Trump on tariffs: ‘The stock is going to boom’
Speaking to reporters on Thursday amid tumbling US stock markets and $2tn wiped off Wall Street after his tariffs reveal on Wednesday, Trump said:
I think it’s going very well. It was an operation like when a patient gets operated on and it’s a big thing. I said this would be exactly the way it is … We’ve never seen anything like it. The markets are going to boom. The stock is going to boom. The country is going to boom.
He went on to add:
The rest of the world wants to see is there is any way they can make a deal. They’ve taken advantage of us for many years … I think it’s going to be unbelievable …
Over the last nearly 24 hours, Trump has faced widespread backlash from US lawmakers and global leaders over his tariffs plan, with senior Republican senator Mitch McConnell calling it “bad policy” while Canada – a traditional American ally – called the tariffs “unjustified” and “unwanted”.
Key events
As news of Donald Trump’s “reciprocal” tariffs settles in today, the president’s allies on the far-right are reacting to news that their countries will face higher duties.
In Italy, premier Giorgia Meloni told state television that she believes Trump’s decision to impose 20% tariffs on exports from Europe is “wrong,” but “it is not the catastrophe that some are making it out to be”.
She added that the government will meet next week to discuss its response: “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”.
Meanwhile, Brazilian president Javier Milei – who gifted tech billionaire Elon Musk with a chainsaw at the Conservative Political Action Conference in February – said he hopes to meet with Trump this evening at the “American Patriots Gala”. In response to the tariffs, Milei posted a link to the Queen song “Friends will be Friends” on social media.
California’s Democratic representative Eric Swalwell has joined in a handful of lawmakers in criticizing Donald Trump’s latest tariffs, writing on X:
“Trump’s tariffs are a slap in the face to hardworking Americans, jacking up prices, straining small businesses, and risking jobs. This isn’t America first; it’s families last.”
Donald Trump is continuing to face criticism from US lawmakers after his tariffs reveal on Wednesday included tariffs on barren islands near Antartica that are populated by penguins.
Senate minority leader Chuck Schumer called the tariffs “one of the dumbest decisions [Trump] has ever made as president,” adding, “And that’s saying something.”
Schumer went on to say:
“Donald Trump slapped tariffs on penguins and not on Putin,” in apparent reference to Trump’s 10% tariffs placed on the uninhabited Heard and McDonald Islands.
Similarly, Adam Schiff, Democratic senator of California, released a video address on X of featuring a baby penguin he called “George.”
“The Trump administration just put a tariff on this guy. That’s right, this guy. This is George. George lived on an uninhabited island called Heard Island…and Trump just put a 10% tariff on this island which begs of course the question, ‘What did George ever do to Donald Trump and his buddies?’
This is how nonsensical these tariffs are. This is how absurd and capricious and uncoordinated these tariffs are. And while it might seem absurd and funny that they put a tariff on penguins, it shows just the reckless nature of what they are doing. They are crashing the economy and it could just not be more self-destructive. We are alienating our friends and allies and even going after poor George.”
Trump on tariffs: ‘The stock is going to boom’
Speaking to reporters on Thursday amid tumbling US stock markets and $2tn wiped off Wall Street after his tariffs reveal on Wednesday, Trump said:
I think it’s going very well. It was an operation like when a patient gets operated on and it’s a big thing. I said this would be exactly the way it is … We’ve never seen anything like it. The markets are going to boom. The stock is going to boom. The country is going to boom.
He went on to add:
The rest of the world wants to see is there is any way they can make a deal. They’ve taken advantage of us for many years … I think it’s going to be unbelievable …
Over the last nearly 24 hours, Trump has faced widespread backlash from US lawmakers and global leaders over his tariffs plan, with senior Republican senator Mitch McConnell calling it “bad policy” while Canada – a traditional American ally – called the tariffs “unjustified” and “unwanted”.
Here is the latest chart of the S&P500 as of 2pm ET on Thursday:
Mitch McConnell calls Trump’s tariffs ‘bad policy’
Mitch McConnell, the Kentucky Republican senator and former Senate majority leader, has criticized Donald Trump’s latest tariffs, saying that they are “bad policy and trade wars with our partners hurt working people most”.
In a statement on Thursday afternoon, McConnell went on to say:
They are a tax on everyday working Americans. Preserving the long-term prosperity of American industry and workers requires working with our allies, not against them.
With so much at stake globally, the last thing we need is to pick fights with the very friends with whom we should be working with to protect against China’s predatory and unfair trade practices. That includes what we do on trade.
Pentagon watchdog opens investigation into use of Signal for Yemen attack plans
The Pentagon’s inspector general’s office announced on Thursday it was opening an investigation into defense secretary Pete Hegseth’s use of an unclassified commercial texting application to coordinate the 15 March launch of US strikes on Yemen’s Houthis.
“The objective of this evaluation is to determine the extent to which the Secretary of Defense and other DoD personnel complied with DoD policies and procedures for the use of a commercial messaging application for official business,” Steven Stebbins, the acting inspector general, wrote in a memo.
“Additionally, we will review compliance with classification and records retention requirements.”
In case you needed reminding, Hegseth outlined details of a US airstrike in Yemen in a Signal group chat that included the vice-president, JD Vance, as well as Trump’s national security adviser, Mike Waltz, who mistakenly added Jeffrey Goldberg, editor-in-chief of the Atlantic, to the chat.
A firestorm of controversy over the error, revealed after the Atlantic published details of the chat on 24 March, has led to calls for those involved to resign.
On Tuesday, Politico reported that Waltz and his team have created at least 20 different group chats on the encrypted messaging app Signal to coordinate sensitive national security work.
Trump fires multiple national security officials after Loomer visit
Several members of Donald Trump’s embattled national security council have been fired, Axios reports.
The firings come a day after conspiracy theorist Laura Loomer visited the Oval Office and pressed Trump to fire specific NSC staffers for disloyalty.
Loomer is a far-right conspiracy theorist and Islamophobic former Republican congressional candidate banned from Uber, Paypal and some social media platforms. She is notorious for promoting racism and 9/11 conspiracy theories.
One source told Axios the “bloodbath” could see as many as 10 fired. CNN has named Brian Walsh, Thomas Boodry and David Feith as three of the officials let go.
Rubio says US is committed to Nato but Europe must spend more on defence
US secretary of state Marco Rubio told Nato allies on Thursday that Washington remained committed to the alliance but expected them to spend far more on defence and would give them some time to do so.
Rubio met fellow Nato foreign ministers gathered in Brussels, with some European officials saying they were reassured by the renewed commitment to the alliance at a time of rising tensions over Donald Trump’s new trade tariffs.
Reuters reports that Rubio dismissed doubts about US commitment to the alliance as “hysteria and hyperbole”. He told reporters:
The United States is in Nato … The United States is as active in Nato as it has ever been. [Trump] is not against Nato. He is against a Nato that does not have the capabilities that it needs to fulfil the obligations that the treaty imposes upon each and every member state.
European allies have been anxiously seeking details on the timeframe and extent to which the US aims to reduce its engagement in Nato for weeks, in order to coordinate the process of a European defence ramp-up to avoid security gaps in Europe.
In Brussels, Rubio brought some element of response on that.
“We do want to leave here with an understanding that we are on a pathway, a realistic pathway, to every single one of the members committing and fulfilling a promise to reach up to 5% of spending,” he said, adding that this included the US. “No one expects that you’re going to be able to do this in one year or two. But the pathway has to be real.”
A European official, who spoke on condition of anonymity, said the meeting with Rubio was “very reassuring”.
The meeting was not confrontational. Just that allies need to do more. No bashing.
‘This is a tragedy’: Canada to counter ‘unjustified’ US tariffs with 25% taxes on US cars
Leyland Cecco
Canada will retaliate against “unjustified, unwarranted” tariffs imposed by the United States with a 25% taxes on US vehicles, Mark Carney announced on Thursday.
On Wednesday, Donald Trump announced wide ranging tariffs on dozens of countries, but did not add new trade levies to Canada or Mexico. Despite the reprieve, however, the US has placed 25% taxes on Canadian steel, aluminum and vehicles.
“The president’s actions will reverberate here in Canada and across the world,” the Canadian prime minister said at a press conference. “They are all unjustified, unwarranted, and in our judgment misguided.”
In response to US trade policy, Carney said his government would impose the taxes on vehicles that are not compliant with the continental free trade deal. The new tariffs would not apply to auto parts and would not affect vehicle content from trade ally Mexico.
Given the prospective damage to their own people, the American administration should eventually change course. But I don’t want to give false hope.
Carney’s comments come against the backdrop of a global economy in turmoil. Trillions have been wiped from markets as multiple nations digest a new – and grim – trading relationship with the United States.
Carney said that it could take a long time for the US to shift approach. He added that Canada’s previously announced tariffs would stay in place.
The 80-year period when the United States embraced the mantle of global economic leadership, when it forged alliances rooted in trust and mutual respect and championed the free and open exchange of goods and services, is over. This is a tragedy.
Amy Klobuchar, the top Democrat on the Senate agriculture committee, called the tariffs a “national sales tax” on consumers, farmers and businesses.
In a statement she said:
This is the biggest tax increase in a generation, and will increase costs by more than $5,000 a year for the average family. The economic chaos and uncertainty the president is creating is endangering our economy.
Angie Craig, the top Democrat on the House agriculture committee, said the tariffs would force American farms to close.
She said in a statement:
Increasing input costs, shutting farmers out of export markets and causing middle-class families to pay more at the grocery store is not a winning strategy. Starting trade wars puts family farmers in the crosshairs for retaliation.
The few positive reactions came from beef and seafood groups, who said they have been disadvantaged in the global market and see the tariffs as an opportunity for growth, Reuters reports.
John Williams, executive director of the Southern Shrimp Alliance, said:
We’ve watched as multi-generational family businesses tie up their boats, unable to compete with foreign producers who play by a completely different set of rules.
Ethan Lane, the National Cattlemen’s Beef Association’s senior vice-president of government affairs, said in a statement:
America’s family farmers have been mistreated by certain trading partners around the world. President Trump is taking action to address numerous trade barriers that prevent consumers overseas from enjoying high-quality, wholesome American beef.
Groups that represent dairy processors and fresh produce growers and retailers said the tariffs risked higher prices for US consumers and smaller markets for farmers.
Becky Rasdall Vargas, senior vice-president of trade and workforce policy at the International Dairy Foods Association, said in a statement:
Broad and prolonged tariffs on our top trading partners and growing markets will risk undermining our investments, raising costs for American businesses and consumers, and creating uncertainty for American dairy farmers and rural communities.
The International Fresh Produce Association said it appreciated that Trump exempted fruits and vegetables covered by the US-Mexico-Canada Agreement (USMCA) from tariffs, but added that it was concerned about tariffs on other trading partners.
Cathy Burns, the CEO of the association, said in a statement:
The global trade of fresh produce is essential to the health and well-being of people in every nation.
Reuters has a helpful roundup of reaction from groups representing US farmers and food processors, most of which are sharply critical to Trump’s sweeping tariffs on imports. I’ll start with farmer groups.
The American Farm Bureau Federation, the leading farm lobby, said the tariffs threaten US farmers’ competitiveness and could cause long-term damage by eroding market share.
Zippy Duvall, the president of the group, said in a statement:
We share the administration’s goal of leveling the playing field with our international partners, but increased tariffs threaten the economic sustainability of farmers who have lost money on most major crops for the past three years.
The National Farmers Union also criticized the plan, saying it puts farmers at risk during a period of economic strain. Rob Larew, the NFU’s president, said in a statement.
One thing is certain: American family farmers and ranchers will bear the brunt of this global trade war. Without meaningful support and a commitment to fair trade policies, we will lose even more family farms, weaken rural economies, and ultimately drive up costs and limit choices for consumers at the grocery store.
Trump administration is ‘months away’ from direct payments to farmers, Rollins says
The US agriculture secretary Brooke Rollins said that the administration is “months away” from making a decision about whether to make payments to farmers to offset any impact from tariffs.
Donald Trump’s sweeping tariffs were mostly criticized by farm and food groups for their potential to shrink markets for farmers and raise prices for consumers.
Rollins told Fox News that the administration would consider making payments to farmers in the case of any economic hit from tariffs, but any decision was a long way off.
We are months, literally months away, from understanding if that’s going to be necessary.
It has been a majorly challenging few years for America’s agricultural sector and across the country, farming groups are in a spin over Trump’s tough tariff approach. Indeed, with 10% of all US workers employed in or adjacent to agriculture and around 20% of all US agricultural production going overseas, some agronomists fear the ructions caused by the Trump administration could put pay to relations that took decades to develop.
My colleague Stephanie Starr reported on that earlier this week:
US dangles billions of dollars in Congo mineral investment
The US is in talks to invest billions of dollars in mineral-rich Congo and wants to help end the conflict raging in the country’s east, Donald Trump’s senior adviser for Africa said during a visit on Thursday.
Democratic Republic of Congo, which has vast reserves of cobalt, lithium and uranium among other minerals, has been fighting Rwanda-backed M23 rebels who have seized swathes of its territory this year (you can read our coverage of the conflict here). The DRC, the US and other countries have said Rwanda is backing M23 to exploit the region’s mineral resources.
Meanwhile the US said last month that it is open to exploring critical minerals partnerships with Congo after a Congolese senator contacted US officials to pitch a minerals-for-security deal.
Reuters reports that US senior adviser Massad Boulos (who is Donald Trump’s daughter’s father-in-law) said after meeting Congo president Félix Tshisekedi in Kinshasa.
You have heard about a minerals agreement. We have reviewed the Congo’s proposal, and … the president and I have agreed on a path forward for its development.
The details of any potential deal, or Congo’s proposal, were not made public on Thursday.
Congo’s minerals, which are used in mobile phones and electric cars, are currently dominated by China and its mining companies.
How the US will operate in Congo is unclear, but Boulos suggested that US companies will be involved.
Rest assured, American companies are operating transparently and will stimulate local economies. These are multi-billion-dollar investments.
He added that the US wants to help forge peace in the east where thousands have been killed and hundreds of thousands forced to flee amid M23’s advance, which has seen the group take over eastern Congo’s two largest cities.
We want a lasting peace that affirms the territorial integrity and sovereignty of the DRC. There can be no economic prosperity without security.
