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STOCKS FELL THURSDAY as the U.S. and China dug in for a prolonged trade war that could have ramifications up and down the global economy.
Only a day earlier, the financial markets skyrocketed on news that President Trump would dramatically scale back his country-specific reciprocal tariffs.
The optimism was short-lived, as traders digested the implications of massive tariffs enacted between the world’s two largest economies.
"The drag from trade policy is likely to be somewhat less than before, and thus the prospect of a recession is a closer call,” JPMorgan said in a note titled "Liberation Day Mulligan." “However, we still think a contraction in real activity later this year is more likely than not.”
Spokespeople for the Chinese Foreign Ministry flooded social media and news outlets with defiant statements.
“A tariff-wielding barbarian who attempts to force countries to call and beg for mercy can never expect that call from China,” Huang Jingrui, spokesperson for China’s Foreign Ministry office in Hong Kong, wrote in the South China Morning Post.
China is implementing new 84 percent tariffs on the more than $140 billion in U.S. goods it receives, including on oil, gas and crops.
The U.S. will slap a 125 percent tariff on the nearly $440 billion in goods coming in from China, with many tech companies bracing for pain.
The Hill’s Miranda Nazzaro reports that Apple, Dell Technologies and HP are likely to be impacted due to their reliance on global manufacturing:
“Under the tariffs, the price of Apple’s newest iPhone 16 Pro Max 256 GB could increase by as much as 56 percent, driving the price tag from about $1,199 to $1,874, UBS analysts shared in a research note when the Chinese tariffs stood at 104 percent.”
Meanwhile, China will limit the number of American movies it allows into the country, taking aim at a battered U.S. entertainment industry.
“I think I’ve heard of worse things,” Trump said during a Cabinet meeting.
In an appearance on CNN, Sen. Jeff Merkley (D-Ore.) described the back-and-forth as a “testosterone battle” between Trump and Chinese President Xi Jinping.
"I have great respect for President Xi,” Trump said Thursday.
“He's been a friend of mine for a long period of time. I think that we'll end up working out something that's very good for both countries. I look forward to it."
90-DAY PAUSE OPENS WINDOW FOR DEALS
Trump’s 90-day pause on country-specific tariffs opens a window for the administration to reach deals that could address trade imbalances.
“There’s a big inventory of deals that are right close to the finish line,” National Economic Council Director Kevin Hassett told CNBC.
European Union member countries put their announced U.S. tariffs on hold in that time.
Canadian Prime Minister Mark Carney said negotiations with the U.S. will start after the Canadian federal election.
Trump threatened to return to the heavy reciprocal tariffs if countries don’t strike deals with the U.S.
“If we can’t make the deal that we want to make or we have to make or that’s, you know, good for both parties — it’s gotta be good for both parties — then we go back to where we were,” Trump said.
DEMS TO PROBE QUESTION OF INSIDER TRADING
Democrats are seeking information pertaining to a social media post Trump made Wednesday morning saying “THIS IS A GREAT TIME TO BUY” stocks.
The president announced his pause on most tariffs later in the afternoon, leading to one of the biggest one-day gains in S&P 500 history.
“We need to get to the bottom of the possible stock manipulation that is unfolding before the American people, including what, if any, advance knowledge did members of the House Republican conference have of Trump’s decision to pause the reckless tariffs that he put into place?” said House Minority Leader Hakeem Jeffries (D-N.Y.).
Sens. Adam Schiff (D-Calif.) and Ruben Gallego (D-Ariz.) wrote in a letter to the Office of Government Ethics:
“This sequence of events raises grave legal and ethics concerns. The president, his family and his advisors are uniquely positioned to be privy to and take advantage of non-public information to inform their investment decisions.”
Rep. Alexandria Ocasio-Cortez (D-N.Y.) posted on X:
“Any member of Congress who purchased stocks in the last 48 hours should probably disclose that now."
?Perspectives:
• The Economist: Trump’s incoherent trade policy will do lasting damage.
• The Bulwark: Dems fumble Trump’s tariff gift.
• The Hill: Trump’s tariff rollercoaster could tank his presidency.
• The Washington Post: Trump blinked. Danger remains.
• Spiked: Trump is right to take on the free-trade fundamentalists.
Read more:
• Trump’s China tariffs derail push for TikTok deal.
• Prices retreated in March amid falling consumer sentiment.
• Egg prices rise to record high despite White House optimism.
CATCH UP QUICK
Multiple lawmakers were on an airplane bumped by another jet on a runway at Reagan Washington National Airport on Thursday.
A judge ruled cable news channel Newsmax aired false and defamatory statements about Dominion Voting Systems as part of its coverage of the 2020 election.
In a reversal, the Food and Drug Administration will allow some employees to work remotely over fears recent departures would threaten basic functions.
NEWS THIS AFTERNOON
© Greg Nash
House GOP narrowly passes Trump budget blueprint
They did it again.
After another last-minute scramble, House Republicans banded together to narrowly pass a framework they can use to enact key parts of President Trump’s legislative agenda.
The blueprint passed with a mostly party-line vote, 216-214, with only two GOP defections, giving another win to Trump and Speaker Mike Johnson (R-La.).
“I told you not to doubt us,” Johnson said. “The media always does. The Democrats always do. But we get the job done, and we’re really grateful to have had the big victory on the floor just now.”
The blueprint passed by the Senate last week appeared to be in jeopardy in the House, with nearly a dozen conservative fiscal hawks announcing their opposition. Johnson yanked the budget proposal from a vote last night when it didn’t appear to have sufficient support.
The House conservatives said the Senate blueprint didn’t do enough to cut spending, but those fears were allayed after a last-minute press conference between Johnson and Senate Majority Leader John Thune (R-S.D.), where they committed to at least $1.5 trillion in spending cuts.
“We have now three strong statements from the Speaker, the president and the Senate majority leader,” Rep. Chip Roy (R-Texas) said. “We did not have those 48 hours ago, we do now.
Now "the even tougher part begins," writes The Hill’s Mychael Schnell.
MORE FROM THE HOUSE…
A top elections handicapper has Democrats narrowly favored to regain control of the House in the 2026 midterms, although it’s as close as can be.
Sabato’s Crystal Ball released its first ratings of the 2026 midterms:
“Democrats should flip the House next year, and we favor them to do so,” managing editor Kyle Kondik wrote. “Republicans do have a couple of factors working in their favor, though, that could help them as they seek to defy history.”
?Perspectives:
• The Nation: Shawn Fain Is Right. America Needs to Rethink Trade.
• UnHerd: Harris has learnt no lessons from 2024 defeat.
• The Liberal Patriot: Democrats in a populist era.
Read more:
• Dems to hold town halls in April in target districts.
• House Republicans pass bill requiring proof of citizenship to vote.
• House passes bill restricting judges from nationwide injunctions.
• Stefanik returns to House GOP leadership after UN withdrawal.
Read More Details
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