Politics
Trump digs in on tariff plan and threatens stiffer China levies as trade crisis deepens
WASHINGTON — Mixed messages on trade from the Trump administration threw markets into further turbulence on Monday, leaving investors, foreign governments and the president’s own allies desperate for an offramp from a dramatic increase in global tariffs scheduled to go into effect Tuesday night.
Yet President Trump, posting on social media and speaking to reporters throughout the day, gave no indication he was open to a rapid course correction, suggesting some of his new tariff rates — set at a baseline of 10% for all countries, but increasing substantially for some of the largest U.S. trading partners — would be permanent. Other rates, he said, might be the subject of bilateral negotiations without any guarantee of success that could take weeks, months or even years.
The mere rumor that Trump would consider a pause in the policy led to a fleeting rally on Wall Street, only for stocks to plummet again on word from the White House that the suggestion was “fake news.” The day of confusion led the Dow Composite and Standard & Poor’s 500 to post moderate losses at the closing bell, with the NASDAQ up a fraction of a point.
From the Oval Office, Trump said he would escalate an emerging trade war with China after Beijing said it would respond to a new U.S. tariff rate of 34% with an identical tariff hike of its own. In response, Trump said, he would add another 50% tariff increase on Chinese imports — a move that would result in Chinese products facing 104% import duties by Wednesday.
Trump also said he was negotiating on a bilateral basis with individual countries over their tariff policies and trade deficits with the United States, including Israel and Japan.
“We’re going to have one shot at this, and no other president is going to do this, what I’m doing — and I’ll tell you what, it’s an honor to do it, because we have just been destroyed,” Trump said. “We’ll be talking to China, we’ll be talking to a lot of different countries.”
He denied that the administration would consider a pause in the global increase. “We’re not looking at that,” he said.
“We have many, many countries that are coming to negotiate deals with us, and they’re going to be fair deals,” Trump continued. “In certain cases, they’re going to be paying substantial tariffs. They will be fair deals.”
Conflicting messages
The president’s remarks came after a day of uncertainty, with several of the president’s top advisors sending conflicting messages over the president’s willingness to change course.
“This is not a negotiation,” Peter Navarro, senior counselor for trade and manufacturing to Trump, wrote in the Financial Times about the new policy. “President Trump is always willing to listen. But to those world leaders who, after decades of cheating, are suddenly offering to lower tariffs — know this: that’s just the beginning.”
Yet when asked whether the president was willing to pause the policy, Kevin Hassett, director of the National Economic Council, said, “I think the president is going to decide what the president is going to decide.”
“There are more than 50 countries in negotiation with the president,” Hassett said.
Later, Scott Bessent, the Treasury secretary, said the administration would open negotiations with Japan to “implement the president’s vision for the new Golden Age of Global Trade” — just one of “50, 60, maybe almost 70” countries that had approached the administration to open talks.
Those negotiations, he said, could extend through June — a message to markets, sent after trading stopped for the day, that a fix to the immediate crisis would take time.
“It’s going to be very busy,” Bessent said in an interview with Fox Business. Trump “gave himself maximum negotiating leverage, and just when he has achieved the maximum leverage, he’s willing to start talking.”
Success of the talks is not guaranteed. On Monday, European Commission President Ursula von der Leyen offered “zero for zero tariffs on industrial goods.” But Trump said it was not enough, stating the European Union itself “was formed to really do damage to the United States in trade.”
Visiting the White House on Monday afternoon, sitting alongside the president, Prime Minister Benjamin Netanyahu of Israel offered fellow U.S. allies a potential road map to appease Trump in the trade wars.
The president has argued that foreign nations, “friend and foe alike,” have ripped off the United States for decades, imposing both tariff and non-tariff barriers on the import of U.S. goods that have disadvantaged U.S. businesses.
“We will eliminate the trade deficit with the United States,” Netanyahu said. Before Trump’s tariff announcement Wednesday, Israel, a relatively minor U.S. trading partner, said it would eliminate all import duties on U.S. products. It was nevertheless hit with a 17% tariff rate by the Trump administration over the country’s trade deficit with Washington.
“We intend to do it very quickly — we think it’s the right thing to do — and we’re going to also eliminate trade barriers,” Netanyahu added. “I think Israel could serve as a model for many countries who ought to do the same.”
Allies urge a reversal
Stock markets reacted to the president’s policy announcement last week with a historic rout, eviscerating $5 trillion in value in just 48 hours.
As markets in Asia and Europe continued their plunge on Monday morning, and as U.S. futures trading Sunday night intensified, some of the president’s wealthiest allies on Wall Street began airing criticism of the new trade policy and pleaded with him to reconsider.
Larry Fink, chief executive of BlackRock, told the Economic Club of New York that he had no doubt the economy was weakening, and could even already be entering a recession, because of the White House policy, Bloomberg reported. Bill Ackman, a billionaire hedge fund manager who backed Trump in the 2024 presidential campaign, warned of a “self-induced, economic nuclear winter” if the president refused to back down.
“The president has an opportunity to call a 90-day time out, negotiate and resolve unfair asymmetric tariff deals, and induce trillions of dollars of new investment in our country,” Ackman wrote on X. “If, on the other hand, on April 9th we launch economic nuclear war on every country in the world, business investment will grind to a halt, consumers will close their wallets and pocket books, and we will severely damage our reputation with the rest of the world that will take years and potentially decades to rehabilitate.”
Recession risks
Goldman Sachs updated its assessment of the risks of recession this year from a 35% to 45% probability, following a similar assessment from JP Morgan Chase last week, warning of a 60% likelihood.
JP Morgan’s chief executive, Jamie Dimon, wrote in a letter to shareholders Monday that increased inflation is likely, not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic products.”
“Whatever you think of the legitimate reasons for the newly announced tariffs — and, of course, there are some — or the long-term effect, good or bad, there are likely to be important short-term effects,” Dimon wrote. “Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”
Even Elon Musk, a top ally of the president leading an administration effort to cut jobs across the federal government, went public with his concerns about the policy, sparring with Navarro, Trump’s economic advisor, on X over their respective qualifications to be advising the president.
“I hope it is agreed that both Europe and the United States should move, ideally, in my view, to a zero tariff situation, effectively creating a free trade zone between Europe and North America,” Musk said Sunday. “That has certainly been my advice to the president.”
Politics
Video: U.S. ‘Accelerating’ Military Assault in Iran, Hegseth Says
new video loaded: U.S. ‘Accelerating’ Military Assault in Iran, Hegseth Says
By Christina Kelso
March 4, 2026
Politics
US submarine sinks Iranian warship by torpedo in a first since World War II
NEWYou can now listen to Fox News articles!
A U.S. submarine sank a prized Iranian warship by torpedo, the first such sinking of an enemy ship since World War II, Secretary of War Pete Hegseth said Wednesday morning.
Hegseth joined Chairman of the Joint Chiefs of Staff Gen. Dan Caine at the Pentagon to provide an update to reporters on “Operation Epic Fury” in Iran.
“An American submarine sunk an Iranian warship that thought it was safe in international waters,” Hegseth said. “Instead, it was sunk by a torpedo. Quiet death. The first sinking of an enemy ship by a torpedo since World War Two. Like in that war, back when we were still the War Department. We are fighting to win.”
Caine said that an Iranian vessel was “effectively neutralized” in a Navy “fast attack” using a single Mark 48 torpedo. He added that the U.S. Navy achieved “immediate effect, sending the warship to the bottom of the sea.”
WATCH HEGSETH’S ANNOUNCEMENT:
Hegseth said that the U.S. Navy sank the Iranian warship, the Soleimani. The flagship was named for Qasem Soleimani, an Iranian military officer who served in the Islamic Revolutionary Guard Corps who the U.S. killed in a January 2020 drone strike during President Donald Trump’s first term.
“The Iranian Navy rests at the bottom of the Persian Gulf. Combat ineffective, decimated, destroyed, defeated. Pick your adjective,” Hegseth said. “In fact, last night we sunk their prize ship, the Soleimani. Looks like POTUS got him twice. Their navy, not a factor. Pick your adjective. It is no more.”
This map shows U.S. and Israeli strikes against Iranian naval forces as of March 1. (Fox News)
Hegseth also told reporters at the briefing that the U.S. and Israel will soon achieve “complete control” over Iranian airspace after Iran’s missile capabilities were drastically diminished in the four days of fighting.
US ‘WINNING DECISIVELY’ AGAINST IRAN, WILL ACHIEVE ‘COMPLETE CONTROL’ OF AIRSPACE WITHIN DAYS, HEGSETH SAYS
“More bombers and more fighters are arriving just today and now, with complete control of the skies, we will be using 500 pound, one thousand pound and 2,000 pound laser-guided precision gravity bombs, of which we have a nearly unlimited stockpile,” he said.
The war has killed more than 1,000 people in Iran and dozens in Lebanon, while U.S. officials said six American troops were killed in a fatal drone strike in Kuwait.
Thousands of travelers have been left stranded across the Middle East.
This map shows security and travel updates for Americans regarding countries in the Middle East region. (Fox News)
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
Caine told reporters that the U.S. military is helping thousands of Americans stranded in the Middle East after the U.S. State Department urged citizens to leave more than a dozen countries.
Fox News Digital’s Ashley Carnahan contributed to this report.
Politics
Sen. Padilla preps for Trump trying to seize control of elections via emergency order
Sen. Alex Padilla (D-Calif.) is preparing for President Trump to declare a national emergency in order to seize control of this year’s midterm elections from the states, including by bracing his Senate colleagues for a vote in which they would be forced to either co-sign on the power grab or resist it.
In the wake of reporting last week that conservative activists with connections to the White House were circulating such an order, Padilla sent a letter to his Senate colleagues Friday stating that any such order would be “wildly illegal and unconstitutional,” and would no doubt face “extremely strict scrutiny” in the courts.
“Nevertheless, if the President does escalate his unprecedented assault on our democracy by declaring an election-related emergency, I will swiftly introduce a privileged resolution [and] force a vote in the Senate to terminate the fake emergency,” wrote Padilla, the ranking Democrat on the Senate Committee on Rules and Administration.
Padilla wrote that such an order — which could possibly “include banning mail-in voting, eliminating major voting registration methods, voter purges, and/or new document barriers for registering to vote and voting” — would clearly go beyond Trump’s authority.
“Put simply, no President has the power under the Constitution or any law to take over elections, and no declaration or order can create one out of thin air,” Padilla wrote.
The same day Padilla sent his letter, Trump was asked whether he was considering declaring a national emergency around the midterms. “Who told you that?” he asked — before saying he was not considering such an order.
The White House referred The Times to that exchange when asked Tuesday for comment on Padilla’s letter.
If Trump did declare such an emergency, a “privileged resolution,” as Padilla proposed, would require the full Senate to vote on the record on whether or not to terminate it — forcing any Senate allies of the president to own the policy politically, along with him.
Experts say there is no evidence that U.S. elections are significantly affected or swung by widespread fraud or foreign interference, despite robust efforts by Trump and his allies for years to find it.
Nonetheless, Trump has been emphatic that such fraud is occurring, particularly in blue states such as California that allow for mail-in ballots and do not have strict voter ID laws. He and others in his administration have asserted, again without evidence, that large numbers of noncitizen residents are casting votes and that others are “harvesting” ballots out of the mail and filling them out in bulk.
Soon after taking office, Trump issued an executive order purporting to require voters to show proof of U.S. citizenship before registering and barring the counting of mail-in ballots received after election day, but it was largely blocked by the courts.
Trump’s loyalist Justice Department sued red and blue states across the country for their full voter rolls, but those efforts also have largely been blocked, including in California. The FBI also raided an elections office in Georgia that has been the focus of Trump’s baseless claims that the 2020 presidential election was stolen from him.
Trump is also pushing for the passage of the SAVE Act, a voter ID bill passed by the House, but it has stalled in the Senate.
In recent weeks, Trump has expressed frustration that his demands around voting security have not translated into changes in blue state policies ahead of the upcoming midterm elections, where his shrinking approval could translate into major gains for Democrats.
Last month, Trump wrote on his Truth Social platform, “I have searched the depths of Legal Arguments not yet articulated or vetted on this subject, and will be presenting an irrefutable one in the very near future. There will be Voter I.D. for the Midterm Elections, whether approved by Congress or not!”
Then, last week, the Washington Post reported that a draft executive order being circulated by activists with ties to Trump suggests that unproven claims of Chinese interference in the 2020 election could be used as a pretext to declare an elections emergency granting Trump sweeping authority to unilaterally institute the changes he wants to see in state-run elections.
Election experts said the Constitution is clear that states control and run elections, not with the executive branch.
Democrats have widely denounced any federal takeover of elections by Trump. And some Republicans have expressed similar concerns, including Sen. Mitch McConnell (R-Ky.), who chairs the Senate rules committee.
In the Wall Street Journal last year, McConnell warned against Trump or any Republican president asserting sweeping authority to control elections, in part because Democrats would then be empowered to claim similar authority if and when they retake power.
McConnell’s office referred The Times to that Journal opinion piece when asked about the circulating emergency order and Padilla’s resolution.
Padilla’s office said his resolution would be introduced in response to an emergency declaration by Trump, but hoped it wouldn’t be necessary.
“Instead of trying to evade accountability at the ballot box,” Padilla wrote, “the President should focus on the needs of Americans struggling to pay for groceries, health care, housing and other everyday needs and put these illegal and unconstitutional election orders in the trash can where they belong.”
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