Trump trade war escalates as China raises retaliatory duties on U.S. goods

Diala Shamas, one of the attorneys representing Mahmoud Khalil, talks with NBC News’ Ellison Barber about the judge’s ruling that Khalil can be deported, the steps his legal team can take to appeal, and why they believe he is not getting a fair hearing.

Trump said while speaking to reporters on Air Force One tonight that he would return Kilmar Abrego Garcia to the U.S. if the Supreme Court told him to, adding that he has “great respect for the Supreme Court.”

The Supreme Court yesterday said that the Trump administration must “facilitate” the retrieval of Abrego Garcia, whom the administration admitted it mistakenly deported to a prison in El Salvador.

The court told the administration to “share what it can concerning the steps it has taken and the prospect of further steps,” but does not have to immediately try to return Abrego Garcia as a deadline previously imposed by a federal judge had already passed.

Trump said tonight that he would not commit to following a lower court’s orders, however.

A Pennsylvania man was charged with making threats to assault and murder Trump and other administration officials, including tech billionaire Elon Musk, according to court documents filed this week.

An FBI agent said in a criminal complaint that Shawn Monper, 32, of Butler — the town where a gunman attempted to assassinate Trump in July — made a series of threatening statements against Trump in recent months on YouTube, using the account name "Mr Satan" and saying that he was going to "assassinate him myself," and "we just need to start killing people, Trump, Elon, all the heads of agencies Trump appointed, and anyone who stands in the way."

Monper also wrote that he would "open fire" if he came across an armed ICE agent, according to the complaint, which added that Monper had obtained a firearms permit through the Pennsylvania State Police shortly after Trump’s inauguration and wrote in a Feb. 26 post on YouTube that he had “bought several guns and been stocking up on ammo since Trump got in office."

Trump said tonight that countries can either pay U.S. tariffs or "choose not to deal with us."

"They can choose not to deal with us, or they can choose to pay it, and that's where we are," Trump told reporters on Air Force One.

A reported had asked about Trump’s negotiations with other countries after his decision Wednesday to scale back most of the tariffs that had taken effect hours earlier.

"If they think it's too high, they don't have to do business with us," Trump said tonight, adding that he didn't anticipate any U.S. trading partners would arrive at such a decision.

Five prominent law firms became the latest in the legal industry to strike deals with the Trump administration by agreeing to provide millions of dollars in pro bono and other legal services after the White House questioned their employment practices.

In a Truth Social post, Trump said that the law firms Kirkland & Ellis LLP, Allen Overy Shearman Sterling US LLP, Simpson Thacher & Bartlett LLP, and Latham & Watkins LLP, had each agreed to provide $125 million in services during his administration "and beyond."

In an earlier post, he said the firm Cadwalader, Wickersham & Taft, LLP has pledged to provide at least $100 million in pro bono legal services.

Trump said aboard Air Force One tonight that he thinks the results of today's annual physical exam at Walter Reed will be released on Sunday.

The president said he faced a barrage of tests, “every test you can imagine,” including a cognitive examination.

Asked by a reporter whether he had been given any advice for habits he needed to change, Trump said: "A little bit," but said that overall he was "in very good shape."

Trump has declined to disclose detailed medical reports in the past. During the 2024 campaign he vowed to release health records before the election but did not do so. He later told NBC News, in December, that he had “no problem” with releasing his full medical reports.

Rep. Troy Nehls, R-Texas, filed a lawsuit requesting $2.5 million in damages over allegations that the U.S. Capitol Police retaliated against him due to his criticism of their leadership following the Jan. 6 riot.

Nehls claimed in the suit filed yesterday that an officer unduly entered his office in November 2021 and took photos of a whiteboard with notes about legislation. The officer wrote in a report at the time that the whiteboard contained “suspicious writings mentioning body armor” along with outlines of congressional office buildings, according to court documents.

Nehls called the incident a “violation of his privacy and constitutional rights,” a violation of the speech and debate clause provided to members of Congress, and said it was retaliation due to Nehls’ criticism of USCP leadership following Jan. 6. The suit particularly pointed to Nehls’ previous criticism of the officer who shot Jan. 6 rioter Ashli Babbitt, and provided a link to a Facebook video featuring an interview between Nehls and commentator Tucker Carlson.

Nehls claims he has suffered “mental and emotional distress, anxiety, and humiliation” as a result of the incident.

The Trump administration has directed staff at the State Department to report any instances of “anti-religious” bias, according to a copy of an internal notice obtained by NBC News.

The announcement was titled “Implementing the President’s E.O. on Eradicating Anti-Christian Bias in the Department of State,” and provides an anonymous form dedicated for employees and contractors to report instances of “anti-religious bias during the last presidential administration” by April 18. 

People who complete the form can also submit recommendations to the Secretary of State to “remedy any anti-religious bias at the Department.”

Tariffs were on, then they were off. At least temporarily, and only some of them — but not for China, which got hit with steeper duties and promptly hit back. Wall Street reeled, then rebounded to its strongest weekly gain in well over a year.

The past week has seen a head-spinning series of U.S. trade policy changes that economists, investors and ordinary consumers increasingly worry will drive up inflation or even trigger a recession.

Read the full story here.

The Supreme Court intervened this week in a number of cases involving Trump’s efforts to dramatically transform the government, maintaining legal guardrails for deportations while also allowing the administration to continue with mass firings of federal workers.

In all, the high court took action in four pivotal cases, while another federal appeals court gave the green light to more federal layoffs.

Here’s a look at the biggest legal developments of the last week.

Read the full story here.

White House press secretary Karoline Leavitt told reporters today that a Republican bill requiring proof of citizenship to vote in federal elections will not stop married women whose last names don't match their birth certificates from being able to register to vote.

The Safeguard American Voter Eligibility (SAVE) Act, which requires states to obtain proof of U.S. citizenship from voters in person before they can register to vote in federal elections, passed the House yesterday.

Voting rights advocates have warned that the bill could disenfranchise millions of eligible voters, including married women whose last names no longer match the name on their birth certificates.

Simon Sandoval-Moshenberg, an attorney for a wrongly deported Maryland man, said during a Meet the Press Now interview this afternoon that he sees "no reason why" the El Salvadoran government would resist releasing his client Kilmar Abrego Garcia from a jail there.

“I see no reason why the El Salvadoran government would fight the United States of America, and, you know, lose its most powerful relationship," Sandoval-Moshenberg said.

He also referred to a deal made by the Trump administration last month to pay El Salvador $6 million to jail alleged Tren de Aragua gang members for a year.

Longtime Justice Department spokesman Peter Carr — who had previously served as spokesperson for both Special Counsel Robert Mueller and Special Counsel Jack Smith — has been dismissed by Deputy Attorney General Todd Blanche, he told reporters in an email.

“I have just been informed by the DAG that I have been let go. It’s been a pleasure working with all of you,” he wrote in the email, titled “My last email to you.”

Carr had previously worked as a spokesman for Republican Sen. Orrin Hatch before he joined the Justice Department in 2007.

The White House has moved the official portrait of former President Barack Obama to a new location in the East Room, replacing it with a painting of then-candidate Trump with his fist raised in the air right after the assassination attempt in Butler, Pennsylvania.

The White House moved the portrait of former President George W. Bush to a new location as well.

In a brief video posted on X, the White House showed the new Trump painting in the spot traditionally reserved for the most recent official presidential portrait, with accompanying text saying “some new artwork at the White House.” Former President Joe Biden, who has been out of office for just shy of three months, does not have an official portrait yet.

A former White House official told NBC News that tradition dictates that the portraits hanging in this spot — next to the East Room in the foyer after walking into the White House — are of the most recent presidents, but that is not a hard and fast rule. The president can direct the curator to move things around, and noted that during his first term, Trump moved the portraits of former Presidents Bill Clinton and George W. Bush.

Simon Sandoval-Moshenberg, an attorney for a wrongly deported Maryland man, said during a Meet the Press Now interview this afternoon that he has to trust the government will provide updates on their efforts to facilitate the release of Kilmar Abrego Garcia from an El Salvador jail as required by a judge.

"I have to trust that they’re going to act in good faith and actually provide that information. But if they don’t, we’ll be ready to go back in front of the judge and ask her to really bring the hammer down," Sandoval-Moshenberg said.

The comment came in response to a question from host Kristen Welker about whether he trusts Trump officials will provide daily updates, including over the weekend, on his client as ordered by U.S. District Judge Paula Xinis during a hearing earlier today.

A government attorney had repeatedly said during the hearing "I don't know" when asked about Garcia's whereabouts.

An immigration judge on Friday ruled that the Trump administration can deport Columbia University graduate student Mahmoud Khalil just a month after his arrest prompted national outrage and marked the start of the federal government’s broader crackdown on foreign students.

Read the full story here.

A lawyer for the Justice Department said repeatedly "I don't know" when asked today by a judge where the man the administration mistakenly deported to El Savador is.

"This is extremely troubling," Judge Paula Xinis said, as the DOJ attorney also said he had no information about what efforts the government had made to date to get Garcia back from the El Salvador prison he'd been sent to.

She ordered the government to give her daily updates to her questions, including over the weekend. The attorney for the Justice Department, Drew Ensign, said he anticipated having some answers for her by Tuesday.

Simon Sandoval-Moshenberg, an attorney for Garcia, told Meet the Press NOW afterwards that "I have to trust that they’re going to act in good faith and actually provide that information. But if they don’t, we’ll be ready to go back in front of the judge and ask her to really bring the hammer down."

Shortly before Trump scaled back most U.S. tariffs on Wednesday, former Commerce Secretary Wilbur Ross called the new levies "more extreme than perhaps was needed."

Ross, who oversaw Trump's commerce and trade agenda during his first administration, pointed out the key differences between the president's first-term tariffs and the new ones during an interview with NBC 10 Philadelphia.

General Motors is cutting production of its all-electric BrightDrop delivery vans at a plant in Canada and will idle the facility through much of this year.

The plant will be reduced from two shifts to one — eliminating 500 jobs — followed by a 20-week idling of the facility that’s scheduled to begin in May. Battery pack assembly at the plant also will be down for two weeks ahead of the prolonged shutdown.

Read the full story here.

An alert from U.S. Customs and Border Protection today notified users of a glitch in the system that is used to exempt freight from tariffs, including shipments from China that were already on the water at the time of this week’s whipsaw in tariffs policy and any trade from nations now under the 90-day pause put in place by the Trump administration.

The alert explained that U.S. Customs discovered that the entry code U.S. shippers use to have their freight exempted is not working and that “the issue is being reviewed.”

Read the full story here.

China slapped the United States with a new tariff, raising the tax on American goods to 125%. It comes after the White House raised tariffs on China to 145%. Chinese President Xi Jinping responded to Trump for the first time saying that China doesn’t fear economic suppression, but that “there are no winners in a tariff war.” NBC’s Peter Alexander reports for "TODAY."

Iowa Gov. Kim Reynolds announced today that she will not seek re-election, a decision that means the Republican’s time as governor will come to an end just shy of the 10-year mark after the 2026 election.

“Serving as your governor has been the greatest honor of my life, an opportunity that not so long ago, I never could have imagined,” Reynolds said in a video posted to social media.

Read the full story.

New Jersey Attorney General Matt Platkin responded to Alina Habba's announcement today that she's investigating him and Gov. Phil Murphy for not cooperating with federal agencies when it comes to tracking down undocumented immigrants.

Platkin said that the state's policy, known as the Immigrant Trust Directive, is "settled law" and that it's "been upheld by judges appointed by President Trump."

He said that he's reached out to Habba multiple times since Trump appointed her as the interim U.S. attorney for New Jersey. "She has not wanted to have the conversation," he said.

Finance and economy ministers from the European Union met in Warsaw today to discuss a response to Trump's tariffs.

Ireland's minister of finance, Paschal Donohoe, said during a news briefing following the meeting that the ministers had agreed "on the need for a unified stance and approach in response" to the tariffs, and for "an appropriate policy mix" within the E.U. that protects their economy.

"We all agreed that it is very important to keep track of how the shifts that are taking place translate into economic sentiment, into activity, into prices, and we factor all of this into what it means for the Euro area's policy mix," Donohoe said.

Consumer sentiment grew even worse than expected in April as the expected inflation level hit its highest since 1981, a closely watched University of Michigan survey showed today.

The survey’s midmonth reading on consumer sentiment fell to 50.8, down from 57.0 in March and below the Dow Jones consensus estimate for 54.6. The move represented a 10.9% monthly change and was 34.2% lower than a year ago. It was lowest reading since June 2022 and the second lowest in the survey’s history going back to 1952.

As sentiment moved lower, inflation worries surged.

Read the full story.

China's Ministry of Foreign Affairs continued its criticisms of Trump's tariffs today, saying that if the U.S. wants to talk, "it should stop its capricious and destructive behavior."

“For the welfare of the Chinese and the people of the world, for the fairness and justice of the global order, China will never bow to maximum pressure of the United States,” the spokesperson of the ministry, Lin Jian, wrote on X. "Give the bully an inch, he will take a mile.”

Liu Pengyu, a spokesperson of Chinese Embassy in the U.S., echoed the statement, adding that China "will never bow to maximum pressure of the US."

Following nearly a week of volatile stock swings, U.S. markets opened after China imposed its own 125% tariffs on imports from the U.S. Investopedia Editor-in-Chief Caleb Silver breaks down how the escalating trade war between the U.S. and China could impact your wallet.

Dan Ives, an analyst with Wedbush Securities financial group, warned in an industry note that the "economic tariff Armageddon unleashed by Trump" has been hanging over Wall Street like a dark cloud for weeks, but now, consumers are going to feel it too.

"The self-inflicted uncertainty from the China tariffs has turned the corporate capital expenditures world upside down, created mass uncertainty not seen since Covid, created a price shock that will impact the daily lives of US consumers with no end in sight, and unfortunately ripped the hearts and lungs out of the US Big Tech supply chain in the process with no minimal to no alternatives," Ives wrote.

Ives said the tariffs will heavily impact the Magnificent 7 — Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla — but especially Apple, which assembles and produces about 90% of its iPhones in China. Negotiations with China are key, he added.

"China holds a lot of cards in this game of poker as our economy and treasuries/bonds are heavily swayed by the actions of Beijing and that reality is not changing anytime soon....especially as the Beijing/Xi mentality can withstand massive pain, does not have mid-term elections ever, and looks at the world over centuries not 1-2 years," he said.

Judge Xinis has denied the government's bid to postpone today's hearing on the case of the Maryland man who the administration said was mistakenly deported to a notorious El Salvador prison.

The "Defendants’ act of sending Abrego Garcia to El Salvador was wholly illegal from the moment it happened," Xinis wrote, noting it was something the government has been aware of for weeks.

She also blasted the government's claim this morning that it needed more time to review the Supreme Court's decision in the case from last night.

The "Defendants’ suggestion that they need time to meaningfully review a four-page Order ... blinks at reality,” she wrote, ordering the 1 p.m. ET hearing to proceed as scheduled. She did give the government two extra hours to submit information on Garcia's whereabouts and its efforts to date to bring him back. She initially asked for those answer by 9:30 this morning.

The judge also pushed back on DOJ's suggestion that her directives are "inconsistent" with the high court's order.

A group of Democratic senators are calling on the Securities and Exchange Commission to launch an investigation into "potential violations of federal securities laws by President Trump and his affiliates," they said in a letter to SEC Chairman Paul Atkins today.

"Specifically, we ask the SEC to determine whether President Trump, any members of his cabinet, or other donor, insiders, and Administration officials engaged in insider trading, market manipulation, or other securities laws violations on April 9, 2025, when President Trump announced that it was a “GREAT TIME TO BUY” into the stock market," the letter said.

Trump posted the comment on his social medium platform Wednesday morning, just hours before his announcement of a temporary reduction in U.S. tariffs sent markets into a short-lived surge.

The Justice Department says it needs more time to answer questions about its efforts to bring back a Maryland man who the administration said it mistakenly deported to an El Salvador prison.

Following a Supreme Court decision last night that the administration should work to “facilitate” the release of Kilmar Abrego Garcia, U.S. District Judge Paula Xinis ordered the Justice Department to submit a filing by 9:30 a.m. with information on Garcia's whereabouts and its efforts to seek to his return ahead of a hearing this afternoon.

The DOJ responded that it needs more time and that it would be "impracticable for Defendants to comply with the Court’s 9:30AM deadline only a few hours after the Supreme Court issued an order in this case."

The department asked to be able to file its response to the judge's questions on Tuesday and for the hearing to be moved to Wednesday.

In a post on Truth Social, Trump appeared to back a plan to make daylight saving time permanent in the U.S., writing, "The House and Senate should push hard for more Daylight at the end of a day."

"Very popular and, most importantly, no more changing of the clocks, a big inconvenience and, for our government, A VERY COSTLY EVENT!!!" Trump added.

Along similar lines, as recently as December Trump advocated for permanently eliminating daylight saving time.

The commander of the U.S. Space Force base in Greenland that Vice President JD Vance visited last month has been fired for writing an email distancing herself from Vance's comments criticizing Denmark.

“I do not presume to understand current politics, but what I do know is the concerns of the U.S. administration discussed by Vice President Vance on Friday are not reflective of Pituffik Space Base,” Col. Susannah Meyers wrote in the email three days after Vance’s visit. “I commit that for as long as I am lucky enough to lead this base, all of our flags will fly proudly — together.”

Alina Habba, the new U.S. attorney for the District of New Jersey, said last night that she has opened an investigation into Gov. Phil Murphy and state Attorney General Matthew Platkin for not cooperating with federal agencies on immigration.

Habba said in an interview with Fox News' Sean Hannity that the Murphy administration has instructions online telling law enforcement not to follow federal rules when it comes to undocumented immigrants.

Gold continue to surge today amid the U.S. and China’s tariff escalations, reaching over $3,200 dollars.

U.S. gold futures also climbed 1.7% to $3,230.

With the economic fallout from Trump's tariffs, gold has enjoyed a rally for months and gained as much as 21% this year, partly because of central bank demand and investment in gold-backed funds, Reuters reported.

In a bid to seek Trump’s favor, Vietnam is poised to crack down on Chinese goods being shipped to the U.S. through its territory and tighten the grip on its sensitive exports to China, Reuters reported.

The reported move follows Trump’s top trade adviser Peter Navarro's accusation that Vietnam was rebranding Chinese imports with “Made in Vietnam” labels for lower tariffs.

Trump delayed his 46% tariff on Vietnamese imports for 90 days on Wednesday but declined to rule out extending the suspension if he can’t make the deals he wants with U.S. trading partners.

Navarro dismissed Vietnam’s offer over the weekend to lower its duties on U.S. goods to zero in hopes of a tariff reduction from Trump.

“This is not a negotiation,” he told Fox News. “If you simply lowered our tariffs and they lowered our tariffs the zero, we’d still run about $120 billion trade deficit with Vietnam.”

As the fallout of the U.S. tariffs continued, the U.S. dollar also continued to tumble today and hit its lowest rate against the Swiss franc in a decade.

The Swiss Franc stood at $1.22 against the dollar, undermining the status of the U.S. currency as a safe haven asset in times of economic volatility. The Euro also strengthened against the dollar, reaching $1.14 of its value, the lowest performance of the U.S. currency in half-a-decade.

The European Union and the United Arab Emirates have agreed to start free trade talks amid uncertainty over Trump’s tariffs.

“The upcoming negotiations will focus on liberalizing trade in goods, services, and investment, while deepening cooperation in strategic areas such as renewable energy, green hydrogen, and critical raw materials,” the European Commission said in a statement yesterday.

The E.U. trade commissioner is expected to visit the UAE soon to advance the discussions.

Last week, Trump announced a baseline tariff of 10% on imports from the UAE, as well as a 20% levy on E.U. goods. While the higher targeted tariffs have been paused for 90 days, the baseline tariff remains in effect.

A federal judge in Maryland last night clarified her order that the Trump administration take steps to return Abrego Garcia to the United States as soon as possible, in accordance with the Supreme Court's decision in the case.

U.S. District Judge Paula Xinis ordered the administration to provide information by 9:30 a.m. on the physical location and custodial status of Abrego Garcia, "what steps, if any, Defendants have taken to facilitate Abrego Garcia’s immediate return to the United States; and what additional steps Defendants will take, and when, to facilitate his return.”

Xinis will hold a hearing in the case today at 1 p.m., during which the government could push back on her order. 

Tit-for-tat U.S. and Chinese tariffs on each other’s goods are rising so fast it makes the head spin. Here’s how the situation has spiraled since last week:

February and March: The new Trump administration imposes a combined 20% tariff on goods imported from China over its role in the international flow of precursor ingredients for fentanyl.

April 2: Citing the U.S. trade deficit with China, Trump announces an additional 34% tariff on Chinese goods.

April 4: China announces its own 34% tariff on U.S. goods.

Monday: Trump threatens to impose an additional 50% tariff if China doesn’t rescind its 34% tariff.

China’s Commerce Ministry today blasted Trump’s 145% tariffs on Chinese goods as a “numbers game with no real economic significance.” The U.S’ tactics of weaponizing tariffs have become “a joke,” it said in a statement.

“If the U.S. keeps playing the numbers game of tariffs, China will ignore it,” the ministry added, but vowed once again to “fight to the end” if the U.S. “insists on substantially harming China’s interests.”

China raised its tariff on U.S. imports today to 125% from its previous rate of 84%, signaling that this is likely to be its last increase for the moment as tit-for-tat tariffs reach levels that make trade between the world’s two biggest economies unfeasible.

“Given that, at the current tariff level, U.S. exports to China are no longer commercially viable, China will not respond to any further tariff hikes by the U.S. on Chinese goods,” the ministry said.

China says it will reduce imports of American films in retaliation for the U.S. slapping tariffs on its goods. The move targets one of the United States’ most influential export industries.

China, the world’s second-biggest box office after the U.S., has long had an annual quota on the number of foreign films that can be screened in its theaters. Hollywood films have also fared less well with Chinese moviegoers in recent years amid rising U.S.-China tensions and a maturing Chinese film industry.

“The U.S. government’s erroneous imposition of tariffs on China is bound to further reduce domestic audiences’ favorable perception of American films,” the China Film Administration said in a statement yesterday.

The statement added that the number of American films imported would be “moderately reduced,” but did not specify the extent of the cut.

China and the European Union must join forces in defending free trade and opposing “unilateral bullying,” Chinese President Xi Jinping said, referring to Trump’s tariffs.

“China and the E.U. should fulfill their international responsibilities, jointly maintain the trend of economic globalization and the international trade environment, and jointly resist unilateral bullying,” Xi told Spanish Prime Minister Pedro Sánchez in Beijing today, according to a Chinese government readout.

They were Xi’s first public comments on the issue since Trump announced tariffs on a long list of U.S. trade partners last week, most of which he later paused for 90 days except for those on China. Xi did not explicitly mention Trump.

Sanchez said after his meeting with Xi that China and the U.S. should address their escalating trade tensions through dialogue. He also called for a more balanced trade relationship between China and the E.U., which are the world’s second- and third-biggest economies after the U.S.

European Union leaders are planning to travel to Beijing in late July for a summit with Chinese President Xi Jinping, The South China Morning Post reported, as Trump’s tariffs push the two major markets closer together.

No date has been confirmed with the Chinese side, the Hong Kong-based newspaper reported, citing five people familiar with the arrangement.

China and the E.U., which are marking 50 years of diplomatic relations, held their last summit in Beijing in 2023. The next one is scheduled for July but was supposed to be held in Europe, suggesting that E.U. leaders are anxious to meet with Xi directly.

In addition to their shared opposition to Trump’s tariffs, Europe is worried that it will be flooded with cheap Chinese exports if the tariffs divert them away from the U.S.

Democrats are at a crossroads. And different potential party leaders are already scoping out different potential paths back to power in a few years.

After the party lost November’s presidential election, its image has slipped to historic lows, and it lacks significant power in Washington to push back against Trump’s efforts to bend the federal government to his will — even as Democratic voters warm to the idea of an all-out fight against Trump.

It’s against that backdrop that key Democratic leaders are making early, yet important, moves about how to position themselves as the party looks toward a wide-open 2028 presidential race. Some seek to resist Trump at all opportunities, others concede victories to Republicans on cultural issues, and still more hope to split the difference — working with Trump when necessary and criticizing him when they disagree.

Read the full story here.

The week looks set to end much as it began, with global markets convulsing as Trump’s tariffs raise fears of recession.

Asia-Pacific markets were mixed, with U.S. ally Japan’s Nikkei 225 losing the most at 2.96%. Hong Kong’s Hang Seng Index and China’s CSI 300 both ended the day higher before China’s tariff increase announcement.

In Europe, major markets were all lower, led by Germany’s Dax which was down almost 1.7% in morning trading.

The dollar fell to its lowest in 10 years against the Swiss franc and its lowest in six months against the yen, Reuters reported, as the euro reached its highest level against the U.S. currency since February 2022 and gold hit another record high.

China is raising its tariff on U.S. imports to 125% from its previous rate of 84%, signaling that this is likely to be its last increase for the moment as tit-for-tat tariffs reach levels that make trade between the world’s two biggest economies unfeasible.

“Given that, at the current tariff level, U.S. exports to China are no longer commercially viable, China will not respond to any further tariff hikes by the U.S. on Chinese goods,” the government said in a statement today.

Trump said Wednesday that the combined tariff on Chinese goods would rise to 125%, after China refused to rescind retaliatory tariffs on U.S. goods that matched ones Trump earlier announced. The White House clarified yesterday that the total U.S. tariff on Chinese goods is now 145%, including 20% in additional tariffs that Trump imposed in February and March.

The 125% Chinese tariff on U.S. goods takes effect tomorrow.

“Liberation Day” gave way to Capitulation Day on Thursday.

President Donald Trump pulled back Wednesday on a series of harsh tariffs targeting friends and foes alike in an audacious bid to remake the global economic order.

Trump’s early afternoon announcement followed a harrowing week in which Republican lawmakers and confidants privately warned him that the tariffs could wreck the economy. His own aides had quietly raised alarms about the financial markets before he suspended a tariff regime that he had unveiled with a flourish just one week earlier in a Rose Garden ceremony.

The stock market rose immediately after the about-face, ending days of losses that have forced older Americans who’ve been sinking their savings into 401(k)s to rethink their retirement plans.

Read the full story here.

• U.S. cyber defenders shaken by Trump’s attack on their former boss
• Trump orders probes of two former officials who defied him
• Marco Rubio memo cites Mahmoud Khalil’s beliefs in justifying his deportation
• Trump floats plan for undocumented farm and hotel workers to work legally in the U.S.
• Judge allows requirement that everyone in the U.S. illegally must register to move forward
• Supreme Court says Trump admin must ‘facilitate’ release of man wrongly deported to El Salvador prison
• Justice Department drops charges against man it called a top MS-13 gang leader