Trump Pauses Tariffs on Every Country Except for China
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Newsbites
Chart of the week: The number of cryptocurrencies exploded during covid (the chart below does not include thousands of cryptocurrencies that went defunct). The global amount invested in all crypto is about $2.5T.
Nightclub collapse: Over 220 people died after a popular nightclub (map) in the Dominican Republic collapsed on Tuesday. An additional 150 were injured but survived. Dust began falling from the ceiling before the entire roof caved in, with slabs of concrete crushing those gathered for a merengue concert (images). Among those killed were two former MLB players.
A baby was born in the UK using a transplanted womb, the first time in the country’s history. The baby was born to Grace Davidson and her husband, Angus. Grace was born without a functioning uterus and received her sister Amy’s donated uterus in 2023. The transplant surgery took about 17 hours and required more than 25 medical personnel. Grace and her husband hope to have one more child before the implanted uterus is removed. Given the risk that her body could reject the implanted womb, she continues to take immunosuppressants, which can increase the likelihood of cancer in the long run.
More: The first baby born using a transplanted womb occurred in Sweden in 2014. Since then, there have been over 125 womb transplants and 65 births across numerous countries.
Did you know…an estimated $300B of COVID relief funds were fraudulently received? The figure consists of roughly $200B of loans and grants received through the Small Business Administration’s emergency programs and $100B of unemployment insurance benefits illegitimately collected. The $300B number represents about 15% of the total funds distributed through these programs.
Helicopter crash in New York: A family of five and the pilot died in a tourist helicopter crash over the Hudson River in Manhattan, NY, on Thursday (video). One witness told CNN, “The helicopter was a little bit like nose down, slightly, and I saw the propeller separating from the helicopter. It kept spinning in the air alone. Nothing was attached to it.” The Escobars, from Spain, were on vacation for their son's birthday. The father, Agustín, was a high-level executive at Siemens, a multinational technology conglomerate focused on automation. The reasons for the crash are unknown at this time (photos).
The Florida Gators beat the Houston Cougars in the college basketball national championship, 65-63. The game, held in San Antonio, had over 18M viewers (highlights).
Related: House v. NCAA, a massive legal settlement that will likely allow athletes to share revenue from universities, is nearing a conclusion. If reached, it is expected to radically alter the college sports landscape that has already undergone significant changes in the past 5 years.
TikTok: President Trump has extended the deadline for banning TikTok in the U.S. for another 75 days. "We do not want TikTok to 'go dark,‘" Trump wrote on Truth Social. Last year, Congress passed a bipartisan bill that required TikTok to sell its American operations to an American company. The app is owned by ByteDance, a Chinese-operated company, which has raised concerns among many lawmakers about data privacy. Trump promised to keep the election open during the election.
Migrant deportations: The Supreme Court ruled 5-4 that the Trump Administration can resume deportations under the 1798 Alien Enemies Act so long as individuals are given notice and “reasonable time” to seek due process (have their case heard by a judge). The Trump Administration has invoked the law to deport alleged members of the Venezuelan Tren de Aragua gang to El Salvador. The broader legality of Trump using the 1798 law, which can be invoked in times of war or “invasion or predatory incursion,” is subject to ongoing legal challenges.
Trump Pauses Tariffs on Every Country Except for China
Some context
On April 2, the Trump Administration unveiled aggressive “reciprocal” tariffs on nearly 100 countries, ranging from a baseline minimum of 10% to as high as 46% for Vietnam. The announcement created a frenzy across both sides of the political aisle and the U.S. stock market dropped 10-12% in the span of a few days.
What happened this week?
On Wednesday, Trump said the “reciprocal” tariffs, with the exception of China, would be paused for 90 days (during this period the baseline 10% tariff will remain in effect). The surprise announcement triggered huge volatility in the stock market (more on that below).
Trump did not give detailed reasons for the 90 day pause, saying it was “based on the fact” that over 75 countries had called the U.S. to discuss trade relationships and had not “retaliated in any way, shape, or form against the United States.”
When asked by a reporter, Trump said he paused the tariffs because, “They were getting a little bit yippy, a little bit afraid,” not specifying to what or whom he was referring (video).
Insight: On Monday (April 7), reports emerged that the president was considering a 90 day tariff pause and the stock market briefly soared higher. However, during Monday and Tuesday the White House and Treasury Secretary Scott Bessent dismissed the potential pause as a rumor.
Trump doubles down on China
Instead of easing tariffs against China, Trump increased the tariff rate from the originally contemplated 54% to 145%. In his post, the president said, “At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.”
Shortly after, the White House tweeted: “DO NOT RETALIATE AND YOU WILL BE REWARDED.”
As of Friday (April 11), China has responded by escalating its tariff rate to 125%, up from 34%.
Nearly $600B of trade occurs annually between the U.S. and China, accounting for about 10-12% of the U.S.’ total trade. Of the $600B, the U.S. exports about $150B and imports $450B, leading to a $300B trade deficit with China.
Reversal leads to historic stock market swings
Financial markets reacted wildly this week to Trump’s announcements.
After Trump’s decision on Wednesday that tariffs would be paused, the market rocketed higher with the S&P increasing 10% and the Nasdaq 12% (the largest single-day gain since 2001). The historic rally led to accusations of Trump manipulating the market due to the timing of an earlier post on social media.
At 9:37 AM on Wednesday, Trump re-tweeted from his Truth Social account the following: “THIS IS A GREAT TIME TO BUY!!! DJT.” Less than 4 hours later, at 12:18 PM, Trump announced the tariff pause. The stock market soared shortly after the post.
Democratic Senator Adam Schiff is investigating whether there was any insider stock/bond trading among the White House or related family members.
Thursday’s selloff
After a historic surge on Wednesday, markets declined on Thursday, with the S&P 500 falling 3.5% and the Nasdaq declining 4.5%. The market reacted negatively to Trump clarifying that the total tariff against China is 145%, not the previously-thought 125%.
The Cabinet praises the president
Amid the changing tariff policies, the White House and some Cabinet Members praised the president for his tactics.
Stephen Miller (Domestic X): “You have been watching the greatest economic master strategy from an American President in history.”
Scott Bessent (Treasury Secretary): “As I've said in the past, no one creates leverage for himself like @POTUS.”
White House X account posted the following:
More Than 900,000 Migrants Who Entered the U.S. via App Told to Leave or Face Deportation
What’s going on?
The Trump Administration has instructed more than 900,000 migrants in the U.S. who entered via the mobile app, CBP One, to leave the country or face arrest and deportation.
The CBP One app, launched in Jan. 2023 under the Biden Administration, allowed migrants to enter the U.S. through official entry points if they had successfully registered on the app and scheduled asylum appointments. Subsequently, they were granted two years of parole and the right to legally work in the U.S. as they waited for their cases to be heard.
This week, the Trump Administration sent notices through the same app, which has been renamed CBP Home, demanding they immediately leave the country or face consequences. The message inside the app from The Department of Homeland Security reads:
"If you do not depart the United States immediately you will be subject to potential law enforcement actions that will result in your removal from the United States — unless you have otherwise obtained a lawful basis to remain here."
The notice continues.
"Again, DHS is terminating your parole. Do not attempt to remain in the United States — the federal government will find you…please depart the United States immediately."
Trump ended the CBP One app process on the first day of his current presidency. Although the app is still live, it has been altered to be a self-deportation hub in which migrants can notify authorities they will be leaving.
At this point it’s unclear exactly how many would face arrest and deportation and how many properly followed and completed the asylum process via the app that would be protected.
Background on parole authority
Parole authority, which was first established in the Immigration and Nationality Act of 1952, allows federal officials to grant parole to non-U.S. citizens “temporarily under such conditions as [he or she] may prescribe only on a case-by-case basis for urgent humanitarian reasons or significant public benefit.”
White House revokes temporary status to millions others
CHNV Program: Last month, the Trump Administration also revoked protections for over 600,000 Cubans, Haitians, Nicaraguans, and Venezuelans who were given legal status under the Biden Administration. The CHNV program allowed migrants to come and live in the U.S. under sponsorship from a U.S. citizen or permanent resident. It gave them parole and legality to work while they sought to find a way to legally enter the country.
Last month, recipients were given a 30 day window, ending on April 24, to voluntarily self-deport, or face arrest and deportation from officials.
Temporary Protective Status (TPS): In addition, the Trump Administration revoked the TPS of 600,000 Venezulens and 500,000 Haitians. TPS allows migrants, whose home countries are deemed unsafe to return to, to stay in the U.S. for 18-month increments..
Both items have been temporarily halted by federal judges as the policies move through the courts.
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