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A Devastating Trade Spat With China Shows Few Signs of Abating

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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.

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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.

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“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.

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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.

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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.”

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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.

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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.”

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“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.”

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Shawn McCreesh, Maggie Haberman, Karen Weise, Tony Romm and Jonathan Swan contributed reporting.

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NYC Mayor Mamdani’s wife glorified terrorists in online posts, criticized US military: report

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NYC Mayor Mamdani’s wife glorified terrorists in online posts, criticized US military: report

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The wife of New York City Mayor Zohran Mamdani reportedly celebrated terrorists in a series of social media posts as a teenager and young adult as scrutiny over her online history continues. 

In September 2017, Rama Duwaji posted a photo on her Tumblr account of Leila Khaled, longtime active leader of the Popular Front for the Liberation of Palestine (PFLP) who participated in two plane hijackings in 1969 and 1970. 

“If it does good for my cause, I’ll be happy to accept death,” the caption said.

CITY-RUN BOARD CANCELS LEASE OF ISRAEL DRONE SUPPLIER, SPARKING BACKLASH TOWARD MAMDANI: ‘LUDICROUS’

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New York Mayor Zohran Mamdani and wife Rama Duwaji wave after his ceremonial inauguration as mayor at City Hall Jan. 1 in New York. Duwaji has come under scrutiny over her past social media posts criticizing Israel.  (David Dee Delgado/Getty Images)

Khaled is the first woman to hijack an airplane and is revered by terrorists for her role in the crimes. 

Many of her posts were made in her early 20s, the Washing Free Beacon reported, noting that Duwaji, now 28, spent her early childhood in New Jersey before moving with her family to Dubai. 

In March 2015, when she was 17, Duwaji reposted a tweet on International Women’s Day praising the terrorist Shadia Abu Ghazaleh. An image in the post shows Ghazaleh, who participated in the bombing of an Israeli bus and led several other terrorist attacks.

The image showed her posing with a rifle. She was killed in 1968 when a bomb she was building in her home accidentally exploded. The device that killed her was allegedly intended to blow up a building in Tel Aviv.

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Other posts include someone wearing keffiyeh clothing while sewing a flag.

“Photography: ‘A Palestinian demonstrator sews a Palestinian Liberation Organization flag before a protest during the first Intifada’, February, 1988,” the caption says.

Another showed a Bangladeshi postage stamp that said, “We salute the valiant freedom fighters of Palestine.”

A July 2015 post criticized the U.S. military presence abroad. 

“*taps mic* American soldiers fighting in imperialist wars are not brave nor are they fighting for anyone’s freedom,” the post said. “They are mercilessly slaughtering 3rd world civilians and fighting to maintain American hegemony. That is all, thank you! *drops mic*”

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ISRAEL ACCUSES MAMDANI OF POURING ‘ANTISEMITIC GASOLINE’ AFTER HE REVOKES ADAMS EXECUTIVE ORDERS

U.S. Sen. Bernie Sanders, I-Vt., left, administers the oath of office to Mayor Zohran Mamdani, right, as Rama Duwaji, center, holds the Quran during Mamdani’s inauguration ceremony, Jan. 1, 2026, in New York. (Andres Kudacki/AP Photo)

Later that same year, Duwaji reposted a Tumblr user. 

“You can’t blame muslims for terrorism because they didn’t construct, fund nor train Al-Qaeda,” the user wrote. “White People did that too.”

In another 2015 post, she reposted a criticism of Snapchat for adding Tel Aviv to its live story feature. 

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“But in all reality, @Snapchat has disappointed me. F*** #TelAviv. Shouldn’t exist in the first place. They’re occupiers. You celebrate them,” a post retweeted by Duwaji said.

“And finally. Hey @Snapchat, as you give Israelis an outlet to celebrate their atrocities, youre supporting a genocidal state. Bye. #TelAviv.”

Duwaji, who was born in Houston and identifies as Syrian, married Mamdani in 2025,. She drew national attention after revelations she liked several posts in the immediate aftermath of the Oct. 7 attack that were critical of Israel.

New York Mayor Zohran Mamdani stands on stage with wife Rama Duwaji after he was ceremonially sworn in as New York City’s 112th mayor at City Hall. (Getty Images)

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On the day of the Oct. 7, 2023, attack on Israel by Hamas, Duwaji liked an Instagram post showing images from participants who livestreamed footage of the onslaught, which left 1,200 Israelis dead, including young children. 

She also allegedly liked a February 2024 Instagram post claiming The New York Times’ investigation into sexual violence during the Oct. 7 attack was “fabricated,” 

Fox News Digital has reached out to the mayor’s office. 

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Democrats excluded from USC gubernatorial debate urge rivals to boycott in solidarity

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Democrats excluded from USC gubernatorial debate urge rivals to boycott in solidarity

Four Democrats running for governor called on their fellow candidates to boycott an upcoming debate at USC, reiterating concerns that the criteria used to determine who was invited to participate resulted in every prominent candidate of color being excluded from the forum.

“We ask each and every candidate who is in this race to recognize that if we can’t have a fair process for a debate, then we should all not participate,” said Xavier Becerra, the former U.S. Health and Human Services secretary. “We call on them to withdraw from this biased forum.”

Becerra’s call was echoed by former Los Angeles Mayor Antonio Villaraigosa, state Supt. of Public Instruction Tony Thurmond and former state Controller Betty Yee during a Friday afternoon news conference.

The candidate’s request comes a week after some of them raised concerns about the criteria for Tuesday’s debate, arguing that it was engineered to allow the inclusion of San José Mayor Matt Mahan, who entered the race in late January and quickly raised millions of dollars from Silicon Valley executives.

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“The rules initially were polling and money. Matt Mahan is [polling] lower than some of us, period,” Villaraigosa said, adding that the debate organizers “then added time in the race,” which resulted in Mahan’s invitation.

Mahan’s campaign did not respond to a request for comment on Friday, but when Becerra raised such concerns last week, Mahan said the former Biden administration official ought to be included in the debate.

The matter is further complicated by Mahan supporters who have notable ties to the university.

Mike Murphy, a co-director of the USC center hosting the debate, has been voluntarily advising an independent expenditure committee backing Mahan. The veteran GOP strategist said last week that he had nothing to do with organizing the debate and that he has asked for unpaid leave at the university through the June 2 primary if he takes a paid role in the campaign.

USC has also received tens of millions of dollars in donations from billionaire real estate developer Rick Caruso and his wife. Caruso, a USC alumnus who served as a trustee for years, is also a Mahan supporter.

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A representative for Caruso did not respond to a request for comment.

The debate, hosted by the USC Dornsife Center for the Political Future, KABC-TV Los Angeles and Univision, is scheduled to take place on campus at 5 p.m. Tuesday — less than two months before ballots begin arriving in voters’ mailboxes. The forum will be streamed and broadcast on ABC and Univision affiliates across the state.

USC and the television stations put out a joint statement Friday morning, prior to the candidates’ news conference, justifying the criteria used to determine who was invited to participate and saying none of the debate partners had any influence on the methodology.

“We want to be clear that we categorically, unequivocally deny any allegations that the debate criteria was in any way biased in favor or against any candidate and want to clarify the facts,” they said in a statement, adding that Christian Grose, a USC political science professor, was asked to develop “data-driven” benchmarks to determine which candidates were invited.

“The methodology was based on well-established metrics consistent with formulas widely used to set debate participation nationwide — a combination of polling and fundraising — and developed without regard to any particular candidate.”

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After the Democratic candidates called for their competitors to not participate, USC and KABC declined to comment further. Univision did not respond to a request for comment.

Grose defended the methodology he crafted as “objective” in an interview Friday, and said he met with Becerra as well as the staff of other candidates to explain it.

“The idea that it was biased or designed to create some sort of outcome to disfavor the candidates who spoke at the press conference is just not correct,” Grose said, adding that attacks on the methodology have a “chilling effect” on universities and media outlets who sponsor debates.

“I’m not worried about the optics,” he said. “The optics are we are having a debate at USC to inform voters and educate students.”

Jarred Cuellar, a political science assistant professor at Cal Poly Pomona, described Grose’s methodology as “thoughtful” and “empirically grounded,” and characterized the concerns raised by candidates not included in the debate as unfounded and not credible.

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“The formula is methodologically sound and represents a clear improvement over how debate participation has often been determined,” he said. “Rather than relying on a single metric such as polling, it takes a multidimensional approach to evaluating candidate viability. That approach better reflects how political scientists measure complex phenomena like electoral competitiveness.”

But the controversy has caused consternation among USC professors past and present.

“It seems like an unforced error that is casting the entire event in a bad light,” said a current USC professor who closely follows politics but is not involved in the debate, and who asked for anonymity to speak candidly. “It’s super important that if the debate happens, it happens correctly.”

Darry Sragow, a veteran Democratic strategist who taught election and environmental law at USC for 19 years, said that while he believes the large field of Democratic candidates needs to be winnowed, that’s not the job of a university or media outlets.

“Every one of these eight [Democratic candidates] is capable of running the state of California,” he said. “It would certainly be my advice to USC and to Univision and to ABC to allow all the candidates to take part, or to cancel the debate.”

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The four Democratic candidates not invited to the debate argued that voters are just starting to pay attention to the thus-far sleepy race and that diverse candidates should be represented.

“We are a minority-majority state, and the idea that the four candidates of color are not going to be on the stage to bring those perspectives, to really speak to those communities, is really not doing right by the voters,” Yee said.

Becerra said some of the candidates had requested to speak with top university leadership, including President Beong-Soo Kim. In other conversations, he said university officials raised the possibility of “either canceling this debate or incorporating more of the candidates in it. Evidently they could not agree to do that. … I think they recognize that there were problems with the way this debate had been organized.”

Becerra said he reviewed the formula and has “never seen” debate criteria like it before during his decades of serving in elected office.

“Your fundraising numbers are divided by the number of days you’ve been out there campaigning in front of voters,” he said. “So you could have raised millions of dollars, but if you’ve been in longer than someone else who just raised millions of dollars very quickly, you get penalized.”

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Campaigns for most of the invited candidates — Democrats Rep. Eric Swalwell of Dublin, former Orange County Rep. Katie Porter, climate activist Tom Steyer and Mahan; as well as Republican Chad Bianco, the sheriff of Riverside County — did not respond to requests for comment on the call to boycott the debate.

Former Fox News commentator Steve Hilton, a Republican who will be appearing at the debate, blasted the Democrats who were upset about not qualifying for the debate as well as USC’s debate criteria as “completely ridiculous.”

“You’ve got a bunch of Democrats that aren’t doing well enough to get into the debate, complaining about it, and I don’t have any time for that at all. Do better, and then you’ll get in the debate,” Hilton said in a video posted Friday evening on the social media platform X. “Then you’ve got Matt Mahan, who’s a candidate who’s just got into the race, absolutely doesn’t meet the criteria, but they’ve rigged the rules in order to get him in.”

Hilton said he was also offended by the exclusion of developer Elaine Culotti, who starred in the second season of the reality show “Undercover Billionaire” and is running for governor as an independent.

“She’s a businesswoman, she’s got a big following. There’s a lot of independent voters in California now. Of course, I would love those voters to support my campaign, but the fact that you don’t have an independent on that stage, you’ve got a bunch of Democrats, and you’ve got two Republicans, but no independent, that is outrageous,” Hilton said of Culotti, who has never registered support in any public polls. “She should be on that stage next week at USC.”

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Pritzker pushes prosecutions of Trump officials as part of Dem ‘Project 2029’ agenda

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Pritzker pushes prosecutions of Trump officials as part of Dem ‘Project 2029’ agenda

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Illinois Democratic Gov. JB Pritzker said that Democrats should seek criminal prosecution against Trump administration and law enforcement officials who have “broken the law” if they were to gain control of the White House in 2028.

Pritzker, who is running for a third gubernatorial term, sat down for an interview with the New York Times in which he proposed Democrats adopt their own version of Project 2025 — the Heritage Foundation’s conservative policy blueprint for presidential administrations released in nearly every election cycle since the 1980s. Pritzker dubbed the Democrats’ counter “Project 2029,” urging it to be quickly implemented to “restore the rule of law.”

“I don’t think you can speak of it in shorthand, but we’ve got to restore the rule of law, and that means holding people accountable who’ve broken the law,” Pritzker said. “I’m talking about the people in this administration who’ve broken the law and federal agents who’ve broken the law.”

New York Times reporter Lulu Garcia-Navarro asked Pritzker whether this meant Trump officials and law enforcement agents would face criminal prosecution.

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TRUMP SAYS CHICAGO MAYOR, ILLINOIS GOVERNOR ‘SHOULD BE IN JAIL FOR FAILING TO PROTECT’ ICE OFFICERS

Illinois Gov. JB Pritzker speaks to members of the media at Manny’s Cafeteria and Delicatessen during a primary election in Chicago, Illinois, on Tuesday, March 17, 2026.  (Credit: Christopher Dilts / Bloomberg via Getty Images)

“Criminally prosecuted, civilly prosecuted,” Pritzker said. “Whatever it is that we can do.”

Trump and Pritzker have been at odds over Trump’s immigration enforcement agenda for months.

Last October, Pritzker filed a lawsuit against the Trump administration over its deployment of National Guard troops to Chicago. The lawsuit argued that the deployment of the National Guardsmen to the Windy City was “unconstitutional and/or unlawful.”

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PRITZKER CLAIMS COUNTRY UNDER TRUMP WORSE THAN COVID PANDEMIC WHERE PEOPLE DIED ‘IN DROVES’

U.S. Immigration and Customs Enforcement (ICE) agents walk down a street during a multi-agency targeted enforcement operation in Chicago, Illinois, on Sunday, Jan. 26, 2025. President Donald Trump has pledged to carry out the largest deportation effort in U.S. history, vowing to ultimately deport all people living in the country without legal status. (Christopher Dilts / Bloomberg via Getty Images)

U.S. District Judge April Perry issued a temporary restraining order preventing the deployment of National Guard troops to the state as the lawsuit worked its way through the legal system. The Supreme Court also upheld Perry’s decision. The Trump administration withdrew federal troops from the state in January.

Pritzker and Trump have also clashed over the tactics used by federal immigration enforcement agents in Illinois. Pritzker has accused federal agents of “waging war on our people” and “acting like jackbooted thugs.”

U.S. President Donald Trump attends a tour of a Thermo Fisher Scientific facility in Reading, Ohio, on March 11, 2026. Trump is highlighting his administration’s push to lower drug prices at the biotechnology and pharmaceutical company. (Andrew Harnik / Getty Images)

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The Trump administration faces another lawsuit stemming from accusations of immigration enforcement agents’ alleged misconduct during Operation Midway Blitz in Chicago. Plaintiffs in the lawsuit accused federal agents of violating protesters’ constitutional rights through their use of tear gas and force. District Judge Sara Ellis issued a preliminary injunction barring federal agents’ use of force and tear gas on protesters, but an appeals court overturned her decision earlier this month.

Fox News Digital reached out to Pritzker’s office and the White House for comment.

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