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Trump tariffs live updates: Trump says he is doubling tariffs on steel imports to 50%
- The temporary trade deal that led to the US and China pausing steep tariffs is showing signs of fraying.
- In a post on Truth Social on Friday, President Trump made it clear who he thinks is to blame.
- “I made a FAST DEAL with China in order to save them from what I thought was going to be a very bad situation, and I didn’t want to see that happen,” Trump said. “Because of this deal, everything quickly stabilized and China got back to business as usual. Everybody was happy! That is the good news!!!
- “The bad news,” he continued, “is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US.”
- “So much for being Mr. NICE GUY!”
- President Trump said that although he gave US automakers “some leeway” with tariffs, he expects automakers to fully bring back domestic auto manufacturing in the next year.
- “All of the manufacturers will build their parts here too,” Trump told reporters in the Oval Office in response to a question about tariffs affecting companies like Tesla (TSLA).
- Of note, Tesla is considered to have the highest percentage of “Made in America” parts, though no car is 100% made in the US. Tesla’s long-range Model Y and Model 3 vehicles contain 87.5% “total domestic content,” according to a 2024 study by Kelley Blue Book.
- “It used to bother me, [automakers] make a part in Canada, a part in Mexico, a part in Europe, and sent all over the place, and nobody knew what the hell was happening,” Trump continued. “I think you build a car, make it in America. … over the next year, they’ve got to have the whole thing built in America.”
- The US imposed auto tariffs of 25% on May 3, but the Trump administration carved out an exemption for some auto parts tariffs, stating that they would not be stacked on top of other tariffs. The auto industry has lobbied hard for tariff exemptions since Trump took office.
- While many of Trump’s most extreme tariffs are being challenged in court, those cases do not affect auto tariffs, which were implemented using a separate law.
- In a press conference with Tesla (TSLA) CEO Elon Musk on Friday afternoon, President Trump repeated his claim that China “violated a big part of the agreement we made.”
- Trump also stated that he expects to have a call with Chinese President Xi Jinping, though he didn’t offer any definite details about when such a call would take place.
- “I’m sure that I’ll speak to President Xi, and hopefully we’ll work that out,” the president said.
- Trump has not yet spoken with his Chinese counterpart during his second term. He previously said he expected to speak with Xi in mid-May after the US and China announced a temporary tariff pause, but that call never occurred.
- Trump’s comments come as trade tensions between the US and China ratchet up again. On Friday, Trump escalated his rhetoric against China, and Bloomberg reported that the Trump administration plans to expand tech restrictions on the country.
- US markets took another leg lower on Friday after Bloomberg reported the Trump administration plans to expand tech restrictions on China by targeting subsidiaries of already-sanctioned firms.
- The proposed rule would require US government licenses for transactions involving companies majority-owned by firms on the so-called “Entity List,” aiming to close loopholes used to bypass existing curbs.
- The measure, which could affect major Chinese chipmakers such as Huawei and Yangtze Memory Technologies, is expected to further heighten tensions between Washington and Beijing amid ongoing disputes over semiconductors and critical mineral exports.
- The report comes on the heels of earlier comments from President Trump, who lashed out at China in a Truth Social post, accusing the country of having “violated” its trade deal with the US. While he did not provide specifics, the comments echoed earlier rhetoric from his administration suggesting that negotiations with Beijing had “stalled.”
- In afternoon trade, the Nasdaq (^IXIC) dropped approximately 1.6% while the benchmark S&P 500 (^GSPC) fell 1%, and the Dow (^DJI) slipped 0.6%.
- Some of China’s biggest tech companies have started to switch development of their artificial intelligence to homegrown chips as opposed to using semiconductors from America, due to the US export controls — which has led to a dwindling stockpile of Nvidia (NVDA) processors.
- The FT reports:
- Read more here.
- A federal appeals court has temporarily reinstated President Trump’s global tariffs by pausing a lower court ruling that had blocked them. The decision, which came sooner than expected, means the tariffs will remain in effect for now.
- The US Court of Appeals for the Federal Circuit, which oversees the International Trade Court, granted the Trump administration’s request for a temporary administrative stay. This gives the court time to review legal arguments and filings. The administration must submit its briefings by June 9, after which the court will determine the next steps.
- As Yahoo Finance legal reporter Alexis Keenan noted, Trump has broad authority to impose tariffs through various legal channels, including Sections 232 and 301. The administration had chosen to justify the tariffs under an emergency act, citing concerns such as immigration and drug trafficking — an argument the lower court rejected.
- Legal experts say it’s unclear how the appeals court will ultimately rule, as another court might interpret the emergency authority in a different way.
- Analysts are raising concerns about how a new court ruling against President Trump’s tariffs could force the U.S. government to raise the debt ceiling.
- Reuters reports:
- Read more here.
- Tensions between the US and China are rising again after the Trump administration announced it would revoke Chinese student visas, restrict chip design software, and try to block Huawei from selling advanced AI chips globally.
- Per Bloomberg, China’s Foreign Ministry called the crackdown on student visas “discriminatory” on Thursday but did not move to immediately retaliate, signaling it was trying to avoid the kind of rapid escalation that brought tariffs to triple-digit levels.
- Still, the divide shows that the two countries are far from resolving their issues — chiefly tech competition — and coming to a trade agreement.
- Trump has yet to speak with Chinese leader Xi Jinping in his second term, despite hints a few weeks ago after top officials met in Geneva that a call was imminent.
- Read more here.
- A top official said that Taiwan will continue to seek a trade deal with the US despite the trade court’s ruling on Wednesday that at least temporarily paused many of President Trump’s tariffs.
- The Manhattan-based court ruled that many of Trump’s wide-ranging tariffs, including the 10% “reciprocal” tariffs, were unlawful in a decision that the administration is expected to appeal.
- Taiwan is pushing for tariffs lower than the 10% base rate,
- Bloomberg reports:
- Read more here.
- Tariff uncertainty may be the primary thing standing in the way of lower interest rates, the Federal Reserve’s Austan Goolsbee suggested on Thursday.
- Bloomberg reports:
- Read more here.
- Shares in HP Inc. (HPQ) fell by 8% on Thursday in premarket trading after the company’s profit outlook missed estimates and it cut the annual earnings forecast, citing a weaker economy and continuing costs from US tariffs on goods from China.
- Bloomberg News reports:
- Read more here.
