Politics
Trade truce with China is hailed, but it may not be enough to stop shortages
WASHINGTON — China and the United States retreated from an emerging economic crisis on Monday, agreeing to drastically reduce tariffs on each other for the next 90 days as they continue to negotiate a more permanent trade deal, providing welcome news for investors and retailers who increasingly feared a breakthrough was out of reach.
The temporary truce will see the United States lower tariffs on Chinese imports to 30% from 145%, and China reduce its import duties on U.S. goods to 10% from 125%, starting Wednesday. Wall Street rejoiced at the announcement of a deal, with the Dow Jones industrial average up 2.81%, the Standard & Poor’s 500 up 3.26%, and the Nasdaq up 4.35%, the largest market rally since President Trump last walked back rate hikes on other countries in mid-April.
Trump referred to the development as a “total reset with China.” But the end result of the provisional agreement is a return to tariff rates that were in place before the president launched a global trade war on April 2, in what he called “Liberation Day” — a move that brought the largest decline in commercial shipping traffic since the COVID-19 pandemic and prompted financial institutions to warn of an imminent recession.
Supply shortages and price increases on Chinese products may still hit American consumers in the coming weeks, a lingering effect of weeks of uncertainty, experts said. Many retailers have already increased their prices. And shipping costs are expected to skyrocket as manufacturers and wholesalers attempt to make up for lost time. The 90-day deadline for a more lasting trade deal could fuel further market volatility in the coming weeks.
Trump’s Treasury secretary, Scott Bessent, who led the negotiations with Beijing, also secured a commitment from China to cut non-tariff barriers it had put in place after April 2, including certain import restrictions and blacklisting of U.S. companies.
“It de-escalates trade tensions and reduces the probability of a stagflation,” said Sung Won Sohn, a professor of finance and economics at Loyola Marymount University and a former commissioner at the Port of Los Angeles, referring to a phenomenon feared the world over by economists: a combination of slow economic growth, high inflation and increasing unemployment. “But this is a temporary truce. A tough road is ahead of us.”
Over the next three months, the Trump administration says it intends to develop a “mechanism” that will “rebalance” the U.S. trade relationship with China — a task that has eluded presidents for decades. Trump hopes to change Beijing’s policy of providing government subsidies to state-owned enterprises and to reduce a $400-billion U.S. trade deficit with China, both tall orders in such a short time frame.
“Supply chains have been disrupted and there are a lot fewer ships sailing the ocean,” Sohn added. “Supplies in stores won’t be as plentiful as it used to be. During the back-to-school season, for example, there will be shortages, stockouts and higher prices. If the negotiation progresses well, there will be more merchandise at retail stores for back-to-school and Christmas.”
After the deal concluded in Geneva, Bessent said he would draw inspiration in the upcoming talks from a preliminary agreement negotiated with Beijing at the end of the first Trump administration called Phase One, which included new rules governing the exchange of intellectual property, technology transfer and financial services. Bessent claimed that deal was not enforced by the Biden administration.
But the Treasury secretary acknowledged that the upcoming talks would be difficult. “Neither side wants a decoupling,” he said.
“I don’t think anything’s going to be easy, because this has been going on for a long time,” Bessent told CNBC.
Before departing for an official visit to the Middle East, Trump said he expected to speak with Chinese President Xi Jinping and praised the agreement as a temporary step toward a permanent deal. The truce, Trump added, does not include tariffs on cars, steel and aluminum.
He also spoke with Apple Chief Executive Tim Cook shortly after announcing the deal, Trump said.
“The relationship is very good. We’re not looking to hurt China — China was being hurt very badly,” the president told reporters at the White House. “They were very happy to be able to do something with us.”
Trump said that pharmaceuticals may also be exempt from tariff reductions with China going forward, speaking at a signing ceremony for an executive order aimed at lowering drug prices.
The majority of the world’s pharmaceuticals are manufactured in China and India. But Trump reserved his harshest critique at the event for the European Union, which produces several high-profile drugs, including Ozempic and Wegovy, weight loss medications that Trump said are heavily overpriced in the United States.
“The European Union is in many ways nastier than China,” Trump said, adding: “We’ve just started with them.
“We have all the cards,” he said. “They treated us very unfairly.”
Politics
House Republicans push Johnson to go to war with Senate over SAVE Act
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Several House Republicans are pushing Speaker Mike Johnson, R-La., to go to war with the Senate GOP over an election security bill that has little chance of passing the upper chamber under current circumstances.
House GOP leaders convened a lawmaker-only call on Sunday in the wake of a massive military operation against Iran launched by the U.S. and Israel.
After leaders briefed House Republicans on how the chamber would respond to the ongoing conflict — including a vote on ending Democrats’ weeks-long government shutdown targeting the Department of Homeland Security (DHS) — Fox News Digital was told that several lawmakers raised concerns about the Senate not yet taking up the Safeguarding American Voter Eligiblity (SAVE America) Act. Among other provisions, the act would require voters in federal elections to produce valid ID and proof of citizenship.
Rep. Derrick Van Orden, R-Wis., was among those pushing the House to reject any bills from the Senate until the measure was taken up, telling Johnson according to multiple sources on the call, “If we don’t get this done, or at least show that we’ve got some backbone, we’re done. The midterms are over.”
Speaker of the House Mike Johnson, R-La., pauses for questions from reporters as he arrives for an early closed-door Republican Conference meeting at the Capitol in Washington, Tuesday, Feb. 3, 2026. (J. Scott Applewhite/AP Photo)
At least three other House Republicans shared similar concerns. Sources on the call said Rep. Brandon Gill, R-Texas, argued that GOP voters were “not enthused” heading into November and that “the single biggest thing” to turn that around would be forcing the Senate to pass the SAVE America Act.
The SAVE America Act passed the House last month with support from all Republicans and just one Democrat, Rep. Henry Cuellar, D-Texas.
JEFFRIES ACCUSES REPUBLICANS OF ‘VOTER SUPPRESSION’ OVER BILL REQUIRING VOTER ID, PROOF OF CITIZENSHIP
Republicans have pointed out on multiple occasions that voter ID measures have bipartisan support across multiple public polls and surveys. But Democrats have dismissed the legislation as an attempt at voter suppression ahead of the 2026 midterms.
Senate Majority Leader John Thune speaks at a press conference with other members of Senate Republican leadership following a policy luncheon in Washington, D.C. on Oct. 28, 2025. (Nathan Posner/Anadolu via Getty Images)
The legislation would require 60 votes in the Senate to break filibuster, which it’s likely not to get given Democrats’ near-uniform opposition. But House Republicans have pressured Senate Majority Leader John Thune to use a mechanism known as a standing filibuster to circumvent that — which Thune has signaled opposition to, given the vast amount of time it would take up in the Senate and potential unintended consequences in the amendment process.
It also comes as Congress grapples with the fallout from the strikes on Iran and the need to ensure safety for the U.S. domestically and for service members abroad, both of which will require close coordination between the two chambers.
Johnson told Republicans several times on the Sunday call that he was privately pressuring Thune on the bill but was wary of creating a public rift with his fellow GOP leader, sources said.
HARDLINE CONSERVATIVES DOUBLE DOWN TO SAVE THE SAVE ACT
“If we’re going to go to war against our own party in the Senate, there may be implications to that,” Johnson said at one point, according to people on the call. “So we want to be thoughtful and careful.”
Sen. Mike Lee, R-Utah, talks with a guest during a “Only Citizens Vote Bus Tour” rally in Upper Senate Park to urge Congress to pass the Safeguard American Voter Eligibility (SAVE) Act on Wednesday, Sept. 10, 2025. (Tom Williams/CQ-Roll Call, Inc via Getty Images)
At another point in the call, sources said Rep. Andrew Clyde, R-Ga., suggested pairing a coming vote on DHS funding with the SAVE America Act in order to force the Senate to take it up.
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But both Johnson and House Homeland Security Committee Chairman Andrew Garbarino, R-N.Y., were hesitant about such a move given the enhanced threat environment in the wake of the U.S. operation in Iran.
Both spoke out in favor of the SAVE America Act, people told Fox News Digital, but warned the current situation merited leaving the DHS funding bill on its own in a bid to end the partial shutdown, so the department could fully function as a national security shield.
Politics
Trump justifies Iran attack as Congress and others raise objections
According to President Trump, the United States attacked Iran because the Islamic Republic posed “imminent threats” to the U.S. and its allies, including through its use of terrorist proxies and continued pursuit of nuclear weapons.
“Its menacing activities directly endanger the United States, our troops, our bases overseas and our allies throughout the world,” he said in a recorded statement Saturday.
According to leading Democrats in Congress, Trump’s justification is questionable, especially given his claims of having “completely obliterated” Iran’s nuclear capabilities in separate U.S. bombings last June.
“Everything I have heard from the administration before and after these strikes on Iran confirms this is a war of choice with no strategic endgame,” said Rep. Jim Himes (D-Conn.), ranking Democrat on the House Intelligence Committee and part of a small group of congressional leaders — the Gang of Eight — who were briefed on the operation by Secretary of State Marco Rubio.
That divide is bound to remain an issue politically heading into this year’s midterm elections, and could be a liability for Republicans — especially considering that some in the “America First” wing of the MAGA base were raising their own objections, citing Trump’s 2024 campaign pledges to extricate the U.S. from foreign wars, not start new ones.
The debate echoed a similar if less immediate one around President George W. Bush’s decision to go to war in Iraq following the Sept. 11, 2001, attacks, also based on claims that “weapons of mass destruction” posed an immediate threat. Those claims were later disproved by multiple findings that Iraq had no such arsenal, fueling recriminations from both political parties for years.
The latest divide also intensified unease over Congress ceding its wartime powers to the White House, which for years has assumed sweeping authority to attack foreign adversaries without direct congressional input in the name of addressing terrorism or preventing immediate harm to the nation or its troops.
Even prior to the weekend bombings, Democrats including Sen. Adam Schiff of California were pushing Congress to pass a resolution barring the Trump administration from attacking Iran without explicit congressional authorization.
“President Trump must come to Congress before using military force unless absolutely necessary to defend the United States from an imminent attack,” Sen. Tim Kaine (D-Va.), a member of the armed services and foreign relations committees, said in a statement Thursday.
In justifying the daylight strikes that killed Supreme Leader Ayatollah Ali Khamenei just two days later, Trump accused the Iranian government of having “waged an unending campaign of bloodshed and mass murder” for nearly half a century — including through attacks on U.S. military assets and commercial shipping vessels abroad — and of having “armed, trained and funded terrorist militias” in multiple countries, including Hezbollah and Hamas.
Trump said that after the U.S. bombed Iran last summer, it had warned Tehran “never to resume” its pursuit of nuclear weapons. “Instead, they attempted to rebuild their nuclear program and to continue developing long-range missiles that can now threaten our very good friends and allies in Europe, our troops stationed overseas, and could soon reach the American homeland,” he said.
Other Republican leaders largely backed the president.
“The United States did not start this conflict, but we will finish it. If you kill or threaten Americans anywhere in the world — as Iran has — then we will hunt you down, and we will kill you,” said Defense Secretary Pete Hegseth.
“Every president has talked about the threat posed by the Iranian regime. President Trump is the one with the courage to take bold, decisive action,” said Atty. Gen. Pam Bondi.
While Iran’s coordination with and sponsorship of groups such as Hezbollah and Hamas are well known, Trump’s claims about Tehran’s ongoing development of nuclear weapons systems are less established — and the administration has provided little evidence to back them up.
Democrats seized on that lack of fresh intelligence in their responses to the attacks, contrasting Trump’s latest statements about imminent threats with his assertion after last year’s bombings that the U.S. had all but eliminated Iran’s nuclear aspirations.
“Let’s be clear: The Iranian regime is horrible. But I have seen no imminent threat to the United States that would justify putting American troops in harm’s way,” said Sen. Mark Warner (D-Va.), vice chairman of the Senate Intelligence Committee and a member of the Gang of Eight. “What is the motivation here? Is it Iran’s nuclear program? Their missiles? Regime change?”
Senate Minority Leader Chuck Schumer (D-N.Y.) said in a statement that the Trump administration “has not provided Congress and the American people with critical details about the scope and immediacy of the threat,” and must do so.
House Minority Leader Hakeem Jeffries (D-N.Y.) said the Trump administration needs congressional authority to wage such attacks barring “exigent circumstances,” and didn’t have it.
“The Trump administration must explain itself to the American people and Congress immediately, provide an ironclad justification for this act of war, clearly define the national security objective and articulate a plan to avoid another costly, prolonged military quagmire in the Middle East,” he said.
After the U.S. military announced Sunday that three U.S. service personnel were killed and five others seriously wounded in the attacks, the demands for a clearer justification and new constraints on Trump only increased.
Rep. Ro Khanna (D-Fremont) said Sunday he is optimistic that Democrats will be unified in trying to pass the war powers resolution, and also that some Republicans will join them, given that the strikes have been unpopular among a portion of the MAGA base.
Rep. Thomas Massie (R-Ky.), who partnered with Khanna to force the release of the Jeffrey Epstein files, has said he will work with him again to push a congressional vote on war with Iran, which he said was “not ‘America First.’”
Benjamin Radd, a political scientist and senior fellow at the UCLA Burkle Center for International Relations, said that whether or not Iran represented an “imminent” threat to the U.S. depends not just on its nuclear capabilities, but on its broader desire and ability to inflict pain on the U.S. and its allies — as was made clear to both the U.S. and Israel after the Hamas attacks on Israel on Oct. 7, 2023, which Iran praised.
“If you are Israel or the United States, that’s imminent,” he said.
What happens next, Radd said, will largely depend on whether remaining Iranian leaders stick to Khamenei’s hard-line policies, or decide to negotiate anew with the U.S. He expects they might do the latter, because “it’s a fundamentalist regime, it’s not a suicidal regime,” and it’s now clear that the U.S. and Israel have the capabilities to take out Iranian leaders, Iran has little ability to defend itself, and China and Russia are not rushing to its aid.
How the strikes are viewed moving forward may also depend on what those leaders decide to do next, said Kevan Harris, an associate professor of sociology who teaches courses on Iran and Middle East politics at the UCLA International Institute.
If the conflict remains relatively contained, it could become a political win for Trump, with questions about the justification falling away. But if it spirals out of control, such questions are likely to only grow, as occurred in Iraq when things started to deteriorate there, he said.
Israel and the U.S. are betting that the conflict will remain manageable, which could turn out to be true, Harris said, but “the problem with war is you never really know what might happen.”
On Sunday, Iran launched retaliatory attacks on Israel and the wider Gulf region. Trump said the campaign against Iran continued “unabated,” though he may be willing to negotiate with the nation’s new leaders. It was unclear when Congress might take up the war powers measure.
Politics
Video: Trump’s War of Choice With Iran
new video loaded: Trump’s War of Choice With Iran
By David E. Sanger, Gilad Thaler, Thomas Vollkommer and Laura Salaberry
March 1, 2026
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