The Morning: The trade war begins

Plus, Wisconsin's Supreme Court, government cuts and the Duchess of Sussex.

View in browser|nytimes.com April 3, 2025 By German Lopez Good morning. We're covering President Trump's sweeping tariff announcement — as well as Wisconsin's Supreme Court, government cuts and the Duchess of Sussex. President Trump and his tariffs. Haiyun Jiang for The New York Times Trade war begins Yesterday, President Trump held up a chart at the White House Rose Garden. He laughed that not everyone in the audience could read it because the font was so small. But the content was anything but small. It detailed the tariffs he will impose on China, the European Union, Japan, India and dozens of others. That chart started a trade war against the rest of the world. The levies will total 10, 20 and even 50 percent, depending on the country. "Many people had been expecting the president to announce high tariffs today, but the numbers that he just revealed are stunning," my colleague Ana Swanson said. In Trump's telling, the tariffs are necessary to counter trade barriers that other countries have placed on America. To some extent, he has a point: Other nations do have higher tariffs than the United States does. But Trump exaggerates how big the gap is, as Ana explained. And these tariffs will not simply hurt other countries; they will also hurt the U.S. economy. Experts say the levies will result in higher prices and lower economic growth — and potentially even a recession. Today's newsletter looks at Trump's new tariffs and what may come next, with help from reporting by my colleagues. The levies The tariffs make little distinction between allies and adversaries. The administration claims they are based on other countries' trade barriers against the United States. In reality, the levies are based on how much more another country exports to America than imports from it, Tony Romm, Ana and Lazaro Gamio wrote. The difference between exports and imports doesn't necessarily reflect trade barriers; Americans may simply want to buy more stuff from, say, Japan than the Japanese want to buy from the United States. This chart shows the levies on some of America's biggest trading partners. (The new fees exclude Canada and Mexico, which already face separate tariffs.) Sources: White House, Observatory of Economic Complexity | By The New York Times Practically speaking, the chart shows that Americans will now pay more for goods from other countries. If companies pass the tariffs on to consumers — and they almost always do — a $20 pack of beer from Germany will cost $24. A $100 bike from China will cost around $130. A $400 video game console from Japan will cost nearly $500. The levies are in addition to past tolls, such as those Trump placed on China. They exempt some goods, including some forms of energy, pharmaceuticals and things that Trump had already tariffed, particularly cars, steel and aluminum. Overall, though, they amount to a huge tax on some of America's biggest trading partners. The world reacts In Tokyo. Kazuhiro Nogi/Agence France-Presse — Getty Images Following Trump's announcement, China and Europe vowed to retaliate and the global economy showed signs of distress. China's government said it would take countermeasures to "safeguard its own rights and interests." Its options could include more tariffs, restrictions on U.S. investment in China or export controls on rare earth minerals. In Brussels, Ursula von der Leyen, the European Commission president, held a news conference just after 5 a.m. and said the bloc was ready to respond. "If you take on one of us, you take on all of us," she said. Markets in Asia and Europe dropped. The U.S. market is also expecting a rough day. One analyst told The Times that the tariffs were "shockingly high" and "a disaster." What's next In the coming days, other countries will probably retaliate with their own tariffs and other trade barriers. The European Union has even discussed limiting American banks' access to certain E.U. markets, Bernhard Warner reported. Those steps could be catastrophic for the U.S. economy. One question remains: Is Trump committed to a trade war? He said he would withdraw his tariffs if other countries rescinded their own trade barriers. Perhaps minor concessions would suffice; Trump suspended his penalties against Canada and Mexico after they promised to make nominal changes. A month later, he tried again but largely reversed himself after the market panicked. Perhaps that story will repeat itself. More international reactions France's prime minister said that the tariffs were "a catastrophe for the economic world." Italy's prime minister, Giorgia Meloni, said the tariffs were "a measure that I consider wrong." Britain's prime minister, Keir Starmer, said he and his ministers would respond with "cool and calm heads." (Not even a royal invite spared Britain from tariffs.) European officials said they're willing to place limits on U.S. tech companies' access to markets in response. Japan's prime minister called the tariffs "extremely regrettable." Japan is the largest overseas investor in the United States. Taiwan's government condemned the tariffs as unreasonable. Argentina's president, Javier Milei, who describes himself as a radical libertarian, described the 10 percent minimum tariff as a positive. "Friends will be friends," he posted. More on tariffs A 25 percent tariff on cars assembled outside the U.S., which Trump announced last week, took effect today. Laptop computers from Taiwan, wine from Italy, frozen shrimp from India, Nike sneakers from Vietnam and Irish butter. Read what else could be affected. While the U.S. imports goods, it heavily exports services — meaning industries like finance, engineering and medicine. That gives trading partners some leverage in negotiations. Trump's sweeping tariffs, like so much else in his second term, show that the restraints that once bound his presidency are gone, David Sanger writes. Late night hosts described it as a "tariff-fying" day. THE LATEST NEWS Wisconsin The liberal candidate in Wisconsin's Supreme Court race benefited from large Democratic turnout as counties swung left across the state. Before the election, a right-wing group rallied for voters' attention with unauthorized photos of Emily Ratajkowski and a shirtless man. Elon Musk made himself the face of the humiliating political defeat in Wisconsin. That could be useful for Trump. Government Cuts The administration laid off the entire staff of a program that helps millions of low-income Americans to pay their utility bills. Extensive layoffs at the Centers for Disease Control and Prevention, the world's premier public health agency, could hurt America's health, critics say. More on Politics A judge dismissed the corruption case against New York City's mayor, Eric Adams, but criticized the Justice Department for wanting to drop it without a valid reason. The Supreme Court upheld an F.D.A. order that prohibited retailers from marketing flavored vapes, which are popular with teenagers. Milbank, a large law firm, agreed to a deal to provide $100 million in pro bono legal services to causes supported by Trump. Lawyers for a Maryland man who was deported in error to a prison in El Salvador called for the Trump administration to bring him back as soon as possible. Xavier Becerra, the former secretary of the Health and Human Services Department, announced that he would run for governor of California. Business Amazon made a bid to acquire TikTok, which has a Saturday deadline to find a new owner. The U.S. has also discussed a possible deal with Oracle, the tech giant co-founded by Trump's friend Larry Ellison. Tesla's global sales in the first quarter fell 13 percent from a year earlier, in part because of a backlash against Elon Musk in E.V.-friendly Europe. Climate Change A burning forest in Ukraine. Brendan Hoffman for The New York Times The environmental costs to the war in Ukraine have been significant: Toxins are seeping into the earth and water, and habitats are disappearing. Experts call it ecocide. The most polluting coal plant in the U.S. has requested an exemption from stricter air pollution rules. International Hungary said it would withdraw from the International Criminal Court. The announcement came hours after Benjamin Netanyahu arrived in the country for a visit despite facing an international arrest warrant. Three U.S. citizens sentenced to death over a failed coup attempt in the Democratic Republic of Congo have had their sentences commuted to life imprisonment. The U.N. accused Israel of killing 15 humanitarian workers in Gaza. Officials in Gaza recovered the bodies and said some were reportedly shot multiple times before being buried in a mass grave. Other Big Stories Multiple tornadoes were reported across parts of the South and the Midwest. The storm system is expected to continue, with potentially once-in-a-lifetime flooding. The shingles vaccine can reduce the risk of developing dementia, a study found. Opinions Trump's tariffs on Mexican goods will fuel the black market at the border. That could help gangs expand their power, Ted Genoways writes. Pamela Paul says goodbye with her final column for The Times. A subscription to match the variety of your interests. News. Games. Recipes. Product reviews. Sports reporting. A New York Times All Access subscription covers all of it and more. Subscribe today. MORNING READS Yummy? Or not? Jimena Peck for The New York Times America's least favorite fry: Are steak fries deservedly reviled or underappreciated edible spoons? Colorful: New York City released a new subway map for the first time in nearly half a century. Sharing is caring? A TikTok trend is testing toddlers, one cookie at a time. Brain health: Everyday habits can help keep you sharp. And it's never too late to start. Most clicked yesterday: The best bathroom designs. Lives Lived: Joe DePugh was a gifted young baseball player when he gave his clumsy teammate Bruce Springsteen the nickname Saddie because his athletic abilities were so sad. Years later, Springsteen memorialized his friend in the song "Glory Days." DePugh died at 75. SPORTS N.B.A.: The league is investigating the Memphis Grizzlies guard Ja Morant for a gunlike gesture he made this week against the Golden State Warriors. Basketball: U.S.C.'s JuJu Watkins is the Naismith Women's College Player of the Year. ARTS AND IDEAS Martha Argerich and a fellow pianist, Darío Ntaca. Mischa Christen for The New York Times Martha Argerich is among the world's most astonishing pianists — and one of classical music's most enigmatic and eccentric artists. At 83, Argerich is defying the expectations of age: Her fingers remain capable of acrobatic feats, and she can still find new dimensions in pieces she has played hundreds of times. See a video of Argerich at the peak of her powers. More on culture In Montecito, Calif. Adam Amengual for The New York Times Meghan, Duchess of Sussex, is parlaying her royal fame into a lifestyle brand. The Times visited her kitchen — the real one, not the one from TV. Barack Obama appeared in a family's picture at the Tidal Basin in Washington. See the photo. Nintendo announced that its next video game system, the Switch 2, would be available in June for $450. THE MORNING RECOMMENDS … Kelly Marshall for The New York Times Make this date-flecked sticky toffee pudding in the microwave, in just 10 minutes. Visit Shanghai. Give a new mom a gift. GAMES Here is today's Spelling Bee. Yesterday's pangram was canonization. And here are today's Mini Crossword, Wordle, Sudoku, Connections, Sports Connections and Strands. Thanks for spending part of your morning with The Times. See you tomorrow. Sign up here to get this newsletter in your inbox. Reach our team at themorning@nytimes.com. Editor: Adam B. Kushner News Editor: Tom Wright-Piersanti Associate Editor: Lauren Jackson News Staff: Desiree Ibekwe, Brent Lewis, German Lopez, Ashley Wu News Assistant: Lyna Bentahar Saturday Writer: Melissa Kirsch Need help? Review our newsletter help page or contact us for assistance. You received this email because you signed up for the Morning newsletter from The New York Times, or as part of your New York Times account. 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