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

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

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

Here’s the latest:

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

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

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

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

Immigration officers can continue enforcement actions in sensitive locations

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

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

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

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

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

White House gives no details about facilitating return of Maryland man

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Trump announces deals with 4 more law firms

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

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

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

1. Kirkland & Ellis

2. Allen Overy Shearman Sterling US

3. Simpson Thacher & Bartlett

4. Latham & Watkins

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

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

White House announces new deal with law firm

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Trump once again wants to stop the semiannual changing of clocks

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

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

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

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

Trump’s Friday schedule

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Space Force Base commander in Greenland fired after Vance visit

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

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

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

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

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

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

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

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

Trump will undergo his annual physical Friday after years of reluctance

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

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

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

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

Where things stand for Trump in global tariff battle

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

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

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

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

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

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

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

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

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

 

Notes: Eds: UPDATES: With new items..

 

Plane’s wing tip hits another aircraft at Reagan National airport

ARLINGTON (AP) — The wing tip of an American Airlines plane struck another plane from the same airline on a taxiway of the Ronald Reagan Washington National in County on Thursday, authorities said. No injuries were reported.

The wing tip of an aircraft heading to Charleston, South Carolina, struck a plane en route to New York City about shortly before 1 p.m., according to a statement from the Federal Aviation Administration, which is investigating.

The plane to New York wasn’t moving at the time, passenger and U.S. Rep. Nick LaLota, R-New York, said on X.

LaLota noted that U.S. Rep. Grace Meng, D-New York, was also aboard the flight.

“Serving in Congress has come with some once in a lifetime experiences … like just now while stationary on the runway at DCA, another plane just bumped into our wing,” LaLota’s post said. “Heading back to the gate, but thankfully everyone is ok!”

Roughly 80 people were on the plane to Charleston, and 71 for the flight to New York, according to American Airlines. The company said in a statement that damage was limited to a winglet on each aircraft. It said both planes would be taken out of service for inspection and that replacement aircraft would take passengers to their destinations.

“Safety is our top priority, and we apologize to our customers for their experience,” the airline’s statement said.

Greg Gilligan, a passenger on the flight to New York, said he was able to board a new aircraft about 3:30 p.m. He said the experience had stunned him.

“I saw the plane zipping by thinking it was going fast, when it struck the wing of our plane,” Gilligan said in a text message. “It was a crazy unbelievable experience.”

was the site of a Jan. 29 midair collision between an American Airlines jet and a Black Hawk helicopter that claimed 67 lives and was the deadliest U.S. plane crash in more than two decades.

U.S. Sens. Mark Warner and Tim Kaine, in 2023, voiced opposition to the addition of more at DCA, saying the airport and its surrounding airspace near the nation’s capital and the Pentagon was too congested for more flights.

In the wake of the Jan. 29 crash, they and other elected officials from Maryland and Northern Virginia signed a letter voicing concerns about the prospect of Elon Musk and the Department of Government Efficiency, or DOGE, preparing to cut jobs that impact aviation safety. In late January, the FAA restricted helicopter flights near the airport.

According to a March report by the National Transportation Safety Board, there were 85 near misses between aircrafts during recent years at Reagan, and airplane pilots were told to take evasive action to avoid hitting helicopters at least once a month from 2011 through 2024.

Wayfair to vendors: Hold off on tariff increases

BOSTON — In a letter to vendors, Niraj Shah, and co-founder of digitally native home furnishings  Wayfair, urged patience and timing as it relates to any tariff-related price increases.

The letter, sent on April 8 and obtained by Furniture Today, highlighted Shah’s thoughts on how to navigate the landscape, impacted by the Trump administration’s tariff announcements this month.

On April 9, President Trump announced a 90-day pause and a reciprocal tariff rate reduction to 10% for more than 75 countries, but a 125% immediate tariff rate on , which means many of the strategies outlined by Shah still likely apply to goods imported from China.

“I know many of you will be affected by these , but by working in close partnership, we are confident that we can all stay resilient and keep strengthening our businesses,” Shah wrote.

Shah asked vendors who are considering price increases to hold off for now, noting that early movers might see sharp drops in demand that aren’t offset by higher market prices.

“Taking a wait-and-see approach will help you stay aligned with peers and protect your momentum,” he wrote. “Given the inventory that is already on hand at the lower cost basis, this move will not hurt your economics and will position you to maximize your gain.”

Should increases need to be implemented, Shah had two requests. The first was to pass through only what’s essential. “Tariffs apply to the value of goods declared at customs, not your wholesale cost to us. Remember that any price increases will be passed on to customers,” he wrote.

The second request was to time any pricing changes carefully.

“Because Wayfair pricing updates immediately, we recommend increasing prices on other platforms first. This helps ensure customers see a consistent price across retailers,” he wrote. “Our primary focus is not on your specific wholesale cost to us, but rather on our ability to be competitive with other retailers, and your ability to be competitive with other suppliers. Being patient and using the data we will share on what we are seeing will let you react with precision.”

Other points included maintaining strong in- levels to sustain sales momentum and leaning into in anticipation of Way Day.

In a statement to Furniture Today, Wayfair said sending a letter such as this to its vendors isn’t out of the ordinary.

“For over 20 years, we’ve partnered closely with our supplier network to deliver the best combination of value and assortment to our customers. As we navigate this period of disruption, we shared suggested actions with our suppliers — just as we have in past market cycles. Our goal is mutual success and continuing to provide customers with the best value in the category,” the statement said.

 

University of Virginia Foundation promotes new CEO

The Foundation has named Deborah van Eersel as its next , effective July 1.

Currently the foundation’s chief administrative officer, she will succeed Tim Rose, who is retiring after 33 years at its helm, U.Va. announced in late January. The foundation’s directors formally approved the decision to promote van Eersel at a February meeting, according to the announcement.

Van Eersel brings 35 years of real estate, nonprofit and experience to the role. She joined the foundation in 2001 and assumed her current post in 2013. Since then, the foundation says she’s played crucial roles in expanding the university’s research parks and strengthening the university’s partnerships with the private sector and government.

The foundation says that by next year, it will manage more than $1 billion in assets, with annual revenues exceeding $100 million, including approximately 5,000 acres of land and 2 million square feet of buildings.

“Deborah’s appointment as CEO reflects the confidence of the board and staff in her exceptional leadership abilities and deep understanding of the foundation’s mission,” Daniel Abramson, chair of the board, said in a statement. “Her track record of innovation and strategic growth, combined with her commitment to our community, makes her the ideal leader to build upon ‘s remarkable legacy.”

Van Eersel negotiated 1.75 million square feet of Class A office and laboratory leases since 2010 and played a significant role in the development of North Fork, where the foundation said her leadership helped efforts to establish a new biotech accelerator program. Before joining the foundation, she was CEO of the Area Association of Realtors.

“I am honored to lead this extraordinary organization and build upon its strong foundation,” van Eersel said in a statement. “My focus will be on maintaining our people-first culture while advancing U.Va.’s mission through strategic real estate initiatives. We have a unique opportunity to contribute to both the university’s mission and our region’s economic vitality.”

Based in Charlottesville and established in 1986, the foundation provides real estate, financial and administrative services to support U.Va.

Apple has few incentives to start making iPhones in U.S., despite Trump’s trade war with China

SAN FRANCISCO (AP) — ‘s administration has been predicting its barrage of targeting will push into the in the United States for the first time.

But that’s an unlikely scenario even with U.S tariffs now standing at 145% on products made in China — the country where Apple has manufactured most of its iPhones since the first model hit the market 18 years ago.

The disincentives for Apple shifting its production domestically include a complex supply chain that it began building in China during the 1990s. It would take several years and cost billions of dollars to build new plants in the U.S., and then confront Apple with economic forces that could triple the price of an iPhone, threatening to torpedo sales of its marquee product.

“The concept of making iPhones in the U.S. is a non-starter,” asserted Wedbush Securities analyst Dan Ives, reflecting a widely held view in the investment community that tracks Apple’s every move. He estimated that the current $1,000 price tag for an iPhone made in China, or , would soar to more than $3,000 if production shifted to the U.S. And he believes that moving production domestically likely couldn’t be done until, at the earliest, 2028. “Price points would move so dramatically, it’s hard to comprehend.”

Apple didn’t respond to a request for comment Wednesday. The Cupertino, California, company has yet to publicly discuss its response to Trump’s tariffs on China, but the topic may come up on May 1 when Apple Tim Cook is scheduled to field questions from analysts during a quarterly conference call to discuss the company’s financial results and strategy.

And there is no doubt the China tariffs will be a hot-button issue given Apple’s price has dropped by nearly 20% and lowered the company’s market value by $600 billion since Trump began increasing them on April 2.

If the tariffs hold, Apple is widely expected to eventually raise the prices on iPhones and other popular products because the Silicon Valley’s supply chain is so heavily concentrated in China, India and other overseas markets caught in the crossfire of the escalating war.

The big question is how long Apple might be willing to hold the line on its current prices before the tariffs’ toll on the company’s profit margins become too much to bear and consumers are asked to shoulder some of the burden.

One of the main reasons that Apple has wiggle room to hold the line on its current iPhone pricing while the China tariffs remain in place is because the company continues to reap huge profit margins from the revenue generated by the subscriptions and other services tied to its product, said Forrester Research analyst Dipanjan Chatterjee. That division, which collected $96 billion in revenue during Apple’s last fiscal year, remains untouched by Trump’s tariffs.

“Apple can absorb some of the tariff-induced cost increases without significant financial impact, at least in the short term,” Chatterjee said.

Apple tried to appease Trump in February by announcing plans to spend $500 billion and hire 20,000 people in the U.S. through 2028, but none of it was tied to making an iPhone domestically. Instead, Apple pledged to fund a Houston data center for computer servers powering artificial intelligence — a technology the company is expanding into as part of an industrywide craze.

When asked this week about whether Trump believes Apple intends to build iPhones in the U.S., White House Press Secretary Karoline Levitt pointed to Apple’s investment promise as evidence that the company thinks it could be done. “If Apple didn’t think the United States could do it, they probably wouldn’t have put up that big chunk of change,” Leavitt said.

U.S. Commerce Secretary Howard Lutnick also predicted tariffs would force a manufacturing shift during an April 6 appearance on a CBS news program. “The army of millions and millions of human beings screwing in little screws to make iPhones, that kind of thing is going to come to America,” Lutnick said.

But during a 2017 appearance at a conference in China, Cook expressed doubt about whether the U.S. labor pool had enough workers with the vocational skills required to do the painstaking and tedious work that Lutnick was discussing.

“In the U.S. you could have a meeting of tooling engineers and I’m not sure we could fill the room,” Cook said. “In China, you could fill multiple football fields.”

Trump also tried to pressure Apple, to no avail, into shifting iPhone production to the U.S. during his first term as president. But the administration ultimately exempted the iPhone from the tariffs he imposed on China back then — a period when Apple had announced a commitment to invest $350 billion in the U.S. Trump’s first-term tariffs on China also prompted Apple to begin a process that led to some of its current iPhones being made in India and some of its other products being manufactured in Vietnam.

Cook also took the president on a 2019 tour of a Texas plant where Apple had been assembling some of its Mac computers since 2013. Shortly after finishing that our, Trump took credit for the plant that Apple had opened while Barack Obama was president. “Today I opened a major Apple Manufacturing plant in Texas that will bring high paying jobs back to America,” Trump posted on Nov. 19, 2019.

Averett files lawsuit alleging ex-CFO, firm ‘drained’ school’s endowment fund

Danville private university has filed a federal alleging its former chief finance officer worked with an investment firm to conceal illicit draws from its that were used to cover budget deficits.

In a complaint filed March 26 in the U.S. District Court for the Western District of Virginia, Averett states that Donald Aungst, who was hired by the university in 2020, colluded with Arizona-based Global Strategic Investment Solutions () to “surreptitiously” drain close to $20 million from the university’s endowment.

Requesting a jury trial, Averett is asking for the defendants to pay compensatory and punitive damages but does not name a specific amount.

GSIS vehemently denies the allegations.

“Averett University repeatedly accessed its own endowment fund to meet payroll, invest in technology, pay down debt and cover other operational expenses due to liquidity challenges at the university,” the company said in a statement. “It is truly unfortunate that Averett — through this spurious federal lawsuit — is now seeking to scapegoat our firm … for the decisions, actions and inactions of its own officers and directors during this unfortunate period.”

A spokesperson for Averett declined to comment Thursday. Aungst did not respond to attempts to reach him via social media. According to his LinkedIn page, Aungst is retired and based in Florida.

In addition to Aungst and GSIS, the defendants in the case are GSIS co-founders Curt Thompson and Don Callaghan, and employees Nick Botticelli, Matt Underwood and Dan Chesin. According to the firm’s website, Botticelli is chief investment strategist, Underwood is director of research and portfolio management, and Chesin is director of operations.

The lawsuit alleges that between December 2022 and April 2024, Averett’s endowment value fell by 75%. In April 2024, the net balance of liquid assets in the endowment was about $1.9 million with another $2.3 million in illiquid assets. In July 2024, the school revealed publicly that it was responding to a temporary funding shortage due to mismanagement of the school’s finances, instituting salary reductions for top leaders and furlough days for staffers.

The cost cutting has been extensive, however, with the university going on to cut positions and eliminating several majors. In March, the school listed its equestrian center for sale for $1.6 million.

On Jan. 3, Minnesota-based U.S. Bank Trust issued a notice that Averett is in default on more than $14.57 million in bonds issued in 2017 because its debt service coverage rating was too low, and it had not provided proof of insurance policies. The notice, which Cardinal News first reported, noted the university was not behind on bond payments.

According to the lawsuit, Aungst provided confidential information to GSIS to help it win a contract to serve as Averett’s outsourced chief investment officer and co-fiduciary, starting in January 2021.

From April 2022 through April 2024, GSIS and Aungst “surreptitiously drained Averett’s endowment,” the complaint alleges. “In effect GSIS helped Aungst dig a financial hole that will take years for Averett to overcome.”

During this period, the firm and Aungst recommended that the university open a margin loan account, but GSIS mischaracterized the loan as a “line of credit,” without advising the Averett board that a margin loan is not appropriate for a nonprofit university, according to the lawsuit. The university’s then-president, Tiffany Franks, signed an application for the loan in April 2022.

Between April and December 2023, GSIS personnel “presented misleading reports to give the board false confidence that the endowment remained largely intact,”  the complaint states, and the firm “repeatedly misrepresented” the state of its endowment, which was declining after selling off endowment funds and making withdrawals.

In its statement, GSIS objects to the idea that Averett leaders were misled.

“It is important to note that the claims brought against GSIS in this new federal court action have nothing to do with GSIS’s provision of advisory services for the university’s endowment fund investment assets, but rather because our firm adhered to written distribution instructions from the university’s own officials,” he said. 

The lawsuit does not explain how Averett leaders learned of the endowment’s depletion, but it notes that Franks confronted Aungst about the university’s financial situation on March 29, 2024, after which he immediately resigned.

The 38-page lawsuit alleges multiple counts, including breach of fiduciary duty and professional negligence. Franks retired in January after serving as Averett’s president for nearly 17 years, and in December, Averett named David Joyce its 15th president. Donald Merricks, a retired bank president, former state delegate and two-time alumnus, is Averett’s interim CFO, and Susan Nelson is its new director of finance.

Founded in 1859, Averett has more than 1,300 students.

Another U-Turn: Trump reverses tariffs that caused market meltdown, but companies remain bewildered

WASHINGTON (AP) — delivered another jarring reversal in American policy Wednesday, suspending for 90 days import taxes he’d imposed barely 13 hours earlier on dozens of countries while escalating his with . The moves triggered a powerful market rally on Wall Street but left businesses, investors and America’s trading partners bewildered about what the president is attempting to achieve.

The U-turn came after the sweeping global Trump announced last week set off a four-day rout in global financial markets, paralyzed businesses and raised fears the U.S. and world economies would tumble into recession.

White House press secretary Karoline Leavitt tried to characterize the sudden change in policy as part of a grand negotiating strategy. But to those outside the Trump administration, it looked like a cave-in to market pressure and to growing fears that the president’s impetuous use of import taxes — tariffs — would cause massive collateral economic damage.

“Other countries will welcome the 90-day stay of execution — if it lasts — but the whiplash from constant zig-zags creates more of the uncertainty that businesses and governments hate,” said Daniel Russel, vice president at the Asia Society Policy Institute. “The Administration’s blunt-force tactics have rattled allies, who see the sudden reversal as damage control following the market meltdown, rather than a pivot to respectful, balanced negotiations.”

Trump’s turnaround Wednesday capped a wild week in U.S. trade policy. On Wednesday April 2 — which Trump labeled “Liberation Day” — the president announced plans to impose tariffs on almost every country on earth, upending the world trading system. The first of his new tariffs — a 10% “baseline” tax on imports from most countries — went into effect Saturday.

At midnight Wednesday, he upped the ante by slapping what he called “reciprocal” taxes on countries he accused of unfair trading practices and adding to U.S. trade deficits. Those are the tariffs he suspended for 90 days, saying the pause would give countries time to negotiate with him and his trade team.

There was one exception to the reprieve: He raised the tariff on Chinese imports to a staggering 125%, punishing Beijing for announcing retaliatory tariffs on the United States. That number was adjusted even higher on Thursday — to 145% — after the White House accounted for Trump’s previous 20% fentanyl tariffs. Meanwhile, the 10% baseline tariffs on most countries – a substantial act of protectionism in their own right – remain in place.

Companies cut back, delay plans

Trump’s ever-changing trade war tactics — which include earlier levies on cars, steel and aluminum, and Mexico and Canada — have already done damage, forcing dazed companies to delay or cancel plans as they tried to figure out what Trump was doing and how they should respond.

Some companies temporarily laid off workers after Trump’s widespread tariffs were announced, while there were signs that many firms held off on hiring amid the widespread uncertainty the tariffs created.

Carmaker Stellantis temporarily cut 900 jobs at factories in Michigan and Indiana after production was halted at two plants in Canada and Mexico in the wake of Trump’s 25% duties on imported cars.

And Cleveland-Cliffs laid off 1,200 workers at a factory in Michigan and an iron ore mine in Minnesota in response to a drop in demand from auto companies. Cleveland-Cliffs said it would resume production at the two facilities once auto production returned to the U.S.

Minutes from the Federal Reserve’s March 18-19 meeting, released Wednesday, showed that many of its policymakers said that their business contacts “reported pausing hiring decisions because of elevated policy uncertainty.”

And Delta Air Lines said earlier Wednesday that demand for domestic leisure trips and corporate travel has stalled because of the uncertainty around global trade. In a conference call with investors, the company said it was cutting capacity. It also declined to provide a full-year financial forecast.

“Right now, it’s hard to know how this is going to play out, given that this is somewhat self-imposed,” Delta Ed Bastian said. “I’m hopeful that sanity will prevail and we’ll move through this period of time on the global trade front relatively quickly.”

Desperately seeking clarity on Trump’s tariffs

Businesses have sought greater clarity around Trump’s ultimate tariff policies for weeks. It’s not clear that the 90-day pause has reduced their uncertainty.

Jeff Jaisli, CEO of the New Jersey-based importer/exporter Jagro, said Trump’s Truth Social post on Wednesday had made things “even worse” and more confusing. He was trying to figure out which tariffs applied to which countries.

“We’re scrambling to find correct information and procedures for entries we’re processing NOW in real time,” he said by email. He could find no guidance on the websites of the White House or the Customs and Border Protection agency, which collects tariffs. Earlier, Jaisli called Trump’s tariffs “a grenade that was thrown into the room that’s going to cause chaos.”

Trump’s trade war with China escalates

Trump’s tariffs have set off a tit-for-tat trade war with China, the world’s second-biggest economy. Even before Trump upped his taxes on China to 145%, the Chinese had set their own tariffs on the United States at 84%.

The World Trade Organization’s director-general, Ngozi Okonjo-Iweala, warned that the rising tension could reduce U.S.-China merchandise trade by 80% and “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.

Meanwhile, U.S. companies struggled to figure out how to respond to huge levies on Chinese products they’d come to rely on.

Jessica Bettencourt is CEO of Klem’s, a third-generation store in Spencer, Massachusetts that sells everything from lawn and garden items to workwear and gifts. She said that the escalation of tariffs from China have made her stop ordering any new fourth-quarter product that is holiday, gifts or toys. She is also reconsidering any fall apparel and footwear orders that aren’t already placed.

“The worst thing is uncertainty and we have massive uncertainty,” said Jason Goldberg, chief commerce strategy officer at Publicis Groupe, a global marketing and communications company. “No one can make any moves. Everybody is trying to save as much cash and defer any unnecessary expense. People are getting laid off. Orders are getting cancelled. Expansion plans are being put on hold.”

CarMax leaves Martin Agency, transfers ad account to L.A. firm

Fortune 500 used car , headquartered in County, has chosen a new creative agency of record, leaving -based marketing and ad firm The , which held the account since 2019.

The nation’s largest used car retailer announced Wednesday it has appointed 72andSunny’s Los Angeles office as its creative AOR “following a competitive pitch process.” CarMax started a U.S. media and creative agency review in December 2024.

Sarah Lane, senior vice president and chief marketing officer for CarMax, said in a statement: “We are proud of the incredible work produced in partnership with over the last six years and cherish the wonderful relationships we’ve built with their team. We remain among their biggest fans and will be cheering on their continued success.”

Before naming Martin Agency its creative AOR in 2019, CarMax worked with North Carolina-based firm McKinney, which won the account in 2014.

Martin oversaw CarMax’s “Call Your Shot” campaign, a series of ads highlighting women’s sports and produced in partnership with the NBA and WNBA. An ad featuring then-WNBA player Sue Bird and NBA player Steph Curry went viral in April 2021.

Martin’s more recent work for CarMax includes the “BeetleMax: The Way Car Buying Shouldn’t Be” campaign, launched in August 2024 to coincide with the release of the “Beetlejuice Beetlejuice” movie from Warner Bros.

“We’re truly thankful for the opportunity to collaborate with our partners at CarMax over the past six years,” Martin CEO Danny Robinson said in a statement. “It’s been a meaningful journey — one that’s helped shape the brand’s identity and explore new, culturally relevant spaces together.

“From memorable moments in sports and entertainment to thoughtful ways of joining the cultural conversation,” Robinson continued, “this partnership has been both collaborative and creatively rewarding. We’re grateful for this chapter and will continue cheering CarMax on from Richmond.”

Industry publication Adweek named Martin its Agency of the Year in 2020 and 2021, and Ad Age named it agency of the year in 2023. The firm counts Geico, UPS and Fortune 1000 food delivery platform DoorDash among its clients. Martin has been Geico’s creative lead for 31 years, although Geico launched a review in January to expand its creative agency roster, according to Ad Age.

72andSunny’s debut work for CarMax will be released this summer, according to a news release.

“We were impressed and inspired by 72andSunny’s fresh ideas, collaborative spirit and strategic vision to showcase CarMax as the most customer-centric car-buying and selling experience in the industry,” Lane said in a statement. “We believe this partnership will bring fresh energy and creativity to our brand, and I can’t wait to see what we will accomplish together.”

72andSunny Managing Director Emily Connelly will lead the account, and Executive Creative Director Lauren Smith will lead the creative work. Smith has driven the agency’s work for recognizable brands including Adobe, Barbie, United Airlines and Venmo, according to a news release.

“CarMax has built a legacy of innovation, redefining how people buy and sell cars with a relentless focus on the customer,” Connelly said in a statement. “We’re excited to partner with a brand that’s not just leading the category but continually pushing it forward.”

In addition to its Los Angeles location, 72andSunny has offices in Amsterdam, New York and Sydney. The firm has previously been named ad agency of the year by Adweek and Ad Age.

Fortune 200 company CarMax has more than 30,000 employees and reported $26.53 billion in fiscal 2024 revenue.

In September 2024, the company announced that it would be naming sponsor for the Richmond Flying Squirrels’ new ballpark, set to open in spring 2026. Dubbed CarMax Park, the baseball stadium is expected to cost about $110 million, and CarMax’s contribution was not disclosed.

Boar’s Head agrees to $3.1M settlement tied to recalled meat products

Boar’s Head Provisions’ recall of 7 million pounds of deli meat due to a deadly outbreak last year, which put 60 people in the hospital and killed 10 others, has resulted in a and a proposed $3.1 million . The July 2024 outbreak originated at meat production facility in , which has closed.

In July 2024, the deli meat company voluntarily recalled 7 million pounds of 71 ready-to-eat products after testing confirmed listeria contamination. The Centers for Disease Control and Prevention reports that as of November 2024, 61 cases tied to the listeria outbreak were reported in 19 states, with 60 hospitalizations and 10 deaths. Deaths were reported in Illinois, New Jersey, New York, Virginia, Florida, Tennessee, New Mexico and South Carolina.

The class action lawsuit against Boar’s Head was filed in U.S. District Court of the Southern District of New York, accusing the company of “deceptive and misleading business practices” regarding the , marketing and sale of Boar’s Head brand products. It accused the company of improperly, deceptively and misleadingly labeling and marketed its products by omitting and not disclosing to consumers on its packaging that the products are contaminated with listeria monocytogenes, which could lead to serious and life-threatening adverse health consequences.

The lawsuit said the recall was insufficient, and that to be eligible for a refund, the consumer needed to have retained the products.

A court-authorized notice says that Boar’s Head and the plaintiffs had reached a proposed settlement of $3.1 million, which would be paid to plaintiffs and eligible class members. The settlement still needs to be approved by the court.

To be eligible, you must have purchased any of the covered products, in the United States, between May 10, 2024, and August 12, 2024, for personal, family or household use and not for resale. The deadline to submit a claim is May 16.

The settlement allows for class members who provide a proof of purchase of the covered products to be refunded the full purchase price for each unit listed on the proof of purchase, inclusive of all taxes. Those who don’t have a proof of purchase will receive the average retail price for up to two covered products claimed per household.

Claims can be submitted at: www.coldcutrecallsettlement.com/submit-claim

Despite agreeing to the settlement, Boar’s Head has denied any wrongdoing.

In the past year leading up to the outbreak, government inspectors logged 69 instances of “noncompliance” with federal rules at the deli meat plant, according to documents obtained through Associated Press public information requests. The reported instances included mold, insects, liquid dripping from ceilings, and meat and fat residue on walls, floors and equipment.

On July 31, the United States Department of Agriculture’s Food Safety and Inspection Service notified Boar’s Head it was withholding its federal marks of inspection and suspending operations of ready-to-eat products at its meat production facility in Jarratt until Boar’s Head provided adequate written corrective and preventive measures to assure FSIS that it demonstrated a program that meets the regulatory requirements.

But in September 2024, Boar’s Head announced that it was indefinitely shutting down the Jarratt facility, although it had not been operating since late July, after the CDC opened an investigation. About 500 union workers were employed at the plant.

U.Va. hires AstraZeneca exec to lead Manning biotech institute

Mark T. Esser, vice president for vaccines and immune therapies at pharmaceutical giant AstraZeneca, will be the inaugural chief scientific officer and leader of the Paul and Diane at the , U.Va. announced Thursday.

Esser, who will join U.Va. May 1, earned a Ph.D. in microbiology in 1998 from U.Va.’s medical school, and has worked in translational medicine at AstraZeneca, MedImmune (which was acquired by AstraZeneca) and Merck. He was involved with development of Evusheld, a medicine that helped prevent and treat COVID-19; infection and cancer vaccine programs; human papillomavirus vaccines; and a monoclonal antibody that helps prevent RSV in infants.

The $350 million Manning Institute, launched in 2023 with a $100 million donation from Albemarle County investors Paul and Diane Manning, is a hub for biotech research, development and at U.Va., which is building a 350,000-square-foot structure in Fontaine Research Park in that’s expected to open by late 2026 or early 2027, according to Paul Manning. A member of the university’s board of visitors, Manning founded PBM Products, an infant formula and baby food business, which he sold to Perrigo for an estimated $808 million in 2010. He then started PBM Capital, a private equity firm that invests in pharmaceutical and life sciences startups.

The focus of the institute is research like cellular therapy, gene therapy, nanotechnology and drug delivery, as well as expanding U.Va.’s clinical trial offerings. According to Thursday’s announcement, Esser will be tasked with fostering an “ecosystem of innovation” to attract biotech and pharmaceutical companies and jobs to Central Virginia. U.Va. is also developing a statewide clinical trials network to expand availability of new treatments while they’re being tested.

“Job one is going to be to meet and get to know all the world-class scientists and physicians at Virginia. And then job two is going to be really crafting out the shared vision for what this institute can accomplish, and getting the best and the brightest not only at the university, but around the country and around the world, to join the institute to transform cutting-edge science into future medicines,” Esser said in an interview with Virginia Business on Thursday.

He noted that developing cancer immunotherapies would “play to the University of Virginia’s strengths,” as well as allergy and autoimmunity treatments. Developing gene therapies to treat neurodegenerative diseases such as Alzheimer’s and Parkinson’s is also a high priority, Esser added.

“We are fortunate to have found an ideal candidate in Dr. to lead the Manning Institute,” U.Va. President James E. Ryan said in a statement. “He brings both great scientific expertise and decades of experience in developing new treatments and medical breakthroughs. He is a bridge-builder who knows how to work collaboratively, how to work efficiently and how to get things done. He will be the lynchpin in realizing the potential of the Manning Institute to shape the future of medicine.”

Esser was previously a senior research fellow and senior research immunologist at Merck Research Laboratories, and after receiving his doctorate, he did his postdoctoral fellowship with the National Institutes of Health’s AIDS vaccine program.

Paul Manning. Photo courtesy the University of Virginia
Paul Manning. Photo courtesy the University of Virginia

Paul Manning, speaking with Virginia Business on Thursday, said that Esser’s commercial and academic background were important reasons for his hiring. “It’s our goal to get medicine into patients,” Manning said. “That’s the goal, to work with the researchers and work with the regulatory agencies in order to move products through the continuum from basic research through clinical development and into the patients. Part of that continuum is understanding where the biotech companies and Big Pharma [are] in order to find a home for these medications.”

Asked about the Trump administration’s proposed 15% cap on National Institutes for Health funding for overhead expenses, which is causing widespread concern at research universities nationwide, Manning said that “the University of Virginia will be able to figure this out, and we will keep an eye on what Washington’s doing. Right now, it’s steady as it goes.” Last week, a federal judge permanently barred the administration from limiting funding from the NIH that supports university and medical center research, but the White House is likely to appeal the ruling.

Esser said that with the possibility of NIH cuts, the Manning Institute and other research institutions are looking to private industry for funding, including biotech and pharmaceutical companies, venture capital investors and nongovernmental organizations like the Bill and Melinda Gates Foundation.

“Even in a big pharmaceutical company, there’s never enough money,” he said. “There’s always more things to do than dollars to do that. … I think if we come up with good ideas, I’m 100% confident we’ll find people to fund them.”

Manning added that funding for the institute’s new building and hiring more researchers is safe, as $150 million in state funding has already been approved by Virginia legislators, and U.Va. is adding $100 million to the $350 million project.

“You’ll see great progress over the next six, eight months,” Manning said, especially with Esser on board.