Trump's 10% Tariffs Take Effect; China Retaliates with 34% Tariffs and Export Controls
Key Takeaways
- Trump's 10% tariff on imports took effect; higher tariffs up to 50% are scheduled.
- China retaliated with 34% tariffs on US goods, export controls, and investigations into US companies.
- Senate approved budget blueprint 51-48, clearing path for Trump's domestic agenda.
- Trump extended TikTok's US operating deadline by 75 days amid ownership negotiations.
- HHS admitted errors in layoffs; about a fifth of 10,000 jobs will be reinstated.
Trade War Fallout
Trump's tariffs: 10% now in effect, up to 50% coming
China retaliates: 34% tariffs, export controls, investigations
On 2025-04-04, China announced a 34% tariff on all imports from the United States in retaliation to President Trump's tariffs. China also suspended imports from six US companies, added 27 companies to trade restriction lists, launched an antitrust investigation into DuPont China Group Co., indicated it would impose more controls on the export of rare earths, and added 16 US companies to the export control list and 11 to the unreliable entities list.
Tariff grace period: 51 days for goods in transit
UK PM to address tariffs with foreign leaders
Canada vows to 'stand firm' against US tariffs
UK reacts to Trump's tariffs: Concerns, potential retaliation
Published on 2025-04-05, reports indicate UK officials monitored Trump's trade war, initially expecting a 20% tariff but receiving 10%. Concerns arose over tariff levels, with Starmer hosting business leaders and Reynolds addressing the media, hinting at retaliation if a UK-US deal isn't reached. On April 4, 2025, Starmer called the tariffs “the beginning of a new era,” while Lammy regretted the US's “return to protectionism,” and various committee chairs cautioned against excessive concessions to the US in trade talks.
Capitol Hill Buzz
Senate approves budget blueprint for Trump's agenda
Just after 2:30 a.m. on 2025-04-05, the Senate approved the Republican budget blueprint by a 51-to-48 vote. This clears the path for President Trump's domestic agenda, with Senators Rand Paul and Susan Collins being the only Republicans to oppose the measure. Senator John Thune stated this is the first step toward making the 2017 tax relief permanent and investing in border, national, and energy security.
White House Watch
TikTok deadline extended 75 days amid US ownership talks
NSA leadership changes: Hartman and Thomas appointed after dismissals
Trump declares 'Liberation Day,' promotes US economic dominance
Trump declares emergency in Kentucky amid flooding
On 2025-04-04, Donald Trump approved an emergency declaration for Kentucky as the central US braces for potentially 'generational' flooding. FEMA is providing disaster assistance to all 120 Kentucky counties, while nearly half of the National Weather Service forecast offices have 20% vacancy rates due to Trump administration job cuts.
Policy Landscape
HHS layoffs: Errors admitted, some jobs reinstated
On 2025-04-04, US Health Secretary Robert F Kennedy Jr. admitted that around a fifth of the 10,000 jobs cut from the US Department of Health and Human Services (HHS) were done in error and will be corrected. Mass layoffs began this week amid a push by Donald Trump’s administration to shrink the federal government workforce, with some research work and programs mistakenly affected.
Department of Energy job cuts: 8,500 positions targeted
On April 4, 2025, the Department of Energy identified over 8,500 positions for potential elimination to meet President Trump's workforce reduction order. Senators Murray and Representative Kaptur opposed the dismantling, while Energy Secretary Wright stated the department had grown too large and needed adjustment, acknowledging a previous dismissal of nuclear security agency workers was a mistake.
Trump officials seek to overturn state bans on PFAS
Trump's birthright citizenship ban faces legal challenges
On 2025-04-04, immigrant groups and Democratic states opposed the Trump administration's request to lift the ban on ending birthright citizenship for children of undocumented immigrants. Three federal courts have blocked the order, and the court is also reviewing the deportation of Venezuelan migrants and the cancellation of teacher-training grants.
NEH grant terminated, humanities councils defunded after Musk visit
On 2025-04-04, the Japanese American National Museum (JANM) and state humanities councils received notice that their NEH funding was terminated due to a change in the Administration’s funding priorities. This occurred one day after Elon Musk’s Department of Government Efficiency visited NEH headquarters; the California Humanities council, for example, gets 90% of its budget from the NEH.
Economy Watch
Wall Street plunges amid tariff fears: Worst week in 5 years
Courts & Laws
NC court: 65,000 ballots may be thrown out
Prosecutors seek 7+ years for George Santos in fraud case
Campaign Trail
Florida special elections: Democratic losses, Key Lime Strategies scrutiny
On April 4, 2025, Democratic candidates Josh Weil and Gay Valimont faced significant losses in Florida's special elections, despite raising $25 million with Key Lime Strategies. The firm's CEO, Jackson McMillan, is under scrutiny for taking a 25% cut of 'true profits' from donations, with Valimont having spent over half of her $1.58 million raised in 2024 on the firm and still losing by a large margin.