Politics
California businesses are reeling from Trump's on-again, off-again tariffs
Tariffs haven’t yet hit the supply chain at Anawalt in Malibu, but the hardware store and lumber seller is bracing for steep price hikes in the coming weeks.
The majority of the lumber that the store sells comes from Canada and nearly all of its steel products are made in China, general manager Rieff Anawalt said. Those countries, along with Mexico, have been targeted in sweeping tariffs imposed by President Trump during his second term, sparking a global trade war that intensified this week.
“These tariffs are 100% going to impact us,” Anawalt said. Wholesale reps for the family-run hardware company, which has five locations around Los Angeles County, have warned him to expect prices to go up by April 1 — costs that he said he’ll have to pass on to customers.
“We’re going to see major increases: 15% to 25% across the board in this industry,” he said. “It’ll make COVID prices seem cheap.”
Across California, businesses of all kinds — farmers, automakers, home builders, tech companies and apparel retailers — are reeling from weeks of on-again, off-again tariff chaos as Trump has announced a slew of levies against the country’s top three trading partners, implementing some while modifying, delaying or reversing others.
“It’s a day-by-day soap opera, and just like a soap opera, you get relief, then it heats up again,” said Jonathan D. Aronson, a professor of international communication and international relations at USC.
As a result, business owners “don’t know what’s going to happen,” he said. “They can’t plan. They don’t know how much to produce. They don’t know who their business partners are going to be.”
This month has been particularly tumultuous. On March 4, Trump’s 25% tariffs on imports from Canada and Mexico kicked in, with a limit of 10% on Canadian energy; he also doubled the tariff on all Chinese imports to 20%. All three countries vowed to strike back with their own measures.
A lumber yard in British Columbia, Canada, last month. Canada is the largest foreign supplier of lumber to the U.S.
(Bloomberg via Getty Images)
The next day, Trump granted a one-month exemption for U.S. automakers on his new tariffs on imports from Canada and Mexico. The day after that, he said he was postponing many of the tariffs on Canadian and Mexican imports for a month.
On Monday, in a blow to farmers in California and across the U.S., China imposed retaliatory duties of up to 15% on American agricultural products including chicken, corn, beef, pork, wheat and soybeans. Then on Wednesday, Trump’s 25% tariffs on all steel and aluminum imports went into effect.
To counterbalance the effects of the tariffs on their bottom lines, businesses may have to overhaul their operations, said Jerry Nickelsburg, faculty director of the UCLA Anderson Forecast.
“The way in which firms react to that uncertainty is to not put all their eggs in one basket,” he said. “So they cut back on how much they would order, which means they’re going to produce less and they need fewer people — or if not fewer people, fewer hours for the people they have.”
The latest volley came Thursday morning, when Trump threatened to place a 200% tariff on wine and liquor from the European Union in response to the EU proposing a 50% tariff on American whiskey. About an hour later, he wrote in a follow-up post on Truth Social that the U.S. “doesn’t have Free Trade. We have ‘Stupid Trade.’”
“The Entire World is RIPPING US OFF!!!” he said.
Bolstering the economy was one of Trump’s core promises during the election, and tariffs are key to his strategy. He threatened to slap tariffs on Mexico, Canada and China on his first day back in office, explaining the decision as a way to crack down on illegal immigration and drugs.
But the escalating trade tensions have pummeled Wall Street for three weeks. On Thursday, the S&P 500 closed in correction territory, ending the day down 1.39%; the index is now 10.1% below its record close Feb. 19. The Dow Jones Industrial Average fell 537.36 points, or 1.3%, closing at 40,813.57.
The fallout for farmers
The prolonged back-and-forth has also unsettled companies, both those that import goods from abroad and those that sell their products to foreign clients. California’s economy could be especially hard hit because of its heavy reliance on trade with China and Mexico, and because of its position as a global agricultural powerhouse.
Farmer Joe Del Bosque holds a raw almond in Firebaugh, Calif.
(Robert Gauthier / Los Angeles Times)
California farmers grow the largest share of the nation’s food — more than a third of the country’s vegetables and more than three-quarters of its fruits and nuts are grown here — and the state’s fertile ground is a major supplier of produce to countries around the world. Farmers also rely heavily on fertilizer from Canada, which could cost more as the tariffs take hold.
“Farmers in California are going to be hurt particularly badly because almonds, soybeans and things like that are huge exports of the United States,” Aronson said.
The state also accounts for about 85% of wines produced in the United States and is home to thousands of grape growers and wineries, many of them small and generations-old. The Wine Institute says the industry supports employment for more than 420,000 Californians and generates $73 billion in economic activity in the state. Canada is the largest market for California wine.
A flurry of activity at the ports
Some L.A.-area companies have been stockpiling inventory to get ahead of expected price hikes tied to the tariffs, said Stephen Cheung, chief executive of the Los Angeles County Economic Development Corp.
“A lot of them were hit pretty hard during the last trade war with China,” he said, “so they knew better than to wait and hope for the best.”
That has been reflected in shipping data from the ports in Long Beach and Los Angeles, which continue to record huge numbers thanks to several months of front-loading cargo ahead of Trump’s inauguration.
The Port of Long Beach moved 765,385 twenty-foot equivalent units, or TEUs, in February, a 13.4% increase from the previous year. January’s year-over-year growth was even larger: 952,733 TEUs — a unit of measurement based on the volume of a standard shipping container — were moved, representing a 41.4% increase.
An aerial view of the Port of Long Beach.
(Allen J. Schaben / Los Angeles Times)
After Trump launched a trade war with China during his first term, the Port of Long Beach lost about 20% of expected Chinese cargo in 2019, Chief Executive Mario Cordero said. That was supplemented by a 10% increase in imports from countries in Southeast Asia including Vietnam, Indonesia and Thailand. He expects the same thing to happen this time around.
In the coming months, Cordero said, the local economy could see supply chain disruptions, similar to what occurred during the pandemic, “if we continue on the path of aggressive and high” tariffs.
The Port of Los Angeles expects a 10% reduction in volume from last year amid Trump’s tariffs against China, Executive Director Gene Seroka said.
It’s a day-by-day soap opera, and just like a soap opera, you get relief, then it heats up again.
— Jonathan D. Aronson, a professor of international communication and international relations at USC
One of the largest seaports in the country, the L.A. port has seen sharp increases in cargo since last summer as businesses stocked up in anticipation of potential Trump tariffs. Just under 10.3 million TEUs, a near record, passed through the port last year.
Those numbers are likely to trend downward as tariffs take hold and the economy adjusts, Seroka said. “Fewer containers mean fewer jobs.”
L.A. businesses try to adjust
Economists say it’s difficult for companies to quickly change suppliers, and some may be loath to upend their supply chains given the ever-changing nature of Trump’s trade policies.
Some are trying anyway.
Francesca Grace, an interior designer and home stager in Los Angeles, said tariffs have already affected the availability and price of items including fabrics, wood and other building materials, and smaller decor pieces.
Supply chain delays have extended her project timelines in some cases to three to six weeks from immediate availability, and she’s contending with “at least a 25% rise” in costs for materials from China. As a result, she’s now trying to source all of her products locally, up from 75%.
“While this shift aligns with our values, it will also cause our pricing to increase,” Grace said. “We are doing everything we can to avoid increasing our pricing too much. The last thing we want is for these changes to negatively impact our business or make our designs inaccessible.”
Other businesses say they have little choice when it comes to where they get their merchandise.
“Lumber prices are what they are. There’s no sourcing it somewhere else, so we’re going to have to deal with it as it comes,” said Anawalt, the general manager at the Malibu hardware store. “It’s so beyond my control, there’s nothing I can do. I was panicked at first, but now I’m just going to wait.”
Politics
Ex–New York State official accused of spying for China called Hochul ‘more obedient’ than Cuomo, trial reveals
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A former top New York state official who is accused of spying for China once remarked that New York Gov. Kathy Hochul was “much more obedient” than then-Gov. Andrew Cuomo.
Linda Sun made the remark after she convinced Hochul, who served as Cuomo’s lieutenant governor at the time, to film a Lunar New Year video touting China’s New York consulate, the New York Post reported, citing evidence presented at Sun’s corruption trial.
“She is much more obedient than the governor,” Sun wrote to China consular official Lihua Li in a Jan. 25, 2021, message shown to jurors in Brooklyn federal court.
EX-OFFICIALS COULD GET LIFETIME BANS FROM LOBBYING FOR CHINA, RUSSIA UNDER NEW BIPARTISAN PUSH
Linda Sun is charged with being an aide to the Chinese government. (AP Photo/Corey Sipkin)
Minutes later, Sun texted Huang Ping, who headed the consulate office at the time.
“The deputy governor listens to me more than the governor does,” she allegedly wrote, prosecutors said.
Chinese officials had asked for Cuomo to film the video, but Sun told them that she could likely get Hochul to participate instead, prosecutors said.
“Let me ask, but likely the LG can probably do it,” Sun replied to Li, referring to Hochul.
“That would be great as well. Thanks,” Li responded.
In the two-minute video, Hochul is seen wishing everyone a happy Lunar New Year and talking about the “privilege” of working with the Chinese-American community and the Chinese consular office. Fox News Digital has reached out to Hochul’s office.
Sun, who also served under Hochul, is charged with violating and conspiring to violate the Foreign Agents Registration Act, visa fraud, alien smuggling, and money laundering conspiracy.
ILLEGAL IMMIGRANT CHINESE NATIONAL TRIED STEALING SENSITIVE AI MICROCHIPS, DOJ SAYS
New York Governor Kathy Hochul speaks at a press conference in Manhattan in New York City, Feb. 20, 2025. (REUTERS/Brendan McDermid)
Prosecutors from the Brooklyn District Attorney’s Office believe that Sun acted on behalf of the Chinese government on a number of occasions, including seeking a high-level state visit to China and preventing representatives of the Taiwanese government from meeting with American officials.
In 2023, Sun was fired from her position after “evidence of misconduct” was discovered. She is accused of doing favors for Chinese officials in exchange for millions of dollars in business funneled to her husband, Chris Hu, who conducted business in China.
Hu and Sun are accused of using the money to buy property in Long Island, New York, and Honolulu worth more than $6 million, in addition to a 2024 Ferrari Roma sports car.
In one instance, Sun allegedly claimed to be able to stop Cuomo from mentioning the plight of the Uyghurs, the predominantly Muslim ethnic group that has been targeted by the Chinese government through mass incarceration and forced labor, according to human rights advocates.
In the Jan. 25, 2021, exchange with Ping, Sun wrote that she had an “argument” with Cuomo’s speechwriter, who had “insisted” on bringing up the Uyghurs, according to the Post report.
“This person has never been to China, right? He knows very little about China,” Ping replied.
Former aide to New York Gov. Kathy Hochul, Linda Sun, once allegedly bragged that Hochul was “much more obedient” than then-Gov. Andrew Cuomo. (Getty Images)
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“Never been there,” Sun said. “I’m going to collapse.”
“I will think of a solution tomorrow, but I will definitely not let the governor bring it up,” Sun added.
Sun’s lawyers argued that her relationship with Chinese officials was not improper and was legal.
“Linda Sun did what she was hired to do. She didn’t commit a crime by doing her job,” defense attorney Jarrod Schaeffer told jurors at the start of the trial, the Post reported.
Politics
Supreme Court rules for Texas Republicans, allowing new election map to go into effect
WASHINGTON — The Supreme Court ruled for Texas and its GOP leaders on Thursday, clearing the way for the state to use a new election map in 2026 that is expected to send five more Republicans to Congress.
The justices set aside, for now, a 2-1 ruling by district judges who called the state’s map a racial gerrymander. Thursday’s vote was 6-3 along the usual lines, with the conservative justices in the majority and the three liberals in dissent.
The court’s five-paragraph order said the district judges “failed to honor the presumption of legislative good faith by construing ambiguous direct and circumstantial evidence against the legislature.”
“The impetus for the adoption of the Texas map (like the map subsequently adopted in California) was partisan advantage pure and simple,” wrote Justice Samuel A. Alito Jr. in a concurring opinion.
Texas lawmakers had said they acted out of partisan motives, not racial ones.
“Today’s order disrespects the work of a District Court that did everything one could ask to carry out its charge — that put aside every consideration except getting the issue before it right,” wrote Justice Elena Kagan in dissent. “And today’s order disserves the millions of Texans whom the District Court found were assigned to their new districts based on their race. Because this Court’s precedents and our Constitution demand better, I respectfully dissent.”
She was joined by Justices Sonia Sotomayor and Ketanji Brown Jackson.
The decision bolsters Republicans in their bid to retain control of the House, and it’s a setback for Democrats and voting rights advocates.
It is consistent with the conservative majority’s view that drawing election districts is a “political question” left to state lawmakers, not judges. But in the past, the court also said racial gerrymandering is unconstitutional under the 14th and 15th Amendments.
In response to the Texas mid-decade redistricting, California Gov. Gavin Newsom won voters’ approval for redrawing his state’s congressional districts with the aim of electing five more Democrats in 2026.
On Nov. 21, Texas state’s attorneys filed an emergency appeal at the Supreme Court, urging the justices to act quickly to block the lower court’s ruling.
They argued the new election map for Texas was drawn based on partisan advantage, not the race of the voters. And they said a further delay would disrupt the next election because Dec. 8 is the filing deadline for candidates.
They cited the so-called “Purcell principle” as grounds for setting aside the district court ruling because it came to close to an impending election.
The Texas mid-decade restricting arose in July.
“Texas has also made a strong showing of irreparable harm and that the equities and public interest favor it,” the Supreme Court ruling said. “This Court has repeatedly emphasized that lower federal courts should ordinarily not alter the election rules on the eve of an election. The District Court violated that rule here.”
Acting at the behest of President Trump, Texas Gov. Greg Abbott called for a special session of the Legislature to redraw its 38 congressional voting districts with the aim of ousting five Democrats from the House of Representatives.
As justification, he cited the “constitutional concerns” raised by Harmeet Dhillon, the head of the Civil Rights Division at the Department of Justice.
She contended the state had several unconstitutional “coalition districts” which had a “non-White” majority made up of Black and Latino voters.
Voting rights advocates said Texas Republicans followed her view and redrew districts near Houston, Dallas and Fort Worth to erase those where Latino and Black voters formed a majority.
U.S. District Judge Jeffrey Brown said the evidence showed the Texas “Legislature had redistricted not for the political goal of appeasing President Trump nor of gaining five Republican U.S. House seats, but to achieve DOJ’s racial goal of eliminating coalition districts.”
If so, he said, the new map should be set aside, and the state should use the 2021 map drawn by the GOP.
Politics
RFK Jr launches investigation into school for alleged vaccination of child without parental consent
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Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. on Wednesday announced an investigation into what he called a “troubling incident,” in which a midwestern school allegedly vaccinated a child without their parent’s consent.
In a video statement on X, Kennedy said that HHS is taking “decisive steps” to defend parents’ rights to guide their child’s health decisions following the alleged incident.
“A school administered a federally funded vaccine to a child without the parent’s consent and despite a legally recognized state exemption,” he said. “When any institution — a school, a doctor’s office, a clinic — disregards a religious exemption, it doesn’t just break trust, it also breaks the law.”
“We’re not going to tolerate it,” he added.
RFK JR. ACCUSES BIDEN ADMIN OF PUTTING ‘SPEED OVER SAFETY’ IN MIGRANT CHILD CASES
Health and Human Services Secretary Robert F. Kennedy Jr. speaks during a news conference at the Hubert Humphrey Building Auditorium in Washington, April 22, 2025. (AP Photo/Jose Luis Magana, File)
Kennedy did not identify the state, the school or the vaccine said to be involved.
Kennedy said that the Trump administration will ensure that health care providers and institutions will not ignore parental rights when it comes to their children’s health.
Secretary of Health and Human Services Robert F. Kennedy Jr. speaks during the Western Governors’ Association meeting Thursday, Nov. 20, 2025, in Scottsdale, Ariz. (AP Photo/Rebecca Noble, File)
“We will use every tool we have to protect families and restore accountability,” he said.
WEST VIRGINIA RESTORES EXCLUSION OF RELIGIOUS REASONS FOR SCHOOL VACCINE EXEMPTIONS AFTER LATEST COURT RULING
Kennedy said HHS is launching compliance reviews of major providers and health care systems to ensure that they give parents timely access to their children’s information. He said a letter will be issued reminding providers of “their clear legal duty” to share medical records with parents — with “no delays, no secrets, no excuses.”
Kennedy said HHS is launching an investigation after a school in the Midwest allegedly administered a vaccine to a child without parental consent. (iStock)
A second letter from the Health Resources and Services Administration (HRSA) went to HRSA grant recipients, stressing that federal dollars require compliance with laws protecting parental rights.
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HHS is also reviewing how states and districts process medical and religious exemptions to ensure the federally funded Vaccines for Children program complies with federal and state law.
Kennedy added that parents may file complaints with the HHS Office for Civil Rights if they believe their rights — or their children’s — have been violated.
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