Trump has raised the tariff on Chinese goods four times since taking office in January. The first two hikes of 10% each were met with what analysts described as a measured response from China that left the door open for talks.

But after Trump announced an additional 34% tariff on Chinese goods last week, along with tariffs on other countries in his “Liberation Day,” China matched that with a 34% tariff on imports from the U.S.

Trump then added a 50% tariff on goods from China, saying negotiations were terminated, and bringing the cumulative U.S. tariff to 104%. China responded by raising the tariff on American products by the same amount, bringing its total rate to 84%.

China’s latest measures include adding 11 American companies to an “unreliable entities” list that bars Chinese companies from selling them goods that could have military uses. Among the companies are American Photonics, and SYNEXXUS, which both work with the American military.

A Chinese position paper issued Wednesday said that the U.S. has not honored the promises it made in an earlier “Phase One” trade deal concluded during Trump’s first term. As an example, it said a U.S. law that would ban TikTok unless it is sold by its Chinese parent company violates a promise that neither would “pressure the other party to transfer technology to its own individuals.”

Trump signed an order to keep TikTok running for another 75 days last week after a potential deal to sell the app to American owners was put on ice. Representatives from ByteDance, the parent company, told the White House that the Chinese government would no longer approve a deal until there could be talks on trade.

“History and facts have proven that the United States’ increase in tariffs will not solve its own problems,” the Commerce Ministry said in a statement introducing the paper. “Instead, it will trigger sharp fluctuations in financial markets, push up U.S. inflation pressure, weaken the U.S. industrial base and increase the risk of a U.S. economic recession, which will ultimately only backfire on itself.”

___

Associated Press researcher Yu Bing and video producer Liu Zheng in Beijing and writers Paul Wiseman and Didi Tang in Washington contributed to this report.

UPDATED: Adds details and context

Northern Virginia leaders plead for state’s help amid federal job cuts

ALEXANDRIA, Va. (AP) — Northern Virginia leaders urged lawmakers on Tuesday to enact emergency legislation to help stabilize their local economy as the White House cuts federal jobs, which they said has sharply impacted the dense cluster of government employees and contractors based in the suburbs of the nation’s capital.

In presentations to a House of Delegates bipartisan committee addressing federal reductions, local authorities described the job reductions as a once-in-a-lifetime overhaul of Fairfax County‘s economy that would push high-salary workers to leave the state.

Fairfax County Board Chairman Jeff McKay said the shift would impact staffing at other ventures, ranging from child care services to staffing at the local county jail.

“What we’re facing here is far worse than COVID,” said McKay, a board member of the state’s most populous county. “COVID was an international pandemic that was affecting everyone. This is something that’s acutely affecting Virginia and northern Virginia.”

McKay added: “We got through COVID because we had a lot of federal support. We will get no federal support with this. In fact, it is federal actions that are causing these actions.”

As of Tuesday, roughly 1,300 federal employees and contractors have filed unemployment insurance claims with the Virginia Employment Commission since the end of January, Secretary of Labor George’ Bryan’ Slater, who attended the committee meeting, said to a reporter during the meeting.

The meeting comes as all 100 House of Delegates seats will be on the ballot in November, along with the governor. Three of the four lawmakers in Democrats’ most competitive districts, according to a recent announcement by the Democratic Legislative Campaign Committee, serve on the bipartisan committee.

According to a presentation by the Northern Virginia Regional Commission, federal jobs account for roughly 6% of the workforce in northern Virginia and about 5% of jobs for the entire state. By comparison, such government positions only account for 2% of U.S. jobs, according to the regional commission.

Republican Del. Rob Bloxom said the House of Delegates committee would need more clarity on how the workforce reductions would impact state revenues. He added that the committee should engage more with the Virginia Employment Commission, an agency overseen by Slater.

“Like the administration or hate them, we are all in this together,” Bloxom said. “We really need them in the room to verify what they’re seeing.”

Republican Gov. Glenn Youngkin has created an online jobs portal for people looking for employment in the state, including a specific page for federal workers.

In late March, Youngkin said: “Let me be really clear: anybody who writes that there are only fast food jobs is not doing your job. Go to the website, pretend you’re someone in Fredericksburg, Virginia, who might lose their job and go find all of the jobs that would match that person’s career.”

On Tuesday, Alissa Tafti, a former union leader for her agency’s union, said she worried that former federal workers would still have difficulty finding employment in Virginia that would match their salaries, even if there are available positions out there.

“Federal workers who are getting their jobs cut, many of them … are people with really specific skill sets — highly skilled individuals, but with really particular skill sets,” said Tafti, an economist who worked for the federal government until the end of March. “It makes it really hard to find another job in another field. The economy is going to have a really hard time absorbing this many people.”

Lawmakers on the bipartisan committee are speaking to authorities in different regions of Virginia to assess how cuts to federal jobs and spending are impacting parts of the state. The committee’s next meeting will be in southwestern Virginia, lawmakers said. ___

Olivia Diaz is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.

Trump signs executive orders to boost coal, a reliable but polluting energy source

WASHINGTON (AP) — President Donald Trump on Tuesday signed a series of executive orders aimed at boosting the struggling coal industry, a reliable but polluting energy source that’s long been in decline.

Under the orders, Trump uses his emergency authority to allow some older coal-fired power plants set for retirement to keep producing electricity to meet rising U.S. power demand amid growth in data centers, artificial intelligence and electric cars.

Trump, a Republican, has long promised to boost what he calls “beautiful” coal to fire power plants and for other uses, but the industry has been in decline for decades.

The orders direct federal agencies to identify coal resources on federal lands, lift barriers to coal mining and prioritize coal leasing on U.S. lands. They also direct Interior Secretary Doug Burgum to “acknowledge the end” of an Obama-era moratorium that paused coal leasing on federal lands and require federal agencies to rescind policies transitioning the nation away from coal production.

The orders also seek to promote coal and coal technology exports and to accelerate development of coal technologies.

Trump has long championed coal

Trump, who has pushed for U.S. “energy dominance” in the global market, has long suggested that coal can help meet surging electricity demand from manufacturing and the massive data centers needed for artificial intelligence.

“I call it beautiful, clean coal. I told my people, never use the word coal unless you put beautiful clean before it,” Trump said Tuesday at a White House ceremony.

“Pound for pound, coal is the single most reliable, durable, secure and powerful form of energy,” Trump added. “It’s cheap, incredibly efficient, high density, and it’s almost indestructible. You could drop a bomb on it and it’s going to be there for you to use the next day.”

Still, energy experts say any bump for coal under Trump is likely to be temporary because natural gas is cheaper and there’s a durable market for renewable energy such as wind and solar power no matter who holds the White House.

The national decline of coal

Trump’s actions seek to reverse a decades-long decline in U.S. coal production. His administration has targeted regulations under former President Joe Biden’s administration that could hasten closures of heavily polluting coal power plants and the mines that supply them.

Coal once provided more than half of U.S. electricity production, but its share dropped to about 16% in 2023, down from about 45% as recently as 2010. Natural gas provides about 43% of U.S. electricity, with the remainder from nuclear energy and renewables such as wind, solar and hydropower.

The front line in what Republicans call the “war on coal” is in the Powder River Basin of Wyoming and Montana, a sparsely populated section of the Great Plains with the nation’s largest coal mines. It’s also home to a massive power plant in Colstrip, Montana, that emits more toxic air pollutants such as lead and arsenic than any other U.S. facility of its kind, according to the Environmental Protection Agency.

EPA rules finalized last year could force the Colstrip Generating Station to shut down or spend an estimated $400 million to clean up its emissions within the next several years. Another Biden-era proposal, from the Interior Department, would end new leasing of taxpayer-owned coal reserves in the Powder River Basin.

Changes and promises under Trump

Trump vowed to reverse those actions and has named Burgum and Energy Secretary Chris Wright to lead a new National Energy Dominance Council. The Trump-created panel is tasked with driving up already record-setting domestic oil and gas production, as well as coal and other traditional energy sources.

The energy council has been granted sweeping authority over federal agencies involved in energy permitting, production, generation, distribution, regulation and transportation. It has a mandate to cut bureaucratic red tape, enhance private sector investments and focus on innovation instead of “totally unnecessary regulation,” Trump said.

EPA Administrator Lee Zeldin, meanwhile, has announced a series of actions to roll back environmental regulations, including rules on pollution from coal-fired power plants.

“By reconsidering rules that throttled oil and gas production and unfairly targeted coal-fired power plants, we are ensuring that American energy remains clean, affordable and reliable,” Zeldin said last month in announcing the actions, which he called the “most consequential day of deregulation in American history.”

In all, Zeldin said he is moving to roll back 31 environmental rules, including a scientific finding that has long been the central basis for U.S. action against climate change.

Coal industry applauds, but environmental groups warn of problems

Industry groups praised Trump’s focus on coal.

“Despite countless warnings from the nation’s grid operators and energy regulators that we are facing an electricity supply crisis, the last administration’s energy policies were built on hostility to fossil fuels, directly targeting coal,” said Rich Nolan, president and CEO of the National Mining Association.

Trump’s executive actions “clearly prioritize how to responsibly keep the lights on, recognize the enormous strategic value of American-mined coal and embrace the economic opportunity that comes from American energy abundance,” Nolan said.

But environmental groups said Trump’s actions were more of the same tactics he tried during his first term in an unsuccessful bid to revive coal.

“What’s next, a mandate that Americans must commute by horse and buggy?” asked Kit Kennedy, managing director for power at the Natural Resources Defense Council.

“Coal plants are old and dirty, uncompetitive and unreliable,” Kennedy said, accusing Trump and his administration of remaining “stuck in the past, trying to make utility customers pay more for yesterday’s energy.”

Instead, she said, the U.S. should be doing all it can to build the power grid of the future, including tax credits and other support for renewable energy such as wind and solar power.

____

The Latest: Trump expected to sign executive orders to boost coal

President Donald Trump is expected to sign executive orders Tuesday aimed at boosting coal, a reliable but polluting energy source that’s long been in decline.

According to two senior White House officials, Trump will use his emergency authority to allow some older coal-fired power plants set for retirement to keep producing electricity to meet rising U.S. power demand amid growth in data centers, artificial intelligence and electric cars. The officials spoke on the condition of anonymity because they weren’t authorized to discuss the issue before the president’s announcement.

Trump, a Republican, has long promised to boost what he calls “beautiful” coal to fire power plants and for other uses, but the industry has been in decline for decades.

Here’s the latest:

Canada retaliates with 25% auto tariffs in response to Trump’s import taxes

In response to President Donald Trump‘s tariffs, Canada says it’s implementing retaliatory tariffs of its own just after midnight on Wednesday.

Canada will put a 25% tariff on auto imports from the United States that do not comply with the USMCA, the 2019 North American trade pact put into place during Trump’s first term.

The Canadian government is also putting in a framework to bolster auto production and domestic investment as well as providing a special exception on tariff countermeasures for residents of Campobello Island, New Brunswick.

Senate confirms Trump’s nominee for top Pentagon policy job

The Senate confirmed the appointment of Elbridge Colby to be the top policy adviser at the Pentagon, overcoming concerns that he has downplayed threats from Russia and its president, Vladimir Putin.

The vote was 54-45, with Sen. Mitch McConnell of Kentucky as the only Republican voting against Colby and three Democrats voting in favor.

McConnell said Colby’s public record suggests a willingness to discount the complexity of the challenges facing America and the critical value of our allies. Vice President JD Vance criticized McConnell ‘s vote as petty.

Vance spoke at the Senate Armed Services Committee hearing early last month to urge Colby’s confirmation, saying the nominee has said things in the past that alienated Republicans and Democrats and also said things that both sides would agree on.

AP wins reinstatement to White House events after judge rules government can’t bar its journalists

A federal judge ordered the White House on Tuesday to restore The Associated Press’ full access to cover presidential events, ruling on a case that touched at the heart of the First Amendment and affirming that the government cannot punish the news organization for the content of its speech.

U.S. District Judge Trevor N. McFadden, an appointee of Donald Trump, ruled that the government can’t retaliate against the AP’s decision not to follow the president’s executive order to rename the Gulf of Mexico. The decision handed the AP a major victory at a time when the White House has been challenging the press on several levels.

“Under the First Amendment, if the Government opens its doors to some journalists — be it to the Oval Office, the East Room, or elsewhere — it cannot then shut those doors to other journalists because of their viewpoints,” McFadden wrote. “The Constitution requires no less.”

Trump signs orders promoting coal industry

Trump signed four executive orders promoting the struggling coal industry Tuesday afternoon, flanked by coal miners wearing helmets and administration officials.

The president’s orders allow some older coal-fired power plants set for retirement to continue producing electricity to meet U.S. energy demands, put a moratorium on coal policies issued by his predecessor, President Joe Biden, and direct the executive branch to ensure its positions are not discriminatory against coal.

Trump also signed an order directing the Justice Department to investigate policies about coal issued by Democratic-controlled states to determine if they are illegal.

Army to begin limited use of horse-drawn caissons for Arlington National Cemetery funerals

The Army will soon begin limited use of horse-drawn caissons for funerals at Arlington National Cemetery, phasing in the long-held tradition after nearly two years of work to improve the care of the horses.

Starting June 2 the caissons will be used for two funerals per day, up to 10 per week, the Army said. The decision comes as the Army struggles to improve training, get better equipment and facilities and rebuild the stable of horses after two died in 2022 due to poor feed and living conditions.

The return of the caissons has been delayed several times. The Army suspended the use of the gray and black horses for the caissons in May 2023 to develop a program to improve the health and conditions of the herd.

State Department rolls back funding cuts to UN emergency food projects in poor countries

The State Department said it rolled back an undisclosed number of sweeping funding cuts to U.N. World Food Program emergency projects in 14 impoverished countries, saying it had terminated some of the contracts for life-saving aid by mistake.

State Department spokeswoman Tammy Bruce told reporters she had no immediate information on which countries had funding for food aid restored after a dayslong cutoff. She gave no explanation for how some contracts came to be canceled in error.

The World Food Program did not immediately respond to messages seeking comment.

The Associated Press reported Monday that the Trump administration cut funding to WFP emergency programs helping keep millions alive in Afghanistan, Syria, Yemen and 11 other countries, many of them struggling with conflict, according to the agency and officials who spoke to the AP.

House Republicans end standoff on proxy voting for new parents

Republicans voted to resurrect an arcane congressional procedure, ending a standoff between Republican Rep. Anna Paulina Luna and Speaker Mike Johnson on whether the House should permit proxy voting for new parents.

The compromise formalizes “vote pairing,” which allows a member on the House floor to cancel out the vote of a member who is absent. The member who is absent “pairs” with a member who plans to vote the opposite direction and is willing to vote “present” instead.

Previously Luna had supported legislation to allow new parents to vote by proxy, a measure that Johnson vehemently opposed.

Rules Committee Chair Virginia Foxx called the solution a “tried and true” method. But Democratic Rep. Brittany Pettersen, who worked with Luna on legislation promoting proxy voting, said it “is not a workable solution.”

US stocks drop again as uncertainty reigns about Trump’s tariffs

U.S. stocks dropped after a second day of stunning reversals. The S&P 500 fell 1.6% Tuesday after wiping out an early gain of 4.1%, which had it on track for its best day in years. That brought the index nearly 19% below its record set in February.

The Dow Jones Industrial Average dropped 320 points after giving up an earlier surge of 1,460, while the Nasdaq composite lost 2.1%. Uncertainty is still high about what President Donald Trump will do with his trade war. The latest set of tariffs, including a massive 104% levy on Chinese imports, are scheduled to kick in after midnight.

FBI tells some senior officials at field offices to retire or accept new positions

The directive applies to about five special agents in charge at some of the FBI’s 55 field offices around the country. It was described to The Associated Press by multiple people familiar with the matter who spoke on condition of anonymity because they weren’t authorized to talk about private personnel discussions.

The exact reason for the move wasn’t immediately clear, nor was it clear how the individual agents were chosen. But it’s all part of a broader workforce realignment that involves the planned relocation of some 1,500 employees from Washington to the FBI’s campus in Huntsville, Alabama. That plan was disclosed by FBI Director Kash Patel on his first day on the job.

An FBI spokesperson had no immediate comment Tuesday.

— Eric Tucker

New offers for buyouts and early retirement offered to Homeland Security staff

That’s according to an email obtained by The Associated Press and it comes as the Trump administration pushes forward with efforts to reduce and reshape the federal workforce.

In the email, titled “Reshaping of the DHS Workforce,” Secretary Kristi Noem says the department would give staffers who want to leave three options: deferred resignation, early retirement and a voluntary separation payment. The email, which was sent Monday night, said the last option offers a lump-sum payment of up to $25,000 in some cases.

Staff have until April 14 to decide on whether to apply for the offer.

The Department of Homeland Security did not respond to questions about how many people are expected to take the offer or whether staff cuts would eventually follow.

Democratic state lawmakers in Arizona walked out of a speech by Trump’s border chief

As Tom Homan began speaking to the Legislature, the lawmakers held signs with the names of people they say were unjustly detained by immigration authorities and silently walked out the back of the state House chamber.

Homan is touting the Trump administration’s immigration policies in a speech to the state House and Senate in Arizona, a border state where Republican lawmakers are eager to cooperate with Trump’s push to crack down in illegal border crossings and deport people living in the country illegally.

Trump helps plant replacement for historic White House tree that was removed over safety concerns

“We have a beautiful tree now at the White House,” Trump said.

The White House did not allow news media coverage of the tree planting, but afterward shared a brief video clip on social media. Dale Haney, the longtime grounds superintendent, also participated.

“Dale’s been here 53 years. He’s fantastic,” Trump said.

The Republican president had announced March 30 on his social media platform that the nearly 200-year-old tree, known as the Jackson Magnolia, was in “terrible condition, a very dangerous safety hazard, at the White House Entrance, no less, and must now be removed.”

The southern magnolia had stood for decades near the west side of the South Portico of the White House. It’s where presidents and prime ministers often are welcomed on their visits, as well as where the president himself exits to board the Marine One helicopter or returns after a trip.

Homeland Security waiver allows feds to bypass environmental rules to build border wall

The waiver issued Tuesday allows the federal government to bypass environmental regulations and begin construction immediately on stretches of the border wall in Southern Califorborder wall in Southern Californiania.

Homeland Security said in a statement that the waiver signed by Secretary Kristi Noem will “cut through bureaucratic delays” and forego dozens of laws including the National Environmental Policy Act, which requires federal agencies to evaluate the effects of their actions on the environment.

Officials said the decision will fast-track U.S. Customs and Border Protection’s construction of about 2 1/2 miles (4 kilometers) of the wall south of San Diego and further east near Jacumba Hot Springs, California.

“This waiver clears the path for the rapid deployment of physical barriers where they are needed most, reinforcing our commitment to national security and the rule of law,” the statement said.

The advocacy group Earthjustice derided the decision to sidestep environmental laws.

White House and Iran at odds on whether upcoming talks will be ‘direct’ or ‘indirect’

Iranian officials have confirmed they’ll engage with Trump’s team in Oman on Saturday as the U.S. administration presses Tehran to abandon it’s nuclear weapons ambitions. But they’re describing the talks differently than Trump.

“Iran and the United States will meet in Oman on Saturday for indirect high-level talks,” Iranian Foreign Minister Abbas Araghchi wrote on X. “It is as much an opportunity as it is a test. The ball is in America’s court.”

But Trump in announcing the talks Monday described the upcoming engagement as “direct talks.”

Asked to clarify the difference, White House press secretary Karoline Leavitt stuck with Trump’s description.

“They will be direct talks on Saturday, and I won’t get ahead of the president on any further details,” she said.

The U.S. and Iran have engaged in indirect talks in recent years, with Oman playing the role of intermediary. If direct talks happen, they would be the first publicly-known direct negotiations between the U.S. and Iran since Trump scrapped Obama administration’s negotiated nuclear deal in 2018.

‘Boys will be boys,’ White House says about feuding between advisers Musk and Navarro

Leavitt said “we will let their public sparring continue.”

Elon Musk earlier on X called trade adviser Peter Navarro “truly a moron” and “dumber than a sack of bricks.” Navarro has been speaking publicly about worldwide tariffs Trump announced last week.

Navarro previously had said Musk, a billionaire who’s leading Trump’s government downsizing initiative, was “protecting his own interests” by opposing tariffs.

The Tesla electric car company is among several businesses Musk owns.

White House now says Trump tariffs are bargaining chips to get better trade deals

“Bring us your best offers and he will listen,” White House press secretary Karoline Leavitt said of other countries potentially negotiating tariff rates with Trump.

She said Israeli Prime Minister Benjamin Netanyahu coming to Washington to talk trade “should serve as a model.”

Leavitt said China was “making a mistake” by responding with its own steep tariffs.

She insisted that negotiating, rather than steadfastly sticking to high tariffs, wasn’t an evolution amid stock market turmoil.

‘Tailor-made’ trade deals, not ‘off-the-rack’ deals

Leavitt says Trump has directed his team to work with countries that have reached out to strike deals in the wake of the president’s tariff hikes and trade war and to create “tailor-made” trade deals for each country.

“They are not going to be off-the-rack deals,” Leavitt said.

Leavitt said the Trump administration is willing to speak to any country that comes to the negotiating table.

Trump will host the leaders of El Salvador and Italy at the White House next week

White House press secretary Karoline Leavitt says Trump will host El Salvador’s president, Nayib Bukele, for a working visit April. 14.

Trump has been deporting Venezuelan migrants to El Salvador, which has agreed to house them in an infamous prison.

Late Monday, Supreme Court Chief Justice John Roberts agreed to pause a midnight deadline for the administration to return a Maryland man who was mistakenly deported to El Salvador.

Later that week, on April 17, Italy’s prime minister, Giorgia Meloni, will visit with Trump.

IRS agrees to share tax data with ICE for identifying and deporting people in US illegally

That’s according to a document signed Monday by Treasury Secretary Scott Bessent and Department of Homeland Security Secretary Kristi Noem.

The new memorandum of understanding will allow ICE to submit names and addresses of immigrants in the U.S. illegally to the IRS for cross-verification against tax records.

Treasury says the agreement will help carry out Trump’s agenda to secure U.S. borders and is part of his larger nationwide immigration crackdown, which has resulted in deportations, workplace raids, and the use of an 18th century wartime law to deport Venezuelan migrants.

However, advocates say the IRS-DHS information sharing agreement violates longstanding privacy laws and diminishes all Americans’ privacy.

Hegseth: Panama Canal faces threats from China, but US and Panama will keep it secure

“The United States of America will not allow Communist China, or any other country to threaten the canal’s operation or integrity,” Hegseth said, speaking at ribbon cutting for a new U.S.-financed dock at the Vasco Nuñez de Balboa Naval Base.

To that end, Hegesth said, the U.S. and Panama have worked in recent weeks to strengthen their defense and security cooperation.

“Our relationship is growing in part to meet Communist China’s rising challenge,” Hegseth said. “China-based companies continue to control critical infrastructure in the canal area. That gives China the potential to conduct surveillance activities across Panama. This makes Panama and the United States less secure, less prosperous and less sovereign. And as President Donald Trump has pointed out, that situation is not acceptable.”

Joe Rogan and Dave Portnoy are among the Trump backers now questioning his tariff policies

As Trump’s tariffs roil global markets, some of the thought leaders and influential podcasters who backed the Republican’s campaign are voicing doubts.

Barstool Sports owner Dave Portnoy, hedge fund manager Bill Ackman and even Elon Musk are adding their voices to a number of congressional Republicans who’ve weighed in against the tariffs set to take effect Wednesday.

Portnoy has said he might have lost up to $20 million since the tariffs were unveiled, although he thinks Trump is “smart.”

In March, influential podcaster Joe Rogan said Trump’s feud with Canada was “stupid” and bemoaned the fact that Canadians “booed us over tariffs.”

Ackman has characterized the tariffs as “a major policy error.” After Peter Navarro said Musk “doesn’t understand” the situation over tariffs, the Tesla chief and Trump ally called the White House trade adviser “dumber than a sack of bricks.”

In Montana, Blackfeet members say tariffs on Canada violate treaty rights

A Democratic state lawmaker and a rancher who are members of the Native American tribe in northwestern Montana have filed a lawsuit in U.S. District Court seeking to block Trump’s tariffs.

Short of a complete block, they want tariffs halted at three Montana border crossings or for tribal members.

Indigenous people of Montana have treaty rights that allow them to travel and conduct commerce freely across the border. Those date to 1794, long before the present U.S.-Canada boundary line was established, the lawsuit says.

Plaintiff Jonathan St. Goddard, who ranches on the Blackfeet reservation that’s along the Canada border, last month broke a tractor wheel and couldn’t get one locally, so he traveled to Alberta to buy a replacement. He paid $308 coming back across the U.S. border to cover a 25% tariff, he said in a declaration filed with the lawsuit.

“If tariffs continue, the costs from the tariffs will cause irreparable harm to our family’s ranch and agricultural business,” St. Goddard said.

The other plaintiff is state Sen. Susan Webber.

UN Secretary-General Antonio Guterres says in a trade war ‘everybody tends to lose’

He told reporters Tuesday that he’s particularly worried about the effect of U.S. tariffs and the trade war it’s unleashing on “the most vulnerable developing countries in which the impact will be more devastating.”

Is the United Nations secretary-general worried a trade war will lead to a global recession?

“I sincerely hope that we will have no recession because a recession will have dramatic consequences, especially for the poorest people in the world,” Guterres said.

US Defense Secretary Pete Hegseth met with Panama President José Raúl Mulino

The Tuesday meeting came before Hegseth headed to a ribbon cutting for a new U.S.-financed dock on a former U.S. base.

Hegseth did not make any comments as he left the meeting, but posted a photo of the two men laughing on X.

Hegseth wrote that it was an honor speaking with Mulino. “You and your country’s hard work is making a difference. Increased security cooperation will make both our nations safer, stronger and more prosperous.”

The meeting comes amid tensions over Trump’s repeated assertions that the United States is being overcharged to use the Panama Canal and that China has influence over its operations. Panama has denied those allegations.

Minnesota’s education chief pushes back on Trump threat to cut school funding over DEI

In a letter to the U.S. Education Department, Minnesota’s education chief says the Trump administration has overstepped its authority with its crackdown on diversity, equity and inclusion programs.

The White House last week directed states to gather signatures from local school systems certifying compliance with civil rights laws, including the rejection of what the federal government calls “illegal DEI practices.” It said schools that don’t comply would run the risk of losing funding.

Minnesota’s education chief Willie Jett said in the letter that there’s nothing illegal about DEI.

“Threats to this funding without backing in law or established requirements put key programs at risk that students and schools depend on every day,” Jett wrote.

State leaders in New York said last week they wouldn’t comply with an Education Department order.

US trade rep says Trump tariffs are getting results, but things may be ‘challenging’ for awhile

The nation’s top trade representative said Tuesday that Trump’s sweeping tariffs are already getting results, bringing other countries to the negotiating table to discuss reducing their trade barriers.

U.S. Trade Representative Jamieson Greer addressed the Senate Finance Committee a day after global markets swung wildly and some business leaders lambasted the president’s aggressive bid to raise tariffs on almost every nation.

Greer testified that “about 50″ countries have sought talks to escape Trump’s import tariffs. He said, for example, that Vietnam is cutting its own tariffs on apples, almonds and cherries. The import taxes are designed to reduce America’s massive trade deficits, but Greer conceded the adjustment might ”be challenging at times.″

Congress is getting jittery about Trump’s trade wars, especially since stocks collapsed after he announced broad tariffs last Wednesday.

Supreme Court blocks order requiring Trump administration to reinstate thousands of federal workers

The employees were let go in mass firings aimed at dramatically downsizing the federal government.

The justices acted in the administration’s emergency appeal of a ruling by a federal judge in California ordering that 16,000 probationary employees be reinstated while a lawsuit plays out because their firings didn’t follow federal law.

The effect of the high court’s order will keep employees in six federal agencies on paid administrative leave for now.

A second lawsuit, filed in Maryland, also resulted in an order blocking the firings at those same six agencies, plus roughly a dozen more. But that order only applies in the 19 states and the District of Columbia that sued the administration.

The Justice Department is separately appealing the Maryland order.

National Park Service restores the original Harriet Tubman and Underground Railroad webpage

It comes in the wake of news reports and public backlash over the changes.

“Changes to the Underground Railroad page on the National Park Service’s website were made without approval from NPS leadership nor Department leadership,” NPS spokeswoman Rachel Pawlitz said late Monday in an email. “The webpage was immediately restored to its original content.”

She did not say who ordered the changes or for what reason. The changes — first reported by The Washington Post — included removing Tubman’s picture from the top of the page and making multiple edits to the text. A side-by-side analysis of the pages, using the Internet Archive’s Wayback Machine, revealed changes that removed references to slavery and changed descriptions about the issue and its brutal realities.

The issue comes amid sweeping government changes to comply with President Trump’s campaign against so-called diversity, equity and inclusion policies in the federal government.

Trump tariffs threaten 35,000 jobs and entire towns in South Africa’s citrus sector, group says

The Citrus Growers’ Association of Southern Africa says the impending reciprocal tariffs, due to come into effect Wednesday, will be deeply damaging to South Africa’s largest agricultural export.

The group says the tariffs would likely make South African citrus fruits cost $4.25 more per carton for American consumers. South Africa provides citrus to the U.S. market when it is out of season there.

South Africa is the second-biggest exporter of oranges behind Spain and the world’s fourth-largest exporter of soft citrus fruits, according to the World Citrus Organization.

House leaders express concern for any US troop cuts in Europe

The top Republican and Democratic leaders of the House Armed Services Committee expressed concerns about reports that the Trump administration is eyeing a reduction of U.S. forces in Europe, saying America must stick with its NATO allies.

Rep. Michael Rogers, R-Mich., the panel’s chairman, also voiced opposition to any plan for the U.S. to relinquish NATO command. The U.S. historically has held the Supreme Allied Command Europe position.

“U.S. leadership in NATO is essential to ensure armed American forces, including our nuclear weapons, always remain under U.S. command,” said Rogers at the start of a hearing with Army Gen. Christopher Cavoli, commander of U.S. European Command and the NATO commander.

Cavoli told the committee he’s recommended that the U.S. maintain its current force totals. There has been roughly 100,000 U.S. troops in Europe.

Trump expected to help plant replacement for historic White House tree

The White House says Trump was participating in an event to plant a 12-year-old Magnolia sapling to replace a nearly 200-year-old Magnolia tree that was removed Monday due to safety concerns.

The sapling is a direct descendant of the Andrew Jackson-era Magnolia.

Trump had announced last month that the tree was in “terrible condition” and would be removed because it had become a safety hazard.

Guidehouse wins $250M hybrid Army contract

McLean-based consultancy Guidehouse has been awarded a $250 million hybrid contract from the U.S. Army for financial support services.

The Department of Defense said bids for the hybrid firm-fixed-price and time-and-materials contract were solicited through the internet, and that two bids were received. Work locations and funding will be determined with each order, with an estimated completion date of March 31, 2028, according to the DOD.

In April 2023, the Army awarded Guidehouse an $89.98 million time-and-materials contract to support the Army Working Capital Fund infrastructure, with an estimated completion date of April 19, 2028. In June 2024, Guidehouse was awarded a $22.69 million modification to the contract for audit support and financial management services, with an estimated completion date of July 22, 2028.

Headquartered in Fairfax County, Guidehouse is a federal contractor and global provider of technology and consulting services. It was acquired by a Bain Capital Private Equity affiliate for $5.3 billion in December 2023, after having been owned by Veritas Capital since 2018. The company employs more than 17,000 people across the globe.

Genworth taps new CIO

Henrico County-based Fortune 500 insurance company Genworth Financial announced Monday that Morris Taylor is its new senior vice president and chief information officer.

Taylor joins the company from Glen Allen-based Fortune 500 insurer Markel, where he had served as chief information officer since 2021. Before Markel, Taylor spent 25 years with McLean-based Capital One Financial, where he led the company’s largest acquisition and integration project.

In his new role, Taylor will report to Genworth President and CEO Tom McInerney and will be responsible for designing and executing a technology strategy that aligns company goals and long-term growth plans. Genworth says Taylor will also play a role accelerating digital innovation within the organization and partnering with senior technology leadership in Genworth’s U.S. Life Insurance, CareScout Services and CareScout Insurance businesses.

“I am inspired by Genworth and CareScout’s mission to empower families to navigate the aging journey with confidence, as well as the company values that resonate with my own — compassion, customer focus, teamwork and continuous improvement,” Taylor said in a statement. “Technology is a collaborative effort, and I look forward to delivering innovative customer-focused services and solutions that meet families’ needs in facing the challenges of aging.”

McInerney said in a statement that Taylor will be “a tremendous asset” as the company works “to deliver a technology-enabled and human-centered experience” for its customers.

A Genworth spokesperson said that Taylor is stepping into a newly created role, not succeeding someone.

Taylor holds a bachelor’s degree in finance from Virginia Commonwealth University.

Headquartered in Glen Allen, Genworth offers mortgage and long-term care insurance products. The company reported annual revenues of about $7.3 billion in 2024, down 2.58% from 2023’s roughly $7.5 billion in revenue. Genworth is also the parent company of publicly traded mortgage insurance provider Enact Holdings.

US stocks drop after another stunning day of reversals as uncertainty reigns about Trump’s tariffs

NEW YORK (AP) — U.S. stocks dropped after a second day of stunning reversals. The S&P 500 fell 1.6% Tuesday after wiping out an early gain of 4.1%, which had it on track for its best day in years. That brought the index nearly 19% below its record set in February. The Dow Jones Industrial Average dropped 320 points after giving up an earlier surge of 1,460, while the Nasdaq composite lost 2.1%. Uncertainty is still high about what President Donald Trump will do with his trade war. The latest set of tariffs, including a massive 104% levy on Chinese imports, are scheduled to kick in after midnight.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

NEW YORK (AP) — U.S. stocks dove Tuesday after a second day of stunning reversals, as Wall Street veered from jubilation in the morning toward fear at the close because it still has no idea what to make of President Donald Trump‘s trade war, which is scheduled to kick into a higher gear after midnight.

After roaring to an early gain of 4.1%, which had it on track for its best day in years, the S&P 500 quickly lost all of it within a few hours. It then careened all the way to a loss of 2.6%. That brought it 19.7% below its record set in February.

The Dow Jones Industrial Average was down 683 points, or 1.8%, after giving up an earlier surge of 1,460 points, while the Nasdaq composite was down 3.2%, as of 3:39 p.m. Eastern time.

The shocking swings followed rallies for stocks globally earlier in the day, with indexes up 6% in Tokyo, 2.5% in Paris and 1.6% in Shanghai. But even after those jumps, analysts had been warning to expect more swings up and down for financial markets not just in the days ahead but also the hours.

The big question remains centered on how long Trump will keep his stiff tariffs on other countries, which would raise prices for U.S. shoppers and slow the economy. If they last a long time, economists and investors expect them to cause a recession. But if Trump lowers them through negotiations relatively quickly, the worst-case scenario can be avoided.

Hope still remains on Wall Street that negotiations may be possible, which helped drive the morning’s rally. Trump said Tuesday that a conversation with South Korea’s acting president helped them reach the “confines and probability of a great DEAL for both countries.”

“Their top TEAM is on a plane heading to the U.S., and things are looking good,” Trump said on his Truth Social platform. “We are likewise dealing with many other countries, all of whom want to make a deal with the United States.”

Japanese stocks led global markets higher after the country’s prime minister, Shigeru Ishiba, appointed his trade negotiator for talks with the United States. It was based on an agreement between Ishiba and Trump, Japanese officials said.

But investors should still remain cautious, said Sameer Samana, a senior global market strategist for Wells Fargo Investment Institute. He pointed to how “the key countries continue to escalate, rather than de-escalate.”

China said it will “fight to the end” and warned of countermeasures after Trump threatened on Monday to raise his tariffs even further on the world’s second-largest economy.

That led White House press secretary Karoline Leavitt to say Trump’s threats of even higher tariffs on China will become reality after midnight, when imports from China will be taxed at a stunning 104% rate.

That would coincide with Trump’s latest set of broad tariffs, which are scheduled to kick in at 12:01 a.m. And Trump has made clear that he does not intend to have any exemptions or exclusions in the tariffs, according to the country’s top trade negotiator, Jamieson Greer.

The U.S. trade representative also said in testimony before a Senate committee that roughly 50 countries have already been in contact, and he’s told them: “If you have a better idea to achieve reciprocity and to get our trade deficit down, we want to talk with you, we want to negotiate with you.”

Trump’s trade war is an attack on the globalization that’s shaped the world’s economy and helped bring down prices for products on store shelves but also caused manufacturing jobs to leave for other countries. Trump has said he wants to narrow trade deficits, which measure how much more the United States imports from other countries than it sends to them as exports.

On Wall Street, companies with vast supply chains around the world helped lead the losses. Ralph Lauren sank 6.8%, for example. It sourced about 15% of its products from China last fiscal year.

Best Buy doesn’t import many products directly from China, but the electronics industry in general has a supply chain that heavily depends on the country. Best Buy estimates vendor imports from China make up about 55% of the products it purchases, and the retailer’s stock fell 9.4%

On the winning side of Wall Street were health insurers, which rose after the Centers for Medicare & Medicaid Services announced a stronger-than-expected increase in Medicare Advantage payments for next year. Humana jumped 9.4%, and United Health climbed 5%.

In the bond market, Treasury yields mostly rose for a second straight day to recover more of their sharp losses from prior months. The yield on the 10-year Treasury rose to 4.23% from 4.15% late Monday and from just 4.01% late Friday.

Yields tend to rise with expectations for the U.S. economy’s strength and for inflation.

MicroStrategy expects Q1 loss as bitcoin value falls

MicroStrategy appears to have lost the coin toss — the bitcoin toss, that is.

The world’s largest corporate bitcoin investor, Tysons-based MicroStrategy reported an expected first quarter loss in a Securities and Exchange Commission filing on Monday due to the falling value of its holdings in the cryptocurrency.

After cresting at an all-time high of $100,000 in December 2024, bitcoin values fell below the $75,000 mark briefly on Monday.

MicroStrategy, which rebranded as Strategy in February, said in the SEC filing its unrealized loss on digital assets for the quarter ending March 31 was $5.91 billion. The tech company expects a resulting net loss for the quarter, although it will be “partially offset” by a related $1.69 billion income tax benefit.

Under the direction of bitcoin whale and company founder Michael Saylor, MicroStrategy announced its first bitcoin purchase in August 2020, making it one of the first public companies to convert its cash treasury reserves into cryptocurrency as a store of value. The company now has the largest bitcoin trove of any public company.

At the end of the quarter, the company held approximately 528,185 bitcoins, purchased for about $35.63 billion, averaging approximately $67,458 a coin. On March 31, the total value of its holdings was about $43.55 billion. MicroStrategy reported it did not purchase any additional bitcoin between March 31 and April 6.

According to Coinbase, the nation’s largest cryptocurrency exchange, as of 12:20 p.m. on Tuesday, bitcoin was selling for $78,000.26 — making MicroStrategy’s holdings worth about $41.2 billion.

MicroStrategy said it “may not be able to regain profitability in future periods,” particularly if it incurs “significant unrealized losses related to [its] digital assets.”

Additionally, MicroStrategy said in the filing, “A significant decrease in the market value of our bitcoin holdings could adversely affect our ability to satisfy our financial obligations.”

The company could have to sell some of its bitcoin holdings to meet financial obligations, according to the SEC filing.

“As bitcoin constitutes the vast bulk of assets on our balance sheet, if we are unable to secure equity or debt financing in a timely manner, on favorable terms, or at all, we may be required to sell bitcoin to satisfy our financial obligations, and we may be required to make such sales at prices below our cost basis or that are otherwise unfavorable,” MicroStrategy said in the filing.

Despite the expected Q1 loss, Saylor, now MicroStrategy’s executive chairman, said Tuesday in a post on social media platform X: “Bitcoin is Digital Gold,” accompanied by a photo of himself sitting on blocks of gold with engraved bitcoin logos in front of a vault door.

MicroStrategy shares were trading for $268.74 as of 12:15 p.m. Tuesday, although at open, its shares were trading for $278.51.

Bitcoin was trading in the $80,000 range last week, even hitting $88,500 briefly on April 2 before dropping later in the day, and began a steep descent Sunday evening. On Monday, it dropped below $79,000.

Bitcoin’s drop comes amid worldwide stock market volatility. Global stock markets plunged for several days after President Donald Trump announced sweeping new tariffs on April 2, although markets opened higher on Tuesday.

Saylor has made bold pronouncements and statements about bitcoin in the past. In September 2024, he told CNBC that he thought the cryptocurrency could rise as high as $13 million per bitcoin by 2045, a prediction he repeated on Fox Business in December 2024, hours before bitcoin breached the $100,000 mark.

Saylor’s and MicroStrategy’s fortunes have turned before. He stepped down as CEO after MicroStrategy’s August 2022 earnings report, when the company disclosed that it had paid a total of $3.977 billion for its bitcoin, which at that time had fallen to a market value of about $2.451 billion. At that point, MicroStrategy also had taken on about $2.4 billion in loans and debt to acquire bitcoin. At points in 2022, the currency fell below $20,000 to prices it had not seen since 2020.

Cookie	Duration	Description
cookielawinfo-checkbox-analytics	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional	11 months	The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy	11 months	The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
viewed_cookie_policy	11 months	The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.