The majority of Americans now fear a recession, new polling shows, while more than half agree that Donald Trump's policies would make a comfortable retirement more difficult.
Just 37 percent approved of Trump’s economic handling, a Reuters/Ipsos poll found, as the president conceded that ultra-high tariffs on China would fall but warned they would not hit zero.
In a softening of his stance towards Beijing, Trump said negotiations over a trade deal would “go pretty quickly” and that trade representatives from both countries would be “very nice” in upcoming talks.
However, China stated that the U.S. should cease making threats if it wants a trade deal, accusing America of exerting “extreme pressure” as it tried to reach an agreement.
The Wall Street Journal now reports that the White House is considering slashing China tariffs by as much as half in order to de-escalate tensions with Beijing.
The president also walked back a previous suggestion he could fire Federal Reserve chair Jerome Powell, telling reporters on Tuesday: "I have no intention of firing him. "
Those combined comments buoyed global financial markets on Wednesday, with stocks rising globally.
Key Points
- Just 37% approve Trump’s economic handling, poll finds
- White House mulls slashing China tariffs to de-escalate trade war tensions, report says
- China says U.S. should cease threats if it wants a trade deal
- Donald Trump admits China tariffs will drop – but not to zero
- Elon Musk is cutting back his work for Trump administration
- Trump has ‘no intention’ of firing Federal Reserve chair Jerome Powell
Trump apparently discussing adding flagpoles to North Lawn
16:05 , Oliver O'ConnellPresident Donald Trump was spotted exiting the White House just now and shouted to reporters he was there to determine where new flagpoles might be added to the North Lawn.
Keen-eyed White House observers will note that there is already a large flag on top of the building.
NOW: President Trump is scoping out the north lawn of the White House to determine where to place one of two new flag poles, he tells us. pic.twitter.com/wdtX24OkNV
— Weijia Jiang (@weijia) April 23, 2025
China insists on ‘equality, respect’ for any tariff talks
16:00 , APBeijing said Wednesday that “exerting pressure is not the right way to deal with China and simply will not work.”
President Donald Trump said he would not “play hardball” with China and that his tariffs would come down “substantially,” but the U.S. will “set the deal” if China doesn’t make a deal.
In response, Chinese foreign ministry spokesman Guo Jiakun said the U.S. “should stop threatening and blackmailing China” but “seek dialogue based on equality, respect and mutual respect.”
Treasury Secretary Scott Bessent, meanwhile, said the U.S. is helping China to change its economic model, which he said is built on “exporting its way out of its economic troubles” and is “an unsustainable model that is not only harming China but the entire world.”
Treasury Secretary Bessent on China straddling the line between a developing and developed economy —
— Chris Megerian (@ChrisMegerian) April 23, 2025
"I have a teenager who sometimes wants to be treated like a child, sometimes wants to be treated like an adult."
For China, "it's an adult economy."
Hegseth has surrounded himself with people who ‘don’t have his interests at heart’ as Pentagon infighting escalates
15:40 , Oliver O'ConnellDefense Secretary Pete Hegseth has managed to surround himself at the Pentagon with advisers who have become power-hungry rivals, leading to surprise firings, leak accusations, and revenge attempts, according to a Politico report.
Unfortunate headlines are streaming out of the department, and it’s become a distraction to Trump’s agenda and possibly even a threat to Hegseth’s job, the outlet noted.
Incoming officials planned on having Hegseth be the face of the department while others ran the show behind the scenes. That hasn’t come to pass.
Gustaf Kilander reports from Washington, D.C.
Hegseth has surrounded himself with people who ‘don’t have his interests at heart’
Bessent says more sustainable economic system in interests of U.S. and allies
15:28 , Oliver O'Connell“I invite our allies to work with us as we rebalance the international financial system, refocus the IMF and World Bank on their founding charters. America first means we are doubling down on our engagement with the international economic system, including at the IMF and the World Bank. A more sustainable economic system will be one that better serves the interests of the United States and all the other participants in the system. We look forward to working with all of you in this endeavor.”
Bessent: No one who supported Russia's war on Ukraine eligible for reconstruction funds
15:26 , Oliver O'ConnellBessent says of Ukraine reconstruction: “No one who financed or supplied the Russian war machine will be eligible for funds earmarked for Ukraine's reconstruction. No one.”
Bessent: World Bank treating China as developing country 'absurd'
15:24 , Oliver O'Connell“Treating China, the second-largest country in the world, as a developing country is absurd. While it has been at the expense of many Western markets, China's rise has been rapid and impressive. If China wants to play a role in the global economy commensurate with its actual importance, then the country needs to graduate up, we welcome that."
.@SecScottBessent: "Going forward, the Bank must set firm graduation timelines for countries that have long since met the graduation criteria. Treating China — the second largest country in the world — as a developing country is absurd." pic.twitter.com/iTTjQBiqhK
— Rapid Response 47 (@RapidResponse47) April 23, 2025
Bessent says IMF and World Bank must step back from unfocused agendas
15:19 , Oliver O'ConnellBessent continues by saying that the World Bank and IMF “must step back from their sprawling and unfocused agendas, which have stifled their ability to deliver on their core mandates.”
He adds that the IMF has “suffered from mission creep” and is too focused on “climate change, gender and social issues.”
“The IMF mission is to promote international monetary cooperation, facilitate the balanced growth of international trade, encourage economic growth, and discourage harmful policies like competitive exchange rate depreciation; these are crucially important functions to support the US and global economies. Instead, the IMF has suffered from mission creep. The IMF was once unwavering in its mission of promoting global monetary cooperation and financial stability. Now it devotes disproportionate time and resources to work on climate change, gender, and social issues. These issues are not the IMF mission and the IMF focus in these areas is crowding out its work on critical macroeconomic issues. The IMF must be a brutal truth teller, and not just to some members."
Bessent says the Trump administration “will not abide” criticism from the IMF if the IMF doesn't also criticize "the countries that most need it, principally surplus countries, in line with its core mandate."
.@SecScottBessent: "In line with its core mandate, the IMF needs to call out countries like China that have pursued globally distortive policies and opaque currency practices for many decades. I also expect the IMF to call out unsustainable lending practices by certain creditor… pic.twitter.com/guP1wtxMBW
— Rapid Response 47 (@RapidResponse47) April 23, 2025
He adds: “The IMF needs to call out countries like China that have pursued globally distorted policies and opaque currency practices for many decades. I also expect the IMF to call out unsustainable lending practices by certain creditor countries.”
Bessent links trade and defense
15:16 , Oliver O'Connell“I believe global economic relationships should come to reflect security partnerships. Security partners are more likely to have compatible economies structured for mutually beneficial trade. If the United States continues offering security guarantees and open markets, then our allies must step up with stronger commitments to shared defense. The initial actions from Europe on increased fiscal and defense spending are proof that the Trump administration's policies are indeed working."
Bessent: Other countries too reliant on US markets
15:14 , Oliver O'Connell“Of course, trade is not the only factor in broader global economic imbalances, the persistent over-reliance on the United States for demand is resulting in an ever more unbalanced global economy. Some countries' policies encourage excess savings, which hold back private sector-led growth. Others keep wages artificially depressed, which also suppresses growth. These practices contribute to global dependence on us. Demand to spur growth. They also lead to a global economy that is weaker and more vulnerable than it should be.”
Bessent says China's economic model 'unsustainable' and it knows it need to change
15:13 , Oliver O'Connell“China in particularly, in particular, is in need of a rebalancing. Recent data shows the Chinese economy tilting even further away from consumption toward manufacturing. China's economic system, with growth driven by manufacturing exports, will continue to create even more serious imbalances with its trading partners if the status quo is allowed to continue.
.@SecScottBessent: "China, in particular, is in need of a rebalancing... China's current economic model is built on exporting its way out of its economic troubles. It's an unsustainable model that is not only harming China, but the entire world. China needs to change." pic.twitter.com/uKcUkhc22r
— Rapid Response 47 (@RapidResponse47) April 23, 2025
“China's economic system, with growth driven by manufacturing exports, will continue to create even more serious imbalances with its trading partners if the status quo is allowed to continue. China's current economic model is built on exporting its way out of its economic troubles. It's an unsustainable model that is not only harming China but also the entire world. China needs to change. The country knows it needs to change. Everyone knows it needs to change, and we want to help it change, because we need rebalancing, too.
“China can start by moving its economy away from export of capacity, and towards supporting its own consumers and domestic demand. Such a shift would help with global rebalancing, that the world desperately needs.”
Bessent says more than 100 countries have approached US for trade deals
15:12 , Oliver O'ConnellTreasury Secretary Scott Bessent is speaking at the Institute of International Finance as Washington, D.C., hosts the Spring Meetings of the International Monetary Fund and World Bank.
Says Bessent: “In response to President Trump's tariff announcements, more than 100 countries have approached us wanting to help rebalance global trade. These countries have responded openly and positively to the President's actions to create a more balanced international system. We are engaged in meaningful discussions and look forward to talking with others.”
.@SecScottBessent: "In response to President Trump's tariff announcements, more than 100 countries have approached us wanting to help rebalance global trade." pic.twitter.com/rUnUlZTru3
— Rapid Response 47 (@RapidResponse47) April 23, 2025
White House mulls slashing China tariffs to de-escalate trade war tensions, report says
14:53 , Oliver O'ConnellAfter yesterday’s suggestion by President Donald Trump and his administration that threats against Federal Reserve Chair Jerome Powell were overblown and that tariffs on China would fall, The Wall Street Journal reports that the Trump administration is indeed considering slashing its steep tariffs on Chinese imports.
According to reporting by the paper, tariffs could fall in some cases by more than half.
The move is another bid to de-escalate tensions with Beijing that have roiled global trade and investment, people familiar with the matter told the Journal.
A final determination is yet to be made by the president, the people said, adding that the discussions remain fluid and several options are on the table.
One senior White House official said the China tariffs were likely to come down to between roughly 50 percent and 65 percent.
The administration is also considering a tiered approach similar to the one proposed by the House committee on China late last year: 35 percent levies for items the U.S. deems not a threat to national security, and at least 100 percent for items deemed as strategic to America’s interest, some of the people said.
The bill proposed phasing in those levies over five years.
Here's why Elon Musk is stepping back from DOGE
14:52 , Rachel ClunElon Musk says he will reduce time with the Department of Government Efficiency beginning next month.
A major reason is to focus on Tesla, which reported disappointing earnings on Tuesday.
The car company’s stock is down roughly 40 percent so far this year, but rose four percent in the after-hours market.
Tesla had been plagued by a series of bad headlines ahead of earnings, with reports of declining sales, customers looking to ditch their cars and the price of used vehicles plummeting.
Trump lashes out at judge in law suit against Perkins Coie
14:46 , Oliver O'ConnellPresident Donald Trump began his day with a throwback to his four years out of office — by lashing out at a judge in a case in which he is a party.
In a post on Truth Social, Trump called Judge Beryl Howell “a highly biased and unfair disaster” and “an unmitigated train wreck.”
Howell presided over cases brought against January 6 rioters, the defamation trial of Rudy Giuliani, and cases brought against DOGE cuts at the U.S. Institute for Peace and over firings at the National Labor Relations Board.
Trump wrote on Truth Social:
I’m suing the law firm of Perkins Coie for their egregious and unlawful acts, in particular the conduct of a specific member of this firm, only to find out that the Judge assigned to this case is Beryl Howell, an Obama appointment, and a highly biased and unfair disaster. She ruled against me in the past, in a shocking display of sick judicial temperament, on a case that ended up working out very well for me, on appeal. Her ruling was so pathologically bad that it became the “talk of the town.” I could have a 100% perfect case and she would angrily rule against me. It’s called Trump Derangement Syndrome, and she’s got a bad case of it. To put it nicely, Beryl Howell is an unmitigated train wreck. NO JUSTICE!!!
Editorial: Donald Trump is bad for the world economy
14:36 , Rachel ClunThe IMF’s downgrade of global growth forecasts, a direct result of U.S. tariffs, will only add to the pressure on U.K. chancellor Rachel Reeves to make the case during her visit to Washington for a fabled U.S.-U.K. free trade agreement.
It’s official – Donald Trump is bad for the world economy
Watch: Pete Hegseth says fired staff trying to sabotage Trump’s agenda
14:21 , Rachel ClunU.S. Defense Secretary Pete Hegseth lashed out at fired staff for leaks which revealed he had shared details of military strikes on the Houthi group in a second Signal group chat.
China says 'door is wide open' to U.S. for trade talks
14:06 , Rachel ClunChina says it is willing to negotiate but it would not bow to pressure from the U.S. over a trade deal.
President Donald Trump and Treasury Secretary Scott Bessent both indicated on Tuesday that the dispute with China would de-escalate.
Trump said he wasn’t “going to play hardball”, but warned the U.S. would “set the deal” if China decided not to make one.
Foreign Ministry spokesman Guo Jiakun said exerting pressure like that was not the way to reach an agreement, according to remarks published by Chinese state media.
"To fight, we will fight to the end; to talk, the door is wide open," he said, according to the China Daily.
"Saying it wants to reach an agreement with the Chinese side while constantly exerting extreme pressure is not the right way to deal with the Chinese side, and it will not work.”
Trump lifted tariffs on Chinese goods to 145 percent earlier this month and Beijing retaliated, lifting duties to 125 percent in an escalating trade war.
Inside the ‘TikTok trade war’ where China is taking Trump’s tariffs to a new battleground
13:51 , Rachel ClunChinese factories have flooded social media with claims that high-end accessories were, in fact, ‘Made in China’.
Zoë Beaty looks at the truth behind their allegations and examines how Donald Trump’s tariffs could cause the luxury fashion market to unravel at the seams:
Handbags at dawn? Inside the ‘TikTok trade war’ where China is taking Trump’s tariffs to a new battleground
American citizens among those hit with deportation notices
13:36 , Henry DurandSome U.S. citizens have received surprise deportation notices after thousands of warnings aimed at immigrants were issued by the Trump administration.
U.S. Customs and Border Protection have quietly set out to revoke two-year permits granted in the Biden era for those who used an online appointment app for Mexican border crossings called CBP One.
In an effort to scrap the permits, cancellation notices which opened with “It is time for you to leave the United States," began to be delivered in late March.
Connecticut-born lawyer Timothy J. Brenner was among those to receive an email.
“I just thought it was absurd,” he said. “I became concerned that the administration has a list of immigration attorneys or a database that they’re trying to target to harass.”
CBP confirmed that they were terminating the legal status for those who used CBP One, and said it was addressing unintended recipients on a case-by-case basis.
U.S. markets expected to lift on open after Trump comments
13:21 , Rachel Clun, Associated PressU.S. financial markets are expected to open with big gains after the President said he would not fire the head of the central bank and signalled a de-escalation in the trade war with China.
Donald Trump had spooked markets when he said he could “terminate” Jerome Powell for not cutting interest rates, but on Tuesday he walked those comments back.
“I have no intention of firing him,” he said.
Trump also said that tariffs on China would fall, as U.S. Treasury Secretary Scott Bessent said the trade war was unsustainable and a de-escalation was coming.
Before the bell on Wednesday, Dow Jones futures climbed up 1.9 percent while S&P 500 futures rose 2.6 percent and Nasdaq futures jumped by a full 3 percent.
Tim Waterer, chief market analyst at KCM Trade, told Associated Press that markets will continue to monitor the latest White House rhetoric on tariffs and trade.
“As such, market direction will more likely than not continue to be dictated by Trump's latest whims regarding tariffs and trade,” he said.
Robert F Kennedy Jr claims teen boys have declining testosterone
13:06 , Rachel ClunHealth and Human Services Secretary Robert F Kennedy Jr has claimed without basis that teenage boys have less testosterone than 68-year-old men.
RFK Jr declared it an “existential problem” in an interview on Fox News, adding that sperm counts have dropped 50 percent worldwide.
“We have fertility rates that are just spiraling. A teenager today, an American teenager, has less testosterone than a 68-year-old man,” he said.
He also peddled misinformation about autism, claiming it was worse than Covid-19, which has killed millions around the world.
Starmer says U.K. making progess on trade deal with U.S.
12:51 , Rachel ClunU.K Prime Minister Sir Keir Starmer says Britain is making progress on a trade deal with the U.S.
During prime minister’s questions, Liberal Democrat leader Sir Ed Davey said British farmers were worried about what a trade deal with the Trump administration would look like, and were concerned a bad deal could see local businesses undercut by poor-quality imported meat.
"So will the Prime Minister guarantee a vote in this House on any trade deal that he agrees with the United States?" he asked.
The prime minister said the Liberal Democrat raised “a really important point of real interest” to farmers.
“We will negotiate, as he would expect, in the national interest and uphold the highest animal welfare standards,” Sir Keir said.
“We are making progress on that and then there will be a process if a deal is reached.”
Watch: Trump says he won't 'play hardball' with China
12:37Donald Trump said he won’t “play hardball” with China, but added Beijing will “have to make a deal”.
“I’m not going to say I’m going to play hardball with China,” he said.
“We’re going to be very nice, they’re going to be very nice, and we’ll see what happens, but ultimately they have to make a deal, because otherwise they’re not going to be able to deal in the United States.”
He continued: “And if they don’t make a deal, we’ll set the deal, because we’re the ones that set the deal.”
Leaks continue against defense secretary following Signal chat news
12:22 , Rachel ClunLeaks against Defense Secretary Pete Hegseth have continued after it was revealed he had discussed military strikes on Houthis in a second Signal chat.
Hegseth’s brother, personal lawyer and wife were in the second group chat, the New York Times reported. The first group chat came to light after the Atlantic’s editor reported he had been added to the group by mistake.
Hegseth has grown increasingly paranoid about leaks, multiple sources told CNN, and he has depended on a small circle of confidants including his wife, Jennifer.
While Hegseth’s brother and lawyer have official Defense Department positions, his wife does not.
A source told CNN that Jennifer had submitted paperwork for a security clearance, but it was unclear if that application had been approved.
Pentagon Press Secretary Kingsley Wilson said Jennifer had “never attended a meeting where sensitive information or classified information was discussed.”
Three officials told NBC news that Hegseth had used his personal phone to send sensitive information to two group chats.
Thousands of manufacturing jobs will go in response to Trump’s tariffs
12:05 , Henry DurandThousands of jobs in American manufacturing plants are set to be cut as a result of Donald Trump’s tariffs.
The Midwest and the East are expected to be hit the hardest following a series of layoffs announced by manufacturers in response to the president’s levies.
This week, The Volvo Group announced 800 job cuts at plants in Pennsylvania, Virginia and Maryland.
A company spokesperson told Reuters: “Heavy-duty truck orders continue to be negatively affected by market uncertainty about freight rates and demand, possible regulatory changes, and the impact of tariffs.”
Pennsylvania Democratic state lawmaker Josh Siegel told ABC27 the decision was a “devastating blow” to workers, adding: “Workers are not just numbers - they are parents, neighbors, veterans, and skilled tradespeople who built America’s backbone.”
Some analysts have estimated that up to 177,000 American jobs will be lost as a result of tariffs.
Steelmaker Cleveland-Cliffs laid off more than 1,200 workers in Michigan and Minnesota in March, and General Motors announced earlier this month it would temporarily lay off 200 workers at a plant in Detroit.
Container company says 30% of shipments between China and U.S. have been cancelled
11:50 , Rachel ClunA global container shipping company says nearly a third (30 percent) of all its shipments from China to the U.S. have ben cancelled.
Germain container group Hapag-Lloyd told Reuters that customers had been spooked by the trade war between Beijing and Washington.
Donald Trump raised tariffs on Chinese goods to 145 percent earlier this month, and Beijing retaliated with 125 percent levies on U.S. goods.
The Hapag-Lloyd spokesperson said there had been a “massive increase” in demand for shipments from Thailand, Cambodia and Vietnam.
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Treasury secretary says China trade war not ‘sustainable’
11:32 , Rachel ClunU.S. Treasury Secretary Scott Bessent said the current trade war with China was unsustainable, but warned negotiations would be “a slog”.
Bissent, delivering a private speech for JPMorgan Chase, said formal talks between Beijing and Washington were yet to start.
“I do say China is going to be a slog in terms of the negotiations,” Bessent said according to a transcript obtained by The Associated Press. “Neither side thinks the status quo is sustainable.”
Just 37% approve Trump’s economic handling, poll finds
11:18 , Rachel ClunThe majority of Americans now fear a recession, new polling shows, while more than half agree Donald Trump's policies would make a comfortable retirement more difficult.
A Reuters/Ipsos poll found 76 percent of Americans were concerned about a recession, while 52 percent agreed with a statement that the president’s actions would make it hard to retire comfortably.
Just 37 percent approved of Trump’s economic handling, the poll found, as the president conceded ultra-high tariffs on China would fall.
Milk quality control tests halted amid workforce cuts
10:56 , Madeline SherrattThe Food and Drug Administration is halting a quality control program used to test drinking milk following President Trump’s federal workforce cuts.
It’s yet another disruption to the nation's food safety programs after the termination and departure of 20,000 employees of the Department of Health and Human Services, which includes the FDA, as part of President Donald Trump's effort to shrink the federal workforce.
From Monday, the agency will suspend its proficiency program for grade “A” raw milk and finished products – the category that meets the highest sanitation standard - according to an internal email seen by Reuters.
Emerging markets also buoyed by Trump’s softer stance on China
10:40 , Rachel Clun, ReutersEmerging market currencies and stocks also lifted on Wednesday, buoyed by comments from Donald Trump that U.S. tariffs on China would fall.
A wide range of emerging stocks were trading at more than a two-week high, led by Asian markets including Taiwan’s benchmark and South Korea’s Kospi.
A regional stock index for central and eastern Europe also rose 1.1 percent.
Investors were optimistic that tensions between China and the U.S. were easing after Trump indicated tariffs would end up “nowhere near” the current 145 percent.
Global markets were also bolstered by assurance from the president that he would not fire Federal Reserve chair Jerome Powell.
Financial markets lift in relief after Trump says he won’t fire Fed Reserve chair
10:21 , Rachel Clun, APGlobal share markets mostly rose on Wednesday, showing signs of relief after President Donald Trump indicated he had “no intention” of firing Federal Reserve chair Jerome Powell.
In early trading, Britain’s FTSE 100 rose 1.6 percent to 8,461.24 while Germany’s DAX jumped 2.5 percent to 21,820.14 and France’s CAC lifted 2.1 percent to 7,480.99.
Asian markets also gained, with Japan’s Nikkei 225 rising 1.9 percent to finish at 34,868.63, Hong Kong’s Hang Send surged 2.4 percent to 222,072.62 and Australia’s S&P/ASX rose 1.3 percent to 7,920.50.
U.S. shares were also set to lift further, with Dow futures up 1.5 percent and S&P 500 futures up by 2 percent.
Trump had previously said Powell could be “terminated” soon, but on Tuesday he told reporters: “I have no intention of firing him”.
Trump praises $5,000 baby bonus a “good idea”
10:07 , Rachel ClunThe president has endorsed the idea of handing out $5,000 to new mothers in a bid to combat America’s falling birth rate.
Donald Trump was pressed by reporters on Tuesday on ideas ot boost birth rates, including the $5,000 baby bonus.
“Sounds like a good idea to me,” Trump said when asked about the cash incentive.
In 2024, there were just under 55 births for every 1,000 women of reproductive age – a slight 1 percent increase on the record low from 2023, but well below previous birth rates.
Trump last month referred to himself as the “fertilization president”, and in February he signed an executive order aimed at expanding affordable access to IVF.
China says U.S. should cease threats if it wants a trade deal
09:52 , Rachel ClunChina’s foreign ministry said Beijing doesn’t want a trade war but added the U.S. should stop making threats if it wants a deal.
Asked about president Donald Trump’s comments that work was progressing on a deal to lower tariffs, Chinese foreign ministry spokesperson Guo Jiakun accused the U.S. of continuing to exert “extreme pressure” as it tried to negotiate a deal.
“We don't want a trade war, but we are not afraid of it. If the US truly wants to resolve issues through dialogue and negotiation, it should stop threatening and blackmailing, and engage in dialogue with China based on equality, mutual respect, and mutual benefit,” he said, according to Chinese state media outlet the Global Times.
Why is Musk stepping back from DOGE?
09:37 , Rachel ClunBillionaire Elon Musk said that from next month, he will “significantly” reduce his time at the Department of Government Efficiency to one to two days a week.
There are a few key reasons as to why he is stepping back.
Firstly, his 130 days as a special government employee is set to expire at the end of next month. Musk said the major work in setting up the cost-cutting department was mostly done.
He has also clashed with other key advisors to Donald Trump, notably attacking trade advisor and tariff plan architect Peter Navarro.
Another important reason for his pivot away from finding public service savings is to focus on his businesses.
Tesla profits plunged in the first quarter of the year, the company reported on Tuesday, with revenue falling to its lowest level since the third quarter of 2021. Tesla stock is also down about 40 per cent so far this year.
“Starting next month, I'll be allocating far more of my time to Tesla,” he said.
President has ‘no intention’ of firing Federal Reserve chair
09:22 , Rachel ClunDonald Trump appeared to walk back his suggestion he could fire Federal Reserve chair Jerome Powell.
"I have no intention of firing him," Trump told reporters on Tuesday.
Trump has previously insinuated he could fire the central bank chair, threatening last week that Powell faced “termination” soon.
The comments came after Powell said in a speech that the Federal Reserve would take a wait-and-see approach to interest rates in the face of ongoing uncertainty caused by the president’s tariffs.
Trump’s attacks on Powell were seen as a threat to the Federal Reserve’s independence and caused a financial market selloff.
Donald Trump admits China tariffs will drop – but not to zero
09:09 , Rachel ClunThe president has admitted the current 145 percent levy on goods imported from China will fall, but he warned they will not hit zero.
Donald Trump said talks between Washington and Beijing were “doing fine” because “everybody wants to have involvement” but he maintained that China will ultimately be forced to reach an agreement to get the tariffs down.
“Ultimately, they have to make a deal, because otherwise they're not going to be able to deal in the United States, and we want them involved, but they have to, and other countries have to make a deal, and if they don't make a deal, we'll set the deal,” he said on Tuesday.
“We're going to be setting the deal, and it'll be a fair deal for everybody and it'll be — I think it's a process that's going to go pretty quickly.”
Asked whether he would drop the tariffs, Trump said: "It'll come down substantially. But it won't be zero."
Elon Musk is cutting back his work for Trump administration
08:55 , Rachel ClunElon Musk will significantly cut back his time working for the Trump administration from next month to spend more time running his companies as Tesla profits fell.
Since Donald Trump’s inauguration, the Billionaire Tesla boss has led the controversial Department of Government Efficiency which has aggressively cut costs across the federal government.
The cuts, including to scientific research funding and government departments such as the U.S. Department of Agriculture sparked public backlash and concern from investors in Musk’s businesses.
Musk told investors on a conference call following Tesla’s results that he would likely cut back his work for Trump to one or two days a week.
"I think starting probably next month, in May, my time allocation to DOGE will drop significantly,” Musk said.
"The large slog of work necessary to get the DOGE team in place and working with the government to get the financial house in order is mostly done.”
Trade negotiations pick up in Washington as global growth forecasts shrink
08:40 , Rachel ClunAs the International Monetary Fund warned global economic growth will slow in nearly every country due to the Trump administration’s aggressive tariff policy, finance chiefs and trade delegates from around the world converged on Washington.
They were there on Tuesday for the IMF and World Bank’s spring meetings, but most were also there to work out a deal with the White House to ease tariffs imposed on most U.S. trading partners,
White House press secretary Karoline Leavitt said negotiations were happening at pace. So far 18 countries have made proposals, she said, and the administration’s negotiating team is preparing to meet with 34 countries to discuss tariffs in the upcoming week.
Donald Trump imposed a baseline 10 percent tariff on nearly all trading partners earlier this month, and introduced higher tariffs on dozens more before pausing those additional duties for 90 days.
High tariffs also remain in place for all steel, aluminum and car exports to the U.S.
IMF slashes U.S. economic forecast as world ‘entering a new era’
08:20 , Rachel ClunThe outlook for the U.S. economy has significantly worsened, according to the International Monetary Fund, due to unprecedented disruption and uncertainty caused by Donald Trump’s tariffs.
The U.N.’s top financial agency slashed its growth forecast for the American economy to just 1.8 percent for the year, down from 2.7 per cent, one of the largest negative economic growth revisions from the IMF’s latest global outlook.
While the IMF does not expect a U.S. recession, it has raised the odds of one occurring this year from 25 percent to 37 percent.
"We are entering a new era," Pierre-Olivier Gourinchas, chief economist at the IMF, said. "This global economic system that has operated for the last eighty years is being reset."
The International Monetary Fund has warned tariff uncertainty will slow economic growth around the world, cutting its global economic growth forecast by 0.5 percentage points for this year, downgrading growth in nearly all countries.
