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Markets Remain Uneasy as Trump Prepares Sweeping ‘Reciprocal’ Tariffs

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Markets Remain Uneasy as Trump Prepares Sweeping ‘Reciprocal’ Tariffs

President Trump has settled on a final plan for sweeping “reciprocal” tariffs, which are expected to take effect on Wednesday after he announces the details at an afternoon Rose Garden ceremony.

The White House press secretary, Karoline Leavitt, confirmed the timeline in a briefing with reporters on Tuesday, adding that Mr. Trump had been huddling with his trade team to hash out the finer points of an approach meant to end “decades of unfair trade practices.”

When pressed on whether the administration was worried the tariffs could prove to be the wrong approach, Ms. Leavitt struck a confident note: “They’re not going to be wrong,” she said. “It is going to work.”

The administration has been weighing several different tariff strategies in recent weeks. One option examined by the White House is a 20 percent flat tariff on all imports, which advisers have said could help raise more than $6 trillion in revenue for the U.S. government.

But advisers have also discussed the idea of assigning different tariff levels to countries depending on the trade barriers those countries impose against American products. They have also said that some nations might avoid tariffs entirely by striking trade deals with the United States.

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Speaking to reporters in the Oval Office on Monday, Mr. Trump said the United States would be “very nice, relatively speaking,” in imposing tariffs on a vast number of countries — including U.S. allies — that he believes are unfairly inhibiting the flow of American exports.

“That word reciprocal is very important,” Mr. Trump told reporters. “What they do to us, we do to them.”

By Tuesday, Ms. Leavitt said the president had made a decision and was with his trade team now “perfecting it.” When asked if companies could do anything to avoid the tariffs, Ms. Leavitt said the president was “always up to take a phone call” from companies but was “very much focused on fixing the wrongs of the past.”

She also said that many foreign governments had called the president and his team about the tariffs, but that Mr. Trump was focused on the interests of the United States.

“The president has a brilliant team of advisers who have been studying these issues for decades, and we are focused on restoring the golden age of America and making America a manufacturing superpower,” she said.

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The prospect of tariffs has left markets uneasy. Stocks edged down at the start of trading, with the S&P 500 opening about 0.4 percent lower before rebounding after a choppy day yesterday that ended with the index registering its worst month and quarter since 2022.

Investors are still seeking clarity on the scope of Mr. Trump’s reciprocal tariffs, and the economic uncertainty surrounding a global trade war has fueled stock market volatility in recent weeks.

It has similarly troubled the manufacturing industry, which showed signs of contraction in March, according to new data released Tuesday from the Institute for Supply Management, which is closely tracked by the White House. The report found declines in employment and new orders, as firms raised alarms about the nature of Mr. Trump’s tariffs and the prospect for costly global retaliation.

The president is set to receive reports from his advisers on nearly two dozen trade-related topics on Tuesday, advising him on how he might proceed on addressing a range of issues.

The reports, which are due from the Commerce and Treasury departments as well as the United States Trade Representative, will look at the causes of persistent trade deficits, unfair trade practices by other countries, gaps in existing trade agreements and recommendations for achieving reciprocity in trade relationships, among other issues.

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The trade representative, for example, was responsible for identifying countries with which the United States should negotiate new trade agreements, and whether China has upheld its commitments under a 2020 trade deal that Mr. Trump signed in his first term.

In several cases, Mr. Trump has acted before even seeing the details of the reports. Although he asked for reviews into whether foreign metals posed a risk to national security, Mr. Trump has already imposed 25 percent tariffs on steel and aluminum imports. He also hit Canada, Mexico and China with tariffs intended to stem the flow of fentanyl and migrants into the United States, which is another area that his administration was studying.

How Mr. Trump plans to proceed on Wednesday remains an open question — one that has left America’s trading partners struggling to determine a response.

While the European Union has already announced that it will respond to steel and aluminum tariffs with countermeasures, officials are still contemplating how to respond to the measures that Mr. Trump has yet to unveil.

Although the European response so far has concentrated on imposing higher tariffs on a wide variety of goods — whiskey, motorcycles and women’s clothing are among the products that could be affected — officials are also open to placing trade barriers on services, using a new trade weapon that was developed only in 2021.

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That tool could be used to hit big tech firms, said two diplomats familiar with the matter but who spoke on condition of anonymity to discuss internal deliberations. That means that instead of affecting physical goods, it could have an impact on companies like Google, Meta, or even American banks.

The goal would be to give the European Union more leverage, since Europe buys more services from the United States than it exports — making its market, and access to European consumers, a potentially powerful tool. But no decisions have been made.

“Europe holds a lot of cards,” Ursula von der Leyen, the president of the European Commission, said during a speech on Tuesday. “From trade to technology to the size of our market.”

Officials are emphasizing that their goal is still to negotiate, though they will respond firmly if needed.

“All instruments are on the table,” Ms. von der Leyen said.

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Danielle Kaye contributed reporting.

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In a first for the country, voters in Monterey Park ban data centers

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In a first for the country, voters in Monterey Park ban data centers

Residents of Monterey Park voted overwhelmingly to ban data centers on election day, making the San Gabriel Valley city the first in the nation to do so by public vote.

As of Wednesday, 86% of votes were in favor of Measure NDC, the city ban, according to the Los Angeles County registrar-recorder/county clerk.

Other cities and towns have passed moratoriums on data centers, as a wave of opposition sweeps the country. But the Monterey Park vote can only be overturned by another ballot measure, making it the most permanent data center ban in a jurisdiction.

Monterey Park’s City Council had already banned data centers by ordinance, after a proposed 247,000-square-foot data center met an outpouring of public anger and concern. The developer withdrew that plan.

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That facility would have been less than 500 feet away from the nearest home, and would have used three times the electricity of the entire 60,000-person city. Residents said it would have caused noise and air pollution and driven up electricity rates.

“This ensures long-lasting protections for current and future generations,” Amy Wong, co-founder of the group San Gabriel Valley Progressive Action, said of the vote. “It means that future city councils cannot overturn a data center ban, even if data center developers wanted to spend money to fund pro-data center candidates.”

The measure had no formal opposition. The developer of the proposed facility, investment firm HMC StratCap, said it wouldn’t engage in the ballot fight when it withdrew in March.

The Data Center Coalition, an industry trade group, expressed disappointment in the vote.

“It sends a signal that the area is closed for business, both for data centers and for other significant economic development projects,” state policy director Khara Boender said.

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“It deprives local residents of the opportunity to compete for jobs and investment, while also causing the area to relinquish substantial long-term economic investment, high-wage jobs, and critical tax revenue to neighboring areas or other states.”

SGV Progressive Action worked with hyperlocal groups including No Data Center Monterey Park to rally support for the measure.

The group is now focused on stopping data center proposals in the City of Industry and fighting a move by City of Industry, Santa Fe Springs, Vernon and City of Commerce to welcome data centers and other industry with fast-tracked permitting and tax incentives.

City of Industry, in the San Gabriel Valley, and Vernon, south of downtown L.A., are primarily industrial areas, each with around 300 permanent residents. They are employment centers, and tens of thousands of workers commute in daily.

There has been little vocal opposition to data centers among the few residents of these cities. Wong said the protest is primarily coming from the surrounding neighborhoods.

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“If a data center gets built in City of Industry, residents across the region would bear the brunt of pollution and increased utility costs,” Wong said, noting that it is surrounded by 16 other cities and unincorporated communities.

Data center proposals have been limited in California compared to Virginia, Texas, Georgia, Illinois and Arizona, which sit at the center of a recent boom in hyperscaler facilities to power artificial intelligence.

California has the third-most data centers in the country, with 300, but high electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in other hotspots.

That doesn’t mean opposition hasn’t been fierce. In Coachella and Imperial County, residents are showing up in droves to protest local proposals.

In the San Gabriel Valley, Montebello, El Monte and Baldwin Park have all enacted temporary moratoriums, and Alhambra recently banned data centers as part of a zoning code update.

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Wong said she hoped the ballot measure vote would galvanize the opposition. “The vote is a testament to the people power of our region,” she said. “Our region is worth protecting, and we won’t let data centers determine our future.”

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Rent-hike ban to protect fire victims ends despite gouging concerns

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Rent-hike ban to protect fire victims ends despite gouging concerns

A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.

The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.

The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.

“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”

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Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.

It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.

Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.

“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.

Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.

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“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”

Mitchell did not immediately respond to a request for comment.

There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.

In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.

In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.

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A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”

“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.

Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.

L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.

Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.

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Newsom defended the price-gouging protections shortly after they went into effect.

“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”

The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.

“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.

Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.

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Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.

The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.

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Read Nick Bilton’s Letter to Scott Pelley

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Read Nick Bilton’s Letter to Scott Pelley

Dear Mr. Pelley:

I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.

Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.

Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.

Sincerely,

Nick Bilton

Executive Producer, 60 Minutes

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