Business
Markets soar as Trump pauses most global tariffs, escalates trade war with China
WASHINGTON — President Trump walked back plans on Wednesday for a global trade war that sparked fears of economic panic and recession, a dramatic reversal after a week of market turmoil that led to a historic surge of relief on Wall Street.
But the president further escalated his standoff with China over tariffs, raising duties on America’s third-largest trading partner to 125%. Trump’s tariff on foreign automobiles, set at 25%, remains in place.
Markets responded to Trump’s reversal with an exuberant surge, a turn of fortunes after news of the president’s policies last week wiped out $7 trillion in value over just three days of trading. Overnight, a U.S. bond market selloff added to concerns over a spiraling economic crisis.
Minutes after Trump changed course, the Dow Jones industrial average rose over 2,900 points. The Nasdaq was up 12% at the closing bell. And the Standard & Poor’s 500 increased over 9.5% — its largest gain since the 2008 financial crisis, but still down over 11% from its February highs.
The turnabout provided temporary relief from a policy that experts warned could upend the global economy, sending prices in the United States up across the board and risking global recession.
Trump administration officials initially explained the policy switch as part of an organized plan: “This was his strategy all along,” Treasury Secretary Scott Bessent said. Yet, within the hour, Trump himself acknowledged that dire market blowback from his announcement last week forced him to back down.
The initial policy plan had countries paying a universal tariff of 10% to import their goods to the United States. Other, select countries, which the president believed were treating the United States unfairly, were hit with higher rates.
“I thought that people were jumping a little bit out of line,” Trump told reporters at the White House, explaining his decision. “They were getting yippy, you know, they were getting a little bit yippy, a little bit afraid.
“I guess they say it was the biggest day in financial history,” Trump added. “I think the word would be flexible, you have to be flexible.”
The sequencing of Trump’s announcement prompted some concern among Democrats that Trump may have tipped off allies that a policy reversal was coming. On Wednesday morning, four hours before announcing the pause, Trump wrote on social media that it was a “GREAT TIME TO BUY.”
“Trump is creating giant market fluctuations with his on-again, off-again tariffs. These constant gyrations in policy provide dangerous opportunities for insider trading,” said Sen. Adam Schiff (D-Calif.). “Who in the administration knew about Trump’s latest tariff flip-flop ahead of time? Did anyone buy or sell stocks, and profit at the public’s expense? I’m writing to the White House — the public has a right to know.”
Trump said he would pause his universal 10% tariff rate on most countries, which went into effect a week ago.
But other trading partners hit with higher rates on Wednesday — tariffs that were referred to as “reciprocal” by the White House, but that actually reflected a country’s trade deficit with the United States — will now have those rates lowered to 10%.
While Trump said that rate is “substantially lower” than previously planned rates, it is still nearly three times the average import tax that had been in place before his announcement last week.
China, meanwhile, will be hit by yet another increase in duties, with imports from Beijing now facing a 125% tariff rate, after China matched Trump’s last two rate hikes over the past week.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” Trump wrote on Truth Social, leading markets to soar minutes later.
“Conversely, and based on the fact that more than 75 Countries have called … to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States,” Trump continued, “I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!”
The president’s decision to reverse course drew widespread praise from his political allies, who credited him with executing on the “art of the deal” over the past week.
Trump’s approach, wrote Bill Ackman, a billionaire hedge fund manager and supporter of the president, is that “we now understand who are our preferred trading partners, and who the problems are. China has shown themselves to be a bad actor.”
Bessent initially told reporters at the White House that Trump’s decision to issue a pause was the result of most countries around the world refraining from issuing retaliatory measures, and instead approaching the administration with offers to negotiate.
“President Trump created maximum negotiating leverage for himself,” Bessent said. “The ones that we have lowered went into effect a week ago, and we have just been overwhelmed — overwhelmed — by the responses from, mostly, our allies, who want to come and negotiate in good faith.”
Karoline Leavitt, the White House press secretary, pushed back against questions from the media over the president backing down in the face of market pressures, as well as assessments from the country’s major banking institutions, such as JPMorgan Chase and Goldman Sachs, that his new trade policy would push the country into recession.
“Many of you in the media clearly missed the art of the deal,” Leavitt said. “You clearly failed to see what President Trump is doing here.”
The White House said Trump was providing relief to trading partners that declined to retaliate to his initial tariff increase, and was escalating with China because it took retaliatory steps.
But Trump found out that the European Union, too, announced plans to retaliate with new levies only on Wednesday morning, when questioned by a reporter in the Oval Office that afternoon.
Howard Lutnick, the Commerce secretary, told Trump in front of reporters that he did not believe Europe’s new actions would go into effect.
“Oh, that’s bad timing for them. That’s bad timing,” Trump said.
“They didn’t put them in,” Lutnick said. “No, they threatened. But they picked a later date, which, our expectation is it’s going to be later still.”
“Oh, OK. Because I’m glad that they held back,” Trump responded.
Trump and Leavitt had denied for days that Trump would consider any pause on the new trade policy, even denying that the specific pause announced Wednesday — a 90-day pause on global tariffs, with China excluded — was on the table just two days ago.
That rumor led to a short-lived market rally on Monday before the White House referred to such plans as “fake news,” plunging stocks once more.
“We are not looking at that,” Trump told reporters at the time, asked about the prospects of a 90-day pause.
By Wednesday, Trump said of the pause, “it’s something very positive for the world.”
Business
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.
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.
“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.
“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.
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.”
Business
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.”
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.
“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.
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.
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.
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.
Business
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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