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A Devastating Trade Spat With China Shows Few Signs of Abating

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A Devastating Trade Spat With China Shows Few Signs of Abating

President Trump’s rapidly escalating trade war with China has resulted in eye-watering tariffs on products exchanged between the countries and scrambled prospects for many global businesses that depend on the trade. And there is no end in sight.

The Trump administration has been waiting for the Chinese leader, Xi Jinping, to call Mr. Trump personally, but Beijing appears wary of putting Mr. Xi in an unpredictable and potentially embarrassing situation with the U.S. president.

With the two governments at an impasse, businesses that rely on sourcing products from China — varying from hardware stores to toymakers — have been thrown into turmoil. The triple-digit tariff rates have forced many to halt shipments entirely.

Trump officials have argued that the status quo with China on trade is not sustainable. Mr. Trump has rapidly ratcheted up tariffs on Chinese products, from 54 percent on April 2 to 145 percent just one week later. The Chinese government has argued that the actions are unfair and closely matched his moves, raising its tariffs on American goods to 125 percent on Friday.

But on Friday night, the administration created a significant carve out to its tariffs on China when it exempted some electronics, including smartphones, laptops and televisions. Those products will still be subject to other tariffs that Mr. Trump has put in place, like a 20 percent fee he added to Chinese goods in response to the country’s role in the fentanyl trade.

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Mr. Trump has said he would like to speak with Mr. Xi, but he has stopped short of requesting a phone call, believing that it is the Chinese government’s turn to ask for such a call, according to people familiar with the matter. Trump officials say that dozens of countries have reached out to the administration about negotiations since the levies were imposed. China did not, and instead responded with harsh words and tariffs of its own.

Across the Trump administration, some officials are concerned that the trade war could soon escalate into a national security crisis, potentially causing the Chinese to move up plans for a military invasion of Taiwan.

The Pentagon is assessing the impact of China potentially cutting off rare earth exports to the United States and possibly blocking certain critical components used in U.S. weapons systems, according to a person with knowledge of the preparations. The aim is to fully ascertain what harm the Chinese could inflict on America’s ability to produce and maintain certain weapons and ammunition.

Mr. Trump continues to express optimism, saying that he has always gotten along with Mr. Xi and that “something positive” will come out of the relationship. But analysts have suggested that the situation may already have spiraled out of control.

Julian Evans-Pritchard, the head of China economics for the research firm Capital Economics, said the fact that the Chinese authorities had repeatedly matched U.S. tariff hikes suggested that they were in no rush to negotiate.

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“A partial rollback of tariffs still seems likely at some point,” he said. “But it is hard to envisage a meaningful reset in the U.S.-China relationship.”

At a briefing on Friday, Karoline Leavitt, the White House press secretary, declined to say whether the countries were in communication.

“I’m not going to comment on communications that are happening, or may not be happening, or either way, we’ll leave it to our national security team to get these discussions underway,” she said. She said the president was optimistic, and that he had “made it very clear he’s open to a deal with China.”

Speaking last week at the White House, Mr. Trump said that “China wants to make a deal. They just don’t know how quite to go about it.” He added that the Chinese were “proud people.”

Mr. Trump’s moves have taken tariffs to a level far past what would be prohibitive for trade, creating crises for many American businesses that depend on imports from China.

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Rick Woldenberg, who runs Learning Resources, an Illinois-based maker of educational toys, said the latest tariffs had already forced him to pause some shipments from China. He called the rates that Mr. Trump had imposed “a joke” and said that even concessions from his suppliers could not make a dent in the fees he would owe to the U.S. government.

Learning Resources contracts with factories in Taiwan, India, Vietnam and other countries to make its products, but China is by far its biggest supplier, as it is for most toymakers. China accounted for two-thirds of all imports of toys and sporting goods to the United States last year.

Learning Resources employs about 500 people, most of them in the United States. It had planned to hire more this year to keep up with its fast-growing business, but has now abandoned some of those plans.

“We’re being asphyxiated by our very own government,” Mr. Woldenberg said.

Mr. Woldenberg said he paid about $2.3 million in tariffs and duties in 2024. This year, he would end up paying more than $100 million if sales somehow kept up with his projections from before the trade war. That’s more than he could pay if he cut every expense in the company other than base payroll.

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At this point, Mr. Woldenberg said, the number hardly matters — beyond a certain level, the tariff is simply no longer something anyone in his business can afford to pay.

“He could raise it to 100 billion percent — it doesn’t matter,” he said. “It’s like a legal ban.”

Christophe Lavigne, the president of Highfield, which manufactures boats in China and the United States, said he expected to be subject to 198 percent tariffs on some of his imports, and that he has decided to simply stop his shipments for now.

He said his entire company, and the jobs of his employees and his dealers, was on the line. The pace of change was too fast and unpredictable, he added.

“We cannot adjust our production lines quickly enough,” he said. “Converting our entire supply chain in just two months is not feasible.”

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Major multinational corporations have been in a better position to source products from countries besides China, but they too are reeling. Hobby Lobby, the crafting retailer, told vendors on Thursday that it was delaying shipments from China as a result of the escalating trade war, according to correspondence viewed by The New York Times.

The retailer told vendors that the back-and-forth tariffs had resulted in “a rapidly shifting and unpredictable landscape” and that it hoped diplomacy between the United States and China would “yield a more stable and balanced outcome.”

The implications of disrupting business with one of the country’s biggest trading partners have ricocheted through the economy. The dollar fell to a three-year low on Friday, while Treasury yields continued to swing. A measure of consumer sentiment also tumbled, indicating that Americans were becoming nervous about how higher tariffs might affect them.

Mr. Trump abruptly announced on Wednesday a 90-day pause on the “reciprocal” tariffs that he had unveiled the previous week on countries around the world, and which had gone into effect just hours earlier. But the threat of those tariffs, and of retaliation against U.S. exports, continues to hang over the global economy.

It remains to be seen if the United States and China might try to reach some agreement soon. People familiar with the conversations said that members of the White House National Security Council were in touch with counterparts at the Chinese Embassy, and that Cui Tiankai, the former Chinese ambassador, had held meetings in Washington and New York over the past several weeks to discuss the relationship. But there has been little sign of communication between higher-ranking officials in the Trump administration and the Chinese government.

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Early in Mr. Trump’s first term, Mr. Xi flew to his Mar-a-Lago estate in Florida to meet with Mr. Trump for hours, sharing what Mr. Trump later referred to as “the most beautiful piece of chocolate cake you’ve ever seen.” But that did not stop the countries from entering into a bruising trade war. And in his second term, Mr. Trump has been even more emboldened and unpredictable.

Mr. Trump has given few indications publicly of what he wants the Chinese to do. But Trump officials say the issues are well known. In an annual report released March 31, the Office of the United States Trade Representative detailed the trade barriers that U.S. businesses face when selling abroad, dedicating almost 50 of its nearly 400 pages to China.

In recent weeks, in addition to countering Mr. Trump’s tariff threats, China has added some U.S. companies to an unreliable entity list that essentially bars them from doing business in the country. It has also imposed licensing systems to restrict exports of rare earth elements, which are essential for electric cars and other products.

On Friday, as it announced its latest increase in tariffs on American products, the Chinese government said it would not raise the rate further because it was already so high that the number no longer made any difference.

China’s Ministry of Commerce said that the United States had used tariffs “for bullying and coercion” and had ultimately become “a laughingstock.”

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“If the U.S. continues its tariff numbers game, China will ignore it,” it said.

China also ratcheted up pressure on U.S. companies as it issued new regulations on Friday that will subject semiconductors made by U.S. firms overseas to higher tariffs.

The move will put pressure on companies like Intel, Global Foundries and others that have U.S. chip factories. It may also encourage chip companies to shift manufacturing out of the United States to maintain access to the Chinese market, where the bulk of global electronics are made.

Paul Triolo, a partner at the business strategy firm DGA-Albright Stonebridge Group, said that electric vehicle companies and others were trying to find alternate supplies of rare earth minerals and magnets after the Chinese restrictions last week.

Some companies will have to stop production after 30 or 60 days, depending on stockpiles and how fast they consume those materials, he said. “It is like a game of musical chairs,” he said. “We are talking to clients scrambling to find alternatives, and there are few.”

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Shawn McCreesh, Maggie Haberman, Karen Weise, Tony Romm and Jonathan Swan contributed reporting.

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The Biggest Moments of Trump’s 2025: Mass Deportations, Tariffs and More

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The Biggest Moments of Trump’s 2025: Mass Deportations, Tariffs and More

When Mr. Trump signed an executive order in March that promised to restore the Smithsonian Museum “to its rightful place as a symbol of inspiration and American greatness,” historians and other observers were anxious about what he meant.

Months later, the president confirmed their worst fears.

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“The Smithsonian is OUT OF CONTROL, where everything discussed is how horrible our Country is, how bad Slavery was, and how unaccomplished the downtrodden have been,” he wrote in a social media post in August.

The post, which came a week after the White House ordered a review of the museum’s exhibitions, offered the most candid look to date at what many of Mr. Trump’s executive actions on diversity have targeted: the history and experience of Black people in the United States.

High-profile Black leaders have been fired as the president builds an overwhelmingly white administration. Federal websites have been scrubbed to sanitize the country’s history of slavery and discrimination. And other government agencies, like the National Park Service, have also removed exhibits on slavery. At the same time, Mr. Trump has reinstalled statues that glorify Confederate soldiers.

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In his first year, Mr. Trump has set out to rewrite the nation’s history by erasing the scars of its original sin.

Photographs by Al Drago, Doug Mills, Maansi Srivastava and Bettmann Archive, via Getty Images.

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Nonprofit uses underwater technology to search for missing service members

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Nonprofit uses underwater technology to search for missing service members

NEWYou can now listen to Fox News articles!

More than 80,000 service members who went missing in action in previous conflicts are still unaccounted for. However, through research and new technology, the Defense POW/MIA Accounting Agency estimates the remains of 38,000 fallen veterans could be recoverable. Nonprofit organization Project Recover is working with the agency to bring some of those service members home through complex underwater missions.  

“This is a great American story here,” former Navy Rear Admiral Tim Gallaudet said. “Our work is to use technology, like underwater drones and scuba diving gear, to find the platforms that these members perished on and then do the DNA analysis of detecting and recovering their remains and matching them to those that are missing.” 

Project Recover members stand with folded American flags during a ceremony honoring fallen World War II aviators. (Project Recover)

Gallaudet also serves as a Project Recover advisory council member. The group was founded by Dr. Patrick Scannon. He came up with the idea in 1993 when he was touring the Palau islands with his wife and discovered a downed plane from World War II. 

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“That 65-foot wing essentially changed my life,” Scannon said in an interview with GoPro.

NEWLY RELEASED AMELIA EARHART DOCUMENTS REVEAL VIVID DETAILS OF JAPAN’S ROLE IN SEARCH FOR DOOMED AVIATOR 

Project Recover teams have located dozens of aircraft sites around the Palau islands associated with nearly 100 service members who went missing in action.

“The recovery is difficult. We first have to find the aircraft or ships,” Gallaudet said. “And then we’ve got to go determine if there are any remains there and then ID them, match them to the service members. “

In 1944, U.S. officials determined the Palau islands were a crucial part of a larger mission to liberate the Philippines. The effort to capture the island of Peleliu ended up being a costly effort for the U.S. Located around 500 miles away from the Philippines, the island held an airfield, which U.S. officials believed could be used to launch an attack during their larger mission. More than 10,000 Japanese troops were stationed on Peleliu at the time.  

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U.S. Air Force B-52 bombers are parked on a military airfield. (B-52 Bomber Down)

The battle was expected to last just a few days but ended up going on for 74. The U.S. began its bombardment by dropping more than 600 tons of bombs, but the Marines had little intelligence on enemy positions. Japanese troops hid in coral caves and mine shafts around the islands. The initial aerial attacks had little impact unless pilots flew dangerously close to the island.

SEARCH FOR MISSING MALAYSIA AIRLINES FLIGHT 370 TO RESUME AFTER MORE THAN A DECADE

On Peleliu, 1,800 Americans were killed in action and more than 8,000 were wounded or missing. Nearly all the 10,000 Japanese troops were killed in action. Across the Palau islands, the U.S. had carried out nine major air campaigns in which around 200 aircraft were lost.  

Now Project Recover is working to bring some of those service members home. 

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“There were three service members on the aircraft that perished, a lieutenant and then two enlisted crew members. And over the last few years, we were able to recover the remains of all three. And we didn’t identify them all at the same time. It took forensic analysis and DNA. Technology. But the last one was finally identified,” Gallaudet said. 

Lt. Jay Manown, AOM1c Anthony Di Petta and ARM1c Wilbur Mitts took off for a bombing mission in September 1944. They were conducting pre-invasion strikes in preparation for the invasion of Peleliu when their plane spun out of control and crashed into surrounding waters.

“The plane was hit by enemy fire, and it burst into flames,” Di Petta’s niece, Suzanne Nakamura, said in an interview with Media Evolve.

Project Recover located the plane in 2015. After more than a dozen dives to investigate the wreckage, teams began removing the remains of the three service members. Lt. Manown was the last to be repatriated. 

“We held the ceremony in his hometown in West Virginia, and the relatives of all three service members came to that final ceremony,” Gallaudet said. 

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The three nieces of the men have become especially close.

A diver examines a wreck during an underwater mission to locate and recover missing U.S. service members. (Project Recover)

WWII HERO’S REMAINS FINALLY COMING HOME AFTER 80-YEAR MYSTERY IS SOLVED THROUGH MILITARY DEDICATION 

“We’ve communicated beautifully and become friends through this experience and almost a sisterhood of type,” Manown’s niece, Rebecca Sheets, said in an interview with Media Evolve.

“We’ve talked so much by phone and feel so close,” Mitt’s niece, Diana Ward, told Media Evolve. “This is just a joy to meet each other in person, and we’re just sharing the emotion we’ve felt about bringing our uncles home.” 

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The three women have also connected over how their grandmothers, or the mothers of Manown, Di Petta and Mitts, may have felt about their sons finally coming home. 

“We have a connection because our uncles were involved in not only defending the freedom of the United States, but as human beings who fought together and died together,” Nakamura said.

AMELIA EARHART MYSTERY EXPEDITION HALTED AS RESEARCHERS SEEK ANSWERS ON MISSING PLANE 

Including their work in Palau, Project Recover has completed more than 100 missions across 25 countries. They have repatriated 24 missing Americans and have located more than 200 missing in action awaiting further recovery efforts. The group is raising money for a mission it hopes to complete in 2026 — the search for a B-52 aircraft that disappeared during a training accident. 

“It’s off the coast of Texas. We’ve not yet found the aircraft. And of those eight service members, they all had families,” Gallaudet said. “There are about 32 of those family members still alive today who want the answers to know what happened to their loved ones.”

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In addition to the more than 80,000 missing-in-action service members, 20,000 are missing from training accidents. The Defense POW/MIA Accounting Agency is not permitted to allocate funds toward a search effort for the eight men who disappeared along with their B-52 because the crash occurred during a non-conflict training accident. 

“Not having found the wreck yet, we don’t know what the cause of the failure was. And so it’s our goal to find that wreckage and then take the remains and repatriate them to the families,” Gallaudet said. 

U.S. Air Force B-52 crew members pose for a group photo. (B-52 Bomber Down)

The Air Force Bomber was on a routine training mission in February 1968 when it disappeared from radar and radio contact. The Air Force immediately conducted an extensive nine-day search of the flight path but found no trace of the bomber. As the military concluded its search, determining it went down in an unknown location, three pieces of debris washed ashore in Corpus Christi, Texas. 

“This B-52 off the Texas coast hasn’t been located yet, but we think we know where the area is. We’re going to find it,” Gallaudet said.

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More than $300,000 has been raised for the mission so far. Project Recover estimates another $200,000 is needed to search for the eight men. If the organization can locate the remains, the Defense POW/MIA Accounting Agency will be able to allocate resources for a recovery effort. 

You can learn more about Project Recover and the missing B-52 and donate to help with the search on Project Recover’s website.

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Federal judge blocks ICE from arresting immigrants who show up for court appointments in Northern California

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Federal judge blocks ICE from arresting immigrants who show up for court appointments in Northern California

A federal judge in San Francisco on Wednesday barred Immigration and Customs Enforcement and its Justice Department counterpart from “sweeping” civil arrests at immigration courthouses across Northern California, teeing up an appellate challenge to one of the Trump administration’s most controversial deportation tactics.

“This circumstance presents noncitizens in removal proceedings with a Hobson’s choice between two irreparable harms,” Judge P. Casey Pitts wrote in his Christmas Eve decision.

“First, they may appear in immigration court and face likely arrest and detention,” the judge wrote. “Alternatively, noncitizens may choose not to appear and instead to forego their opportunity to pursue their claims for asylum or other relief from removal.”

Wednesday’s decision blocks ICE and the Department of Justice’s Executive Office for Immigration Review from lying in wait for asylum seekers and other noncitizens at routine hearings throughout the region — a move that would effectively restore pre-Trump prohibition on such arrests.

“Here, ICE and EOIR’s prior policies governing courthouse arrests and detention in holding facilities provide a standard,” the judge said.

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Authorities have long curbed arrests at “sensitive locations”— such as hospitals, houses of worship and schools — putting them out of reach of most civil immigration enforcement.

The designation was first established decades ago under ICE’s predecessor agency, Immigration and Naturalization Services. ICE absorbed the prohibitions when the agency was formed in the wake of the Sept. 11 attacks.

Courts were added to the list under President Obama. The policy prohibiting most courthouse arrests was suspended during the first Trump administration and reinstated by President Biden.

Internal ICE guidance from the Biden era found “[e]xecuting civil immigration enforcement actions in or near a courthouse may chill individuals’ access to courthouses and, as a result, impair the fair administration of justice.”

Nevertheless, the agency’s courthouse policy was reversed again earlier this year, leading to a surge in arrests, and a staggering drop in court appearances, court records show.

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Most who do not show up are ordered removed in absentia.

Monthly removal in absentia orders more than doubled this year, to 4,177 from fewer than 1,600 in 2024, justice department data show.

More than 50,000 asylum seekers have been ordered removed after failing to appear in court hearings since January — more than were ordered removed in absentia in the previous five years combined.

“ICE cannot choose to ignore the ‘costs’ of its new policies—chilling the participation of noncitizens in their removal proceedings —and consider only the policies’ purported ‘benefits’ for immigration enforcement,” Pitts wrote in his stay order.

That ruling likely sets the San Francisco case on a collision course with other lawsuits seeking to curb ICE’s incursions into spaces previously considered off-limits. This suit was brought by a group of asylum seekers who braved the risk and were detained when they showed up to court.

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One, a 24-year-old Guatemalan asylum seeker named Yulisa Alvarado Ambrocio, was spared detention only because her breastfeeding 11-month-old was with her in court, records show. Administration lawyers told the court ICE would almost certainly pick her up at her next hearing.

Such arrests appear arbitrary and capricious, and are unlikely to survive scrutiny by the courts, Judge Pitts ruled Wednesday.

“That widespread civil arrests at immigration courts could have a chilling effect on noncitizens’ attendance at removal proceedings (as common sense, the prior guidance, and the actual experience in immigration court since May 2025 make clear) and thereby undermine this central purpose is thus ‘an important aspect of the problem’ that ICE was required, but failed, to consider,” Pitts wrote.

A district judge in Manhattan ruled the opposite way on a similar case this fall, setting up a possible circuit split and even a Supreme Court challenge to courthouse arrests in 2026.

For now, the Christmas Eve decision only applies to ICE’s San Francisco Area of Responsibility, a region encompassing all of Northern and Central California, as far south as Bakersfield.

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The geographic limit comes in response to the Supreme Court’s emergency decision earlier this year stripping district judges of the power to block federal policies outside narrowly-tailored circumstances.

The administration told the court it intends to appeal to the 9th Circuit, where Trump-appointed judges have swung the bench far to the right of its longtime liberal reputation.

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