Politics
Trump digs in on tariff plan and threatens stiffer China levies as trade crisis deepens
WASHINGTON — Mixed messages on trade from the Trump administration threw markets into further turbulence on Monday, leaving investors, foreign governments and the president’s own allies desperate for an offramp from a dramatic increase in global tariffs scheduled to go into effect Tuesday night.
Yet President Trump, posting on social media and speaking to reporters throughout the day, gave no indication he was open to a rapid course correction, suggesting some of his new tariff rates — set at a baseline of 10% for all countries, but increasing substantially for some of the largest U.S. trading partners — would be permanent. Other rates, he said, might be the subject of bilateral negotiations without any guarantee of success that could take weeks, months or even years.
The mere rumor that Trump would consider a pause in the policy led to a fleeting rally on Wall Street, only for stocks to plummet again on word from the White House that the suggestion was “fake news.” The day of confusion led the Dow Composite and Standard & Poor’s 500 to post moderate losses at the closing bell, with the NASDAQ up a fraction of a point.
From the Oval Office, Trump said he would escalate an emerging trade war with China after Beijing said it would respond to a new U.S. tariff rate of 34% with an identical tariff hike of its own. In response, Trump said, he would add another 50% tariff increase on Chinese imports — a move that would result in Chinese products facing 104% import duties by Wednesday.
Trump also said he was negotiating on a bilateral basis with individual countries over their tariff policies and trade deficits with the United States, including Israel and Japan.
“We’re going to have one shot at this, and no other president is going to do this, what I’m doing — and I’ll tell you what, it’s an honor to do it, because we have just been destroyed,” Trump said. “We’ll be talking to China, we’ll be talking to a lot of different countries.”
He denied that the administration would consider a pause in the global increase. “We’re not looking at that,” he said.
“We have many, many countries that are coming to negotiate deals with us, and they’re going to be fair deals,” Trump continued. “In certain cases, they’re going to be paying substantial tariffs. They will be fair deals.”
Conflicting messages
The president’s remarks came after a day of uncertainty, with several of the president’s top advisors sending conflicting messages over the president’s willingness to change course.
“This is not a negotiation,” Peter Navarro, senior counselor for trade and manufacturing to Trump, wrote in the Financial Times about the new policy. “President Trump is always willing to listen. But to those world leaders who, after decades of cheating, are suddenly offering to lower tariffs — know this: that’s just the beginning.”
Yet when asked whether the president was willing to pause the policy, Kevin Hassett, director of the National Economic Council, said, “I think the president is going to decide what the president is going to decide.”
“There are more than 50 countries in negotiation with the president,” Hassett said.
Later, Scott Bessent, the Treasury secretary, said the administration would open negotiations with Japan to “implement the president’s vision for the new Golden Age of Global Trade” — just one of “50, 60, maybe almost 70” countries that had approached the administration to open talks.
Those negotiations, he said, could extend through June — a message to markets, sent after trading stopped for the day, that a fix to the immediate crisis would take time.
“It’s going to be very busy,” Bessent said in an interview with Fox Business. Trump “gave himself maximum negotiating leverage, and just when he has achieved the maximum leverage, he’s willing to start talking.”
Success of the talks is not guaranteed. On Monday, European Commission President Ursula von der Leyen offered “zero for zero tariffs on industrial goods.” But Trump said it was not enough, stating the European Union itself “was formed to really do damage to the United States in trade.”
Visiting the White House on Monday afternoon, sitting alongside the president, Prime Minister Benjamin Netanyahu of Israel offered fellow U.S. allies a potential road map to appease Trump in the trade wars.
The president has argued that foreign nations, “friend and foe alike,” have ripped off the United States for decades, imposing both tariff and non-tariff barriers on the import of U.S. goods that have disadvantaged U.S. businesses.
“We will eliminate the trade deficit with the United States,” Netanyahu said. Before Trump’s tariff announcement Wednesday, Israel, a relatively minor U.S. trading partner, said it would eliminate all import duties on U.S. products. It was nevertheless hit with a 17% tariff rate by the Trump administration over the country’s trade deficit with Washington.
“We intend to do it very quickly — we think it’s the right thing to do — and we’re going to also eliminate trade barriers,” Netanyahu added. “I think Israel could serve as a model for many countries who ought to do the same.”
Allies urge a reversal
Stock markets reacted to the president’s policy announcement last week with a historic rout, eviscerating $5 trillion in value in just 48 hours.
As markets in Asia and Europe continued their plunge on Monday morning, and as U.S. futures trading Sunday night intensified, some of the president’s wealthiest allies on Wall Street began airing criticism of the new trade policy and pleaded with him to reconsider.
Larry Fink, chief executive of BlackRock, told the Economic Club of New York that he had no doubt the economy was weakening, and could even already be entering a recession, because of the White House policy, Bloomberg reported. Bill Ackman, a billionaire hedge fund manager who backed Trump in the 2024 presidential campaign, warned of a “self-induced, economic nuclear winter” if the president refused to back down.
“The president has an opportunity to call a 90-day time out, negotiate and resolve unfair asymmetric tariff deals, and induce trillions of dollars of new investment in our country,” Ackman wrote on X. “If, on the other hand, on April 9th we launch economic nuclear war on every country in the world, business investment will grind to a halt, consumers will close their wallets and pocket books, and we will severely damage our reputation with the rest of the world that will take years and potentially decades to rehabilitate.”
Recession risks
Goldman Sachs updated its assessment of the risks of recession this year from a 35% to 45% probability, following a similar assessment from JP Morgan Chase last week, warning of a 60% likelihood.
JP Morgan’s chief executive, Jamie Dimon, wrote in a letter to shareholders Monday that increased inflation is likely, not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic products.”
“Whatever you think of the legitimate reasons for the newly announced tariffs — and, of course, there are some — or the long-term effect, good or bad, there are likely to be important short-term effects,” Dimon wrote. “Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”
Even Elon Musk, a top ally of the president leading an administration effort to cut jobs across the federal government, went public with his concerns about the policy, sparring with Navarro, Trump’s economic advisor, on X over their respective qualifications to be advising the president.
“I hope it is agreed that both Europe and the United States should move, ideally, in my view, to a zero tariff situation, effectively creating a free trade zone between Europe and North America,” Musk said Sunday. “That has certainly been my advice to the president.”
Politics
How Republicans and Democrats are Redistricting Urban Areas to Tilt the House
American cities — densely populated and overwhelmingly Democratic — are typically prime targets for aggressive gerrymanders. This past year has been no different, as urban areas became casualties of newly partisan maps, drawn by both Republicans and Democrats in a rare bout of middecade redistricting.
With nearly 80 percent of the United States population living in urban areas, according to the census, mapmakers using modern data technology can surgically split cities block by block to eke out a partisan advantage. They “pack” like-minded voters into a single district, or “crack” them, linking slivers of concrete-covered downtowns with farmland hundreds of miles away.
While the intentions are often political, these julienned districts often leave communities with little in common, and no cohesive representation in Congress. Roughly 37 percent of congressional districts are either urban or an urban-suburban mix, while 63 percent remain rural or rural-suburban, according to the District Density Scale.
So far this year, state lawmakers have carved up major Democratic cities in the nationwide redistricting arms race, drawing new maps in five states. Virginia could be next, if voters approve a referendum Tuesday to redraw boundaries and potentially add four Democratic seats.
Kansas City, Mo.
Take the Kansas City, Mo., area as a clear example. Late last year, Gov. Mike Kehoe signed into law a new map that would pave the way for eliminating a Democratic seat and add a Republican one, potentially ousting a longtime representative, Emanuel Cleaver, who was also the first Black mayor of Kansas City.
2024 districts
The proposed map effectively slices apart — or “cracks” — the old Fifth District, which previously held a majority of Democratic-dominated Kansas City and its metropolitan area, into three parts.
2024 districts
District
Margin
5th
Dem. +23.2 D +23.2
6th
Rep. +38.9 R +38.9
4th
Rep. +42.3 R +42.3
New districts
District
Margin
5th
Rep. +18.2 R +18.2
4th
Rep. +21.2 R +21.2
6th
Rep. +26.7 R +26.7
As a result, Democratic voters from Kansas City are spread out across three new districts where they are likely to be outnumbered by Republican voters. The Kansas City area went from having one Democratic district and two Republican districts to having three Republican districts.
Northern Virginia
While Missouri illustrates how a single-district city can be cracked apart to dilute the votes of a densely packed partisan area, Virginia is taking a different approach. Its proposed map spreads out Democrats from the crammed northern Virginia suburbs into multiple districts spreading more than a hundred miles into deeply red areas for the opposite outcome: to tilt more districts blue.
2024 districts
While there is no central city in northern Virginia — Fairfax County, the state’s largest municipality, boasts nearly 1.2 million people but sprawls across nearly 400 square miles — the northern reaches of the state have a population in the millions and are mostly Democratic.
2024 districts
District
Margin
8th
Dem. +49.3 D +49.3
11th
Dem. +34.0 D +34.0
10th
Dem. +8.3 D +8.3
7th
Dem. +2.9 D +2.9
6th
Rep. +23.8 R +23.8
New districts
District
Margin
8th
Dem. +17.5 D +17.5
11th
Dem. +13.4 D +13.4
10th
Dem. +12.4 D +12.4
7th
Dem. +8.1 D +8.1
1st
Dem. +7.5 D +7.5
The result is an exceptionally aggressive “cracking” of Democratic voters in the northern part of the state across five congressional districts, which would lead to the elimination of three Republican-held seats (the proposed Virginia map eliminates all but one Republican-controlled district).
Houston
In larger cities like Houston, mapmakers have the opportunity to get creative in their carving. At President Trump’s behest, Texas was the first state to redistrict last year. Let’s look at Houston’s old Ninth District.
2024 districts
The old Ninth District was mostly swallowed by the newly crafted 18th District, and remaining voters were funneled into three Republican-leaning districts and one Democratic one.
2024 districts
District
Margin
9th
Dem. +44.0 D +44.0
18th
Dem. +39.7 D +39.7
7th
Dem. +20.7 D +20.7
29th
Dem. +20.3 D +20.3
38th
Rep. +20.7 R +20.7
New districts
District
Margin
18th
Dem. +54.9 D +54.9
29th
Dem. +30.4 D +30.4
7th
Dem. +23.4 D +23.4
9th
Rep. +19.9 R +19.9
38th
Rep. +21.0 R +21.0
But Houston’s maps also illustrate a second gerrymandering strategy: “packing.” The new 18th District was drawn to be exceptionally Democratic, “packing” a high concentration of Democrats into a single district, thereby ensuring that they would be outnumbered in neighboring districts.
Dallas
As another densely populated city, and one with a large population of people of color, Republicans in Texas sliced some congressional districts in the state, while packing Democrats into others.
2024 districts
The newly drawn 32nd District is a textbook example of “cracking,” splitting apart the eastern and northern suburbs of Dallas and extending the district more than a hundred miles east, into more rural and deeply Republican areas of East Texas. As a result, the new 32nd District is solidly red compared with its previous blue tint.
2024 districts
District
Margin
33rd
Dem. +33.7 D +33.7
32nd
Dem. +23.6 D +23.6
24th
Rep. +15.5 R +15.5
5th
Rep. +27.0 R +27.0
6th
Rep. +28.4 R +28.4
New districts
District
Margin
30th
Dem. +47.0 D +47.0
33rd
Dem. +32.6 D +32.6
24th
Rep. +16.1 R +16.1
32nd
Rep. +17.6 R +17.6
5th
Rep. +21.4 R +21.4
The cracking and packing in Dallas achieved another outcome: drawing current incumbents out of their districts, forcing some into primaries against one another while prompting others to leave the House entirely. In Dallas, Representative Jasmine Crockett chose to run for Senate after being drawn out of the 30th District (She lost in March to James Talarico).
Politics
Byron Donalds cracks down on persistent border blind spot leaving US vulnerable to overstays
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FIRST ON FOX: Florida Republican Rep. Byron Donalds introduced legislation that would require biometric tracking of every entry and exit from the United States, as part of a Republican push to crack down on visa overstays and fraudulent immigration documents.
With illegal crossings down sharply under President Donald Trump’s second term, Republicans are shifting toward the next phase of immigration enforcement — tracking visa overstays and closing documentation loopholes. Donalds’ bill aims to force full nationwide use and federal oversight of the biometric entry-exit system.
Donalds told Fox News Digital exclusively he introduced the legislation on Monday.
“Thanks to President Trump’s decisive actions, our borders are more secure than they have been in decades. We are now moving to finish the job by introducing the Reform Immigration Through Biometrics Act, which provides the oversight needed to ensure every entry and exit is fully verified,” Donalds told Fox News Digital.
FLORIDA SHERIFF SAYS ICE PARTNERSHIP ONLY THE BEGINNING IN ILLEGAL MIGRANT CRACKDOWN
Congressman Byron Donalds is introducing Reform Immigration Through Biometrics Act to tighten immigration enforcement nationwide. (Paul Ratje / AFP via Getty Images)
The bill would close gaps to ensure full coverage at every port, provide system flow updates, and identify what is “slowing” it down by requiring DHS to report to congress. The biometric data system collects fingerprints, facial images, and iris scans.
Immigration reform is a central focus of the second Trump administration, with officials shifting attention toward internal tracking and enforcement gaps, not just border crossings.
The biometric entry-exit system was first introduced a decade ago, following a 2004 recommendation from the 9/11 Commission to strengthen national security through a comprehensive tracking method.
HOUSE GOP BILL COULD TRIGGER SELF-DEPORTATION FOR SOMALI REFUGEES AMID MINNESOTA FRAUD PROBE
Previous administrations failed to fully implement the system across all ports of entry, leaving it incomplete. A final rule issued in December 2025 now mandates a nationwide rollout.
Donalds’ legislation aims to ensure it is fully executed this time by holding DHS accountable.
“The border has been secured, but the work is far from over,” said Donalds in a press release. “Visa overstays and fraudulent documentation remain a large piece of the overall illegal immigration puzzle that needs to be addressed.”
Byron Donalds, a Florida lawmaker and gubernatorial candidate, unveiled legislation cracking down on immigration overstays. (Kevin Dietsch/Getty Images)
Data from the Border Patrol cited by Pew Research found there were 237,538 migrant encounters at the Mexican border in 2025. It is the lowest number since Richard Nixon was president in 1970 when 201,780 were encountered.
I REPRESENT A BORDER DISTRICT THAT WAS SWAMPED BY ILLEGAL IMMIGRATION. WHAT I’M SEEING NOW MIGHT SURPRISE YOU
Migrants wait in line to turn themselves in for processing to US Customs and Border Protection border patrol agents near the Paso del Norte Port of Entry after crossing the US-Mexico border in El Paso, Texas, on May 9, 2023. (Patrick T. Fallon/AFP)
Donalds, candidate for Florida governor to succeed term-limited Gov. Ron DeSantis, said he anticipates “swift passage” of the bill.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
“Republicans are steadfast in our commitment to the mandate entrusted to us by the American people,” he told Fox News Digital.
Fox News Digital reached out to DHS for comment.
Politics
Former state Controller Betty Yee drops out of the governor’s race
Former state Controller Betty Yee dropped out of the governor’s race on Monday, citing low levels of support from voters and donors.
Yee, a Democrat, was part of a sprawling field of politicians vying to replace termed-out Gov. Gavin Newsom. But despite the bevy of prominent candidates running to lead the nation’s most populous state and the world’s fourth-largest economy, this year’s governor’s race has lacked a clear front-runner well known by the electorate.
“It was becoming clear that the donors were not going to be there. Even some of my former supporters just felt like they needed to move on as well,” Yee said in a virtual news conference Monday morning, adding that her internal polling showed voters did not prioritize “competence and experience … and that’s really been my wheelhouse in terms of how we grounded this campaign.”
The former two-term state controller did not immediately endorse another candidate and said she would take a few days to assess the field before making an announcement.
The race was upended this month when then-Rep. Eric Swalwell, among the leading Democrats in the contest, was accused of sexual assault and other misconduct. The East Bay Area Democrat, who is facing multiple criminal investigations, promptly ended his gubernatorial bid and resigned from Congress.
Yee said the contest would probably go down as “one of the most unusual, unpredictable and unsettling races in modern California history.”
“I certainly could not have imagined the twists and the disturbing turns that this race has taken,” she said. “But through it all, my values and my vision for California has never wavered.”
“Voters are scared right now, and I think they really are placing a lot of prominence on a fighter in chief against this Trump administration,” she said.
Though she was prepared to be a governor that would push back against the Trump administration, Yee said her calm demeanor did not help her grab attention.
“We are living in like a reality TV era, where to get traction, you have to either be the loudest, you have to have gimmicks. You’ve got to do what you’ve got to do to get attention. I got no gimmicks. I have no scandals,” she said before calling herself “Boring Betty.”
Yee, 68, was well regarded by Democrats during her tenure in Sacramento.
But she never had the financial resources to aggressively compete in a state with many of the most expensive media markets in the nation.
Yee reported raising nearly $583,000 in 2025 for her gubernatorial bid, according to campaign fundraising reports filed with the California secretary of state’s office. Yee’s announcement that she is dropping out of the race came days before the latest financial disclosures will be publicly reported.
Despite being elected to the state Board of Equalization twice and as state controller twice, Yee was not widely known by most Californians. She never cracked double digits in gubernatorial polls.
Her name will still appear on the ballot. She was among the candidates who rebuffed state Democratic Party leaders’ request this year to reconsider their viability amid fears that the party could be shut out of the November general election because of the state’s unique primary system. The top two vote-getters in the June primary will move on to the November general election, regardless of party affiliation.
Though California’s electorate is overwhelmingly Democratic, the makeup of the gubernatorial field makes it statistically possible for Republicans to win the top two spots if Democratic voters splinter among their party’s candidates. Yee said fear of that scenario playing out “kind of took over” the gubernatorial race.
“Was it possible? Yes. Was it plausible? No, we’re in California. That was not going to happen,” she said, adding that the top-two primary system “has got to go.”
The daughter of Chinese immigrants, Yee said she was disappointed that other Asian American donors and community members did not show up for her as “robustly” as they had in the past.
“We had the opportunity to make history,” she said. “I’m going to want to do a deep dive about … what was it about my campaign that just did not resonate with them.”
Still, Yee was beloved by Democratic Party activists and previously served as the party’s vice chair.
No Democratic candidate reached the necessary threshold to win the party’s official endorsement at its February convention, but Yee came in second with support from 17% of delegates despite calls for her to drop out of the race.
“Every poll shows that this race is wide open, and I know this party,” she said in an interview at the convention. “Frankly, I’ve been in positions where it’s been a crowded field, and we work hard and candidates emerge.”
Yee became emotional Monday as she thanked her supporters and family, including her husband, siblings and mother. “She’s now 103 years old, and her life and voice and wisdom are my compass,” Yee said.
The gubernatorial primary will take place June 2, though voters will start receiving mail ballots in about two weeks.
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