News when you want it with Bloomberg News now, I'm Doug Prisner. The trade war between the US and China is said to become more intense than just after midnight Eastern Time. That's when new tariffs will take effect on many Chinese goods at a rate of one hundred and four percent. Now, President Trump is pushing forward after China set it. We'll fight to the end if the US insist on new tariffs. Tonight in Washington, Trump touted his tariffs.
We're making a fortune with tariffs, two billion dollars a day. Do you believe it? I was spelled two billion dollars a day. You know, I got hit by the press about tariffs. We're making two billion billion. This is in thirty five million. That's peanuts, two billion dollars a day. And then they say gee that or no, you know, this is only the enemy can be talking this way. In addition, we have a lot of countries coming to see as they want to make a deal.
Trump also said countries are sending trade delegations to Washington to negotiate on trade deals, and he said the prospect of a deal with South Korea was looking good. After a phone conversation with Acting President Handuk Su. By the way, the White House said nearly seventy other countries have reached out to strike deals. The stock market declined today and the S and P five hundred narrowly missed falling into
a bear market. The standoff between the US and China produced a lot more volatility and in the end more selling. We had the S and P dropping one point six percent today, breaking below five thousand. Mark Stephan is global alternative investment strategist at the Wells Fargo Investment Institute.
Uncertainty it just continues. But despite just the volatility that we see in market today, we're telling clients and investors to just remain discipline, remain patient, you know, try to rebalance to their target allocations during these periods of times, you know, ensure that you know they're adequately diversified across different asset classes, and just to kind of remain focused on.
The long term. Mark Stephan there from the Wells Fargo Investment Institute. Meantime, the head of the San Francisco Fed, Mary Daily, was saying today the Central Bank can take its time before making any adjustments to interest rates, as the Fed waits to see how trade policy changes play out. Here's Daily speaking earlier at Bring Them Young University in Provo, Utah.
We've got policy in a very good place right now. We cut the interest rate by one hundred basis points last year. That puts policy at a good place to stay modestly restrictive, keep inflation coming down, but not so restrictive that the economy is vulnerable. So with growth good and policy at a good place, you've built the time and the ability to just be tread slowly and tread carefully.
Mary Daily there, she is the head of the San Francisco FED. She went on to say the FED would need to assess the combined impact of the administration's policies on trade, taxes, and regulation in order to get a clearer picture of the way forward for the American economy. Now. Trump's tariffs have prompted a number of analysts to lower estimates for economic growth this year, and at the same
time they have raised their projections for inflation. You might recall last week Fedchair J Powell said the impact of new tariffs is likely to be significantly larger than expected, and he said the FED must make sure price increases do not lead to an ongoing inflation problem. We go to Texas next, where the state's Attorney General Ken Paxton is now running to unseat Senator John Cornyan in next year's Republican primary. Here is Paxton making the announcement earlier on Fox News.
It's definitely timed for a change in Texas. We have another great US Senator, Ted Cruz, and it's time we have another great senator that will actually stand up and fight for Republican values, fight for the values of the people of Texas, and also support Trump Donald Trump in the areas that he's focused on in a very significant way.
That was Texas Attorney General Ken Paxton speaking to Fox News Now. Paxton previously said Cornan has not been supportive of President Trump's policies, but the campaign said he's been with Trump more than ninety five percent of the time. Cornyn's campaign also accused Paxton of being a fraud. The Trump administration has frozen federal grants to Northwestern University and
Cornell University. We are told the administration has paused one point zero five billion dollars to Cornell and seven hundred and ninety million dollars to Northwestern. Now, this follows similar moves against Columbia, Harvard, and Princeton. The administration's actions are part of a broader crackdown on colleges and universities, with President Trump citing concerns over anti semitism and free speech.
And that is news when you want it with Bloomberg News. Now, I'm Doug prisoner, and this is Bloomberg