Latest twist in tariff turmoil: China cuts off flow of critical minerals. Live updates
Latest twist in tariff turmoil: China cuts off flow of critical minerals. Live updates
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Trump smartphone tariff measures 'coming soon,' Lutnick says
Commerce Secretary Howard Lutnick said that tariffs on smartphones and other electronics would come "soon."
The nation, the world and the financial markets were bracing for more volleys in the global trade war after President Donald Trump said he would be announcing a specific tariff rate on semiconductors this week.
The Trump administration just days ago unveiled some technology tariff exemptions that include most of the stiff tariffs Trump levied on Chinese imports such as smartphones, computers and flat screen televisions. The exemptions were a rare piece of good news for the battered financial markets, and U.S. stocks were higher early afternoon April 14.
"We wanted to uncomplicate it from a lot of other companies because we want to make our chips and semiconductors and other things in our country," Trump told reporters aboard Air Force One on April 13 as he traveled back to Washington from his home in Florida.
China has stepped up its own actions, steeply increasing its tariff on U.S. goods and choking off the flow of valuable, rare-earth metals and magnets into the U.S.
Trump, in a Truth Social post April 13, wrote that the U.S. needs to make products in the U.S. and won't "be held hostage by other Countries, especially hostile trading Nations" such as China. He said the U.S. is reviewing tariffs involving the entire technology supply chain.
"NOBODY is getting 'off the hook' for the unfair Trade Balances, and Non Monetary Tariff Barriers, that other Countries have used against us, especially not China which, by far, treats us the worst!" Trump wrote in a Truth Social post later on April 13. "There was no Tariff 'exception' announced on Friday. These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff 'bucket.''
Today's stock market news: Futures rise amid smartphone tariff exemption
China has suspended exports of many rare-earth minerals and magnets crucial for automakers, aerospace manufacturers, semiconductor companies and military contractors around the world, the New York Times reports. Shipments have been halted from many Chinese ports while the Chinese government drafts a new regulatory system − one that could permanently prevent supplies from reaching American military contractors and other U.S. companies.
'Drones and robotics are widely considered the future of warfare,' James Litinsky, chief executive of MP Materials, the sole U.S.-based rare-earth mining and processing firm, told the Times. "Based on everything we are seeing, the critical inputs for our future supply chain are shut down."
The minerals themselves are not actually rare, but the ability to refine them at scale is, Litinsky said in a post on X. The company announced in January that it had begun commercial production of the magnets and plans to begin supplying magnets to General Motors and other manufacturers by year's end.
Financial markets have struggled mightily in recent days, first with a string of announcements placing tariffs on products from certain nations such as Canada, China and Mexico, and on certain products such as steel and aluminum. In ensuing days the number of nations and products rapidly expanded, crushing investors and fueling turmoil in the bond markets.
A series of temporary tariff rollbacks have brought some relief, but uncertainty has prompted concerns of inflation and a possible recession. Aided by the latest tech exemptions, U.S. financial markets were in positive ground midday on April 14 and global technology stocks also advanced.
China has put civilian government officials in Beijing on 'wartime footing' and ordered a diplomatic charm offensive aimed at encouraging other countries to push back against Trump's tariffs, Reuters reports, citing four people familiar with the matter. Communist Party propaganda officials have played a leading role in framing China's response, one of the people said, and government spokespeople posted defiant clips on social media featuring former leader Mao Zedong saying 'we will never yield.'
Bureaucrats in the foreign affairs and commerce ministries have been ordered to cancel vacation plans and keep mobile phones switched on around the clock, two of the people said. Departments covering the U.S. have also been beefed up, they said.
"This trade war was started by the U.S. and imposed on China," the foreign ministry said in a statement. "If the U.S. really wants to resolve the issue through dialogue and negotiations, it should stop applying extreme pressure. Any dialogue should be established on the basis of equality, mutual respect and mutual benefit." Read more here.
Billionaire investor Bill Ackman, a Trump supporter now at odds with the president over tariffs, called April 13 for a three-month pause on China. Ackman lauded Trump for showing "considerable flexibility" and understanding the challenges U.S. companies face in adapting to the tariffs so rapidly.
China is under pressure to negotiate a deal whether the tariffs take effect immediately or in three months, Ackman said in a post on X. The pause would provide U.S. businesses with time to make supply- chain adjustments while giving China a chance to negotiate a trade deal in good faith, Ackman said.
"If China does not cooperate and negotiate a deal that makes sense for our country, President Trump can bring the hammer down in 90 days," Ackman wrote.
Tariff twists: Rollout is 'exactly like we thought it would' be, Trump adviser says
Economy will likely slow: Near-standstill or recession likely despite Trump tariff pause: Survey
Forecasters have a bleak outlook on the U.S. economy because of Trump's escalating trade war − and they see the odds of a recession as a tossup. The experts predict the economy will nearly stall in 2025, growing 0.8%, down from their projection of 1.7% just last month, according to the average estimate of 46 economists surveyed by Wolters Kluwer Blue Chip Economic Indicators on April 4 and April 7. They estimated there's a 47% chance of a recession, up from 25% in February.
The poll was conducted after Trump unveiled his reciprocal tariffs on dozens of countries April 2 but before he announced a 90-day pause on duties as high as 50% on all nations other than China on April 9 and exemptions for many electronics products a few days later.
A separate survey of 31 experts this week – 21 of whom responded the day Trump announced the 90-day pause – reveals a similarly dour view, according to the poll by the National Association of Business Economics. They expect the economy to grow just 0.7% this year. Read more here.
− Paul Davidson
Trump's approval rating falls: 59% say the economy's in bad shape, poll shows
Trump's approval ratings on the economy and inflation have fallen after weeks of tariff policy twists and turmoil in the stock market, according to a new poll released April 13. The CBS News survey of 2,410 Americans found 44% approved of Trump's handling of the economy and 40% approved of his handling of inflation, both down 4% from March 30. The president's overall approval rating dropped to 47% this month, down from 50% in March and 53% in February.
More than half of respondents − 59% − rated the state of the U.S. economy as either fairly bad or very bad, and 53% said they feel the economy is getting worse. Read more here.
− Rachel Barber
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