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Trump digs in on tariff plan and threatens stiffer China levies as trade crisis deepens

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Trump digs in on tariff plan and threatens stiffer China levies as trade crisis deepens

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.

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“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.”

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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.”

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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.”

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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.

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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.”

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Crews Drape Tarp Over White House in Latest Trump Restoration

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Construction workers unfurled a large printed tarp to cover scaffolding installed at the White House’s front entrance. Doug Burgum, the interior secretary, said President Trump had ordered the repairs after noticing damage to columns.

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WATCH: Trump’s Energy chief reveals what escalating Iran tensions could mean for gas prices

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WATCH: Trump’s Energy chief reveals what escalating Iran tensions could mean for gas prices

NEWYou can now listen to Fox News articles!

Energy Secretary Chris Wright is telling Americans not to be concerned about the possibility of another surge of sharp increases in gasoline prices as tensions with Iran have started to escalate once again.

Asked whether Americans should worry about higher prices at the pump and how the Trump administration is preparing to keep the economy stable if the conflict continues to worsen, Wright told Fox News Digital: “It has not been any good behavior from Iran that’s allowed oil to flow. It’s been the United States military.”

“That’s not changing,” he assured, speaking from the Great American State Fair on the National Mall this week.

US CLAWS BACK KEY CONCESSION TO IRAN AFTER FRESH ATTACKS ON COMMERCIAL SHIPS IN STRAIT OF HORMUZ

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(Mario Tama/Getty Images) (Mario Tama/Getty Images)

With Iran striking three commercial vessels transiting the Strait of Hormuz on Monday and Tuesday, Wright doubled down in urging citizens to not credit Iran for the U.S. military’s work to ensure oil shipments continue flowing through the strait.

“Look, the U.S. Military has been the key asset here,” he said. “They have assured the flow of oil and gas through the Strait of Hormuz throughout. Not at the beginning of this conflict, but through the last six weeks.”

Wright said the administration is closely monitoring global oil supplies as the tentative ceasefire with Iran seemingly came to come to a halt, with President Donald Trump telling Secretary-General Mark Rutte the call for peace with Iran is “over” at the NATO Summit in Turkey on Wednesday.

But, he pointed to the continued shipping through the Strait as evidence that markets should remain stable.

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TRUMP SAYS IRAN CEASEFIRE IS ‘OVER’ AFTER IRANIAN ATTACKS TRIGGER MASSIVE US RESPONSE

President Donald Trump speaks at the White House on Tuesday, April 22. (AP/Alex Brandon)

“We’re of course constantly watching the supply of oil, the supply of refined products and what’s going on there,” Wright said. “And I think still all positive trends.”

Beyond geopolitical concerns, Wright also praised the new chain of discounted gas stations across Pennsylvania and New Jersey, Freedom Fuel, which promises customers prices below the national average.

The Trump administration, though not involved with the network, has heavily endorsed the new chain and its 25 locations.

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“We love it,” Wright said when asked about Freedom Fuel. “I mean, look, any mechanism we can to lower energy costs for Americans of all kinds, we’re all in on.”

“With Freedom Fuels, they’re just lowering it down to their wholesale price of gasoline,” Wright said. “So they’re not making any money selling gasoline, but they’ve got convenience stores. That’s how most gas stations make money.”

NEWSOM UNDER FIRE AS CALIFORNIA GAS TAX HIKE SENDS PUMP PRICES EVEN HIGHER

Gasoline costs are a known concern for many Americans, and amid surging prices there has been a considerable increase in those opting to purchase electric vehicles to save money long-term at the pump — with Tesla dominating the market for these types of models.

Wright argued one of the benefits to living in America is having the option to choose what type of vehicle you drive.

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“We just want people to buy what they would prefer,” he told Fox News Digital when asked his thoughts on increasing calls for support of the electrification of cars. “Consumer choice — you wanna buy an electric car, you wanna buy a gas powered car, diesel powered car, buy a big truck. That’s the choice.”

“That’s why you live in America. You get the choice of all those.”

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Black mold and $1 wages: Settlement forces immigrant detention centers to protect workers

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Black mold and  wages: Settlement forces immigrant detention centers to protect workers

In 2023, California regulators levied more than $100,000 in fines against the private operator of a federal immigration facility, kicking off a three-year battle over whether detainees who do work at the facilities should be considered employees.

The question went beyond semantics: If considered employees, the detainees would be subject to state worker protection laws.

A legal settlement announced this week now affirms that private immigrant detention facilities are subject to California’s workplace safety and health requirements.

“Every worker deserves a safe and healthy workplace and should be able to report workplace hazards without fear of retaliation,” said Denisse Gómez, spokesperson for the California Division of Occupational Safety and Health or Cal/OSHA.

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“Individuals who perform work in these facilities are entitled to workplace safety protections, and this settlement reinforces Cal/OSHA’s commitment to enforcing those protections and safeguarding vulnerable workers,” she added.

Under the settlement between California and the GEO Group, a Florida-based private prison company, the company recently withdrew its legal challenges and agreed to pay more than $100,000 in the fines.

The GEO Group did not respond to requests for comment.

Back in 2023, Cal/OSHA issued $104,510 in fines against the GEO Group. The agency had found six violations of state code by the company after detainees complained about a lack of protective equipment and proper training while cleaning the facility for $1 per day.

Detainees alleged they routinely wiped black mold off shower walls at the facility, saw black dust spew from air vents and used cleaning solutions that lacked instructions during the COVID-19 pandemic.

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The biggest fine levied against the GEO Group was for failure to establish and maintain “effective written procedures to reduce employee risk of exposure to aerosol transmissible disease.”

Advocates viewed Cal/OSHA’S recognition of the detainees as workers as a victory that could pave the way for future labor rights fights at other detention centers in the state.

But the GEO Group appealed, arguing that detainees participating in ICE’s voluntary work program make their own schedules and aren’t employees, so hazard exposure couldn’t be “as a result of assigned duties,” as California law states. Plus, the company argued, there wasn’t enough evidence that detainees were exposed to any hazard.

Early last year, the state’s Occupational Safety and Health Appeals Board rejected the GEO Group’s argument and found that detainees should be considered “affected employees.”

The GEO Group sued, but three days before a California Superior Court hearing in May, the company and Cal/OSHA reached the settlement.

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Along with paying the fines, the GEO Group agreed to draft plans for avoiding aerosol transmissions at 12 secure and reentry facilities in California, including five detention centers that hold immigrants.

“GEO ensures detainees are afforded the necessary tools, equipment, and personal protective equipment … to safely and effectively perform any necessary tasks,” the settlement states.

Gómez said the settlement also leaves intact the appeals board’s ruling that civil immigration detainees who participate in work programs can participate in proceedings anonymously, “acknowledging the potential for retaliation when individuals raise workplace safety concerns.”

But the question of whether detainees are employees and deserve certain protections isn’t entirely resolved — at least not for the federal government.

Last month, U.S. Immigration and Customs Enforcement released new standards for detention facilities across the country. The revised guidelines “emphasize that detainee volunteers participating in the voluntary work program are not considered facility and/or government employees” and thus not entitled to labor regulations.

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Attorney Mariel Villarreal said the timing of the new detention standards made her question whether the GEO Group had asked ICE to specify in its standards that detainees are not workers in response to its battle with Cal/OSHA.

“To me, it’s a reaction to this very settlement,” she said. Villarreal works for the California Collaborative for Immigrant Justice, which filed the original complaint on behalf of detainees who said they worked in unsafe conditions.

Villarreal pointed to a Washington Post report that GEO Group executives privately asked ICE to specify that detainees are not employees of the facilities where they work. Two top Trump administration officials, border czar Tom Homan and acting ICE director David Venturella, previously worked for the GEO Group.

New versions of ICE detention standards take effect as contracts are established or modified, so this year’s rules won’t immediately apply to every facility.

An ICE spokesperson did not comment about the settlement. The spokesperson, who did not provide their name in an emailed statement Wednesday, said the agency has begun transitioning detention facilities to meet the 2026 standards, “building on its longstanding commitment to safe, secure, and professional detention operations.”

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“ICE has consistently implemented many of these best practices independently, reinforcing its role as the leader in detention operations,” the spokesperson added.

The GEO Group and other immigrant detention center operators have faced other legal battles over workers’ rights, including lawsuits in Washington, Colorado and California over the $1-per-day payment.

Villarreal said she’s confident that the Cal/OSHA settlement would continue to hold even if California facilities incorporated the new standards. But she said she believes the statements are an attempt by the GEO Group to “sidestep responsibility” and avoid the possibility of being fined under similar circumstances in other states.

“These statements in the new standards are a way for them to try and preserve profits as much as possible,” she said. “GEO and ICE are so intertwined at this point that they have the same motives.”

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