Trump budget exposes GOP divisions

The Hill

02-05-2025

The U.S. added more jobs than expected in April, a sign the labor market remains sturdy even as executives warn about fallout from tariffs.
Markets jumped Friday after the Labor Department announced the U.S. economy added 177,000 jobs against an expected 130,000. The jobless rate remained steady at 4.2 percent.
A new report from outplacement firm Challenger, Gray and Christmas found that nearly half of all layoffs in 2025 have been the result of the Department of Government Efficiency 's (DOGE) efforts to slash the federal workforce.
The White House trumpeted the jobs 'boom,' a day after President Trump and Vice President Vance said former President Biden is responsible for the current state of the economy.
'This is the second month in a row where the jobs report has beat expectations,' press secretary Karoline Leavitt said. 'Wages are continuing to rise and labor force participation is increasing. This is exactly what we want to see. More Americans working for higher wages. More winning is on the way!'
The markets were also buoyed by a statement from the Chinese government signaling an openness to trade talks, saying 'the door is open.'
'China has noticed that the senior leadership of the United States has repeatedly stated that it is willing to negotiate with China on tariff issues,' a spokesperson for the Chinese Ministry of Commerce said Friday.
'At the same time, the United States has recently taken the initiative to convey information to China through relevant parties, hoping to talk to China. In this regard, China is evaluating it.'
Still, executives are warning that tariffs will cut into their profits.
Apple CEO Tim Cook said on an earnings call that the tariffs could torpedo Apple's second quarter profits.
'For the June quarter, currently we are not able to precisely estimate the impact of tariffs, as we are uncertain of potential future actions prior to the end of the quarter,' he said.
'However, for some color, assuming the current global tariff rates, policies, and applications do not change for the balance of the quarter and no new tariffs are added, we estimate the impact to add $900 million to our costs.'
Also on Friday, the U.S. closed the so-called de minimis loophole that allowed companies to ship cheap goods into the U.S. while skirting import fees. Chinese companies, such as clothing giant Temu, feasted on the exemption.
The White House accused China of 'deceptive shipping practices' as part of an effort to exploit the loophole. Going forward, Chinese parcels worth less than $800 will be subject to a fee, on top of the existing 145 percent tariffs on Chinese goods.
Canadian Prime Minister Mark Carney will meet with Trump in Washington on Tuesday amid the trade war and the president's expressed desire to annex Canada.
Carney, who is fresh off an election victory, has responded to Trump's threats with his own tough talk.
'President Trump is trying to break us so he can own us,' Carney said in his election victory speech. 'That will never happen.'
Despite the recent back-and-forth, Trump this week said he called Carney to congratulate him, saying 'he couldn't have been nicer.'
'He's a very nice gentleman,' Trump said.