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    U.S. Pauses Exports of Jet Engine and Chip Technology to China

    President Trump has stopped some critical products and technologies made only in the United States from flowing to China, flexing the government’s power over global supply chains.The Trump administration has suspended some sales to China of critical U.S. technologies, including those related to jet engines, semiconductors and certain chemicals. The move is a response to China’s recent restrictions on exports of critical minerals to the United States, a decision by Beijing that has threatened to cripple U.S. company supply chains, according to two people familiar with the matter.The new limits are pushing the world’s largest economies a step closer toward supply chain warfare, as Washington and Beijing try to flex their power over essential economic components in an attempt to gain the upper hand in an intensifying trade conflict.The standoff could have significant implications for companies that depend on foreign technologies, including makers of airplanes, robots cars and semiconductors.It could also complicate efforts to negotiate an end to a trade fight over the administration’s tariff policies. On May 12, negotiators from the two countries agreed to reduce the punishing tariffs they have imposed on each other for 90 days while negotiators sought a longer-term resolution.Scott Bessent, the Treasury secretary, said at the time that “the consensus from both delegations is that neither side wanted a decoupling.” Yet the administration continues to target China with punitive measures.Secretary of State Marco Rubio announced on Wednesday that the United States would “aggressively revoke” visas for Chinese students who study in critical fields or who connections to the Chinese Communist Party.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Trump’s China Deal Frees Up Shipping. Will Goods Pour Into the U.S.?

    The temporary lowering of tariffs may compel some U.S. businesses to order goods that they had held off buying after President Trump raised them to 145 percent.For weeks, Jay Foreman, a toy company executive, froze all shipments from China, leaving Care Bears and Tonka trucks piled up at Chinese factories, to avoid paying President Trump’s crippling 145 percent tariff.But as soon as his phone lit up at 4 a.m. on Monday alerting him that Mr. Trump was lowering tariffs on Chinese imports for 90 days, Mr. Foreman, the chief executive of Basic Fun, which is based in Florida, jumped out of bed and called his suppliers, instructing them to start shipping merchandise immediately.“We’re starting to move everything,” Mr. Foreman said. “We have to call trucking companies in China to schedule pickups at the factories. And we have to book space on these container ships now.”If other executives follow Mr. Foreman’s lead, a torrent of goods could soon pour into the United States. While logistics experts say global shipping lines and American ports appear capable of handling high volumes over the next three months, they caution that whiplash tariff policies are piling stress onto the companies that transport goods around the world.“This keeps supply chain partners in limbo about what’s next, and leads to ongoing disruption,” said Rico Luman, senior economist for transport, logistics and automotive at ING Research.After talks this weekend in Geneva, the Trump administration lowered tariffs on many Chinese imports to 30 percent from 145 percent. China cut its tariffs on American goods to 10 percent from 125 percent. If a deal is not reach in 90 days, the tariffs could go back up, though Mr. Trump said on Monday that they would not rise to 145 percent. Some importers may hold off on ordering from China, hoping for even lower tariffs later.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    A Tidal Wave of Change Is Headed for the U.S. Economy

    When the Covid pandemic hit, factories in China shut down and global shipping traffic slowed. Within a matter of a few weeks, products began disappearing from U.S. store shelves and American firms that depend on foreign materials were going out of business.A similar trend is beginning to play out, but this time the catalyst is President Trump’s decision to raise tariffs on Chinese imports to a minimum of 145 percent, an amount so steep that much of the trade between the United States and China has ground to a halt. Fewer massive container ships have been plying the ocean between Chinese and American ports, and in the coming weeks, far fewer Chinese goods will arrive on American shores.While high tariffs on Chinese products have been in place since early April, the availability of Chinese products and the price that consumers pay for them has not changed that much. But some companies are now starting to raise their prices. And experts say that the effects will become more and more obvious in the coming weeks, as a tidal wave of change stemming from canceled orders in Chinese factories works its way around the world to the United States.The number of massive container ships carrying metal boxes of toys, furniture and other products departing China for the United States has plummeted by about a third this month.The reason consumers haven’t felt many of the effects yet is because it takes 20 to 40 days for a container ship to travel across the Pacific Ocean. It then takes another one to 10 days for Chinese goods to make their way by train or truck to various cities around the country, economists at Apollo Global Management wrote in a recent report. That means that the higher tariffs on China that went into effect at the beginning of April are just starting to result in a drop in the number of ships arriving at American ports, a trend that should intensify.By late May or early June, consumers could start to see some empty shelves, and layoffs could occur for retailers and logistics industries. The major effects on the U.S. economy of shutting down trade with China will start to become apparent in the summer of 2025, when the United States might slip into a recession, said Torsten Slok, an economist at Apollo.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    What to Know About Who Pays the Higher Costs of Trump’s Tariffs

    President Trump’s latest tariffs are about to become an unavoidable and expensive reality for American businesses and for people who rely on foreign goods.Shoppers buying clothes from retailers in China may soon pay more than twice as much, now that a special exemption for lower-value imports is disappearing. And companies involved in international trade must now make even more complicated calculations to decide how much they owe in tariffs.“Maybe 3 percent of the people are well prepared,” said Jeremy Page, a founding partner of Page Fura, an international trade law firm, whose clients include large companies. “And that might even be charitable.”Imports from China have been hit with tariffs of 145 percent. That means for every $100 worth of goods a business buys from that country, it has to pay $145 to the federal government. Goods from most other countries have a new 10 percent tax, though that could rise if the countries do not reach trade agreements with the United States by July. And there are separate tariffs on cars, steel and aluminum. Mr. Trump has also said he wants to impose new tariffs on pharmaceuticals and computer chips.Mr. Trump contends that the tariffs will encourage businesses to produce goods in the United States. The tariffs on Chinese goods will almost certainly reduce imports from the country. But American businesses will not be able to quickly get goods from elsewhere — U.S. imports from China totaled $439 billion last year — and they will end up owing huge amounts in tariffs.A garment factory in Guangzhou, China. Imports from China have been hit with tariffs of 145 percent. Qilai Shen for The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Walmart Says Trump’s Tariffs Have Added Uncertainty to Its Outlook

    The timing was a bit awkward.Walmart’s investor event — which happens every two years and aims to showcase the company’s strengths and strategy for growth — also happened to fall on the same day that U.S.-imposed tariffs went into effect worldwide and a trade war heated up.As the largest retailer in the United States, Walmart relies on suppliers from around the world. And for the Wall Street analysts who attended the event in Dallas on Wednesday, tariffs were top of mind.Doug McMillon, Walmart’s chief executive, acknowledged the uncertainty. In response to one of several questions from analysts about tariffs, he said: “There’s so many variables playing out in terms of what costs are going to be, where people source from. We’re going have to manage this as we always do, daily.”Or by the minute.As the event got underway on Wednesday, the United States had imposed worldwide tariffs, including a levy of 104 percent on Chinese goods, and China quickly retaliated with 84 percent tariffs on U.S. goods. Mr. McMillon, speaking just after Beijing’s additional tariffs went into effect, said the situation was “very fluid.” In fact, not long after Mr. McMillon’s question-and-answer session with analysts, President Trump said he was pausing his worldwide reciprocal tariffs for 90 days and raising the rate on China to 125 percent.During the session, Mr. McMillon emphasized that Walmart was well placed to cope with uncertainty, having navigated “the period after 9/11, the global financial crisis, a pandemic and more recently high inflation.” Walmart’s customer base includes a large number of lower-income shoppers, who have less capacity to absorb the higher prices that the tariffs could bring.John David Rainey, Walmart’s chief financial officer, emphasized that two-thirds of what Walmart sells in the United States is made, grown or assembled domestically; the figure includes groceries, which generally have lower margins. The other third of what Walmart sells comes from all over the world, especially from China and Mexico, he said.Mr. Rainey said the tariffs had made it harder for Walmart to predict its first-quarter operating income growth. “We’re one week into this new tariff environment, and we’re still working through what this means for us,” he said. “For the current quarter, the uncertainty and decline in consumer sentiment has led to a little more sales volatility week to week and, frankly, day to day.”Walmart reiterated expectations for first-quarter sales growth of about 3 to 4 percent and said its annual sales growth guidance remained unchanged, with customers still expected to migrate toward e-commerce and delivery, key parts of Walmart’s strategy. Walmart will report its first-quarter results on May 15. More

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    Why the Shipping Industry Isn’t Rushing Back to the Red Sea

    The companies that operate large container ships say they plan to keep going around Africa as violence flares in the region.When President Trump ordered military strikes last weekend against the Houthi militia in Yemen, he said the militia’s attacks on commercial shipping in the Red Sea had harmed global trade.“These relentless assaults have cost the U.S. and World Economy many BILLIONS of Dollars while, at the same time, putting innocent lives at risk,” he said on Truth Social.But getting shipping companies to return to the Red Sea and the Suez Canal could take many months and is likely to require more than airstrikes against the Houthis. For over a year, ocean carriers have overwhelmingly avoided the Red Sea, sending ships around Africa’s southern tip to get from Asia to Europe, a voyage that is some 3,500 nautical miles and 10 days longer.The shipping industry has largely adapted to the disruption, and has even profited from the surge in shipping rates after the Houthis began attacking commercial ships in late 2023 in support of Hamas in its war with Israel.Shipping executives say they do not plan to return to the Red Sea until there is a broad Middle East peace accord that includes the Houthis or a decisive defeat of the militia, which is backed by Iran.“It’s either a full degradation of their capabilities or there is some type of deal,” Vincent Clerc, the chief executive of Maersk, a shipping line based in Copenhagen, said in February.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Trump’s Tariffs Could Help Tesla, by Hurting Its Rivals More

    The electric car company led by Elon Musk builds all the cars it sells in the United States in California and Texas, shielding it from tariffs that could devastate competitors.As President Trump puts new tariffs on goods from China and threatens a trade war with allies like Mexico and Canada, one global company is likely to suffer less than most of its competitors: Tesla.But the electric car maker led by Elon Musk, which accounts for a third of the billionaire’s wealth, is also vulnerable if relations with China worsen. That country is the company’s second-largest market after the United States and it produces more cars there than anywhere else.Tesla has built largely self-sufficient supply chains in the United States and China, a rarity in a world of interconnected trade. As a result, the tariffs imposed by the Trump administration on Chinese goods, and the continuing threat to put them on Mexican and Canadian products, might help Tesla by hurting its competitors more.Although there is no evidence that Mr. Musk is shaping trade policies, the tariffs are one of several measures adopted by the Trump administration that may benefit Tesla at the expense of its rivals. On Wednesday, Mr. Trump paused 25 percent tariffs on most autos and parts made in Canada and Mexico, but the reprieve expires in a month, leaving automakers in the United States that depend on foreign supply chains in a state of uncertainty.The Tesla factory in Austin, Texas, in 2023. Cars produced here will be shielded from tariffs that will hurt Tesla competitors. Go Nakamura/ReutersThe administration is also trying to eliminate financial support for the construction of fast-charging stations for electric vehicles, a move that could handicap companies seeking to compete with Tesla’s extensive network. And it is attempting to cut or eliminate loans and subsidies that competitors like Ford Motor and Rivian are using to finance electric vehicle and battery factories.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Trump Announces ‘Reciprocal’ Tariffs Across the Globe

    President Trump on Thursday set in motion a plan for new tariffs on other countries globally, an ambitious move that could shatter the rules of global trading and is likely to set off furious negotiations.The president directed his advisers to come up with new tariff levels that take into account a range of trade barriers and other economic approaches adopted by America’s trading partners. That includes not only the tariffs that other countries charge the United States, but also the taxes they charge on foreign products, the subsidies they give their industries, their exchange rates, and other behaviors the president deems unfair.The president has said the step was necessary to even out America’s “unfair” relationships and stop other countries from taking advantage of the United States on trade. But he made clear that his ultimate goal was to force companies to bring their manufacturing back to the United States.“If you build your product in the United States, there are no tariffs,” he said during remarks in the Oval Office.Howard Lutnick, the president’s nominee for commerce secretary, said the measures could be ready as soon as April 2. He will oversee the plan along with Jamieson Greer, Mr. Trump’s pick for trade representative, if they both are confirmed to those posts, and other advisers.The decision to rework the tariffs that America charges on imported goods would represent a dramatic overhaul of the global trading system. For decades, the United States has set its tariff levels through negotiations at international trade bodies like the World Trade Organization.Import Taxes Around the WorldThe average tariff rate the United States charges for imports is relatively low compared with that of most other countries. In general, wealthier countries tend to levy lower tariffs than poorer ones. More