logo
‘I'm so scared': Readers share their trade war anxieties

‘I'm so scared': Readers share their trade war anxieties

Good morning. Here's what you need to know to start your day.
Who else wants off this roller coaster?
After unleashing financial chaos last week with his so-called reciprocal global tariffs, President Trump on Wednesday paused many of them for 90 days.
This could be different by the time you're reading this, but as of Friday morning, the Trump administration has maintained a base 10% tariff on nearly all global imports. Previously announced tariffs on Mexico and Canada — two major U.S. trading partners — stand at 25% for most imports, with some exemptions. But the big news is imports from China, which Trump slapped with a 145% tariff.
Trump initially announced a 125% import tax on Chinese products, writing on his Truth Social platform that it was 'based on the lack of respect that China has shown to the World's Markets.' Asked by reporters Wednesday why he paused the other tariffs, Trump said 'people were jumping a little bit out of line … they were getting a little bit yippy, a little bit afraid.'
After plummeting in the aftermath of Trump's initial tariff plan, the U.S. stock market surged Wednesday when he announced the pause on many global tariffs, then fell again Thursday as fears of a brutal trade war with China set it.
For economist Clement Bohr, Trump's walk-back is only a 'marginal relief.'
'There was significant concern about a financial crisis, [which is] why you saw the president eventually backing off … we were close to a precipice there and it was scary,' he said. 'Now we're in a massive trade war with China [that] is basically ripping apart the main artery of the global trading system.'
Bohr is an assistant professor of global economics and management at UCLA and issued a 'Recession Watch' last month at the university's Anderson Forecast. I interviewed him for some tariff reporting earlier this week, but given the whiplash from the White House, I called him back to ask: Does this change anything about the risk of a recession?
'From the perspective of the 'Recession Watch,' things haven't really changed much,' he said. 'The main discussion right now is whether this tariff policy, which is now mainly a trade war with China but also across-the-board 10% tariffs … is in and of itself enough to lead to a recession in the U.S.'
I asked Bohr what he would tell the public during this ambiguous economic climate. He didn't have good news, but cautioned against reading too much into the 'erratic' swings of the market.
'There's as much uncertainty as there ever has been,' he said. 'Expect this volatility to keep happening in the stock market.'
How is all this uncertainty affecting Californians? We asked, you answered.
Dozens of our readers answered our survey this week, sharing their concerns about rising prices and the impact tariffs will have on their livelihoods. Here's what some of you had to say (edited for clarity and brevity):
'[I worry about] being able to pay my rent because it is have food or have a home. I am afraid. I am old enough and wise enough to see [that] the president's behavior exhibits no concern for me and others, old and young, and our desire to live.'
— Emily N., Fresno
'We bought a car two weeks ago in anticipation of prices going up because of tariffs. Our 401(k) and other investments are losing money. I feel the trade war is making our country and the world less safe. I am in my seventies; I can't believe this is how my life is going to end.'
— Debra V., Thousand Oaks
'I recently started an [e-bike] business, and I had to pause pre-orders because I don't know what my final costs will be at port. I've given up hope of making a profit or even recouping my startup costs — I just hope to pass my e-bikes along to customers at cost and maybe close the business after that.'
— Kate M., Visalia
'These new tariffs could quietly reshape everything we do at my work's interior design and retail store. So much of our work relies on finding unique, often vintage or handcrafted pieces from abroad. I'm also worried about us expanding and opening more retail outlets, because it just doesn't make sense to expand business in a contracting market.'
— Noah V., San Diego County
'I can barely afford food and gas and utilities. I live a very simple life. If prices continue to rise, I will not be able to support my most basic needs. I run a service business that is modeled on people hiring me to help with their pets and homes while they are away. Since January my clients have been canceling bookings/travel and my income has dropped dramatically.'
— Bernadette V., Eureka
'My husband and I are seniors. We barely make it now. Tariffs are terrifying and if we don't have our [Social Security] checks we will be in the streets. I seriously don't know how we will survive. I'm sure there are many in our position. How is this happening? I'm so scared.'
— Rosemarie C., Pittsburg, Calif.
'The stress of watching the trade war and stock market is disconcerting. Many of the folks I know have just stopped watching the news… This is unprecedented. I am losing sleep.'
— Laura R., Sebastopol
'I am mainly reacting with quiet panic. And despair. It is wholly demoralizing to work to shape our lives and our futures and our careers and our financial safety nets and our homes and our livelihoods — all while the bad economic policy of a megalomaniacal despot can tank all of it in a matter of a few weeks.'
— Andrew B., Los Angeles
Worried or wondering how Trump's trade war (however it shapes out) will affect you? Our survey is still open and we'd like to hear from you. We may feature your voice in upcoming editions of the newsletter.
You can read more of The Times' trade war coverage here:
Hantavirus caused three recent deaths in California. Here's what to know about the virus
A rich L.A. neighborhood donated surveillance technology to the LAPD — then drama ensued
Coachella 2025 kicks off this weekend. Everything you need to know
What else is going on
Get unlimited access to the Los Angeles Times. Subscribe here.
A battle between California truckers leads to a twisted murder-for-hire plot. Authorities claim they hired a hit man to make a business competitor 'disappear.' What they didn't know was that the would-be assassin was talking to the FBI.
Other must reads
How can we make this newsletter more useful? Send comments to essentialcalifornia@latimes.com.
Going out
Staying in
Email us at essentialcalifornia@latimes.com, and your response might appear in the newsletter this week.
Show us your favorite place in California! Send us photos you have taken of spots in California that are special — natural or human-made — and tell us why they're important to you.
Today's great photo is from former Times photographer Mel Melcon as part of a photo essay about how L.A.'s pay phones have faded into history.
Have a great day, from the Essential California team
Ryan Fonseca, reporterAndrew Campa, Sunday reporterKevinisha Walker, multiplatform editorHunter Clauss, multiplatform editorChristian Orozco, assistant editorKarim Doumar, head of newsletters
Check our top stories, topics and the latest articles on latimes.com.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Amid backlash, Tesla remained resilient in Texas
Amid backlash, Tesla remained resilient in Texas

Axios

time29 minutes ago

  • Axios

Amid backlash, Tesla remained resilient in Texas

Even as Tesla deliveries plunged nationally this year amid Elon Musk's very visible (if short-lived) alliance with President Trump, there was at least one state where Tesla registrations were up: Texas. Why it matters: The registration data, obtained by Axios through public information requests, indicates loyalty to the brand in its home base, including Texas' large urban and suburban counties. The depth of conservatives' enthusiasm for Musk's automobiles now faces a major test amid the absolute meltdown last week between the Tesla CEO and the president. By the numbers: Texans registered 12,918 new Teslas in the first three months of 2025, a period when Musk, who contributed more than $250 million to a pro-Trump super PAC during the 2024 election campaign, was enmeshed in the Trump administration as the overseer of DOGE, the president's cost-cutting initiative. Over the same period in 2024, Texans registered 10,679 Teslas. That's a 21% increase year over year. The intrigue: The spike in Texas registrations came as Tesla was flailing elsewhere. Tesla's vehicle deliveries plunged 13% globally in the first quarter of 2025 (336,681 electric vehicles) compared with Q1 2024 (386,810). Tesla vehicles were torched at showrooms and the brand's reputation cratered. Zoom in: Tesla saw year-over-year improvements in its sales in some of the most populous Texas counties. In Travis County, new Tesla registrations grew from 1,369 in the first quarter of 2024 to 1,424 during the first quarter of 2025. In Harris County, they grew from 1,526 to 1,837 during the same period. Tesla registration grew from 1,316 to 1,546 in Collin County and from 990 to 1,146 in Dallas County. In Bexar County, registrations grew from 631 to 664. What they're saying:"It's homegrown pride," is how Matt Holm, president and founder of the Tesla Owners Club of Austin, explains the car company's resilience to Axios. "And regardless of all the drama going on these days, people can differentiate between the product and everything else going on, and it's just a great product." "Elon has absolutely and irreversibly blown up bridges to some potential customers," says Alexander Edwards, president of California-based research firm Strategic Vision, which has long surveyed the motivations of car buyers. "People who bought Teslas for environmental friendliness, that's pretty much gone," Edwards tells Axios. Yes, but: The company had been enjoying an increasingly positive reputation among more conservative consumers. Musk was viewed favorably by 80% of Texas Republicans polled by the Texas Politics Project in April — and unfavorably by 83% of Democrats. In what now feels like a political lifetime ago, Trump himself even promoted Teslas by promising to buy one in support of Musk earlier this year. "In some pockets, like Austin, you have that tech group that loves what Tesla has to offer, can do some mental gymnastics about Musk, and looks at Rivian and says that's not what I want or might be priced out," Edwards says. Between the lines:"Being in the state of Texas, you're naturally conditioned to think you're better than everyone else in the U.S. And when you buy a Tesla" — a status symbol — "that's what you're saying. It doesn't surprise me that there's an increase in sales" in Texas, Edwards says. Plus: Tesla's resilience in Texas could have practical reasons as well, Edwards says. Texas homes — as opposed to, say, apartments in cities on the East Coast — are more likely to have a garage to charge a car in, he adds. What's next: Musk said late last month that Tesla was experiencing a "major rebound in demand" — without providing specifics. But that was before things went absolutely haywire with Trump and Tesla stock took a bath last week.

The U.S.-China leverage game
The U.S.-China leverage game

Axios

time29 minutes ago

  • Axios

The U.S.-China leverage game

Negotiations usually boil down to leverage — specifically, who has more of it. In the U.S.- China talks underway Monday in London, the question of who has the upper hand boils down to macro- versus micro-economics. The big picture: A slew of data out of China shows the massive cost that U.S. tariffs impose on the Chinese economy, reflecting both underlying economic weakness and what the nation stands to lose if no trade peace is reached. The U.S., meanwhile, has had a run of perfectly solid macroeconomic data, but has much to lose if China continues throttling supplies of rare earth minerals and other specific goods that U.S. industries desperately need. State of play: All is not well for the fundamentals of China's economy, and plunging trade with the U.S. exacerbated those problems. Chinese exports to the U.S. fell 34.5% in May from a year ago, according to Chinese National Bureau of Statistics data out Monday. Its imports from the U.S. also fell, by 18%. Consumer prices fell for the fourth consecutive month, the bureau said, while producer prices fell the most in nearly two years. The mix of moribund export activity and falling prices compounds the nation's challenges grappling with a property bust and debt overhang. Yes, but: That might make Chinese negotiators eager to make a deal. After all, the nation's leadership views maintaining stable economic conditions and good living standards as crucial for their own hold on power, and collapsing exports to the U.S. undermine that goal. But they have plenty of leverage of their own, tied to U.S. reliance on very specific Chinese exports. Reality check: China's power in this standoff is tied to its ability to restrict exports of rare earth minerals, certain electronics, and pharmaceuticals. By throttling a handful of export categories, China can potentially exact damage on the U.S. economy that's far larger than the dollar value of the lost trade flows. Adam Posen, president of the Peterson Institute for International Economics, argued in an influential essay this spring that this means China has "escalation dominance," the power to escalate or de-escalate according to its goals. What they're saying: "The United States gets vital goods from China that cannot be replaced any time soon or made at home at anything less than prohibitive cost," Posen wrote in Foreign Affairs. In the event of aggressive escalation, he wrote, the U.S. "will face shortages of critical inputs ranging from basic ingredients of most pharmaceuticals to inexpensive semiconductors used in cars and home appliances to critical minerals for industrial processes including weapons production." The intrigue: The Wall Street Journal reported Monday morning that President Trump has authorized his negotiating team to loosen export restrictions on jet engines and other products as part of the talks, citing people familiar.

California City Terminates 'Divisive' ICE Contract Amid L.A. Protests
California City Terminates 'Divisive' ICE Contract Amid L.A. Protests

Yahoo

time31 minutes ago

  • Yahoo

California City Terminates 'Divisive' ICE Contract Amid L.A. Protests

Glendale, California, which is located just minutes from Los Angeles where anti-ICE protests erupted this weekend, has decided to end a contract with Immigration and Customs Enforcement to hold detainees in its jail. In a press release Sunday, city officials said that 'public perception of the ICE contract—no matter how limited or carefully managed, no matter the good—has become divisive.' 'And while opinions on this issue may vary—the decision to terminate this contract is not politically driven. It is rooted in what this City stands for—public safety, local accountability, and trust,' the statement said. Ahead of the unrest in Los Angeles, Glendale had come under some scrutiny over a 2007 contract to house ICE detainees despite a 2018 sanctuary state law ensuring that no local law enforcement resources are used for the purpose of immigration enforcement. In one year, the city collected $6,000 to house ICE detainees, and The Los Angeles Times reported that the city receives $85 per detainee per day. In the last week, two ICE detainees were held in Glendale's detention center, leading to an outcry over the city's potentially unlawful compliance, as the Trump administration has moved to increase the number of daily ICE arrests. But it seems that Glendale will no longer be complicit in the Trump administration's immigration crackdown. The statement continued, emphasizing that local law enforcement was not responsible for enforcing immigration law, and that the city would remain in compliance with the law. 'The Glendale Police Department has not engaged in immigration enforcement, nor will it do so moving forward,' the statement said. Just a few miles away in downtown Los Angeles, massive anti-ICE protests are still ongoing after immigration authorities arrested at least 44 immigrants Friday. In response to the protests, Donald Trump bypassed California Governor Gavin Newsom to deploy the National Guard, which has used tear gas, flash grenades, and rubber bullets against the protesters and journalists. The decision on behalf of Glendale is a victory for the protestors, and a clear response to the ongoing direct action in Los Angeles, as well as the Trump administration's escalating efforts to conduct mass deportations of undocumented immigrants.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store