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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, the Global Sella follows the announcement that Wall Street and the world had been waiting for four weeks. President Trump is raising tariffs around the world on a day he is dubbed Liberation Day for America.
April second, twenty twenty five will forever be remembered as today American industry was reborn, the day America's destiny was reclaimed, and the day that we began to make America wealthy again.
In remarks from the White House Rose Garden heard here on Bloomberg, the President announced at least a ten percent tariff on all exporters to the US. About sixty nations will see even higher duties. The biggest target of all is China. The President says, Beijing charges the US an effective sixty seven percent rate.
So sixty seven percent, so we're going to be charging a discounted reciprocal tariff of thirty four percent.
I think.
In other words, they charge us we judge m chuge mls. So how could anybody be upset?
President Trump is also slapping higher duties on the European Union, Japan, Vietnam, and more. All together, Bloomberg Economics estimates the effective tax rate on more than three trillion dollars in imported goods could rise to about twenty three percent. That is the highest in more than a century.
Well iven, President Trump's tariffs have drawn a sharp reaction on Capitol Hill. House Minority Leader Hankem Jeffries spoke out even before the president's announcement.
This is not liberation Day, It's recession day.
In the United States of America. That's what the Trump tariffs are going to do, crash the economy.
How's Minority Leader Hankem Jeffries. Republicans are mostly standing behind the president. Ashley Davis is a GEOP. He's strategist and partner at S three Group.
He's ran on this for the last four years.
Really is that he needs to make sure that the other countries are paying what they deserve Republicans strategist Ashley Davis. But not every Republican is on board. Kentucky Senator Ran Paul says tariffs are just another tax on Americans.
Republicans used to be in Conservatives and particularly used to be against new taxes. I don't think it's going to be good for us politically, but it's not good for the country either.
Senator Ran Paul and three other Republicans joined with Democrats on a bill opposing President Trump's tariffs on Canada. The bill is not likely to pass in the House.
Well, Karen, President Trump's historic action risks inducing a worldwide trade war marked by tit for tax strikes. We spoke with Treasury Secretary Scott Besson, who urged other countries not to fight back.
I would advise none of the countries to panic. I wouldn't try to retaliate because as long as you don't retaliate, this is the high end of the number, and I think there could have certainty that this is the number barring retaliation.
Treasury Secretary Scott Besson went on to leave the door open to negotiations, telling Bloomberg quote, We'll see with regard to further talks. You can hear the full interview with Scott Besant on the Bloomberg Talks podcast and watch it on the Bloomberg podcast page on YouTube.
So, Nathan, let's get the reaction from other countries around the world. Our first stop brings US to Asia, where China has been the biggest target of Trump tariffs, and Bloomberg deal Desis joins US from Hong Kong with more Jill.
Yes, well, I think it's a lot to really digest here out of Asia. On the one hand, you do see those really high tariffs on China. This thirty four percent increase that Trump is now putting on China. If you were to take that into tality with all of the other levees that Trump has put on China that the US has put on China over the last several months years, you're looking at somewhere in the neighborhood of the average US tariff on Chinese goods being at least
sixty five percent according to some economists. Bloomberg Economics estimates that as a result, that could lead to a one to two percentage point loss to growth in China. So certainly a big metric there that you're really looking at. Of course, we haven't really heard from China yet what their definitive actions will be to counter these tariffs. The Ministry of Foreign Affairs has said that there are going to be measures coming, we're just waiting to see them.
But I would draw your attention, Karen too, elsewhere in Asia where you're also seeing incredibly high rates and likely even you know, higher economic shocks. Vietnam, for example, they were hit with a forty six percent tariff in this latest round. I mean, this is a country that you know is incredibly export dependent. They're among the world's most trade dependent nations. Or exports were equivalent to nearly ninety percent of economic output. I think that's why you're seeing
such a big market reaction in that particular country today. So, you know, just a couple of examples there, but obviously all across Asia, we're seeing a lot of different economic shocks, just as nations respond to these tariffs that just been announced.
Jill desis with the reaction from Hong Kong. Jill, thank you. Now let's head to Europe get the reaction there. Bloomberg Daybreak, you're a banker. Caroline Hepger is in London with the latest. Good morning, Caroline, good morning, Nathan and Karen.
President Trump called the EU pathetic again and that the block rips off the US, as he imposed twenty percent tariffs on EU goods exported to America. The EU argues that America exports plenty of its services to the block and that it is the biggest single market in the world now. EU trade ministers are due to meet on
Monday to discuss their response. Meanwhile, in the early hours this morning, Commissioned President as to Leavondeline warned that US actions would deal a blow to the global economy, and she urged further negotiations.
We have always been ready to negotiate with the United States to remove the remaining barriers to transatlantic trade. At the same time, we are prepared to respond. We are already finalizing the first package of countermeasures in response to tariff's on steel, and we're now preparing for further countermeasures to protect our interests and our businesses.
If negotiations fails, Vonderline speaking there the tariffs could wipe out the growth forecast by the ECB for this year and in twenty twenty six. Markets now see another rate cut in April as likely. Bloomberg Economics sees the tariffs cutting EU goods exports to the US by half in the medium term. By comparison, here in the UK, we were dealt with a bit more leniently, a ten percent tariff.
Some including business lobby see it as a benefit from Prime Minister Keir Starmer's pragmatic approach to the White House. The UK Trade Secretary Jonathan Reynolds has told Bloomberg just this morning that Britain is still confident that tariffs will come off, and yet the US is inflicting pain on some of its closest allies. All told, it's more than just an economic shock.
All right, Caroline, thank you well early Trump to targets hitded On in Mexico escaped the new round of tariff announcements. We spoke with Ontario Premier Doug Ford.
I would highly recommend to the Prime Minister not the retaliate and let's carry on a strong relationship. Let's build the aim can fortress American Canadian fortress around both countries and be the wealthiestmans, prosperous, safest two countries in the world.
Ontario Premier Doug Ford, speaking of the Bloomberg's Balance of power. While no new tariffs were announced to other levies Trump has already imposed on Canadian and Mexican goods remain intact.
And Karen Well stocks are selling off around the world. The US has been the hardest hit so far. Let's continue our coverage now with Bloomberg's John Tucker.
John, all right, Nathan, Let's do the biggest losers in the US. These are the companies most exposed in that source a lot of their products from Asia, such as Apple and some of its magnificent seven cohorts of the new tariffs will reach thirty four percent for China. Apple still produces the mudjority of its US OL devices in Chinese factories. India, where Apple's increasingly building iPhones and air pods,
that's getting a twenty six percent TEARFF. And then there's Vietnam, where the company now makes air pods, iPads, Apple watches, and max that'll be hit with a forty six percent tax.
Now.
Apple shares this morning in the pre market down close to seven percent. Then there's in Vidia. In Vidia the most actively traded pre market. It relies on China for AI Chip sales of those shares right now down three point three percent. Let's move on to the world's largest footwear and apparel companies also facing a shock to their supply chains. Nike makes many of its sneakers in Vietnam, and Nike shares pre market they are down eight point
four percent. Lululemon Athletico, which makes forty percent of its products in Vietnam seventeen percent in Cambodia, tumbled almost ten percent in late trading. Shares of Abercrombie and Fitch, they get thirty five percent of their merchandise from Vietnam A fell seven point seven percent. And then Gap, which buys twenty seven percent of its goods from Vietnamese factories at
nineteen percent from Indonesia. That's slid about eleven percent. You know you yor income, John Tucker, Bloomberg Radio.
All right, John, thank you well. Shortly after midnight, US auto import tariffs went into effect. Meanwhile, one industry was spared for now, and Bloomberg Lisa Matteo joins us with the very latest Lisa.
Hey there, Karen.
So let's start with the most recent chain, the twenty five percent tariff on US auto imports. Now, it's expected to increase costs and disrupt industry supply chains. But what's more certain auto parts will also be hit with a similar level no later than May third. And this morning you already have Volkswagen already announcing it plans to add import fees to the sticker prices of its vehicles that are shipped into the US. Now, Volkswagen shares down about
half a percent. In Germany, you have Ford off about half a percent, General Motors down one percent, Tesla is lower by three percent. Chrysler Parents still land. It was down nearly two percent yesterday. This morning it's up about three tens of percent before the belt. The only good news is at imported cards and parts, will they escape the so called reciprocal tariffs? And speaking of being spared, you have the pharmaceutical sector and won this reprieve from
sweeping tariffs. But here's the thing, it may not last long. Sources saying the White House plans to launch an investigation into the drug industry other sectors, and that includes semiconductors and potentially critical minerals, and that could lead to tariffs under the Trade Expansion Act. Now, if we take a look at chairs A Pfizer, they're down about two tens of percent. Eli Lilly off about two percent. Lisa Matteo, Bloomberg.
Radio, Lisa, thank you all. In all, it is an aggressive suite of tariffs from President Trump, and it will significantly complicate the federal reserves job as it struggles to question inflation and avoid an economic downturn. This morning, Morgan Stanley pushed back. It's called for the next FED rate cut to next year. The firm's analysts cite inflation risks
arising from tariffs. FED Governor Adriana Kougler says it's appropriate to keep in restraints unchanged until upside risks to inflation abate.
I will support maintaining the current policy BRAID for as long as this outside grace to inflation continue, while economic activity unemployment remain.
The state now, it was FED Governor Adriana Coogler. The Fed's next meeting May seventh.
Time.
Now for look at some of the other stories making news in New York and around the world, and for that we're joined by Bloomberg's Michael Barr Michael, good Morning.
Good morning, Karen. Reaction continues to come in after a federal judge dismissed corruption charges against New York Mayor Eric Adams but criticized the Trump administration's move to drop the case. Judge Dale Hoe rejected the government's bid to leave the door open for refining the case, citing the unavoidable perception that the mayor's freedom depends on his ability to carry
out the administration's agenda. Mayor Adams, in a brief statement outside Gracie Mansion in Manhattan, maintained his innocence.
Today finally marks the end of this chapter.
The dismissal comes less than three months before the June twenty fourth Democratic primary election in the New York City mayoral race, in which Adams is a candidate. With former New York Governor Andrew Cuomo already in the mayoral race, political analyst Hank Shinkoff says the mayor now has to decide if he wants to run as an independent or on another party.
Mayor Adams is a real shot to be reelected, and it means this is the worst day that Andrew Cuomo has had, probably since he was forced to leave office.
President Trump, who has claimed that his own criminal cases were political, Vendetta's express sympathy for the mayor. The death toll from the massive earthquake that hit me and May nearly a week ago rose to almost thirty one hundred as more bodies were found by search and rescue teams. The military led to government said more than forty seven hundred have been injured in more than three hundred forty are still missing. Last Friday, seven point seven magnitude earthquake
had an epicenter near Delay, Meandmar's second largest city. Strong storms have already led to reports of deadly tornadoes along the Mississippi River valley, and now heavy rain is moving east. Bloomberg Meeting Religius Craig Allen has the latest, and.
There will be additional showers and thunderstorms. The ingredients are there for severe weather to develop once again. It could
turn quite volatile again during this day. And not only will there be just thunderstorms and wind, but there will also be torrential rainfall an inch or two per hour from some of these storms, and they'll be training, so in other words, there could be over the length of a day or two, there could be as much as eight to twelve inches of rain, and that would cause deadly flash flooding.
Bloomberg's Craig Allen Global News twenty four hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr, and this is Bloomberg Karen.
All right, Michael Barr, thank you time now for the Bloomberg Sports Outcake with John Stash Shower John, Good morning.
Good morning, Karen. Further evidence it's gonna be tough for the to get out of the East in the upcoming playoffs. They'd likely have to get past both the Celtics and the Calves. In Cleveland, Nick's had a fifteen point lead in the first half, but they trailed by twenty five in the second. The Calves won for the sixty first time, won twenty four to one oh five at the Guard Rangers in wild The game tied four different times. Vincent
Trochech scored twenty four seconds into overtime. Rangers won five to four. They're tied to the last playoff spot. Washington lost at Carolina five to one, but the one goal for the Capitals was by Alex Doveetchkin, thirty ninth of the season for the thirty nine year old, and Novechkan moving closer to becoming the leading goals scored in NHL history, needs three more. Pid Alonzo had those big home runs with the Mets last fall. All off season, the question
was would he resign. He did. In Miami. He came up in the eighth inning two on two, out Balanzo twice.
What deep center field sodelha back.
Takes a look out here.
Peter Alonzo tis the.
Game with a three run homer.
Dead shut the Great Ways and why Mett's beat the Marlin sixty five and eleven innings. They've got the home opener tomorrow afternoon against the Pirates at the Stadium. Arizona score twice at each of the first two innings off Carlos Dan did not score again, but the Yankees were blanked until an Anthony Volpi three on homer bott.
Of the night.
The Diamondbacks won four to three. Dodgers beat Atlanta on a Showyozani home run bottom of the night. The Dodgers are eight and o. The Braves are zero and seven. John Stashew with Bloomberg Sport.
Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app. This is Bloomberg Daybreak.
Good morning. I'm Caro a Moscow alongside Nathan Hager, and we continue our coverage on tariffs with a conversation with US Treasury Secretary Scott Messant. He spoke with the Bloomberg televisions and Marie hor Dern shortly after the tariffs were announced, urging other economies against taking retaliatory steps against the new set of America's retaliatory terror.
Let's listen in what I would say, and Marie is I would advise none of the countries to panic. I wouldn't try to retaliate because as long as you don't retaliate, this is the high end of the number, and I think the market could have certainty that this is the number barring retaliation. So we've got a ceiling and then we can see if there's a different floor.
So you sound like you're ready for a negotiation. A number of these partners. Has the European Union, has China? Has India?
Have these countries reached out?
Well, they've all reached out, but it's going to be up to President Trump to see what he wants to do. I think the mindset might be to let things settle for a while. Their terrifts or non tariff barriers have been on a long time, so we'll see where it goes from here.
When it comes to China, they have a much higher rate on this list. On top of that, there's still that twenty percent fentanyl tariff rate. Is all of this coming together to be more than a fifty percent tariff rate for Beijing?
Well, yes, I think it is, and I think it's a combination of things. And again that I think China said today that solving the fentanyl crisis depends on taking off the fentanyl tariffs, and I'm pretty sure that's not the way the sequencing is going to work. They're exporting the precursor chemicals, and every day, every week, every month, Americans are dying and it's going to have to stop.
When it comes to places like China, the President has mentioned he's willing to even look at things like TikTok to potentially do a negotiate them. When it comes to tariffs, I'm sure you're looking at things like the yu Wan. What's on the table when it comes to this trade realignment between Beijing.
And Washington, Well, we haven't started anything yet. We've been busy with the tariffs. I've been busy, as we talked about earlier, the tax bills going very well. So I think that we will move toward the bilateral relationship with China that we've done the multilateral.
Tariffs plans for conversations or a trip to Beijing.
Nothing eminent when.
It comes to this negotiation. April ninth, these tariffs come in place. Do you plan on having negotiations before that date?
Again, I'm not part of the negotiations, so you know, we'll see. I am sure that there are going to be a lot of calls. I just don't know if they're going to be negotiations.
And that was US Treasury Secretary's god Messon speaking with the Bloomberg TVs and Marie hord Durn after President Trump's tariff announcement. You can hear the full interview on the Bloomberg Talks podcast page and watch it on the Bloomberg podcast page on YouTube.
Nathan Karen, we continue our coverage of these tariffs. We are joined now by Bloomberg News Global Trades are Brendan Murray and Terry Haynes, the founder of Pangaea Policy, for a roundtable this morning after the announcement. Great to speak with both of you, and I'll start with you, Brendan, because even as Treasury Secretary Scott Bessett is framing this as a negotiation, this seems like a really huge start to what could be coming.
Good morning, Yeah, exactly.
He said, you know, let's let this paraphrasing, he said, let's let this settle in for a while, so that you know, that doesn't seem like you know, a window for negotiating over the next four or five days. So these tariffs are going to take effect by early next week and countries are going to be scrambling to figure out do we want to retaliate, ratchet up the ratchet up the pressure, or do we want to you know, take a you know, a more negotiating posture and try
to work this out. Either way, marcuts don't like it, and economists are marking down their outlook for growth and marking up their outlook for inflation. And you know the aftermath of it here, even though President Trump said this is simple, reciprocity is about as simple as it gets, this still creates a lot of confusion.
Terry, how does the negotiation go when the president is charting with this Onslaught.
Good morning, Nathan. You know, the negotiations in a lot of ways have already started. My understanding in a lot of places is that Secretary of Commerce is the Lutnix team had already been giving wish lists both tariffs and barriers to different countries who were already kind of parsing that and trying to figure out how they might respond
to it. And a lot of countries, I mean major countries, both allies and non aligned, are going to have to frankly work through with their own industries there, whether it be agriculture or machine industries, to figure out exactly what they want to do and how they want to do it. So, you know, I think it's it's correct to say this is not going to magically disappear or be mitigated in
the next few days. But all countries have had an advanced warning of what the United States might want and what the kind of the parameters for negotiations will be. So you know, number one, there's that number two. You've seen encouraging responses by a lot of countries. I was encouraged. I mean, Canada of course got singled out for special treatment, but you had Premiere Ford on your air last night and he was urging Carneie not to retaliate at all.
So you know, you'll have a lot of those kind of responses.
Notwithstanding Canada and Mexico being spared at least this round, Brendan, just about every other country in the world, even some very very small ones are being targeted. In this long list that President Trump showed at the Rose Garden last night, what could the potential impact be for this kind of country by country tariff announcement.
Well, one of the hardest hit regions was South Asia. Countries like Vietnam, Malaysia, Cambodia. These are places where a lot of the sort of lower skilled manufacturing has migrated from China over the past several years. And you know, those are places where you know, close clothes and shoes
are made. And so you know, there are stories that we're reporting today about how you know, Nike, you know, you know Nike tennis shoes and those kinds of things that are made in South Asia, you know, are going to be more expensive. The other the other issue is you know, electronics. Apple is starting to produce a lot more of their phones in India. India you know, got hit with a tariff in the twenty five percent range,
I think. And so you know, if these can't be resolved by negotiation, you know, anytime soon, then you know, consumer prices could conceivably go up. Interestingly, Switzerland was singled out, got a bigger got a bigger tariff level than the rest of the than than the European Union around it. So you know, rolex watches come next week are going to be about thirty one percent more expensive than they otherwise would be.
Terry, we haven't heard much Republican reaction on Capitol Hill besides the four Republicans who voted with Democrats against Canada tariffs. What do you think the Republican reaction is going to be as these tariffs take a fact, I.
Think there'll be two things that happened, David. One above board, one below board. The above board will be that there will be some concerns from Republicans from based on the situation in their own states, about making sure that they push Trump to resolve these issues lower tariffs, engage in the negotiations, do whatever they can, and frankly, you know, work with the other the other country as well. That's
number one. Number two. I think another impact here is that it lights an additional hot foot under the administration's broader economic agenda. And you can hear this from a lot of Senators. You can also hear it from Secretary Vessant, who continues to push the idea that the tax cuts may show up as soon as July or August or
September something like that. Now I've got it at eighty percent by the end of the calendar year, but there's an opportunity should everyone wish on the Republican side to move these things along faster, and Besson will also be focusing on that. He has said that he's going to
spend a lot of time pushing exactly that agenda. Think of Bess and broadly, as in twenty twenty five, as Gary Cohne was in twenty seventeen, the guy who's constantly up there goosing things along, trying to make it go as fast as he can.
This is Bloomberg day Break, your morning podcast and the stories making news from Wall Street to Washington and beyond.
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