White House senior counselor claims nations hit with tariffs will lower their prices

White House senior counselor, Peter Navarro, dismissed concerns that prices will soar after Trump's tariffs.

"Foreign nations who have to sell here are going to lower their prices and then the next thing they're going to do is continue to manipulate their currency, so our currency is going to get stronger," Navarro said on CNN Thursday.

"We're going to have more purchasing power for the imports. That's going to offset it."

Navarro's predictions contradict analysis from Yale's Budget Lab estimated an average per household consumer loss of $3,800 per year.

WATCH: Germany compares US tariffs to economic fallout from Russia-Ukraine war

Trump hit with lawsuit over tariffs

New Civil Liberties Alliance has filed a lawsuit against the Trump administration, arguing the tariffs violate the law.

The nonprofit filed the lawsuit Thursday, at the District Court for the Northern District of Florida, on behalf of a local business owner who imports products from China.

It agues that, under the Constitution, Congress "has sole authority to control tariffs, which it has done by passing detailed tariff statutes."

"The President cannot bypass those statutes by invoking 'emergency' authority in another statute that does not mention tariffs."

The group said it was the first such lawsuit to challenge the tariffs.

NATO chief says US remains 'completely committed' to alliance

NATO Secretary General Mark Rutte has assured allies that the United States remain committed to the alliance.

President Donald Trump has repeatedly criticized America's major role in NATO and suggested that the U.S. may not defend NATO allies "if they don't pay."

However, on Thursday, Rutte told reporters, "There are no plans to withdraw or whatever. We know that the US is completely committed to NATO."

He added that the U.S. would like to focus on the Indo-Pacific region, something he appeared to support.

"I think it is in all our interest that we are able to keep this whole planet stable," he said.

Trump promises more tariffs to come soon

President Donald Trump said on Thursday that he plans to propose even more tariffs which would be "starting very soon."

Even as the stock market suffered a major tumble, and U.S. allies announce retaliatory tariffs on America, Trump announced that more tariffs were to come.

Trump told reporters, on Air Force One, that the new tariffs would be placed on imported semiconductors and pharmaceuticals.

He said the chip tariffs are "starting very soon," while the pharmaceuticals tariffs are "under review right now."

Trump tariffs on territory hosting major US military base spark confusion

President Donald Trump's wide-ranging "reciprocal" tariffs have hit a remote, disputed island hosting a key U.S. military base in the Indian Ocean, although the tax appears to be a symbolic move devoid of any significant impact.

Trump unveiled a raft of far-reaching "reciprocal tariffs" on U.S. trading partners on Wednesday, broadening a bubbling trade war in a move roundly criticized by world leaders as highly damaging. The list included major trade allies like China and the European Union, as well as a collection of small, sometimes entirely uninhabited islands.

Trump has said the U.S.' trading partners have "taken advantage" of Washington, and the tariffs are necessary to secure "fair trade, protect American workers, and reduce the trade deficit." Several countries slapped with the new tariffs have pledged to retaliate with their own measures.

Trump announced a 10 percent tariff on all U.S. imports on Wednesday, on what he dubbed "Liberation Day." The president then presented a list of tailored tariffs to be levied at U.S. trading partners, which included a 20 percent tariff for the European Union and 10 percent tariff for the U.K.

Read in full from Ellie Cook and John Feng on Newsweek.

List of celebrity alcohol brands impacted by Donald Trump's tariffs

Tariffs imposed by President Donald Trump on all countries, coupled with previously levied tariffs on countries like Mexico, will impact the alcohol industry and possibly celebrities financially immersed in the industry.

If consumers tighten their purse strings, alcohol could be one of the items that takes a hit. Sales of alcohol in full-service restaurants account for more than 20 percent of total sales, according to the Distilled Spirits Council of the United States, which could have far-ranging impact on the broader economy as it pertains to bars, restaurants, employees and the copious number of brands that produce beer, wine and spirits.

The following is a list of celebrities who own their own alcohol brands, and where their products are made:

• Aaron Paul and Bryan Cranston – Dos Hombrez Mezcal (Oaxaca, Mexico)
• Dwayne "The Rock" Johnson – Teremana tequila (Jalisco, Mexico)
• Kylie Jenner – 818 Tequila (Jalisco, Mexico)
• Kevin Hart – Gran Coramino tequila (Tequila, Mexico)
• George Clooney (formerly; sold to Diageo in 2017) – Casamigos tequila (Jalisco, Mexico)
• Michael Jordan – Cincoro tequila (Tequila, Mexico)
• Jay-Z - D'USSÉ Cognac (Cognac, France)
• Matthew McConaughey – Wild Turkey Longbranch bourbon (Lawrenceburg, Kentucky)
• Kate Hudson – King St. Vodka (Santa Barbara, California)
• Francis Ford Coppola – Winery (Geyserville, California)
• Bob Dylan – Heaven's Door Whiskey (Pleasureville, Kentucky)
• Ryan Reynolds – Aviation Gin (Portland, Oregon)

Trump's 10% baseline tariff for countries 'may be permanent': Report

President Trump's 10% baseline tariff on countries may become permanent, Bloomberg reports.

U.S. officials reportedly told the United Kingdom that reducing any country's tariffs below 10% opens the door to abuse, according to the media giant.

Trump has not entirely shut down the idea of lowering the tariffs, meaning U.K. officials are still attempting to negotiate.

The president said earlier on Thursday that he believes British Prime Minister Kier Starmer is "very happy about how we treated them on tariffs."

WATCH: Schumer slams Trump tariffs as 'dumbest decision in history'

Trump's tariffs are taking 'a wrecking ball' to working-class families: Oxfam

President Trump "reciprocal" tariffs will be a "wrecking ball" to working-class families in the U.S. and in countries worldwide, charity Oxfam warned on Thursday.

In a statement to Newsweek, Oxfam America President and CEO Abby Maxman accused Trump of "stoking a devastating trade war" adding that it was "especially cruel that people in poverty in some of the poorest countries will suffer the most."

"President Trump's reckless use of tariffs has turned an economic tool into a wrecking ball that slams in all directions, harming working-class families in the U.S. and in countries worldwide," she added.

Maxman warned that the tariffs will "turbocharge inequality" and that they risk "pushing up costs for families at home and abroad who already struggle to get by, and spurring economic downturns around the world."

Potential American recession gets new timeline from analyst

Economists warn that President Donald Trump's plan to implement tariffs on countless countries on the heels of his "Liberation Day" announcement pushes trading partners away and could continue stinging the stock market.

Mark Williams, master finance lecturer at Boston University, told Newsweek that if conditions persist, "the US could experience a recession as soon as June of this year."

Trump first launched his tariff threats against Canada, China and Mexico over claims of record amounts of fentanyl flooding into the country from the U.S. northern and southern borders. The Canadian government has repeatedly rebuked the president amid his ongoing remarks and threatened American imports as well.

In a news briefing on Wednesday, Trump announced a new host of tariffs on numerous trading partners in what he called "Liberation Day."

In his announcement, the president framed his tariff move as a "declaration of economic independence" for the United States.

Read in full from Anna Commander on Newsweek.

Trump says Elon Musk will leave his administration within months

Donald Trump told reporters aboard Air Force One on Thursday, that Elon Musk would likely leave his administration in "a few months."

"I want him to stay as long as possible," he said. "There's going to be a point where he's going to have to leave."

Tesla CEO and top Trump adviser Musk can spend a maximum of 130 days in his current position, and, with mounting public and political pressure on him to step back, Musk could finish his work at DOGE as soon as May this year.

This could be changed if the president decides to employ Musk as a permanent official. But it appears that Musk will be wrapping up his work within the government by his the original deadline.

Trump added that while "Elon is fantastic," he has "a number of companies to run."

WATCH: Mark Carney Americans are in for 'pain and damage'

Major food brands association urges Trump to 'fine tune' tariffs approach

The Consumer Brands Association, which represents major food brands such as Coca-Cola, Nestle and Del Monte, has urged President Trump to make exceptions on tariffs to certain ingredients and items that cannot be grown in the U.S.

Tom Madrecki, vice president of supply chain resiliency for the association, said in a statement that there are "critical ingredients and inputs that need to be imported due to scarce availability domestically.

"No amount of tariffs will bring these inputs back to the U.S," he added. "However well intended, the success of the President's America First Trade Policy, must recognize the U.S. companies that are already doing it the right way but depend on imports for specific ingredients and inputs that cannot be sourced domestically."

He added that the association "encourage[s] President Trump and his trade advisors to fine-tune their approach and exempt key ingredients and inputs in order to protect manufacturing jobs and prevent unnecessary inflation at the grocery store."

WATCH: Trump says the markets and country will 'boom' due to his tariffs

What Donald Trump's bombshell tariffs mean for your pension

President Donald Trump has levied wide-ranging tariffs on nearly every trading nation in the world. But how could this affect your invested pensions?

Millions of Americans hold retirement accounts, helping them get ahead and save for later life. Various plans, such as IRAs and 401(k)s, are invested in stocks, bonds, and target-date funds.

Global stock markets fell on Thursday as investors reacted to Trump's sweeping announcements on tariffs. Increased tariffs can lead to market volatility and lower returns for pension funds invested in the stock market, which comes at a time when saving for retirement is becoming more difficult than ever.

"Tariffs can significantly affect investment portfolios and retirement savings by increasing costs for manufacturing, tech, and consumer goods sectors, potentially lowering stock prices and amplifying market volatility, impacting long-term vehicles like 401(k)s and IRAs," Phillip Battin, president and CEO at Ambassador Wealth Management, told Newsweek.

Read in full from Aliss Highman on Newsweek.

Donald Trump's tariffs hit one of his biggest donors

The billionaire founder of a company billed as North America's largest roofing and building wholesale distributor has warned of "adjusting prices" due to tariffs imposed by President Donald Trump, who the founder has supported with millions in political donations.

Diane Hendricks co-founded building products distributor ABC Supply Co., Inc. with her late husband Kenneth Hendricks in 1982. The company, headquartered in Wisconsin, offers an assortment of exterior building products, including roofing materials, siding, gutters, windows and doors, and renewable energy products, as well as accessories and tools.

Hendricks has given approximately $6.3 million in donations to Trump groups, according to Forbes. She was on stage during the Republican National Convention in Milwaukee last year.

Read in full from Nick Mordowanec on Newsweek.

Stocks suffer worst day since 2020 amid Trump's sweeping tariffs

Stocks continued their downward spiral on Thursday as the U.S. and global markets grapple with the fallout from President Donald Trump's sweeping tariffs targeting more than 180 countries.

The S&P 500 index was down 4.84 percent at market close, in its worst day since June 2020. The tech-heavy Nasdaq tumbled 5.97 percent, which was its biggest drop since March 2020. The Dow Jones Industrial Average closed 3.98% down as Trump's tariffs sparked a global sell-off.

Canada retaliates with 25% tariff on U.S. vehicles in response to Trump's trade measures

Prime Minister Mark Carney announced that Canada would impose a 25% tariff on U.S.-made cars and trucks, following the U.S. tariffs on Canadian vehicles that went into effect Thursday. This move is a direct response to President Trump's actions, aiming to counterbalance the trade measures.

Carney estimated that Canada would generate around $5.7 billion from the retaliatory tariffs, in addition to the $42 billion collected from earlier tariffs imposed on March 4. The funds will be used to support Canadian workers and businesses affected by the U.S. tariffs. However, Carney emphasized that Canada's measures are designed to maximize impact on the U.S. while minimizing harm to Canada.

The auto sector, Canada's largest export after oil and gas, is significantly intertwined with the U.S., with auto parts and finished vehicles crossing the border regularly. The retaliatory tariffs exclude auto parts, allowing Canadian manufacturers to continue importing U.S.-made vehicles without additional costs.

The new tariffs are already impacting production. Stellantis, a major automaker, announced a two-week shutdown of its Windsor, Ontario, plant to assess the impact of the tariffs. Union president James Stewart noted that the halt could lead to layoffs in U.S. factories that supply the Windsor plant with parts.

Elon Musk has key advantage to deal with Donald Trump tariffs

Elon Musk's Tesla may have a head start on President Donald Trump's latest rounds of tariffs, according to economic analysts. Trump announced the new tariffs on dozens of countries across the globe on imports on Wednesday, what he called "liberation day."

Newsweek reached out to Tesla for comment via email.

Trump has argued that the tariffs are necessary to restore U.S. manufacturing, but economists say companies are going to pass along the new expenses to consumers, resulting in Americans paying higher prices.

A previously announced tariff on automobiles also went into effect at midnight.

The stock market reacted negatively to the new tariffs on Thursday, with the Dow Jones Industrial Average dropping more than 1,000 points.

Read the full story by Andrew Stanton on Newsweek.

Volkswagen to add tariffs to car prices for imported models

Volkswagen has informed its U.S. dealers that the 25% tariffs imposed this week on imported vehicles from Europe and Mexico will be reflected on the sticker prices of affected cars. While Volkswagen produces certain models, such as the electric ID.4 and gasoline-powered Atlas, locally in Tennessee, other models like the Jetta, Taos, and Tiguan, imported from Mexico and Germany, will see the added tariff costs.

"We have our dealers' and customers' best interests at heart, and once we have quantified the impact on the business we will share our strategy with our dealers," a VW spokesperson said, confirming the tariff adjustments. The plan to apply the "extra import fee" was first reported by Automotive News.

Volkswagen's U.S. dealers currently have a 50- to 60-day supply of new vehicles, which will not be subject to the new tariffs. However, vehicles in transit or already on dealer lots will see the price increases. The tariffs could add thousands of dollars to the cost of imported vehicles. For example, the Taos small SUV, priced at around $25,000, could see an additional $5,000 due to the tariffs.

The situation remains fluid, with both dealers and consumers expressing concerns about the impact of the tariffs on car prices.

Meloni responds to Trump's tariffs, calls for honest discussion

Italian Prime Minister Giorgia Meloni spoke out on Thursday against U.S. President Donald Trump's decision to impose 20% tariffs on European exports, calling it "wrong." However, she also downplayed the impact, stating it was "not the catastrophe that some are making it out to be."

Meloni noted that the U.S. market accounts for 10% of Italy's total exports, but she expressed concern that retaliatory tariffs could have a more damaging effect on Italy's economy. She confirmed that the Italian government plans to meet next week with representatives from affected industries to discuss potential proposals for their European partners.

"We need to open an honest discussion on the matter with the Americans, with the goal—at least from my point of view—of removing tariffs, not multiplying them," Meloni said.

Pentagon to review use of Signal app for military communications

The Pentagon's acting inspector general announced Thursday that it will investigate the use of the Signal messaging app by Defense Secretary Pete Hegseth and other officials involved in military discussions. This review will focus on the use of the app for conveying plans about a military strike against Houthi militants in Yemen.

Signal is a commercially available encrypted messaging platform that is not part of the Department of Defense's secure communication network and cannot handle classified information. The review follows the revelation that national security adviser Mike Waltz added journalist Jeffrey Goldberg of The Atlantic to a Signal text chain that included several officials, including Hegseth, Vice President J.D. Vance, Secretary of State Marco Rubio, and Director of National Intelligence Tulsi Gabbard.

The acting inspector general, Steven Stebbins, stated the purpose of the review is to assess whether Hegseth and other defense personnel adhered to DoD policies for using commercial apps for official matters and whether they complied with requirements related to classification and record retention.

'I think it's going very well': Trump brushes off stock market plunge

President Trump attempted to brush off concerns about the plummeting stock market on Thursday.

"I think it's going very well," Trump said, when asked about the reaction to the tariffs, as he left the White House for Florida.

"The markets are going to boom, the stocks are going to boom."

Video of 'really excited' Trump official next to plunging stocks goes viral

A video of Agriculture Secretary Brooke Rollins enthusiastically supporting President Donald Trump's newly announced tariff policy—while standing next to a market ticker showing the Dow Jones Industrial Average down more than 1,200 points—on Thursday has gone viral on social media.

After Trump unveiled sweeping tariffs on more than 180 countries and territories during a "Liberation Day" announcement a day earlier, Agriculture Secretary Brooke Rollins told Fox Business host Maria Bartiromo: "We are really, really excited, and very grateful for President Trump's leadership"—clearly unaware of the market turmoil.

Read the full story by Jesus Mesa on Newsweek.

Trump closes loophole which will mean highest costs for Temu, Shein customers

President Trump on Wednesday ordered the closure of the de minimis loophole that has allowed retailers such as Temu and Shein to send most orders directly to customers duty free.

Trump attempted to end to exemption in February but within days he was forced to reverse his announcement as the huge extra workload swiftly overwhelmed Customs and Border Protection employees leading to the U.S. Postal Service to halting all packages from China and Hong Kong.

The new order takes effect on May 2.

Trump said in his order that the shippers in China "hide illicit substances and conceal the true contents of shipments sent to the United States through deceptive shipping practices."

Vice President JD Vance confident a deal on TikTok will be reached by April 5 deadline

Vice President JD Vance said that the Trump administration will finalize a deal on TikTok before the April 5 deadline. Speaking to Fox & Friends, Vance said that they are in "a good place" with negotiations but refrained from making any official announcements ahead of President Trump.

Vance acknowledged concerns over TikTok's potential security risks, emphasizing the need to ensure the app does not compromise U.S. user privacy. However, he also pointed out the widespread popularity of the app among Americans. He assured that both issues—security and user enjoyment—are being balanced in their ongoing discussions.

Advisers to Trump, including Vance, have reportedly presented several deal options, with potential investments from major venture capital firms, private equity funds, and tech companies. Vance confirmed that final decisions would be made after further work, leaving the announcement to Trump.

Danish foreign minister criticizes Trump's trade war approach

Danish Foreign Minister Lars Rasmussen criticized President Donald Trump's trade policies, claiming that initiating a trade war was harmful to the global economy. Rasmussen expressed concerns to the press today over the U.S. president's strategy, particularly its lack of consideration for the services sector, where Denmark has significant investments in the U.S.

Rasmussen said he would attend a meeting of European trade ministers on Monday to discuss a "proportional" response to the situation, noting that the group aimed to avoid further escalation. He also highlighted that Trump's calculations did not account for the impact on the services sector, a key part of Denmark's investments in the U.S.

Donald Trump tariffs could raise mortgage rates

A new round of tariffs announced by former President Donald Trump has set off alarm bells among economists and housing market analysts, who warn that the economic ripple effects could push mortgage rates higher.

This could make homebuying more difficult for Americans already squeezed by inflation and limited inventory.

Mortgage rates have become one of the key challenges in the U.S. housing market, making it harder for buyers to afford homes while also persuading current homeowners to stay in their current home. Many potential sellers are reluctant to list their homes because doing so would mean taking on a new mortgage at rates much higher than the ones they already have, creating inventory shortages.

"The bond market moves on inflation, economic data and global events like tariffs or political uncertainty," Nicole Rueth, senior vice president of Movement Mortgage, said in an interview with CNET. "Buyers waiting for 3 percent rates again are wasting time. Those days are gone."

Read in full from Suzanne Blake on Newsweek.

S&P 500 faces sharp decline as tariffs spark market sell-off

The S&P 500 is set for its steepest decline since 2022, dropping 3.8% as the market reacts to Trump's tariffs on U.S. trading partners.

This broad sell-off has particularly impacted tech stocks, with the Nasdaq also falling nearly 5%.

Investors are concerned about the economic implications of the new tariffs and their potential to disrupt global trade, causing significant volatility in the financial markets.

Trump's 46% tariff on Vietnam hits major U.S. brands including American Eagle and Wayfair

Many American brands have been left scrambling by Trump's massive 46% tariff on Vietnam.

Nearly a third of all footwear imports in the U.S. came from Vietnam in 2023, industry group Footwear Distributors and Retailers of America data showed. While 26.5% of U.S. furniture imports came from the country in the same year, data from the Home Furnishings Association showed.

Shares in American furniture retailer Wayfair, which produces mush of its stock in Vietnam, dropped almost 28% on Thursday.

American Eagle Outfitters, which produces around 20% of its goods in Vietnam, saw its shares drop by 16%.

Nike stocks drop by 13% after tariffs announcement

Shares in Nike have plummeted after Trump's tariffs announcement on Wednesday.

Stocks in the major sportswear brand fell 13%, dropping to their lowest level since 2017.

Nike is an American company, headquartered near Beaverton, Oregon, but it manufactures most of its goods overseas.

Factories in Vietnam, which was hit with a massive 46% tariff, manufacture around half of all Nike shoes.

Senators defend Trump's tariffs despite market concerns

Senators Tommy Tuberville (R-Ala.) and Jim Justice (R-W.V.) dismissed the financial market's negative reaction to Trump's newly implemented tariffs. Tuberville described the market fluctuations as "emotional," stating that stock prices often rise and fall unpredictably, regardless of external factors.

Justice acknowledged the concerns but expressed confidence in Trump's approach, emphasizing that any necessary adjustments will be made over time. He called the tariffs a "major reset" and pointed out that markets typically react strongly to significant changes.

Recession odds soar on betting markets as White House defends tariffs

Betting markets are signaling growing fears of a U.S. recession in 2025, with odds surging after President Donald Trump announced sweeping new tariffs on global trading partners Wednesday.

By Thursday, the likelihood of a 2025 downturn surpassed 50 percent on Kalshi and hit 47 percent on Polymarket, marking historic highs on two of the world's most closely watched prediction platforms.

On what the Trump administration dubbed "Liberation Day," the president unveiled a set of tariffs targeting nearly every major U.S. trade partner. A 10 percent baseline duty on all imports would be followed by sharper measures aimed at longtime allies and rivals alike. Within hours, markets recoiled, and prediction platforms began pricing in a grim new outlook.

The sharp turn in prediction markets signaled more than just volatility—it marked a shift in sentiment, with many now viewing a recession as a coin flip rather than a distant risk. On Kalshi, a regulated platform for trading on economic outcomes, the probability of a U.S. recession in 2025 jumped to 54 percent, up from 42.9 percent the day before.

Read in full from Jesus Mesa on Newsweek.

Japan 'strongly requests' US review tariffs decision but may not be able to impose retaliatory tariffs

Japan has branded President Trump's decision to impose 24% tariffs on its imports as "extremely regrettable."

Japan's Chief Cabinet Secretary Yoshimasa Hayashi said he has "strongly requested" that the Trump administration "review its measures."

Trade minister Yoji Muto warned that the levies would not only limit Japanese companies' ability to invest in the U.S., but it would ultimately impact the American economy too, CNN reports.

However, analysts told CNN that Japan may not be in a position to impose retaliatory tariffs of its own, because it is reliant on the U.S. for security against China and North Korea.

Republican senator warns Trump tariffs may spur 'political decimation'

Republican Senator Rand Paul of Kentucky predicted that President Donald Trump's tariffs could lead to the "political decimation" of the Republican Party.

President Donald Trump on Wednesday announced sweeping tariffs for countries across the globe. Trump and supporters of these tariffs argue they are necessary to restore U.S. manufacturing, but many economists have warned that it will only amount to a new tax on U.S. consumers for many goods as companies pass off the additional expense.

Paul was one of four GOP senators who joined Democrats who voted to oppose Trump's tariffs on Canada on Wednesday and is one of few Republicans in Congress who are opposing his tariffs.

Paul warned that, if history is any indicator, tariffs won't play out well for the Republican Party in remarks reported by Fox News on Wednesday.

Read in full from Andrew Stanton on Newsweek.

List of countries considering lifting tariffs on the US

Countries around the world have responded differently to U.S. tariffs, with some choosing not to escalate while others have remained relatively silent following the White House's announcement.

Israel

On Tuesday, Israeli Prime Minister Benjamin Netanyahu and other national leaders announced they would be lifting tariffs on U.S. products in order to maintain the countries' long and reliable alliance.

The bilateral trade between the U.S. and Israel was worth $34 billion in 2024, according to the Office of the United States Trade Representative.

India

Reuters reported last week that India was open to cutting tariffs on U.S. imports worth $23 billion to mitigate the impact on its exports in sectors like gems and jewelry, pharmaceuticals and auto parts, though Prime Minister Narendra Modi made no mention of the newly announced tariffs in a speech on Thursday.

Vietnam

Vietnam last week promised it would cut its tariffs on several U.S. products including LNG and cars, according to Reuters, and also moved to approve Starlink services. Vietnam was slammed with some of the highest "discounted reciprocal tariffs" at 46 percent. It remains unclear how this will impact Vietnam's tariff cuts on the U.S. moving forward.

Mexico

On Wednesday, Mexican President Claudia Sheinbaum said that Mexico won't go tit-for-tat on tariffs but also has not ruled out reciprocal tariffs. An announcement could be made as soon as this week.

Chrysler manufacturer halting production in Mexico, Canada

Stellantis, which owns Jeep, Ram, Dodge, and Chrysler, is pausing all production at its plants in Mexico and Canada after Trump's tariffs announcement.

The auto maker is also temporarily laying off 900 workers as the company decides how to deal with the 25% tariffs.

"We are continuing to assess the medium- and long-term effects of these tariffs on our operations, but also have decided to take some immediate actions, including temporarily pausing production at some of our Canadian and Mexican assembly plants," Chief Operating Officer Antonio Filosa told employees in an email Thursday.

The Windsor, Ontario, plant which produces the Chrysler Pacifica minivan, will shut down for two weeks while the Toluca, Mexico, factor, which makes Jeeps, will close for the rest of the month.

Mexico spared from new U.S. tariffs, Sheinbaum highlights strong ties

Mexican President Claudia Sheinbaum welcomed the exclusion of Mexico from the latest U.S. tariffs, emphasizing the country's "preferential treatment" under the existing North American trade agreement.

During her morning news conference, Sheinbaum highlighted the "mutual respect" between U.S. and Mexican officials, noting their collaboration on economic policies, security, and immigration. Mexico and Canada were exempt from the sweeping levies President Donald Trump imposed on major trading partners Wednesday.

Mexico's economy secretary, Marcelo Ebrard, suggested the new tariffs on other countries could make Mexico a more attractive trade partner. He and Sheinbaum plan to continue discussions with the U.S. on easing existing tariffs on auto exports, steel, and aluminum.

Mark Carney warns 'pain' and 'damage' coming for Americans

Canadian Prime Minister Mark Carney warned that Americans will experience "damage" and "pain" as he announced Thursday that his country will impose tariffs on U.S. vehicle imports in response to President Donald Trump's newly implemented 25 percent auto tariffs, which took effect the same day.

"Given the prospective damage to their own people the American administration should eventually change course," Carney said. "Although their policy will hurt American families, until that pain becomes impossible to ignore, I do not believe they will change direction, so the road to that point may indeed be long. And will be hard on Canadians just as it will be on other partners of the United States."

Brazil vows response to U.S. tariffs on exports

President Luiz Inácio Lula da Silva announced that his administration would take all necessary actions to protect Brazilian companies and workers after the U.S. imposed a 10% extra tariff on all Brazilian exports. Speaking at an official event in Brasília, Lula emphasized Brazil's commitment to free trade and multilateralism.

"We stand for multilateralism and free trade, and we will respond to any attempt to impose protectionism, which no longer has a place in today's world," he said.

The U.S. is Brazil's second-largest trading partner after China, with key exports including crude oil, aircraft, coffee, cellulose, and beef. The U.S. trade surplus with Brazil reached $28.6 billion last year.

While Brazil remains open to discussions aimed at reversing the tariffs, it is also considering taking the case to the World Trade Organization and imposing reciprocal tariffs. Lula has yet to sign a newly approved reciprocity bill into law.

Tobacco shares buck stock market trend, pattern seen during 2008 recession

With Wall Street on track for its worst day since Covid-19, there is one noticeable exception.

Tobacco companies shares soared on Thursday, with American Philip Morris International Inc. seeing a 4.01% rise, and British American Tobacco PLC rising 3.80%.

Similar trends were seen during the 2008 economic recession, when tobacco firms showed excellent returns, "reflecting more widespread indirect exposure to smoking," a NIH study found.

The study found that smokers tend to increase their cigarette intake during the stressful period of economic difficulty.

One difference between the 2008 recession and now, is that Japan Tobacco Inc actually saw a very small drop in stock price, 0.58%, after President Trump slapped a 24% tariff on Japanese imports.

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Canada to impose retaliatory auto tariffs in response to U.S. duties

Canada will implement 25% tariffs on U.S. vehicle imports that do not comply with the Canada-United States-Mexico Agreement (CUSMA), Finance Minister Mark Carney announced Thursday. The tariffs will also apply to the non-Canadian content of CUSMA-compliant vehicles but will exclude auto parts to preserve the integrated supply chain.

The measures will not impact vehicle content from Mexico. Carney stated that Canada is developing a framework allowing automakers to avoid the tariffs if they maintain production and investment in the country.

Revenue from the tariffs, estimated at $8 billion before remission, will be directed to Canadian auto workers and affected companies. This is in addition to a proposed $2 billion fund aimed at strengthening Canada's domestic auto industry, which Carney said a future Liberal government would implement if elected.

Previously announced retaliatory tariffs from Canada will remain in place.

UBS strategists warn inflation could rise to 5% after tariffs

Strategists from multinational investment bank UBS Group have warned that inflation is likely to spike up to 5% following President Trump's tariffs announcement.

"This has the potential to considerably worsen the growth inflation mix in the U.S. and the global economy in the coming year," strategist Bhanu Baweja wrote in a Thursday note.

"Our U.S. econ team believes it's plausible US' 2025 real GDP could be compromised by 1.5-2pp and inflation could rise to close to 5% if these tariffs are not reversed soon.

"The magnitude of damage they could cause to the U.S. economy makes one's rational mind regard the possibility of them sticking as low."

Trump administration requires schools to certify compliance with civil rights laws, eliminate DEI practices

The Trump administration is mandating that schools nationwide certify their compliance with federal civil rights laws and the elimination of diversity, equity, and inclusion (DEI) practices to continue receiving federal funding.

A notice issued Thursday by the Education Department gives states and schools 10 days to sign and return the certification.

"Federal financial assistance is a privilege, not a right," said Craig Trainor, acting assistant secretary for civil rights.

The certification requires school leaders to acknowledge that certain DEI practices may violate federal law and could result in a loss of funding. It follows a Feb. 14 memo stating that any policy treating students or staff differently based on race is illegal.

Stocks on track for worst day since Covid crash

The S&P 500 was down 4.3% in morning trading, which is on track for the worst day since the Covid-19 crash in March 2020.

The Dow Jones Industrial Average was down 1,538 points, or 3.6%, while the Nasdaq dropped 5.6% lower.

Stocks dropped in almost every sector; from crude oil to tech.

Even the value of the U.S. dollar and gold fell as investors react to a very different global trade market.

Ford lowers prices to employee levels as Trump's tariffs take effect

Ford Motor announced on Thursday that it is lowering prices on most of its vehicles to match the levels it offers employees. This move comes as President Trump's tariffs on imported cars, including those from Mexico, Canada, Japan, and Germany, went into effect, with duties of 25% expected to drive up vehicle prices and reduce demand.

The tariff impacts approximately half of the vehicles sold in the U.S., many of which are produced in Mexico and Canada. In response, Ford has launched a program called "From America, for America," aimed at reducing its inventory of unsold cars. According to Cox Automotive, Ford had one of the largest vehicle inventories in February, trailing only a few other brands.

The price reductions apply to all new 2024 and 2025 models, excluding specialty versions of the Bronco, Mustang, and Super Duty F-Series pickups. Additionally, Ford is extending a program offering free home chargers and installation for buyers of new electric vehicles, valid through June 30.

Trump moves to fire several National Security Council officials: Report

Trump has initiated moves to fire several officials within the National Security Council, citing concerns that they may not be sufficiently loyal to his administration, per The Associated Press.

Russell 2000 drops by 6.5% after tariff implementation

The Russell 2000, an index tracking smaller companies, saw a significant drop of at least 6.5% this morning.

This sharp decline outpaced the dips seen in broader indexes like the S&P 500, which track larger global corporations.

The downturn suggests that investors may view smaller businesses as the most vulnerable to the economic impact of the new tariffs.

Another Republican senator makes move targeting Trump tariffs

Republican Sen. Chuck Grassley of Iowa joined Democratic Sen. Maria Cantwell of Washington in introducing a bill that would strengthen Congress' power over US tariffs.

Grassley and Cantwell's bill would require the president to notify Congress about any new tariffs within 48 hours of when they would be imposed. In addition, Congress would have to approve new tariffs within 60 days, or they would expire.

Grassley's latest action follows an effort on Wednesday when a handful of Republican senators voted in favor of a measure that would effectively terminate the national emergency declaration used to green-light tariffs on Canadian imports.

Trump administration imposes tariffs on unlikely territories worldwide

The Trump administration's sweeping tariffs have caught global attention, extending to remote and obscure locations with little to no role in the world economy. On Wednesday, President Trump announced a baseline 10% tariff on imports into the U.S., with much higher rates for countries with trade surpluses. Some nations, such as Russia, Canada, and Mexico, were excluded, but a number of small territories and islands made the list, raising questions about the administration's targeting strategy.

Among the unexpected regions hit by the tariffs are Jan Mayen, a small Arctic island part of Norway, and Tokelau, a remote collection of coral islands in the South Pacific with a population of just 1,500 people. Both have little to no economic impact on the U.S. market.

Other locations on the list include Christmas Island, an Australian territory with no direct trade to the U.S., and Heard and McDonald Islands, uninhabited Antarctic territories. Norfolk Island, a small Australian island with an economy based on tourism, was also hit with a 29% tariff after the U.S. claimed the island charges high tariffs on American goods.

Leaders of these territories expressed confusion about the tariffs, as many have little to export or import from the U.S. Critics suggest the Trump administration may be overlooking these areas' unique circumstances, leaving them with few options for negotiating a resolution.

Lutnick says American markets will eventually do 'extremely well'

Secretary of Commerce Howard Lutnick claimed on Thursday that the American stock market will eventually do "extremely well" after it plummeted in the wake of President Trump's tariffs.

Lutnick told CNBC that he expected most countries to "really examine their trade policy towards the United States of America, and stop picking on us."

Despite many countries already announcing their own retaliatory tariffs, he said that it wasn't effective for them to do so because the U.S. would simply raise their own levies against them again.

The S&P 500 suffered a major drop when it opened this morning, more than 3%, as investors reacted to the tariffs.

White House press secretary, Scott Walker, and Sen. Sheldon Whitehouse discuss Trump's new tariffs

Today on CNN News Central, White House Press Secretary Karoline Leavitt, former Wisconsin Governor Scott Walker (R), and Sen. Sheldon Whitehouse (D-RI) weighed in on President Trump's newly announced tariffs and trade policies.

Leavitt stood firm on Trump's stance, telling anchor Kate Bolduan that the president will not back down from the proposed tariffs. "This is not a negotiation," Leavitt said, emphasizing that the tariffs are part of a national emergency response to countries that have, in her view, harmed American workers for decades. "The President is putting an end to that yesterday," she added.

Scott Walker, however, predicted that the tariffs would eventually be scaled back, suggesting the president's approach could be part of a broader strategy. He drew parallels to previous instances where trade tensions were resolved quickly, stating that while the impact of the tariffs was global, some movement would occur in the coming days or weeks.

Sen. Sheldon Whitehouse, meanwhile, expressed concerns about the economic consequences of Trump's tariffs, advising voters to "take a week and see how this turns out." He predicted significant financial burdens for American families and criticized the potential long-term damage to pensions and insurance costs, warning that this could lead to a political shift.

Poll shows mixed reactions to Trump's government changes

A new poll from the Associated Press-NORC Center for Public Affairs Research reveals that President Donald Trump's changes to the federal government have not clearly shifted public opinion in one direction. About 40% of U.S. adults either "somewhat" or "strongly" approve of his handling of Social Security and the overall management of the federal government. These numbers align closely with Trump's general approval rating.

Despite efforts to downsize the federal workforce, close Social Security offices, and cancel government contracts, the changes have not sparked a significant backlash, nor have they generated strong support from independents. The poll also suggests that public views on Trump remain closely linked with those of his adviser, Elon Musk, whose recent political involvement faced setbacks. Musk-backed conservative candidate endorsements suffered a defeat in the Wisconsin Supreme Court race, signaling mixed reactions to his political influence.

DOGE Cuts update today: Veterans Affairs cuts outlined

Elon Musk's Department of Government Efficiency announced changes at the Department of Veterans Affairs on Wednesday.

DOGE said in a post on X that the department was not renewing a contract that cost $380,000 a month for "minor website modifications" and the work was now being done by a software engineer already working in the department.

"Good work by@DeptVetAffairs," the post said. "VA was previously paying ~$380,000/month for minor website modifications. That contract has not been renewed and the same work is now being executed by 1 internal VA software engineer spending ~10 hours/week."

Contracts Canceled

DOGE on Wednesday said federal agencies canceled 47 contracts with a "ceiling value" of $87.5 million, leading to savings of $30.2 million.

They included a State Department management consulting contract worth $3.4 million for "aviation advisors in Kenya," DOGE said in a post on X.

Read the full story by Khaleda Rahman on Newsweek.

Stellantis to shut down Windsor plant for two weeks due to Trump's tariffs

Stellantis, the maker of Chrysler, Jeep, and Ram vehicles, announced it will close its assembly plant in Windsor, Ontario, for two weeks starting April 7. The shutdown is in response to the 25% tariff on all vehicles produced outside the United States, which went into effect today.

The Windsor plant manufactures the Chrysler Pacifica minivan and the all-electric Dodge Charger Daytona. Stellantis has indicated that further changes may be expected in the coming weeks, according to reports from the Toronto Star and other outlets.

White House reassures investors amid Trump's tariff announcement

White House press secretary Karoline Leavitt attempted to ease investor concerns Thursday following President Donald Trump's announcement of new tariffs. Speaking in an interview with CNN, Leavitt reassured Wall Street that President Trump's economic policies remain solid, describing the tariffs as part of his proven economic strategy.

"This is a common-sense policy," Leavitt said, adding that countries had been given ample time to negotiate, yet failed to do so. She emphasized that the tariffs, set to take effect this weekend, were non-negotiable and part of a national emergency response. When questioned about potential conflicts with NATO agreements, Leavitt affirmed that the president would not reassess his approach, stating, "The president is firm in his approach."

Commerce Secretary Howard Lutnick pushes for increased U.S. production

Commerce Secretary Howard Lutnick expressed on CNBC that while the U.S. appreciates countries that purchase American goods, the administration is focused on boosting domestic production to create jobs.

He questioned why essential products like iPhones are made overseas, particularly in Taiwan and China, and suggested that advanced robotics could enable manufacturing in the U.S.

"Why can't those be made with robotics in America?" he asked.

Switzerland responds to U.S. tariffs, seeks alternative solutions

Switzerland will not take immediate action against the 32% tariffs imposed by the United States but will continue to explore "other solutions" in talks with Washington. President Karin Keller-Sutter said on Thursday that escalation is not in Switzerland's interest, adding that the Swiss government cannot understand the methodology behind the U.S. tariff rate.

While pharmaceuticals, which make up more than half of Switzerland's exports to the U.S., are exempt from the tariffs, industries like machinery, watches, chocolate, and cheese face significant challenges due to the new levies.

Guy Parmelin, Switzerland's economic affairs minister, spoke about the difficulties these tariffs present for Swiss manufacturers.

Vance discusses long-term impact of Trump's tariffs and policies on American workers

JD Vance addressed the challenges posed by Trump's tariffs, spending cuts, and support for U.S. industries during an appearance on Fox & Friends. He acknowledged that it will take time for these measures to show tangible results for everyday Americans, emphasizing that "we are not going to fix things overnight."

Vance pointed out that while many individuals have profited from outsourcing American jobs, workers have not benefited similarly. He stressed that foreign competitors manufacturing overseas have contributed to the struggles of American companies.

"We know people are struggling," Vance said, but emphasized that through deregulation and energy cost reductions, American workers would eventually see positive changes in their finances. He also highlighted the long-term benefit of preventing foreign countries from taking advantage of the U.S. economy.

Trump's tariffs could drive up prices for U.S. consumers, say South African producers

South African citrus producers are warning that the sweeping tariffs imposed by Trump could lead to higher prices for American consumers. Boitshoko Ntshabele, CEO of the Citrus Growers Association in Johannesburg, explained that the 30% tariffs on U.S. imports of South African goods will affect the 1,400 citrus producers across southern Africa, The Associated Press reported.

Ntshabele said that South African citrus does not compete with U.S. growers, but instead complements them by providing off-season produce, benefiting the U.S. citrus industry. South African President Cyril Ramaphosa echoed this, stating that the tariffs highlight the need for a new bilateral trade agreement between the U.S. and South Africa.

Trump: 'THE OPERATION IS OVER'

Trump took to Truth Social to share a message following an unspecified "operation," stating that the patient "lived" and is healing—but he seemed to be referring to the U.S economy.

This message came as stock futures pointed to a significant market downturn, with S&P 500 futures down more than 3.5% and the Dow expected to drop around 1,300 points at the market's opening.

Vance: Elon Musk to remain adviser to Trump despite departure from government role

Elon Musk will continue as a friend and adviser to Trump and Vice President JD Vance after stepping down from his role with the Department of Government Efficiency, Vance confirmed in a Fox News interview on Thursday.

"DOGE has got a lot of work to do, and yeah, that work is going to continue after Elon leaves," Vance said. "But fundamentally, Elon is going to remain a friend and an adviser of both me and the president."

Reports from Politico and ABC revealed that Trump informed his Cabinet that Musk would soon return to the private sector, though it is unclear if this will happen before his 130-day mandate ends in late May.

Despite his departure, Vance emphasized that Musk's advisory role would remain intact.

Mercedes-Benz calls for U.S. and EU to negotiate fair trade solution

Mercedes-Benz is urging the U.S. and the European Union to engage in meaningful discussions to find a fair and mutually beneficial resolution, The New York Times reported. The company, which directly employs approximately 11,000 people in the U.S., stressed its significant economic contribution.

While some of its vehicles are produced in Alabama, Mercedes also imports cars from its European manufacturing plants to the U.S. The automaker's statement underscores the need for collaboration in light of growing trade tensions.

Big Tech 'Magnificent Seven' stocks take a hammering in premarket

The largest tech companies in the U.S. have all seen drastic drops in premarket stock prices, as markets continue to grapple with the ramifications of President Donald Trump's "Liberation Day" tariffs.

The "Magnificent Seven"—a group of Nasdaq companies that include household names such as Apple, Microsoft and Google—saw drops as high as 7 percent since markets closed on April 2.

Newsweek contacted the White House for comment on the tariff policy's effects via email.

The newest wave of tariffs, which have been applied to dozens of countries worldwide, are set to have a significant effect on global supply chains. Tech companies are uniquely susceptible to changes to these chains, as they are more reliant on complex technologies, such as semiconductors, developed internationally. As a result, the U.S.'s tech industry is feeling the strain more acutely than other parts of the economy.

The Magnificent Seven is a group of the largest tech companies on the stock market, with a historic record of strong performances.

These companies are considered the Magnificent Seven:

• Amazon (AMZN)
• Nvidia (NVDA)
• Meta (META)
• Alphabet (GOOGL)
• Microsoft (MSFT)
• Tesla (TSLA)
• Apple (AAPL)

Read the full story by Theo Burman on Newsweek.

Marco Rubio reaffirms US commitment to NATO despite Trump's past doubts

Secretary of State Marco Rubio reassured NATO allies on Thursday that the United States will remain in the alliance, emphasizing its importance. Addressing concerns about President Trump's past rhetoric regarding NATO, Rubio stressed that the US is as active in NATO as ever and that such concerns are exaggerated.

Rubio's comments came after Trump's remarks questioning NATO's defense commitments, particularly in relation to countries' defense spending. Rubio also voiced support for strengthening NATO, urging member states to increase their defense capabilities. He is currently in Brussels to meet with NATO officials.

Countries not hit with reciprocal tariffs revealed

Here is a full list of countries not hit with reciprocal tariffs:

1. Belarus
2. Burkina Faso
3. Canada
4. Cuba
5. Mexico
6. North Korea
7. Palau
8. Russia
9. Seychelles
10. Somalia
11. Vatican City

Spain's prime minister challenges Trump administration's tariff justification

Spanish Prime Minister Pedro Sánchez has pushed back against the Trump administration's claim that new tariffs on the European Union are "reciprocal," questioning the trade figures used to justify them.

In a televised statement, Sánchez criticized the tariffs as an attempt to "collect money to try to mitigate the deficit caused by a questionable fiscal policy." He urged Trump to reconsider and negotiate a different approach with the EU and other global partners.

Trump's 46% tariff on Vietnam could raise costs for major retailers

Vietnam has become a key manufacturing hub for companies shifting production from China, but new U.S. tariffs may drive up costs.

President Donald Trump announced a 46% duty on Vietnamese imports as part of a broader tariff package, set to take effect on April 9. The move could impact major apparel, furniture, and toy brands, potentially leading to higher prices for consumers.

Vietnamese imports to the U.S. rose 19% in 2024 to $136.6 billion, as companies sought to avoid trade tensions with China.

WATCH: EU calls Trump's tariffs 'a major blow' to world economy

Donald Trump's tariffs could push US into recession: JP Morgan

President Donald Trump's widespread tariffs could put the U.S. economy "perilously close to slipping into recession" by driving up inflation and hurting consumer spending, JP Morgan's chief economist Michael Feroli has said in a note.

Even prior to the unveiling of the reciprocal tariffs, economists had warned that the expanding list of countries and items subject to import taxes could disrupt U.S. trade, strain domestic industries while intensifying America's inflationary struggles. Taken together, experts told Newsweek that this could push the U.S. into a recession in 2025.

Feroli said that the tariffs announced by Trump on Wednesday would raise an estimated $400 billion in revenue, but would raise inflation and have a resulting negative impact on consumer spending.

In his long-awaited "Liberation Day" speech, Trump unveiled a 10 percent baseline tariff on all U.S. imports and reciprocal tariffs on dozens of countries. The "reciprocal tariffs" target nations perceived as pursuing unfair trade practices, with rates as high as 34 percent on China, 20 percent on the European Union, and 24 percent on Japan.

Read the full story by Shan Croucher on Newsweek.