Politics

A Devastating Trade Spat With China Shows Few Signs of Abating

Published

11 months ago

April 13, 2025

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.

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Politics

Video: Bill Clinton Says He ‘Did Nothing Wrong’ in House Epstein Inquiry

Published

5 hours ago

February 27, 2026

Press Room

Video: Bill Clinton Says He ‘Did Nothing Wrong’ in House Epstein Inquiry

new video loaded: Bill Clinton Says He ‘Did Nothing Wrong’ in House Epstein Inquiry

transcript

Bill Clinton Says He ‘Did Nothing Wrong’ in House Epstein Inquiry

Former President Bill Clinton told members of the House Oversight Committee in a closed-door deposition that he “saw nothing” and had done nothing wrong when he associated with Jeffrey Epstein decades ago.

: “Cause we don’t know when the video will be out. I don’t know when the transcript will be out. We’ve asked that they be out as quickly as possible.” “I don’t like seeing him deposed, but they certainly went after me a lot more than that.” “Republicans have now set a new precedent, which is to bring in presidents and former presidents to testify. So we’re once again going to make that call that we did yesterday. We are now asking and demanding that President Trump officially come in and testify in front of the Oversight Committee.” “Ranking Member Garcia asked President Clinton, quote, ‘Should President Trump be called to answer questions from this committee?’ And President Clinton said, that’s for you to decide. And the president went on to say that the President Trump has never said anything to me to make me think he was involved. “The way Chairman Comer described it, I don’t think is a complete, accurate description of what actually was said. So let’s release the full transcript.”
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Former President Bill Clinton told members of the House Oversight Committee in a closed-door deposition that he “saw nothing” and had done nothing wrong when he associated with Jeffrey Epstein decades ago.

By Jackeline Luna

February 27, 2026

Politics

ICE blasts Washington mayor over directive restricting immigration enforcement

Published

6 hours ago

February 27, 2026

Press Room

ICE blasts Washington mayor over directive restricting immigration enforcement

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U.S. Immigration and Customs Enforcement (ICE) accused Everett, Washington, Mayor Cassie Franklin of escalating tensions with federal authorities after she issued a directive limiting immigration enforcement in the city.

Franklin issued a mayoral directive this week establishing citywide protocols for staff, including law enforcement, that restrict federal immigration agents from entering non-public areas of city buildings without a judicial warrant.

“We’ve heard directly from residents who are afraid to leave their houses because of the concerning immigration activity happening locally and across our country. It’s heartbreaking to see the impacts on Everett families and businesses,” Franklin said in a statement.

“With this directive, we are setting clear protocols, protecting access to services and reinforcing our commitment to serving the entire community.”

ICE blasted the directive Friday, writing on X it “escalates tension and directs city law enforcement to intervene with ICE operations at their own discretion,” thereby “putting everyone at greater risk.”

Mayor Cassie Franklin said her new citywide immigration enforcement protocols are intended to protect residents and ensure access to services, while ICE accused her of escalating tensions with federal authorities. (Google Maps)

ICE said Franklin was directing city workers to “impede ICE operations and expose the location of ICE officers and agents.”

“Working AGAINST ICE forces federal teams into the community searching for criminal illegal aliens released from local jails — INCREASING THE FEDERAL PRESENCE,” the agency said. “Working with ICE reduces the federal presence.”

“If Mayor Franklin wanted to protect the people she claims to serve, she’d empower the city police with an ICE 287g partnership — instead she serves criminal illegal aliens,” ICE added.

DHS, WHITE HOUSE MOCK CHICAGO’S LAWSUIT OVER ICE: ‘MIRACULOUSLY REDISCOVERED THE 10TH AMENDMENT’

U.S. Immigration and Customs Enforcement blasted Everett’s mayor after she issued a directive restricting federal agents from accessing non-public areas of city facilities without a warrant. (Victor J. Blue/Bloomberg via Getty Images)

During a city council meeting where she announced the policy, Franklin said “federal immigration enforcement is causing real fear for Everett residents.”

“It’s been heartbreaking to see the racial profiling that’s having an impact on Everett families and businesses,” she said. “We know there are kids staying home from school, people not going to work or people not going about their day, dining out or shopping for essentials.”

The mayor’s directive covers four main areas, including restricting federal immigration agents from accessing non-public areas of city buildings without a warrant, requiring immediate reporting of enforcement activity on city property and mandating clear signage to enforce access limits.

BLOCKING ICE COOPERATION FUELED MINNESOTA UNREST, OFFICIALS WARN AS VIRGINIA REVERSES COURSE

Everett, Wash., Mayor Cassie Franklin said her new directive is aimed at protecting residents amid heightened immigration enforcement activity. (iStock)

It also calls for an internal policy review and staff training, including the creation of an Interdepartmental Response Team and updated immigration enforcement protocols to ensure compliance with state law.

Franklin directed city staff to expand partnerships with community leaders, advocacy groups and regional governments to coordinate responses to immigration enforcement, while promoting immigrant-owned businesses and providing workplace protections and “know your rights” resources.

The mayor also reaffirmed a commitment to “constitutional policing and best practices,” stating that the police department will comply with state law barring participation in civil immigration enforcement. The directive outlines protocols for documenting interactions with federal officials, reviewing records requests and strengthening privacy safeguards and technology audits.

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Everett, Wash., Mayor Cassie Franklin issued a directive limiting federal immigration enforcement in city facilities. (iStock)

“We want everyone in the city of Everett to feel safe calling 911 when they need help and to know that Everett Police will not ask about your immigration status,” Franklin said during the council meeting. ”I also expect our officers to intervene if it’s safe to do so to protect our residents when they witness federal officers using unnecessary force.”

Fox News Digital has reached out to Mayor Franklin’s office and ICE for comment.

Politics

Power, politics and a $2.8-billion exit: How Paramount topped Netflix to win Warner Bros.

Published

7 hours ago

February 27, 2026

Press Room

Power, politics and a .8-billion exit: How Paramount topped Netflix to win Warner Bros.

The morning after Netflix clinched its deal to buy Warner Bros., Paramount Skydance Chairman David Ellison assembled a war room of trusted advisors, including his billionaire father, Larry Ellison.

Furious at Warner Bros. Discovery Chief David Zaslav for ending the auction, the Ellisons and their team began plotting their comeback on that crisp December day.

To rattle Warner Bros. Discovery and its investors, they launched a three-front campaign: a lawsuit, a hostile takeover bid and direct lobbying of the Trump administration and Republicans in Congress.

“There was a master battle plan — and it was extremely disciplined,” said one auction insider who was not authorized to comment publicly.

Netflix stunned the industry late Thursday by pulling out of the bidding, clearing the way for Paramount to claim the company that owns HBO, HBO Max, CNN, TBS, Food Network and the Warner Bros. film and television studios in Burbank. The deal was valued at more than $111 billion.

The streaming giant’s reversal came just hours after co-Chief Executive Ted Sarandos met with Atty Gen. Pam Bondi and a deputy at the White House. It was a cordial session, but the Trump officials told Sarandos that his deal was facing significant hurdles in Washington, according to a person close to the administration who was not authorized to comment publicly.

Even before that meeting, the tide had turned for Paramount in a swell of power, politics and brinkmanship.

“Netflix played their cards well; however, Paramount played their cards perfectly,” said Jonathan Miller, chief executive of Integrated Media Co. “They did exactly what they had to do and when they had to do it — which was at the very last moment.”

Key to victory was Larry Ellison, his $200-billion fortune and his connections to President Trump and congressional Republicans.

Paramount also hired Trump’s former antitrust chief, attorney Makan Delrahim, to quarterback the firm’s legal and regulatory action.

Republicans during a Senate hearing this month piled onto Sarandos with complaints about potential monopolistic practices and “woke” programming.

David Ellison skipped that hearing. This week, however, he attended Trump’s State of the Union address in the Capitol chambers, a guest of Sen. Lindsey Graham (R-S.C.). The two men posed, grinning and giving a thumbs-up, for a photo that was posted to Graham’s X account.

David Ellison, the chairman and chief executive of Paramount Skydance Corp., walks through Statuary Hall to the State of the Union address at the U.S. Capitol on Feb. 24, 2026.

(Anna Moneymaker / Getty Images)

On Friday, Netflix said it had received a $2.8-billion payment — a termination fee Paramount agreed to pay to send Netflix on its way.

Long before David Ellison and his family acquired Paramount and CBS last summer, the 43-year-old tech scion and aircraft pilot already had his sights set on Warner Bros. Discovery.

Paramount’s assets, including MTV, Nickelodeon and the Melrose Avenue movie studio, have been fading. Ellison recognized he needed the more robust company — Warner Bros. Discovery — to achieve his ambitions.

“From the very beginning, our pursuit of Warner Bros. Discovery has been guided by a clear purpose: to honor the legacy of two iconic companies while accelerating our vision of building a next-generation media and entertainment company,” David Ellison said in a Friday statement. “We couldn’t be more excited for what’s ahead.”

Warner’s chief, Zaslav, who had initially opposed the Paramount bid, added: “We look forward to working with Paramount to complete this historic transaction.”

Netflix, in a separate statement, said it was unwilling to go beyond its $82.7-billion proposal that Warner board members accepted Dec. 4.

“We believe we would have been strong stewards of Warner Bros.’ iconic brands, and that our deal would have strengthened the entertainment industry and preserved and created more production jobs,” Sarandos and co-Chief Executive Greg Peters said in a statement.

“But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price,” the Netflix chiefs said.

Netflix may have miscalculated the Ellison family’s determination when it agreed Feb. 16 to allow Paramount back into the bidding.

The Los Gatos, Calif.-based company already had prevailed in the auction, and had an agreement in hand. Its next step was a shareholder vote.

“They didn’t need to let Paramount back in, but there was a lot of pressure on them to make sure the process wouldn’t be challenged,” Miller said.

In addition, Netflix’s stock had also been pummeled — the company had lost a quarter of its value — since investors learned the company was making a Warner run.

Upon news that Netflix had withdrawn, its shares soared Friday nearly 14% to $96.24.

Netflix Co-CEO Ted Sarandos arrives at the White House

Invited back into the auction room, Paramount unveiled a much stronger proposal than the one it submitted in December.

The elder Ellison had pledged to personally guarantee the deal, including $45.7 billion in equity required to close the transaction. And if bankers became worried that Paramount was too leveraged, the tech mogul agreed to put in more money in order to secure the bank financing.

That promise assuaged Warner Bros. Discovery board members who had fretted for weeks that they weren’t sure Ellison would sign on the dotted line, according to two people close to the auction who were not authorized to comment.

Paramount’s pressure campaign had been relentless, first winning over theater owners, who expressed alarm over Netflix’s business model that encourages consumers to watch movies in their homes.

During the last two weeks, Sarandos got dragged into two ugly controversies.

First, famed filmmaker James Cameron endorsed Paramount, saying a Netflix takeover would lead to massive job losses in the entertainment industry, which is already reeling from a production slowdown in Southern California that has disrupted the lives of thousands of film industry workers.

Then, a week ago, Trump took aim at Netflix board member Susan Rice, a former high-level Obama and Biden administration official. In a social media post, Trump called Rice a “no talent … political hack,” and said that Netflix must fire her or “pay the consequences.”

The threat underscored the dicey environment for Netflix.

Additionally, Paramount had sowed doubts about Netflix among lawmakers, regulators, Warner investors and ultimately the Warner board.

Paramount assured Warner board members that it had a clear path to win regulatory approval so the deal would quickly be finalized. In a show of confidence, Delrahim filed to win the Justice Department’s blessing in December — even though Paramount didn’t have a deal.

This month, a deadline for the Justice Department to raise issues with Paramount’s proposed Warner takeover passed without comment from the Trump regulators.

“Analysts believe the deal is likely to close,” TD Cowen analysts said in a Friday report. “While Paramount-WBD does present material antitrust risks (higher pay TV prices, lower pay for TV/movie workers), analysts also see a key pro-competitive effect: improved competition in streaming, with Paramount+ and HBO Max representing a materially stronger counterweight to #1 Netflix.”

Throughout the battle, David Ellison relied on support from his father, attorney Delrahim, and three key board members: Oracle Executive Vice Chair Safra A. Catz; RedBird Capital Partners founder Gerry Cardinale; and Justin Hamill, managing director of tech investment firm Silver Lake.

In the final days, David Ellison led an effort to flip Warner board members who had firmly supported Netflix. With Paramount’s improved offer, several began leaning toward the Paramount deal.

On Tuesday, Warner announced that Paramount’s deal was promising.

On Thursday, Warner’s board determined Paramount’s deal had topped Netflix. That’s when Netflix surrendered.

“Paramount had a fulsome, 360-degree approach,” Miller said. “They approached it financially. … They understood the regulatory environment here and abroad in the EU. And they had a game plan for every aspect.”

On Friday, Paramount shares rose 21% to $13.51.

It was a reversal of fortunes for David Ellison, who appeared on CNBC just three days after that war room meeting in December.

“We put the company in play,” David Ellison told the CNBC anchor that day. “We’re really here to finish what we started.”

Times staff writer Ana Cabellos and Business Editor Richard Verrier contributed to this report.