Business
How Trump’s One-for-One Tariff Plan Threatens the Global Economy
The world economy was already grappling with a perplexing assortment of variables, from geopolitical conflicts and a slowdown in China to the evolving complexities of climate change. Then, President Trump unleashed a plan to uproot decades of trade policy.
In starting a process to impose so-called reciprocal tariffs on American trading partners, Mr. Trump increased volatility for international businesses. He broadened the scope of his unfolding trade war.
In basic concept, the argument for reciprocal tariffs is straightforward: Whatever levies American companies face in exporting their wares to another country should apply to imports from that same country. Mr. Trump has long championed this principle, presenting it as a simple matter of fairness — redress to the fact that many American trading partners maintain higher tariffs.
Yet in practice, calculating individual tariff rates on thousands of products drawn from more than 150 countries poses a monumental problem of execution for a vast range of companies, from American manufacturers dependent on imported parts to retailers that buy their goods from overseas.
“It’s potentially a herculean task,” said Ted Murphy, an international trade expert at Sidley Austin, a law firm in Washington. “For every widget, every tariff classification, you can have 150 different duty rates. You’ve got Albania to Zimbabwe.”
The order that Mr. Trump signed on Thursday directed his agencies to study how to proceed with reciprocal tariffs. That raised the risk of increasing costs for American consumers at a time of deepening concern over inflation, challenging the president’s own vows to bring down prices on groceries and other everyday items. And that heightened the possibility of greater delay from the Federal Reserve in lowering borrowing costs.
It also hastens the diminishing of the world trading system, which has long been centered on multilateral blocs and adjudicated by the World Trade Organization. Mr. Trump is aiming to advance a new era in which treaties give way to country-to-country negotiations amid a spirit of nationalist brio.
The transition threatens to add to strains on global supply chains after years of upheaval. International businesses have contended with an unfolding trade war between the world’s two largest economies, the United States and China. They have confronted impediments to passage through the Suez and Panama Canals, sending shipping prices soaring.
Now, Mr. Trump has presented them with another formidable puzzle.
Under the system that has held sway for three decades, member countries of the World Trade Organization set tariffs for every type of good, extending the same basic rate to all members. They have also negotiated treaties — with other countries, and via regional trading blocs — that have further eased tariffs.
Mr. Trump has long described the United States as a victim of this structure, citing trade deficits with China, Mexico and Germany. In announcing the advent of reciprocal tariffs on Thursday, he served notice that he claims authority to renegotiate the terms to his liking, absent respect for existing trade agreements.
It seemed no coincidence that Mr. Trump made his announcement on the day that India’s prime minister, Narendra Modi, visited the White House. The United States runs a substantial trade deficit with India, with the value of its imported goods outweighing its exports last year by $45 billion.
Those imports include plastics and chemical products that incur tariffs of less than 6 percent when shipped to the United States, according to data compiled by the World Bank. When similar categories of American goods are exported to India, they confront tariffs ranging from 10 to 30 percent.
If the Trump administration were to lift American levies to equal levels, that would force American factories to pay more for chemicals and plastics.
The same pattern holds across a broad sweep of consumer and industrial products — footwear from Vietnam, machinery and agriculture from Brazil, textiles and rubber from Indonesia.
A leading electronics industry trade association, IPC, on Thursday warned that increased trade protectionism would damage the American economy.
“New tariffs will raise manufacturing costs, disrupt supply chains, and drive production offshore, further weakening America’s electronics industrial base,” the association’s president, John W. Mitchell, said in a statement.
Some experts see in Mr. Trump’s approach a potential negotiating tactic aimed at forcing trading partners to lower their own tariffs, rather than a prelude to the United States lifting its own. If that proves true, the process of calculating new tariff rates might actually lower prices.
“There are a lot of ways this can go very badly for us,” said Christine McDaniel, a former Treasury official under President George W. Bush and now a senior research fellow at the Mercatus Center at George Mason University in Virginia. “But if he can get other countries to open up their markets, there is a narrow path where this could end up promoting trade,” she said.
Still others warn that any process of negotiation could be guided less by national objectives than the interests of Mr. Trump’s allies. Tesla, the electric vehicle company run by the administration loyalist Elon Musk, could benefit from exemptions to increased tariffs on key components.
The tumult is leaving companies that operate in the United States having to guess how events will transpire as they weigh the costs of importing parts or finished goods. Business, as the cliché goes, craves nothing more than certainty. That commodity is getting more scarce.
Ever since Mr. Trump’s first term, when he put tariffs on Chinese imports — a policy that President Joseph R. Biden Jr. extended — companies that sell into the American market have shifted some production out of China.
Surging prices to move cargo by container ship have prompted companies to close the distance between their factories and their American customers, a trend known as nearshoring.
Walmart, a retail empire ruled by the pursuit of low prices, has moved orders from Chinese plants to India and Mexico. Columbia Sportswear has scouted factory sites in Central America. MedSource Labs, a medical device manufacturer, has moved orders from factories in China to a new plant in Colombia.
Mr. Trump has challenged the merits of such strategies by threatening 25 percent tariffs on imports from Mexico, Canada and Colombia, before quickly delaying or setting aside such plans. He has imposed across-the-board levies on steel and aluminum. He has delivered 10 percent tariffs on Chinese imports. Where he may turn next is the subject of a potentially expensive parlor game playing out in corporate board rooms.
Some surmise that the uncertainty stemming from these moves is precisely the point. Mr. Trump has long asserted that his ultimate goal is to force businesses to set up factories in the United States — the only reliable way to avoid U.S. tariffs. The more countries he menaces, the greater the risks for any company that invests in a plant somewhere else.
The trouble is that even businesses with factories in the United States depend on parts and raw materials from around the world. More than one-fourth of American imports represent parts, components and raw materials. Making these goods more expensive damages the competitiveness of domestic companies, imperiling American jobs.
Last week, Ford Motor warned that tariffs on Mexico and Canada would wreak havoc with its supply chains.
“A 25 percent tariff across the Mexico and Canadian border will blow a hole in the U.S. industry that we have never seen,” the company’s chief executive, Jim Farley, said.
For now, the business world is again struggling to divine which of Mr. Trump’s pronouncements are merely a gambit, and which portend real changes.
On spreadsheets maintained by multinational companies, the applicable tariff rates for every country on earth suddenly seem subject to reworking.
Or not.
“We take Trump seriously, but not necessarily literally,” said Mr. Murphy, the trade lawyer. “He talks in broad strokes, but we have to watch what actually emerges.”
Business
FKA twigs sues ex-boyfriend Shia LaBeouf over ‘unlawful’ NDA
Singer-songwriter FKA twigs is suing her ex-boyfriend, actor Shia LaBeouf, claiming that he is trying to “silence” her from speaking out against sexual abuse through the use of an “unlawful” nondisclosure agreement.
The complaint, filed in Los Angeles Superior Court on Wednesday, seeks a court order to prohibit LeBeouf from enforcing sections of an NDA which Tahliah Barnett — the Grammy Award-winning singer’s legal name — says violates California law.
“Shia LaBeouf has tried to control Tahliah Barnett for the better part of a decade,” the filing states.
“This action was taken in response to Mr. LaBeouf’s attempt to bully and intimidate twigs through a frivolous and unlawful secret arbitration he filed against her in December in which he sought to extract money from her,” said the singer’s attorney Mathew Rosengart, national co-chair of media & entertainment litigation at Greenberg Traurig in Century City, in a statement.
Rosengart added that twigs “refuses to be bullied anymore. She is instead standing up for herself and other survivors of sexual abuse who have improperly been silenced. This is the unusual case that is not about money but about justice and upholding and enforcing California law and policy designed to protect survivors by nullifying illegal NDAs.”
LaBeouf’s attorney Shawn Holley of Kinsella Holley Iser Kump Steinsapir denied the claims.
“When Ms. Barnett and Mr. LaBeouf both decided to resolve their differences and move on with their lives, no one forced her or ‘bullied’ her to stay silent,” Holley said in a statement.
“As a woman with agency, she decided to settle the case and accepted money to dismiss her lawsuit.”
The suit arises out of litigation that Barnett brought against LaBeouf in 2020, when she accused the actor of “physical, sexual, and mental abuse” during their relationship,” as well as “knowingly infect[ing]” Barnett with a sexually transmitted disease.” That case was settled last year.
In a response to the suit, the actor told the New York Times that “many of these allegations are not true.”
But he added, “I am not in the position to defend any of my actions. I owe these women the opportunity to air their statements publicly and accept accountability for those things I have done.”
In the statement Thursday, Holley added that the claim of sexual battery “was disputed, as were the other claims made in Ms. Barnett’s lawsuit.”
Shia LaBeouf poses for photographers upon arrival at the premiere of the film “The Phoenician Scheme” at the 78th annual Cannes Film Festival May 18, 2025.
(Lewis Joly / Invision / AP)
According to the new lawsuit, LaBeouf filed a secret arbitration complaint and “improperly sought exorbitant monies” from Barnett last December, claiming she had breached their agreement by violating its nondisclosure provisions after she gave an interview to the Hollywood Reporter in October.
In the interview, Barnett was asked if she felt safe and answered that as a woman of color in the entertainment industry, she “wouldn’t feel safe” and discussed her involvement with organizations that support survivors, saying, “I think it’s less about me at this point and more about looking forward. Just, you know, moving on with my life.”
The agreement Barnett reached with LaBeouf “contained a deficient and unlawful NDA that is unenforceable,” under California’s Stand Together Against Non-Disclosure Act, according to the complaint. The law forbids NDAs from being used to silence victims of sexual misconduct.
“As the California Legislature has made clear, survivors should have the right to tell their stories without fear or coercion, and California law does not and must not allow abusers and bullies to silence them through secret agreements containing unconscionable, unlawful gag orders,” the complaint states.
The lawsuit further alleges that while LaBeouf has sought to prohibit Barnett from talking about her abuse, he has “repeatedly brought up his relationship with Ms. Barnett—on his own and without being directly asked about her—materially breaching the very confidentiality provisions that he had just contended were fully enforceable against Ms. Barnett.”
While the actor agreed to drop the arbitration in February, he has “refused to acknowledge, however, that the NDA provisions are illegal and unenforceable,” the filing states.
The latest round in LaBeouf’s legal battle with Barnett comes just weeks after a New Orleans judge ordered the actor to begin substance abuse treatment and undergo weekly drug testing after he was arrested on suspicion of assaulting two men in the city’s French Quarter. LaBeouf was also required to post $100,000 bond as part of the conditions of his release. He was charged with two counts of simple battery, the Associated Press reported.
Business
Warner shareholders to vote on Paramount takeover
Warner Bros. Discovery shareholders will soon render a verdict on Hollywood’s biggest merger in nearly a decade.
Warner has set an April 23 special meeting of stockholders to vote on the company’s proposed sale, for $31-a-share, to the Larry Ellison family’s Paramount Skydance.
The $111-billion deal is expected to reshape the entertainment industry by combining two historic film studios, dozens of prominent TV networks, including CBS, HBO, HGTV and Comedy Central, streaming services and two news organizations, CNN and CBS News. The tie-up would give Paramount such beloved characters as Batman, Wile E. Coyote, and Harry Potter, television shows including “Hacks,” and “The Pitt,” and a rich vault of movies that includes “Casablanca,” and “One Battle After Another.”
The $31-a-share offer represents a 63% increase over Paramount Chairman David Ellison’s initial $19-a-share proposal for the company in mid-September, and a 147% premium over Warner’s stock’s trading levels prior to news of Ellison’s interest.
“This transaction is the culmination of the Board’s robust process to unlock the full value of our world-class portfolio,” Warner Bros. Discovery Chief Executive David Zaslav said Thursday in a statement. “We are working closely with Paramount to close the transaction and deliver its benefits to all stakeholders.”
Paramount hopes to finalize the takeover by September. It has been working to secure the blessing of government regulators in the U.S. and abroad.
Should those regulatory deliberations stretch beyond September, Paramount will pay shareholders a so-called “ticking fee” — an extra 25 cents a share for every 90-day-period until the deal closes.
The transaction will leave the combined company with nearly $80-billion in debt, a sum that experts say will lead to significant cost cuts.
Paramount Skydance Chairman and CEO David Ellison attends President Trump’s State of the Union address three days before clinching his hard-fought Warner Bros. Discovery deal.
(Mark Schiefelbein / Associated Press)
For weeks it appeared that Netflix would scoop up Warner Bros.
Netflix initially won the bidding war in early December with a $27.75 offer for the studios and streaming services, including HBO Max. But Ellison refused to throw in the towel. He and his team continued to lobby shareholders, politicians and Warner board members, insisting their deal for the entire company, including the cable channels, was superior and they had a more certain path to win regulatory approval.
The Ellison family is close to President Trump. This week, Trump named Larry Ellison to a proposed White House council on technology issues, including artificial intelligence.
Warner’s board, under pressure, reopened the bidding in late February to allow Paramount to make its case. Warner board members ultimately concluded that Paramount’s bid topped the one from Netflix and the streamer bowed out. Paramount paid a $2.8-billion termination fee to Netflix and signed the merger agreement on Feb. 27.
Warner’s board is advising its shareholders to approve the Paramount deal. Failure to cast a vote will be the same as a no-vote, according to the company’s proxy.
Warner’s largest shareholders include the Vanguard Group, BlackRock, Inc. and State Street Corp.
Zaslav has significant stock and options holdings, worth about $517 million at the deal’s close, according to the proxy.
The regulatory filing also disclosed that a mysterious bidder had surfaced at the auction’s 11th hour.
A firm called Nobelis Capital, Pte., reportedly based in Singapore, alerted Warner on Feb. 18 that it was willing to pay $32.50 a share in cash.
The firm said it had placed $7.5 billion into an escrow account. However, Warner’s bankers “could not find the purported deposit at J.P. Morgan,” according to the proxy. And there was no evidence that Nobelis had any assets or any “equity or debt financing” lined up, Warner said, adding that it “took no further action with respect to the Nobelis proposal.”
Business
Video: How Kharg Island May Change the Trajectory of the Iran War
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