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
Nearly 20 states sue HHS over declaration to restrict gender transition treatment for minors
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A group of 19 Democrat-led states and Washington, D.C., filed a lawsuit against the Trump administration over a declaration that aims to restrict gender transition treatment for minors.
The lawsuit against the U.S. Department of Health and Human Services; its secretary, Robert F. Kennedy Jr.; and its inspector general comes after the declaration issued last week described treatments such as puberty blockers, hormone therapy and gender surgeries as unsafe and ineffective for children experiencing gender dysphoria.
The declaration also warned doctors they could be excluded from federal health programs, including Medicare and Medicaid, if they provide these treatments to minors.
The move seeks to build on President Donald Trump’s executive order in January calling on HHS to protect children from “chemical and surgical mutilation.”
HHS UNLEASHES SWEEPING CRACKDOWN ON CHILD ‘SEX-REJECTING PROCEDURES,’ THREATENS HOSPITAL, MEDICAID FUNDING
The lawsuit was filed against the U.S. Department of Health and Human Services; its secretary, Robert F. Kennedy Jr.; and its inspector general. (Elizabeth Frantz/Reuters)
“We are taking six decisive actions guided by gold standard science and the week one executive order from President Trump to protect children from chemical and surgical mutilation,” Kennedy said during a press conference last week.
HHS has also proposed new rules designed to further block gender transition treatment for minors, although the lawsuit does not address the rules, which have yet to be finalized.
The states’ lawsuit, filed Tuesday in Eugene, Oregon, argues that the declaration is inaccurate and unlawful and urges the court to prevent it from being enforced.
“Secretary Kennedy cannot unilaterally change medical standards by posting a document online, and no one should lose access to medically necessary health care because their federal government tried to interfere in decisions that belong in doctors’ offices,” New York Attorney General Letitia James, who led the lawsuit, said in a statement.
The lawsuit claims the declaration attempts to pressure providers into ending gender transition treatment for young people and circumvent legal requirements for policy changes. The complaint said federal law requires the public be given notice and an opportunity to comment before substantively amending health policy and that neither of these were done before the declaration was released.
HHS’ move seeks to build on President Donald Trump’s executive order in January calling on HHS to protect children from “chemical and surgical mutilation.” (Tom Brenner for The Washington Post via Getty Images)
The declaration based its conclusions on a peer-reviewed report that the department conducted earlier this year that called for more reliance on behavioral therapy rather than broad gender transition treatment for minors with gender dysphoria.
The report raised questions about standards for the treatment of transgender children issued by the World Professional Association for Transgender Health and brought concerns that youths may be too young to give consent to life-changing treatments that could result in future infertility.
Major medical groups and physicians who treat transgender children have criticized the report as inaccurate.
HHS also announced last week two proposed federal rules — one to cut off federal Medicaid and Medicare funding from hospitals that offer gender transition treatment to children and another to block federal Medicaid money from being used for these procedures.
HOUSE APPROVES MTG-SPONSORED BILL TO CRIMINALIZE GENDER TRANSITION TREATMENT FOR MINORS
New York Attorney General Letitia James led the lawsuit against the Trump administration. (Michael M. Santiago/Getty Images)
The proposals have not yet been made final and are not legally binding because they must go through a lengthy rulemaking process and public comment before they can be enforced.
Several major medical providers have already pulled back on gender transition treatment for youths since Trump returned to office, even those in Democrat-led states where the procedures are legal under state law.
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Medicaid programs in just under half of states currently cover gender transition treatment. At least 27 states have adopted laws restricting or banning the treatment, and the Supreme Court’s decision this year upholding Tennessee’s ban likely means other state laws will remain in place.
Democrat attorneys general from California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, Wisconsin, Washington state and Washington, D.C., as well as Pennsylvania’s Democrat governor, joined James in the lawsuit.
The Associated Press contributed to this report.
WASHINGTON — Tips provided to federal investigators about Donald Trump’s alleged involvement in Jeffrey Epstein’s schemes with young women and girls are “sensationalist” and “untrue,” the Justice Department said on Tuesday, after a new tranche of files released from the probe featured multiple references to the president.
The documents include a limousine driver reportedly overhearing Trump discussing a man named Jeffrey “abusing” a girl, and an alleged victim accusing Trump and Epstein of rape. It is unclear whether the FBI followed up on the tips. The alleged rape victim died from a gunshot wound to the head after reporting the incident.
Nowhere in the newly released files do federal law enforcement agents or prosecutors indicate that Trump was suspected of wrongdoing, or that Trump — whose friendship with Epstein lasted through the mid-2000s — was investigated himself.
But one unidentified federal prosecutor noted in a 2020 email that Trump had flown on Epstein’s private jet “many more times than previously has been reported,” including over a time period when Ghislaine Maxwell, Epstein’s top confidante who would ultimately be convicted on five federal counts of sex trafficking and abuse, was being investigated for criminal activity.
The Justice Department released an unusual statement unequivocally defending the president.
“Some of these documents contain untrue and sensationalist claims made against President Trump that were submitted to the FBI right before the 2020 election,” the Justice Department statement read. “To be clear: the claims are unfounded and false, and if they had a shred of credibility, they certainly would have been weaponized against President Trump already.”
“Nevertheless, out of our commitment to the law and transparency, the DOJ is releasing these documents with the legally required protections for Epstein’s victims,” the department added.
The Justice Department files were released with heavy redactions after bipartisan lawmakers in Congress passed a new law compelling it to do so, despite Trump lobbying Republicans aggressively over the summer and fall to oppose the bill. The president ultimately signed the Epstein Files Transparency Act into law after the legislation passed with veto-proof majorities in both chambers.
One newly released file containing a letter purportedly from Epstein — a notorious child sex offender who died in jail while awaiting federal trial on sex-trafficking charges — drew widespread attention online, but was held up by the Justice Department as an example of faulty or misleading information contained in the files.
The letter appeared to be sent by Epstein to Larry Nassar, another convicted sex offender, shortly before Epstein’s death. The letter’s author suggested that Nassar would learn after receiving the note that Epstein had “taken the ‘short route’ home,” possibly referring to his suicide. It was postmarked from Virginia on Aug. 13, 2019, despite Epstein’s death in a Manhattan jail three days prior.
“Our president shares our love of young, nubile girls,” the letter reads. “When a young beauty walked by he loved to ‘grab snatch,’ whereas we ended up snatching grub in the mess halls of the system. Life is unfair.”
The Justice Department said that the FBI had confirmed that the letter is “FAKE” after it made the rounds on Tuesday.
“This fake letter serves as a reminder that just because a document is released by the Department of Justice does not make the allegations or claims within the document factual,” the department posted on social media. “Nevertheless, the DOJ will continue to release all material required by law.”
The department has faced bipartisan scrutiny since failing to release all of the Epstein files in its possession by Dec. 19, the legal deadline for it to do so, and for redacting material on the vast majority of the documents.
Justice Department officials said they were following the law by protecting victims with the redactions. The Epstein Files Transparency Act also directs the department not to redact images or references to prominent or political figures, and to provide an explanation for each and every redaction in writing.
The latest release, just days before the Christmas holiday, includes roughly 30,000 documents, the department said. Hundreds of thousands more are expected to be released in the coming weeks.
Democrats on the House Oversight Committee released a statement in response to the Tuesday release accusing the Justice Department of a “cover-up,” writing on social media, “the new DOJ documents raise serious questions about the relationship between Epstein and Donald Trump.”
Documents from Epstein’s private estate released by the oversight committee earlier this fall had already cast a spotlight on that relationship, revealing Epstein had written in emails to associates that Trump “knew about the girls.”
The latest documents release also includes an email from an individual identified as “A,” claiming to stay at Balmoral Castle, a royal residence in Scotland, asking Maxwell if she had found him “some new inappropriate friends.” Andrew Mountbatten-Windsor, formerly known as Prince Andrew, has come under intense scrutiny over his ties to Epstein in recent years.
Speaking at his Mar-a-Lago resort in Florida on Monday, Trump said the continuing Epstein scandal amounts to a “distraction” from Republican successes, and expressed disapproval over the release of images in the files that reveal associates of Epstein.
“I believe they gave over 100,000 pages of documents, and there’s tremendous backlash,” Trump told reporters. “It’s an interesting question, because a lot of people are very angry that pictures are being released of other people that really had nothing to do with Epstein. But they’re in a picture with him because he was at a party, and you ruin a reputation of somebody. So a lot of people are very angry that this continues.”
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White nationalist Nick Fuentes vowed to campaign against Vivek Ramaswamy in a slur-laced rant denouncing the Republican’s Ohio governor bid.
The declaration came just days after Ramaswamy called out Fuentes during a speech at Turning Point USA’s AmericaFest conference in which he criticized Fuentes over some of his inflammatory remarks.
“I think I’m going to go to Ohio and the word that we are looking for is denial. We have to deny Vivek Ramaswamy the governorship. This is the only race I care about in ‘26. It’s the only one I care about,” Fuentes said during a Tuesday livestream. He also used a slur to describe Ramaswamy and said he does not care if a Democrat defeats him in the governor’s race.
When asked by Fox News Digital for a response, a spokesperson for Ramaswamy’s campaign said on Wednesday, “We’re focused on the issues that matter most to Ohioans, not fringe voices that prefer a far-left Democrat to the Trump-endorsed conservative.”
VIVEK RAMASWAMY TURNS TO CONSERVATIVE YOUTH TO SHAPE THE MOVEMENT’S NEXT PHASE, ANALYZES 2026 RACES
Vivek Ramaswamy speaks during Turning Point USA’s AmericaFest conference on Friday, Dec. 19, 2025. At right is White nationalist Nick Fuentes outside a Turning Point event on June 15, 2024, in Detroit. (Cheney Orr/Reuters; Dominic Gwinn/Getty Images)
Ramaswamy laid out his vision for what it means to be an American during remarks Friday at AmericaFest.
“What does it mean to be an American in the year 2026? It means we believe in those ideals of 1776,” he said at the Turning Point USA event. “It means we believe in merit, that the best person gets the job regardless of their skin color.”
“It means we believe in free speech and open debate,” he added. “Even for those who disagree with us, from Nick Fuentes to Jimmy Kimmel, you get to speak your mind in the open without the government censoring you.”
RAMASWAMY REVEALS MAIN LESSON LEARNED BY REPUBLICANS AFTER DEMOCRATS’ BIG WINS ON ELECTION DAY
Vivek Ramaswamy speaks during Turning Point USA’s AmericaFest 2025, on Friday, Dec. 19, 2025, in Phoenix. (Jon Cherry/AP)
Ramaswamy then said, “If you believe in normalizing hatred toward any ethnic group, toward Whites, toward Blacks, toward Hispanics, toward Jews, toward Indians, you have no place in the future of the conservative movement, period.”
“And I will not apologize for that. I will not hedge when I say it,” Ramaswamy continued. “If you believe, and you will forgive me for giving you an exact quote from our online commentator, Nick Fuentes. If you believe that Hitler was pretty f—— cool, you have no place in the future of the conservative movement. You can debate foreign aid, Israel all you want. That’s fine. That’s fair. But you have no place with that level of hatred.”
Ramaswamy declared his candidacy for the Ohio governorship in late February.
Ramaswamy is running to replace Ohio Gov. Mike DeWine, shown here in the Old Senate Chamber in the U.S. Capitol on Jan. 21, 2025. (Bill Clark/CQ-Roll Call, Inc via Getty Images)
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Current Ohio Gov. Mike DeWine, who is also a Republican, is term-limited and will be departing office in January 2027.
Fox News Digital’s David Rutz contributed to this report.
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