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The Latest: Trump hints at firing Federal Reserve chair Powell after tariff comments

U.S. President Donald  said Thursday that Federal Reserve Chair Jerome Powell’ s termination “cannot come fast enough” as he reiterated his frustration that the Fed hasn’t aggressively cut interest rates.

The president’s broadside came a day after Powell said in a speech that Trump’s broad-based have left the Federal Reserve seeking “greater clarity” on the impact of policy changes in areas such as immigration, taxation, regulation, and tariffs before making potential cuts.

Here’s the latest:

Schumer wants DOJ to find out if attack on Pennsylvania governor’s home is federal hate crime

Senate Democratic Leader Chuck Schumer, D-N.Y., is calling on the Justice Department to investigate whether the arson attack on Pennsylvania Gov. Josh Shapiro’s official residence qualifies as a federal hate crime.

The suspect, Cody Balmer, has “admitted to harboring hatred” toward Shapiro, who’s Jewish, according to a police affidavit. Police obtained warrants to search Balmer’s writings or notes for any references to “the name of Josh Shapiro (or a) reference to Palestine, Gaza, Israel or the current conflict in Gaza.”

In a letter to Attorney General Pam Bondi on Thursday, Schumer said the incident “warrants immediate and serious federal scrutiny.”

“I appreciate your strong condemnation of the attack and urge you to ensure that the does everything in its power to pursue justice and uphold the fundamental values of religious freedom and public safety,” wrote Schumer, who’s the highest-ranked Jewish official in the U.S.

Ukraine’s future is at the center of talks in Paris with Rubio, Witkoff and top European officials

Paris is hosting the series of talks Thursday about Ukraine and its security, including U.S. Secretary of State Marco Rubio and presidential envoy Steve Witkoff, French President Emmanuel Macron and top Ukrainian and European officials.

Rubio and Witkoff were having lunch discussions with Macron and “talks with European counterparts to advance President Trump’s goal to end the Russia-Ukraine war and stop the bloodshed,” State Department spokesperson Tammy Bruce said.

The meetings come as concerns grow about Trump’s readiness to draw closer to Russia, and after weeks of U.S. efforts to broker a ceasefire in Ukraine. There’s also frustration over the ‘s other moves, from tariffs on some of its closest partners to rhetoric about NATO and Greenland.

Trump’s schedule for Thursday

At 12 p.m. ET, the president will greet Italian Prime Minister Giorgia Meloni, according to the White House schedule for Thursday. The pair are scheduled to participate in a bilateral lunch followed by a meeting in the Oval Office, where they may speak to the White House Press Pool.

Meloni is the first European leader to have a face-to-face with Trump since he announced, and then suspended, 20% tariffs on European exports. Meloni secured the meeting at a critical juncture in the as Italy’s leader, but she also has, in a sense, been “knighted” to represent the European Union. She’s been in close contact with EU Commission President Ursula von der Leyen ahead of the trip, and “the outreach is … closely coordinated,” a commission spokesperson said this week.

At 4:00 p.m. ET, Trump is scheduled to sign executive orders.

Federal judge will hear arguments as groups try to block Trump’s executive order on elections

The judge will hear arguments Thursday in three cases from national Democrats and voting rights groups that are challenging President Trump’s recent executive order on elections, which, among other changes, would require proof of citizenship to register to vote in federal elections.

The Democratic National Committee, the League of United Latin American Citizens, the League of Women Voters Education Fund and others are seeking to block Trump’s sweeping overhaul of federal election processes, alleging the changes he wants are unconstitutional.

The Republican president’s executive order says the U.S. has failed “to enforce basic and necessary election protections” and calls on states to work with federal agencies to share voter lists and prosecute election crimes. It threatens to pull from states where election officials don’t comply.

Trump says Federal Reserve Chair Jerome Powell ‘termination cannot come fast enough’

Trump hinted at moving to fire Powell, whose term doesn’t expire until next year, as he reiterated his frustration that the Fed hasn’t aggressively cut interest rates.

The president’s broadside comes a day after Powell said in a speech that Trump’s broad-based tariffs have left the Federal Reserve seeking “greater clarity” on the impact of policy changes in areas such as immigration, taxation, regulation, and tariffs before making potential cuts.

“Oil prices are down, groceries (even eggs!) are down, and the USA is getting RICH ON TARIFFS,” Trump said in a social media post. He added that Powell “should have lowered Interest Rates, like the ECB, long ago, but he should certainly lower them now. Powell’s termination cannot come fast enough!”

Powell was initially nominated by Trump in 2017, and appointed to another four-year term by President Joe Biden in 2022. At a November new conference, Powell indicated he would not step down if Trump asked him to resign. He has also said the removal or demotion of top Fed officials was “not permitted under the law.”

Trump administration issues order to stop construction on New York offshore wind project

The Trump administration issued an order Wednesday to stop construction on a major offshore wind project to power more than 500,000 New York homes, the latest in a series of moves targeting the industry.

Interior Secretary Doug Burgum directed the Bureau of Ocean Energy Management to halt construction on Empire Wind, a fully-permitted project. He said it needs further review because it appears the Biden administration rushed the approval.

Trump has been hostile to renewable energy, particularly offshore wind. His first day in office, Trump signed an executive order temporarily halting offshore wind lease sales in federal waters and pausing the issuance of approvals, permits and loans for all wind projects. Last month, the administration revoked the Clean Air Permit for an offshore wind project off the coast of New Jersey, Atlantic Shores. Construction on that wind farm had not yet begun.

Trump joins tariff talks with Japan as US seeks deals amid trade wars

Trump on Wednesday inserted himself directly into trade talks with Japanese officials, a sign of the high stakes for the United States after its tariffs rattled the economy and caused the administration to assure the public that it would quickly reach deals.

The Republican president attended the meeting alongside Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, top economic advisers with a central role in his trade and tariff policies.

Japanese Prime Minister Shigeru Ishiba told reporters Thursday in Tokyo that his chief trade negotiator, Ryosei Akazawa, told him from Washington that the talks were “very candid and constructive.”

Ishiba said he will closely watch how ministerial talks go and plans to visit Washington to meet with Trump at an appropriate time.

Trump’s choice to get directly involved in negotiations points to his desire to quickly finalize a slew of trade deals as is pursuing its own set of agreements.

Judge says labor unions’ lawsuit over access to Labor Department systems can move forward

A federal judge says he won’t dismiss a lawsuit from labor unions seeking to block ‘s team from accessing systems at the Labor Department.

The labor unions say that allowing Musk’s Department of Government Efficiency to access the systems violates the federal Privacy Act because they contain medical and financial records of millions of Americans. They also contend DOGE doesn’t have the legal authority to direct the actions of congressionally created agencies like the Department of Labor.

In a ruling Wednesday, U.S. District Judge John Bates said those claims could move forward in court. But some other, more specific arguments made by the unions — including that the U.S. Health and Human Services Department violated health care privacy laws by allowing DOGE access — were dismissed by the judge.

The federal Privacy Act generally prohibits an agency from disclosing records about a person to another agency, unless the person has first given written permission.

DOGE targets a community service program in its latest cost-cutting effort

A 30-year-old community service program that sends young adults to work on projects across the U.S. was the latest target of the Trump administration ‘s campaign to slash government spending.

AmeriCorps’ National Civilian Community Corps informed volunteers Tuesday that they would exit the program early “due to programmatic circumstances beyond your control,” according to an email obtained by The Associated Press.

The unsigned memo to corps members said NCCC’s “ability to sustain program operations” was impacted by the Trump administration’s priorities and Trump’s executive order creating the Department of Government Efficiency. Members would be officially dismissed April 30.

More than 2,000 ages 18 to 26 serve for nearly a year, according to the program’s website, and get assigned to projects with nonprofits and community organizations or the Federal Emergency Management Agency. It celebrated its 30th year last year.

The organization said on social media last month that teams have served 8 million service hours on nearly 3,400 disaster projects since 1999.

Mitre-backed cybersecurity program gets last minute save

Federal contractor , which has dual headquarters in McLean and Massachusetts, expected Wednesday to lose the needed to operate and maintain its nearly 26-year-old Common Vulnerabilities and Exposures (CVE) program, but a last-minute reprieve from the (CISA) has prevented that from happening.

Established in September 1999, the CVE program has been run by Mitre and funded by contracts from CISA and the U.S. Department of Homeland Security (DHS). The program aims to identify, define and catalog publicly disclosed vulnerabilities. It is continuously updated by the global cyber community and is described by Mitre as “a foundational pillar of the cybersecurity ecosystem,” relied on by organizations across industry, government, national security and critical infrastructure.

“The CVE Program anchors a growing cybersecurity vendor market worth more than $37 billion, providing foundational data to vendor products across vulnerability management, cyber threat intelligence, security information and event management, and endpoint detection and response,” a Mitre spokesperson said.

On Tuesday, a memo from Yosry A. Barsoum, vice president and director for Mitre’s Center for Securing the Homeland, to CVE board members indicated that the program was in jeopardy. The memo, which was circulated on social media and confirmed by Mitre, stated that the current contracting pathway for Mitre to develop, operate and modernize CVE and several related programs was set to expire on Wednesday.

“If a break in service were to occur, we anticipate multiple impacts to CVE, including deterioration of national vulnerability databases and advisories, tool vendors, incident response operations and all manner of critical infrastructure,” Barsoum wrote ahead of the potential contract expiration.

However, Tuesday night CISA executed an option period to extend the contract with Mitre for an additional 11 months, ensuring there will be no lapse in critical CVE services. In a statement issued Wednesday, a CISA spokesperson said the CVE program is “invaluable” to the cyber community and a priority of CISA.

CISA did not respond to requests for additional comment.

Barsoum said in a statement Wednesday that, thanks to actions taken by the , breaks in service to the CVE program and the Common Weakness Enumeration program were avoided.

“As of Wednesday morning, April 16, 2025, CISA identified incremental funding to keep the programs operational,” Barsoum said. “We appreciate the overwhelming support for these programs that have been expressed by the global cyber community, industry and government over the last 24 hours. The government continues to make considerable efforts to support Mitre’s role in the program, and Mitre remains committed to CVE and CWE as global resources.”

According to a Mitre spokesperson, after the 11-month extension is up, Mitre plans to work with its federal sponsors, the CVE board and the cybersecurity community on considerations for continued financial and community support of the program.

Earlier on Wednesday, some CVE board members issued a news release announcing that they were launching a new entity called the CVE Foundation to ensure that the program could have long-term viability, sustainability and independence

“Since its inception, the CVE program has operated as a U.S. government-funded initiative, with oversight and management provided under contract,” the foundation wrote. “While this structure has supported the program’s growth, it has also raised longstanding concerns among members of the CVE Board about the sustainability and neutrality of a globally relied-upon resource being tied to a single government sponsor.”

The foundation said the concern became urgent following Tuesday’s letter from Mitre notifying the CVE board that the federal government didn’t intend to renew the contract for managing the program.

“While we had hoped this day would not come, we have been preparing for this possibility,” the foundation said. “In response, a coalition of longtime, active CVE board members have spent the past year developing a strategy to transition CVE to a dedicated, nonprofit foundation. The new CVE Foundation will focus solely on continuing the mission of delivering high-quality vulnerability identification and maintaining the integrity and availability of CVE data for defenders .”

The foundation did not return requests for further comment.

Earlier this month, Mitre announced it planned to lay off 442 workers in Virginia by June 3. The announced cuts came after the ‘s Department of Government Efficiency () said the government was canceling more than $28 million in contracts with Mitre. Launched by and run by SpaceX and Tesla billioniare , DOGE identified the Mitre contract cancellations as part of its cost-cutting measures, according to G2Xchange, a company that tracks federal contracts.

Founded in 1958, the not-for-profit Mitre manages federally funded research and development centers, including the National Security Engineering Center, which delivers research, engineering and analytical solutions to the Department of Defense and the intelligence community.

Mitre has more than 60 sites worldwide, employing 10,000 workers. Mitre’s 200-plus labs develop innovations in applied science and technologies in sectors ranging from artificial intelligence, cybersecurity and quantum computing to maritime and aviation safety.

Campbell breaks ground on $11M shell building

U.S. Rep. John McGuire, R-Goochland, and other officials attended a groundbreaking Tuesday for a 100,000-square-foot industrial building that will be built at Seneca Commerce Park in .

An $11 million project, the building is the largest initiative undertaken by ‘s Department in over a decade, according to the county. The building, which is scheduled to be completed in 2027, will be a dark , meaning it will offer few or no interior improvements.

Drawing of a shell building.
Architectural Partners designed the shell building. Photo courtesy Campbell County

‘s Architectural Partners designed the structure and will provide engineering services.

Manufacturers and logistics companies would be good fits for the building, which will have 36-foot clear ceilings, according to Nina Rezai, director of economic development for Campbell County.

Campbell County went with a 100,000-square-foot building because there’s a shortage of industrial buildings that size across the nation and in the Lynchburg region, she said.

Built in 1998, Seneca Commerce Park is currently home to Shentel, CTP Advanced Composites, and Pinnacle Trailers.

Campbell County has more plans in the works for the : the construction of a second 45,000-square-foot shell building and a pad-ready site on 3.5 acres. The three projects, collectively, will sit on 17.3 acres of the park, leaving seven parcels — totaling more than 58.7 acres — available for future development.

Preparing the site for the new shell building cost $808,000 according to Rezai. That cost was covered by county funds and a $404,000 grant from the Virginia Tobacco Region Revitalization Commission and a $202,000 grant from the Southeast Crescent Regional Commission. The county is financing the cost of constructing the shell building.

Deltek announces new chief marketing officer

Herndon-based software company and announced Wednesday that it has appointed Dan Barnhardt as its chief officer.

“Dan’s creative and strategic approach to marketing will be instrumental as we sharpen Deltek’s voice and modernize how we engage in the market,” Deltek President and CEO Bob Hughes said in a statement.

Barnhardt succeeds Perry Hardt in the role. He’ll report to Deltek’s senior vice president and chief commercial officer, Natasha Engan, and focus on brand evolution, digital engagement, demand generation and customer advocacy.

“Deltek became a global leader trusted by 30,000 customers by distinguishing itself through a commitment to customer service and product excellence, and the opportunity to build on that strong foundation is incredibly exciting,” said Barnhardt in a statement. “I’m looking forward to connecting with Deltek customers, partners and team members alike as we accelerate growth for the next chapter of the company’s evolution.”

Before Deltek, Barnhardt most recently served as vice president of corporate marketing at Icertis. Before that, he held marketing leadership positions for Precisely and Infor. He holds a bachelor’s degree in economics from Vanderbilt University.

Headquartered in , Deltek provides enterprise software and information solutions. It has more than 4,000 employees .

Powell says Federal Reserve can wait on any interest rate moves

WASHINGTON (AP) — The Federal Reserve can stay patient and wait to see how and other economic policies of the administration play out before making any changes to interest rates, Chair Jerome Powell said Wednesday.

“For the time being, we are well positioned to wait for greater clarity” on the impact of policy changes in areas such as immigration, taxation, regulation, and tariffs, Powell said.

The sharp volatility in financial markets since announced sweeping tariffs April 2, only to put most of them on hold a week later, has led to speculation about whether the Fed would soon cut its key interest rate or take other steps to calm investors. Yet the Fed is unlikely to intervene unless there is a breakdown in the market for Treasury securities or other malfunctions, economists say.

In written remarks to be delivered to the Economic Club of Chicago, Powell reiterated that the ‘s tariffs are “significantly larger than anticipated.”

“The same is likely to be true of the economic effects, which will include higher and slower growth,” he said.

Powell said the inflation will likely be temporary, but “could also be more persistent,” echoing a concern expressed by a majority of the Fed’s 19-member interest rate-setting committee in the minutes of their meeting last month.

Yet some splits among the Fed’s interest rate-setting committee have emerged. On Monday, Fed governor Christopher Waller said that he expects the impact of even a large increase in tariffs to be temporary, even if they are left in place for several years. At the same time, he also expects such large duties would weigh on the economy and even threaten a recession.

Should the economy slow sharply, even if inflation remained elevated, Waller said he would support cutting interest rates “sooner, and to a greater extent than I had previously thought.”

But other Fed officials, including Neel Kashkari, president of the Fed’s Minneapolis branch, have said they are more focused on fighting the effects of higher tariffs on inflation, suggesting they are less likely to support rate cuts anytime soon.

For now, most recent reports suggest the economy is in solid shape. Hiring has been solid and inflation cooled in March. Yet measures of consumer and business confidence have plunged, raising concerns among economists that spending and business investment could weaken.

BayPort Credit Union taps new CIO

Newport News-based announced Tuesday that it has appointed Jonathan Harrell as chief information officer.

“We are thrilled to welcome Jonathan to our team,” said BayPort President and CEO Jim Mears in a statement. “His passion for technology and his innovative approach to problem solving and efficiency make him the perfect fit to lead us into BayPort’s next chapter of growth and success.”

Harrell has more than 30 years of experience. Before joining BayPort, Harrell was most recently vice president of IT with Langley Federal Credit Union. And before that role, he spent 23 years with Regent University serving in various roles, including , associate vice president of IT, director of network engineering and media services, and manager of networking engineering.

Harrell has an MBA from Regent University and a bachelor’s degree in electrical engineering from Old Dominion University. He serves on the board for Volunteer Hampton Roads and is a member of 757CIO.

Headquartered in , BayPort manages $2.6 billion in assets and has 29 branch locations across the Virginia Peninsula and Hampton Roads.

Hong Kong post office will stop shipping parcels to the US over tariffs

HONG KONG (AP) — ‘s post office will stop small parcels to the United States after Washington announced plans to charge  on small-value parcels from the southern Chinese city, the government said Wednesday.

The U.S. government earlier announced that it would end a customs exception allowing small-value parcels from Hong Kong to enter the U.S. without tax, slapping a 120% tariff on them starting from May 2. The “de minimis” exemption currently allows shipments that are worth less than $800 to go tax-free.

A government statement said Hongkong Post would not collect tariffs on behalf of Washington, and will suspend accepting non-airmail parcels containing goods destined for the U.S. on Wednesday, since items shipped by sea take more time. It will accept airmail parcels until Apr. 27.

“For sending items to the US, the public in Hong Kong should be prepared to pay exorbitant and unreasonable fees due to the U.S.’s unreasonable and bullying acts,” the government wrote.

It will continue accepting mail that contains only documents.

Hong Kong, is caught in the middle of the disputes between the U.S. and despite being a free port.

The former British colony, which returned to Chinese rule in 1997, has trade and customs policies different from mainland China’s, under the semi-autonomy granted by Beijing during the handover. But Washington began treating it as part of China after Beijing imposed a national security law in 2020, and has applied the 145% tariffs imposed on Chinese imports.

The national security law, which China says has brought back stability to the city, has virtually silenced all dissent.

Retail sales rise 1.4% in March as shoppers stock up on big ticket items ahead of tariffs

NEW YORK (AP) — U.S. shoppers stepped up their shopping last month, fueled by a spending spree on big ticket items, particularly cars, before ‘s expansive new started kicking in.

But analysts were quick to point out that the data wasn’t a sign of strength but underscored the extreme economic uncertainty that shoppers face and how they want to get ahead of higher prices.

Retail sales rose 1.4% in March, after rising 0.2% in February, according to the Commerce Department.

Tbe number marked the highest percentage gain since January 2023, when it was 4.1%, according to FactSet.

Retail sales fell 1.2% in January, hurt in part by cold weather that kept more Americans indoors, denting sales at car dealers and most other stores.

Excluding sales at motor vehicle and parts dealers, sales rose 0.5% in March, compared with the previous month.

Sales at motor vehicles and parts dealers rose 5.3%, and the report also underscored strength elsewhere. Sales rose at electronics stores, sporting goods retailers and clothing and accessories stores. Grocery stores and online retailers also saw gains. Restaurants had a 1.8% increase. However, furniture and home furnishings stores posted a decline.

“These are simply blow out numbers on March retail sales where the rush is on like this is one gigantic clearance sale,” said Christopher S. Rupkey, chief economist at FWDBonds LLC in a published note. “Consumers are expecting sharply higher prices the next year and are clearing the store shelves and picking up bargains while they can. ”

Economists expect sales will likely fall over the next few quarters.

“With the economy set to cool sharply in the coming months as tariffs take their toll, price-sensitive consumers are poised to become more judicious with their spending and reduce their nonessential purchases,” EY Senior Economist Lydia Boussour wrote in a note Wednesday.

Consumers’ confidence has already taken a hit. And a growing number of retailers and suppliers are halting shipments from as well as pausing orders as they wait to see where the tariffs settle. In some cases, they are canceling orders.

The result of the wars so far: a baseline tariff on most countries of 10%, with imports from China getting taxed at a combined 145%. Goods from Canada and Mexico face tariffs of up to 25%, while imported autos, steel and aluminum are taxed at that same rate. China retaliated last week with a 125% tariff on U.S. goods.

Early this month, announced sweeping and steep tariffs on nearly all trading partners. But after Trump’s U- turn last week that paused the new tariffs on about 60 nations for 90 days, average U.S. duties remain much higher than a couple of months ago.

Last Friday, the announced tariff exemptions on electronics like smartphones and laptops but a few days later said they’re only a temporary reprieve.

Against this background, U.S. consumer sentiment plunged in April, the fourth consecutive month of drops, in a seemingly sharp disapproval of Trump’s trade wars that have fueled anxiety over possible job cuts and rising .

Ryan Petersen, CEO of Flexport, a global logistics company based in San Francisco, has seen the companies that he works with already raising prices by 5% to 10%.

“We’re going to see it likely play out even more because these tariffs haven’t even washed through the system yet,“ he said. ”So once the goods are arriving paying the higher duties have no choice but to raise prices to accommodate for that.”

He added it’s become hard for companies to make investments and set up a supply network given the uncertainty.

Analysts say the big retailers will be able to navigate better than the smaller ones, which don’t have the clout to absorb extra costs or pressure their suppliers. But it also depends on the type of goods they sell, particularly if they have goods sources from overseas.

Ashley Hetrick, principal and sourcing and supply chain segment leader at accounting firm BDO, noted that stores are more cautious about ordering seasonal items because they have a shorter shelf life. She said that the canceling of orders hasn’t been widespread.

Walmart executives pledged last week it will keep delivering low prices as it navigates Trump’s escalating trade wars with China.

But the nation’s largest retailer told analysts that it’s still vulnerable to the challenges and is monitoring the fluid tariff situation. The company told analysts that sales have been volatile.

Amazon CEO Andy Jassy said last week that the company has been doing everything it can to keep prices low for customers, including bringing in goods early ahead of the barrage of tariffs and negotiating with suppliers.

But Jassy told CNBC’s Andrew Sorkin Thursday that its network of third-party sellers will have to pass on the higher costs to sellers.

Paul Farago, president of Ace Marks, a footwear company in Miami, said that the big tariff bill on Chinese goods has already forced him to pause production on a less expensive version of its Ace Marks brand, which was supposed to be the company’s engine of growth.

The “diffusion” line, made in China with synthetic material, is priced at around $120. Farago estimated that with the new tariffs, the shoe line will have to be priced at around $300, the same price as the expensive leather version made in Italy. The diffusion line was developed three years ago, and it had already reached 10% of its overall business. Farago had hoped that by 2026, it would be 30% to 40% of the company’s total sales.

Farago said he will have to disappoint a lot of his store clients and shoppers who are looking for affordable footwear. The new shoes were supposed to be shipped in June or July.

“The investments we were looking to make and the people we would have hired to help us run this business…. That’s now off the table,” he said.

World Trade Organization says global trade could slide this year because of Trump’s tariff policies

GENEVA (AP) — The World Organization says the volume of trade in goods is likely to decrease by 0.2% this year due to U.S. President Donald ‘s shifting tariff policies and a standoff with , but it would take a more severe hit if Trump carries through on his toughest “reciprocal” .

The decline in trade will be particularly steep in North America even without the stiffest tariffs, the global trade forum said Wednesday, with exports there this year expected to fall by 12.6% and imports by 9.6%.

The WTO based its report on the tariff situation as of Monday. Initially, 2025 and 2026 were expected to have continued expansion of world trade, but Trump’s forced WTO economists to substantially downgrade their forecast, the forum said.

Trade in goods worldwide would slump by 1.5% if Trump follows through on his stiffest tariffs on most nations, due to the uncertainty unsettling businesses.

Trump suspended the toughest set of tariffs for 90 days earlier this month so more than 70 countries have a chance to address U.S. trade concerns. Meanwhile, he is increasing taxes on Chinese imports to 145% and engaging in a lengthy back and forth with Canada and Mexico about tariffs on their goods.

Despite the 90-day pause, “the enduring uncertainty threatens to act as a brake on global growth, with severe negative consequences for the world, the most vulnerable economies in particular,” WTO Director-General Ngozi Okonjo-Iweala said in a statement.

“Our simulations show that trade policy uncertainty has a significant dampening effect on trade flows, reducing exports and weakening economic activity,” WTO chief economist Ralph Ossa said in the statement. “Moreover, tariffs are a policy lever with wide-ranging and often unintended consequences. In a world of growing trade tensions, a clear-eyed view of those trade-offs is more important than ever.”

California will sue to stop Trump from imposing sweeping tariffs

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom sued the on Wednesday, challenging the president’s authority to impose sweeping that have set off a global war.

The lawsuit argues that ‘s use of the International Emergency Economic Powers Act to impose tariffs on Mexico, Canada and or a 10% tariff on all imports is unlawful. The act enables a president to freeze and block transactions in response to foreign threats but doesn’t allow the president to adopt tariffs, the suit says.

The lawsuit, which was filed in the U.S. District Court for the Northern District of California, also argues that enacting such tariffs requires approval from Congress.

has offered many justifications for increasing tariffs, including that they are designed to spur U.S. manufacturing and stop the flow of illicit fentanyl into the country. California’s move follows rapidly changing tariff plans by the Trump administration.

A White House official slammed the lawsuit and defended the tariff plan.

“Instead of focusing on California’s rampant crime, homelessness, and unaffordability, Gavin Newsom is spending his time trying to block President Trump’s historic efforts to finally address the national emergency of our country’s persistent goods trade deficits,” White House spokesperson Kush Desai said. “The entire Trump administration remains committed to addressing this national emergency that’s decimating America’s industries and leaving our workers behind with every tool at our disposal, from tariffs to negotiations.”

Newsom, a Democrat, said the tariffs have essentially resulted in inflated costs and could bring billions of dollars in damage to California, which has the largest economy and is the largest importer among U.S. states. Many businesses have told state officials they will start passing the cost of tariffs to consumers. The state budget could take a major hit with the tumbling stock market because California disproportionately relies on income tax revenues from capital gains — mostly money made from investments and stocks — from its wealthiest taxpayers. The additional costs from tariffs could also hamstring the state’s ability to plan for the future and pay for services, the suit states.

“No state is poised to lose more than the state of California,” Newsom said Wednesday at a press conference.

California has filed more than a dozen lawsuits challenging Trump’s policies this year. But the tariffs lawsuit marks the first time this year that Newsom, who is already considered a top 2028 presidential prospect, has been a plaintiff. The Democratic governor scaled back his anti-Trump rhetoric after January’s deadly Los Angeles fires as the state sought federal support.

Newsom discussed the lawsuit at an orchard in the farm-rich Central Valley, highlighting California’s status as a farming powerhouse. Many of the nuts, fruits and vegetables grown in the state are destined for other countries.

Christine Gemperle, a second-generation almond farmer in the Central Valley, said her farm has survived three droughts and the COVID-19 pandemic over the decades, but she’s uncertain how to the family business would make it through the ongoing . Farmers in California grow roughly 76% of the world’s almonds, and they rely on the global markets for materials to build farming equipment and irrigation systems.

“Will we be able to access what we need to grow our crops, and if so, will we even be able to afford it?” Gemperle said Wednesday.

The state will ask the court to immediately block the tariffs.

The announcement comes days after Newsom asked countries to exempt California exports from retaliatory tariffs. No deals have yet been announced. He also launched a tourism campaign to entice Canadian visitors to California this week.

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Austin 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. Follow Austin on X: @sophieadanna

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Reporters Trân Nguyễn in Sacramento, Calif., and Joshua Boak in Washington, D.C. contributed.

 

Notes: Eds: UPDATES: Adds reaction of a California farmer to lawsuit, quote. Links additional photos from Newsom’s announcement. With AP Photos.