China Tariffs Rise to 145% As Trade War Escalates: What You Need To Know

Plus: The Obamas address divorce rumors & House passes voter citizenship legislation

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Good afternoon,

Former First Lady Michelle Obama addressed rumors that she and Barack were getting a divorce after she decided not to attend certain political events with him, saying people “couldn’t fathom that I was making a choice for myself… they had to assume my husband and I were divorcing.”

  • On Tuesday’s episode of the “Work in Progress” podcast with Sophia Bush, Michelle opened up about her newfound independence as an empty nester and living out of the spotlight of the White House.

    • To his credit, Barack has acknowledged that he “was in a deep deficit” with Michelle after his two terms — she has been very public about her disregard for politics.

  • Likely referencing her decision not to attend President Trump’s inauguration, which came just days after she missed former President Jimmy Carter’s funeral in Washington D.C., Michelle said, “It was a real big example of me looking at something I was supposed to do… and I chose to do what was best for me.”

Over here in the peanut gallery, I’m yelling, “YOU GO GIRL!” As a young woman, I think the more we see other women making choices that are best for them, the easier it’ll be for us to do the same (right? 🙃) ❤️.

Lauren
Producer


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🚨 ONE IMPORTANT THING

White House Clarifies Tariffs On China At 145%; A Look At The Pros & Cons

Hours after the White House clarified that the total tariffs on Chinese goods are actually now at a record 145%, President Trump said he remains open to negotiations and a trade deal with the country.

  • He called China’s President Xi a friend of his, and said, “I think that we’ll end up working out something that’s very good for both countries.”

Meanwhile, Americans remain incredibly uncertain about the U.S. economy. The market is reflecting that, tumbling around 3-4% on Thursday as investors grappled with the worsening trade war with China.

via Financial Times

HOW WE GOT HERE
Since China joined the World Trade Organization in 2001, U.S.-China trade has exploded. As of last year, Americans bought more than $440 billion worth of Chinese goods, as the country has become the manufacturing capital of the world.

The downside is that millions of U.S. manufacturing jobs were lost, crushing local economies, in what’s been dubbed the “China Shock” of the early aughts. The desire to restore American manufacturing fueled political support for Trump. During his first term, Trump started to take action.

  • He imposed tariffs on nearly all Chinese goods, leading to retaliation. Before he left office, the U.S. and China reached a "Phase One" trade agreement which required China to purchase $200 billion in U.S. goods and services over 2017 levels.

    • By the end of 2021, China had achieved only about 58% of the agreed-upon targets.

    • Trump allies blamed then-President Biden for not enforcing the deal.

  • Biden increased some of Trump’s tariffs, namely on electric vehicles and solar cells. His administration also added export controls on computer chips to limit China's advanced manufacturing.

  • Since then, China’s trade surplus hit an all-time high of $1 trillion in 2024.

    • Fueling that imbalance are claims of “dumping,” where China is accused of selling products in the U.S. at prices below domestic market rates or production costs – to gain market share.

THE CASE FOR TRUMP’S TARIFFS
Following Thursday's cabinet meeting, Trump said the U.S. is "resetting the table" after years of unfair trade policies with China.

  • Protecting Workers: The Teamsters, a labor union representing 1.3 million American workers, has expressed support for Trump’s tariffs, hoping it will encourage companies to manufacture more in the U.S. and bring back union jobs.

    • Other labor groups have complained about human rights violations and poor working conditions in Chinese factories.

  • National Security: There is increasing worry that U.S. companies using Chinese technology could put Americans at risk, allowing China to access Americans’ sensitive information, spread disinformation, and spy on citizens (think: the TikTok sale-or-ban).

  • Environmental Issues: China is the world’s largest emitter of carbon dioxide (31% of global emissions). Some U.S. environmental groups have started to support tariffs as a way to penalize Chinese production practices and incentivizing greener production methods in the U.S.

THE CASE AGAINST TRUMP’S TARIFFS
Despite issues with Chinese trade practices, Americans have greatly benefitted from exchange with China, in having access to lower-priced products, selling U.S. goods in China, and making room for knowledge work.

  • Price Increases: Amazon CEO Andy Jassy said Thursday that third-party sellers on the site will likely pass tariff costs on to consumers. Apple iPhones – of which 80% of U.S. inventory is made in China – could cost hundreds of dollars more.

  • Job Losses: The U.S. exports about $145 billion in goods to China each year, supporting more than one million American jobs, which could be at risk if China maintains its steep retaliatory tariffs on U.S. goods.

    • Additionally, countless US businesses (big and small) depend on parts and products from China. 145% tariffs are likely to put a lot of American businesses out of business as negotiations take place.

  • Shifting Away From Manufacturing: The U.S. has spent decades transitioning away from the manufacturing economy in favor of service-providing industries, which often offer better work conditions and higher wages. The U.S. has a $26.6 billion service trade surplus over China.

    • Trump officials like Secretary of Commerce Howard Lutnick argue tariffs will bring more jobs, like assembling iPhones; but in reality, it would take years to build the infrastructure and re-skill a labor force needed to restore U.S. manufacturing dominance.


🚨 ONE THING ON CAPITOL HILL

House Passes SAVE Act Requiring Voter Citizenship Proof; Unlikely To Clear Senate

House Republicans with four Democrats passed the Safeguard American Voter Eligibility (SAVE) Act on Thursday, which would require in-person proof of citizenship to vote in federal elections. The measure also mandates that states remove undocumented immigrants from voter rolls, and allows citizens to sue election officials who don't enforce these rules.

  • Critics are concerned the bill’s ID requirements would make it harder for married women who changed their last names to vote, since the approved documents might only have their maiden name.

The bill is unlikely to pass the Senate's 60-vote threshold, despite the 53-47 Republican majority. Senate Minority Leader Chuck Schumer (D-NY) said Senate Democrats would block the bill as it will “disenfranchise millions of American citizens.”

But this likely won’t be the last time you hear about voter identification legislation, as Republicans have made it central to their agenda for years.

WHAT IT IS
Under the SAVE Act, all Americans registering to vote must provide a REAL ID that indicates U.S. citizenship, a passport, a government-issued photo ID with a birth certificate, and/or another citizenship document.

  • A 2023 Brennan Center survey found that over 9% of eligible voters, or 21.3 million people, lack access to SAVE Act-approved documents proving their citizenship.

    • The center, which advocates for voting rights, also did a survey after the 2016 election and found that noncitizens made up less than 0.0001% of votes. It is illegal for non-U.S. citizens to vote.

THE MARRIAGE QUESTION
For some people, their acceptable IDs do not display their married name, and a marriage certificate showing a name change is not listed as an acceptable supplementary document.

  • Rep. Chip Roy (R-TX), who re-introduced the bill in January after it passed the House in 2024, told Axios the measure “explicitly directs states to establish a process for individuals to register to vote if there are discrepancies in their proof of citizenship documents due to something like a name change.”

It follows President Trump's sweeping executive order last month imposing nationwide voter identification standards. Voting rights groups have challenged Trump’s move in court.


⏳ SPEED READ

🚨NATION

📌 House adopts budget blueprint for Trump's agenda after GOP leaders sway holdouts (NBC)

📌 NYC helicopter crashed in Hudson River, multiple deaths reported (MO NEWS)

📌 Plane full of House members evacuated after minor collision (AXIOS)

📌 More than 300 student visas revoked as the government expands reasons for deportation (CNN) U.S. will monitor immigrants’ social media for ‘antisemitic activity’ (AXIOS)

🌎 AROUND THE WORLD

📌 EU putting tariff countermeasures on hold for 90 days after Trump pause (THE HILL)

📌 U.S. and Russia swap prisoners in deal that released Ksenia Karelina (CNN)

📱BUSINESS, SCIENCE & TECH

📌 DOJ investigating top U.S. egg producer over price hikes during shortage (MO NEWS)

📌 OpenAI countersues Elon Musk claiming 'bad-faith tactics' (BBC)

📌 Ancient jawbone from Taiwan belongs to a mysterious group of human ancestors, scientists say (AP)

🎬 SPORTS & ENTERTAINMENT

📌 Writer & Weezer bassist Scott Shriner’s wife shot by police, arrested for attempted murder (VARIETY)

📌 A UK edition of Saturday Night Live is premiering in 2026 (VERGE)


ICYMI FROM THE 📲

In case you missed it… Sammy, 3-year-old son of 2015 Masters champ Jordan Spieth, got an earful from Max Homa’s son Cam as they hit the greens at Augusta National.

The 89th Masters unofficially kicked off yesterday with the beloved Par 3 Contest — a lighthearted tradition where families can play with the golfers before the real competition began today. The green jacket will be awarded Sunday ⛳️.

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Stocks Rally After Trump Pauses Tariffs For 90 Days, Says People Were Getting "Yippy"