Politics
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.
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.
“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.
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.
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.”
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.
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.”
“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.”
Shawn McCreesh, Maggie Haberman, Karen Weise, Tony Romm and Jonathan Swan contributed reporting.
Politics
Trump renews bridge, power plant threat against Iran in push for deal, mocks ‘tough guy’ IRGC
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President Donald Trump mocked the Islamic Revolutionary Guard on Sunday morning for staking claim to a Strait of Hormuz “blockade” the U.S. military had already put in place.
“Iran recently announced that they were closing the Strait, which is strange, because our BLOCKADE has already closed it,” Trump wrote on Truth Social. “They’re helping us without knowing, and they are the ones that lose with the closed passage, $500 Million Dollars a day! The United States loses nothing.
“In fact, many Ships are headed, right now, to the U.S., Texas, Louisiana, and Alaska, to load up, compliments of the IRGC, always wanting to be ‘the tough guy!’”
Trump declared Saturday’s IRGC fire was “a total violation” of the ceasefire.
“Iran decided to fire bullets yesterday in the Strait of Hormuz — A Total Violation of our Ceasefire Agreement!” his post began.
“Many of them were aimed at a French Ship, and a Freighter from the United Kingdom. That wasn’t nice, was it? My Representatives are going to Islamabad, Pakistan — They will be there tomorrow evening, for Negotiations.”
Trump remains hopeful about diplomacy, but is not ruling out a return to force, where he once warned about ending “civilation” in Iran as they know it.
“We’re offering a very fair and reasonable DEAL, and I hope they take it because, if they don’t, the United States is going to knock out every single Power Plant, and every single Bridge, in Iran,” Trump’s stern warning continued.
“NO MORE MR. NICE GUY!
“They’ll come down fast, they’ll come down easy and, if they don’t take the DEAL, it will be my Honor to do what has to be done, which should have been done to Iran, by other Presidents, for the last 47 years. IT’S TIME FOR THE IRAN KILLING MACHINE TO END!”
Judge Troy Nunley was fed up.
Federal immigration officials had once again flouted his authority by keeping a man locked up in a California City detention center after Nunley ordered him released. When he was finally set free, the man was booted onto the street with no passport, driver’s license or other personal effects. The judge’s demand that the items be returned were met with silence.
And so on Tuesday, Nunley, the chief judge of the Eastern District of California, slapped Department of Justice attorney Jonathan Yu with an official sanction and a $250 fine.
In a scathing order, Nunley laid out why he was compelled to take such a rare step. The fine may have been less than some traffic tickets, but it’s nearly unheard for a judge to formally admonish a government lawyer.
By Yu’s own admission, he was drowning in work. In his order, Nunley recounted the attorney’s claim he’d been assigned more than 300 nearly identical cases in the last three months, all of immigrants in detention who argued they were being held without cause.
Court filings show many California cases involve longtime U.S. residents unexpectedly hauled off to jail after routine check-ins with immigration officials. One was an Afghan who’d helped the American war effort. Another a Cambodian grandmother of eight who fled Pol Pot’s killing fields as a girl nearly 50 years ago.
Until last year, most would have fought deportation on bond after a brief hearing with an immigration judge. Now, their only hope of release is to file a petition for writ of habeas corpus — a legal maneuver once typically reserved for death row inmates and suspected terrorists — inundating the country’s busiest federal courts with thousands of emergency suits.
The Trump administration attorney said he was trying to “triage” the situation, but Nunley found he repeatedly failed to comply, leaving people with the right to walk free stuck behind bars.
“The Court is not persuaded,” he wrote, issuing the sanctions.
The order came days after Nunley took the unusual step of announcing a “judicial emergency” in the district, which covers nearly half of California, stretching from the Oregon border to the Mojave Desert in the inland part of the state, including Fresno, Bakersfield and Sacramento.
In the last year, the Eastern District has received more petitions from immigration detainees than almost any other jurisdiction in the United States: More than 2,700 since January, compared to fewer than 500 last year and just 18 in 2024. Similar crises are playing out elsewhere, with federal courts in Minnesota briefly paralyzed amid the Trump administration’s enforcement blitz there last winter.
People detained are seen behind fences at an ICE detention facility in Adelanto, California on July 10, 2025.
(Patrick T. Fallon/AFP via Getty Images)
In an interview with The Times, Nunley said dealing with the surge of activity since last summer has been “like being hit over the head with a bat.”
“We’re up all night doing these cases,” he said.
So far this year, the Eastern District’s six active judges have ordered almost people 2,000 freed.
“The majority of the cases that we see are cases where people should not be detained,” Nunley said. “They should be receiving hearings to determine whether or not they are to remain in this country, and until they receive those hearings, they should be free.”
Since last July, the Department of Homeland Security has ordered that all immigrants it arrests are subject to “mandatory detention” — a policy that had previously only applied to those caught at the border.
The change came four days after President Trump signed a spending bill that earmarked $45 billion to expand the federal network of immigrant lockups.
“This has been a sea change in the way the government has read the law,” said My Khanh Ngo, a senior staff attorney at the ACLU Immigrants’ Rights Project. “Almost every judge who has looked at this has agreed these people should get bond, and yet thousands of people are still sitting in detention.”
Elizabeth Vega, 15, right, and Darlene Rumualdo, 15, from Torres High School join labor organizers, clergy leaders and immigrant rights groups to protest immigration raids nationwide at La Placita Olvera in downtown Los Angeles on January 23, 2026.
(Genaro Molina/Los Angeles Times)
Longtime U.S. residents who might once have fought removal from home — where they can more easily gather evidence to support their case and confer with lawyers — are instead being held indefinitely.
Many have no criminal record. Some have been in the U.S. so long that the countries they came from no longer exist.
“People are locked up in the same facilities as people accused of crimes, people who’ve been convicted of crimes … and then you’re telling people, you have no shot of getting out,” Ngo said. “Detaining people and not giving them the chance to get out of detention is a way of coercing people to give up their claims.”
The habeas process can take weeks or months depending on the judge and the district.
“When the immigration cases dropped on our district, we got hit harder than any other outside West Texas,” Nunley said. “Initially we had more cases than anyone else.”
Today, data compiled by ProPublica and legal activist groups including the Immigration Justice Transparency Initiative show almost a quarter of the roughly 30,000 active habeas petitions in the United States are in California courts. Nunley’s own tabulations show half the California cases are in his district, where a perfect storm of stepped-up enforcement, a large population of immigrant workers and a concentration of detention centers produced a flash flood of habeas petitions.
The cases rely on the Constitution’s guarantee of due process before being deprived of life, liberty or property. But according to court filings, in some instances the government has argued “the Fifth Amendment does not apply” to detained immigrants.
DOJ lawyers responding to the bids for freedom now regularly complain they’re being crushed under paperwork.
Judges accustomed to having government lawyers comply with their orders have been left fuming.
In California’s Central District, which includes L.A. and surrounding areas, Judge Sunshine Sykes wrote a fiery decision earlier this year that said the Trump administration is inflicting “terror against noncitizens.”
Sykes is one of several federal judges across the country that have tried to compel the government to resume bond hearings. The 9th U.S. Circuit Court of Appeals blocked that decision in March, leaving the habeas system in place for now. But with challenges or recent decisions across multiple circuits, experts say the fight is fated for the Supreme Court.
“ICE has the law and the facts on its side, and it adheres to all court decisions until it ultimately gets them shot down by the highest court in the land,” a Homeland Security spokesperson said in an email to The Times.
A woman holds a “ICE not welcome here!” sign at a vigil in San Pedro in January.
(Gina Ferazzi/Los Angeles Times)
The lawyers fighting to free those jailed under the Trump administration’s mandatory detention policy say they were not initially equipped for these legal battles because they used to be exceedingly rare.
Most federal judges had only seen a handful of habeas petitions before last summer — then suddenly they had hundreds of requests for urgent relief, according to Jean Reisz, co-director of the USC Immigration Clinic.
Reisz said there are efforts to get pro bono law groups trained on how to effectively argue habeas cases, “but it takes a while to get up to speed.”
A federal agent asks residents to move back after a shooting during an immigration enforcement operation in Willowbrook on January 21, 2026.
(Genaro Molina/Los Angeles Times)
At the same time, Reisz said, lawyers are pushing judges who oversee the cases to act swiftly, since interminable procedural delays ensure people remain incarcerated.
“Most of the habeas petitions include a motion for temporary restraining orders, and that requires emergency decisions from the courts, which requires the courts to act very fast,” Reisz said.
In California’s federal district courts, the backlog remains thousands deep. Nunley said the system is struggling to keep up with the crush of cases.
“There’s nothing that says that noncitizens should not be entitled to due process,” Nunley said. “These are our people, they reside in our district. They’re entitled to the same due process that you and I are entitled to.”
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Secretary of State Marco Rubio announced Saturday that the Trump administration is sanctioning a senior Nicaraguan official over alleged human rights violations.
Rubio said the U.S. is designating Vice Minister of the Interior Luis Roberto Cañas Novoa for his role in “gross violations of human rights” under the government of President Daniel Ortega and Vice President Rosario Murillo, marking what he said was the latest effort to hold the regime accountable.
“The Trump administration continues to hold the Murillo-Ortega dictatorship accountable for brutal human rights violations against Nicaraguans,” Rubio said in a post on X. “I’m designating Nicaraguan Vice Minister of the Interior Luis Roberto Cañas Novoa for his role in human rights violations.”
RUBIO TESTIFIES IN TRIAL OF EX-FLORIDA CONGRESSMAN ALLEGEDLY HIRED BY MADURO GOVERNMENT TO LOBBY FOR VENEZUELA
Secretary of State Marco Rubio speaks at the State Department, April 14, 2026. The U.S. announced sanctions on a Nicaraguan official tied to alleged human rights abuses under the Ortega-Murillo government. (Andrew Harnik/Getty Images)
The designation was made under Section 7031(c), which allows the State Department to bar foreign officials and their immediate family members from entering the United States due to involvement in significant corruption or human rights abuses.
The State Department has said the Ortega-Murillo government has engaged in arbitrary arrests, torture and extrajudicial killings following mass protests that began in April 2018.
“Nearly eight years ago, the Rosario Murillo and Daniel Ortega dictatorship unleashed a brutal wave of repression against Nicaraguans who courageously stood against the regime’s increased tyranny, corruption, and abuse,” the statement reads.
The State Department said that the sanction marked the anniversary of the 2018 protests, after which more than 325 protesters were murdered in the aftermath.
A panel of U.N.-backed human rights experts previously accused Nicaragua’s government of systematic abuses “tantamount to crimes against humanity,” following an investigation into the country’s crackdown on political dissent, according to The Associated Press.
The experts said the repression intensified after mass protests in 2018 and has since expanded across large parts of society, targeting perceived opponents of the government.
TRUMP ADMIN ANNOUNCES EXPANSION OF VISA RESTRICTION POLICY IN WESTERN HEMISPHERE
Nicaragua President Daniel Ortega delivers a speech during a ceremony to mark the 199th Independence Day anniversary, in Managua, Nicaragua Sept. 15, 2020. (Nicaragua’s Presidency/Cesar Perez/Handout via Reuters)
Nicaragua’s government has rejected those findings.
The designation follows a series of recent U.S. actions targeting the Ortega-Murillo government. In February, the State Department sanctioned five senior Nicaraguan officials tied to repression, citing arbitrary detention, torture, killings and the targeting of clergy, media and civil society.
Earlier this week, the department also announced sanctions on individuals and companies linked to Nicaragua’s gold sector, including two of Ortega and Murillo’s sons, accusing the regime of using the industry to generate foreign currency, launder assets and consolidate power within the ruling family.
The State Department said the move is part of ongoing efforts to hold the Nicaraguan government accountable for its actions.
Fox News Digital reached out to the Nicaraguan government and its embassy in Washington for comment but did not immediately receive a response.
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A man waves a Nicaraguan flag during a demonstration to commemorate Nicaragua’s national Day of Peace, which is celebrated in the country on April 19, and to protest against the government of Nicaraguan President Daniel Ortega in San Jose, Costa Rica on April 16, 2023. (Jose Cordero/AFP)
The Trump administration has taken an increasingly aggressive posture in the Western Hemisphere in recent months, including a Jan. 3, 2026, operation that resulted in the capture of Venezuelan leader Nicolás Maduro and his wife, Cilia Flores.
The U.S. has also carried out a series of strikes targeting suspected drug-trafficking vessels in the region, part of a broader crackdown tied to regional security and narcotics enforcement efforts.
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