WASHINGTON (AP) — In the aftermath of this week's tariff whiplash, President Donald Trump is deciding exactly what he wants out of trade talks with as many as 75 nations in the coming weeks.
Trump is also figuring out next steps with China. He upped his tariffs on Chinese goods to 145% after China placed retaliatory taxes of 84% on imports from the U.S. While his 90-day pause on other tariffs caused the stock market to rally on Wednesday, countries still face a baseline 10% import tax instead of the higher rates announced on April 2.
“There will be a transition cost and transition problems,” Trump said at Thursday's Cabinet meeting. “But in the end it’s going to be a beautiful thing.”
Kevin Hassett, director of the White House National Economic Council, told Fox News’ “Fox and Friends" on Thursday that the administration already has “offers on the table from more than 15 countries.”
Hassett said the next step will be determining exactly what Trump wants out of the negotiations.
“We have a meeting today with all the top principals where we’re going to present to the president a list of what we think his priorities might look like," Hassett said. "And I’m sure he’s going to, you know, have his own ideas about where to move things.”
Here's a look at where Trump's tariffs showdown stands:
With $28.9 trillion in publicly held debt, the U.S. government can still be beholden to the investors who lend it money. Trump might be willing to run roughshod over political rivals, judges he dislikes and a host of political norms, but the bond market showed that it can temper his plans.
Going into Wednesday, the interest rate on a 10-year U.S. Treasury note was increasing and approaching 4.5%. That meant the U.S. government was having a tough time finding possible buyers for its debt, as market participants were wondering if Trump's tariffs had caused foreign buyers to sour on the U.S. government. Higher interest rates for the government could trigger even higher mortgage rates and auto loans for consumers, among other problems.
Trump on Wednesday said investors were getting “yippy,” but after his tariff pause he described the bond market as “beautiful.”
The S&P 500 stock index jumped 9.5% after the pause was announced. But reality crept back in Thursday and the S&P 500 slumped nearly 3.5% as interest rates on 10-year U.S. Treasury notes rose. Sure, Trump was no longer going to put a 20% tariff on goods from the European Union, a 24% tariff on Japan or 25% on South Korea. But those nations still have imports taxed at an elevated 10%, Trump's new baseline as trade talks begin. And tariffs went up against China, locking the world's two largest economies in a trade war.
Plus, the trade war has expanded with China, and 25% tariffs still apply to imported autos, steel and aluminum. Imports from Canada and Mexico, the two largest U.S. trading partners, still face tariffs of as much as 25%. And Trump still plans tariffs on pharmaceutical drugs, lumber, copper and computer chips.
“While we appreciate the pause, the reciprocal tariff of 10% still represents more than double the tariff on imports of leather footwear from countries like Vietnam and Cambodia,” said Tom Florsheim, CEO of the Weyco Group, a footwear company. “Even at this level, it means a significant cost increase that will impact consumers.”
Because tariffs are taxes paid by importers, the costs generally get passed along to consumers and businesses in the form of higher prices. The Budget Lab at Yale University estimated Thursday that even with the pause, Trump's current tariff regime would pull down a household's average disposable income by $4,364.
Treasury Secretary Scott Bessent said any trade agreements will be “bespoke” deals, rather than some overarching pact among a group of countries. Trump has laid out a series of grievances and goals regarding tariffs, but Canadian and European counterparts have said the actual asks from administration officials have been vague so far.
Trump has said he wants to eliminate the $1.2 trillion trade deficit, which means he no longer wants the U.S. to import more goods than it exports to other nations. He also wants revenues from tariffs to offset his income tax cut plans. The president has also said he wants the tariffs to bring back factory jobs and raise workers’ wages.
Aides have said Trump wants other nations to scrap regulations and other policies, such as Europe's value-added taxes, that he deems to be a barrier to U.S. goods, an ask that would require other countries to change their laws. Commerce Secretary Howard Lutnick has said the goal is to get other nations to “respect” Trump.
His goals might not necessarily be in line with what other nations want.
European Commission President Ursula von der Leyen posted on X that she's “consistently advocated for a zero-for-zero tariff agreement between the European Union and the United States.”
Lori Wallach, director of the Rethink Trade program at the American Economic Liberties Project, said Trump needs to be more publicly forthright about what he wants out of trade talks and tariffs.
“Absent transparency about what is being demanded, we could end up with the worst of all outcomes — a bunch of bad special interest deals, all of the economic damage caused by tariff uncertainty and no trade rebalancing, U.S. manufacturing capacity or goods jobs,” she said.
The Trump administration views China as violating basic trade norms with how it subsidizes its manufacturers, takes intellectual property from its global competitors, suppresses wages for its workers and manipulates its currency.
The White House clarified that the 125% tariffs that Trump announced Wednesday against China were actually 145%, once his previous 20% fentanyl tariffs were included.
Census Bureau data show the U.S. ran a $295 billion trade deficit last year with China. Because U.S. consumers and businesses are such a major customer of Chinese manufacturers, Bessent has said that gives the U.S. an edge in terms of inflicting pain on that nation's economy through tariffs. Of course, China has also spent several years preparing for a trade war.
Trump at his Cabinet meeting expressed hope that he could get an agreement with China, though he didn't offer any specifics on what he was seeking.
“Well, we’ll see what happens with China,” Trump said. “I would love to be able to work a deal.”
Wendong Zhang, an economist at Cornell University, said the Chinese economy might suffer a steeper hit to its gross domestic product than the U.S., but it's “likely to stick to its guns” due to internal public support and the ability to increase consumption domestically on goods that might no longer be going to the U.S.
Meanwhile, Trump will need to deal with voters who might be frustrated over the higher price of electronics and other goods resulting from the trade wars.
“Many products that the U.S. imports are predominantly from China: smartphones (73%), laptops (78%), video game consoles (87%), toys (77%), and also antibiotics for U.S. livestock production," Zhang said in an email. “Resourcing from other countries will take time and result in much higher costs.”
President Donald Trump departs after an event in the East Room of the White House, Tuesday, April 8, 2025, in Washington. (AP Photo/Alex Brandon)
HOUSTON (AP) — Pushed the the brink of elimination, the Houston Rockets delivered a playoff gem Wednesday night to beat the Golden State Warriors and keep their season alive.
Fred VanVleet scored 26 points, Amen Thompson added 25 and the Rockets extended their first-round playoff series with a 131-116 rout in Game 5.
“Nobody wants to go home,” Alperen Sengun said.
Game 6 is Friday in San Francisco.
Warriors coach Steve Kerr threw in the towel early in this one with the game out of hand. A layup by VanVleet midway through the third quarter made it 93-64, and Kerr called timeout and cleared his bench.
Houston coach Ime Udoka followed suit with about a minute to go in the third and his team up 105-76. He put all his starters back in with about eight minutes left after Golden State cut the lead to 109-92.
Dillon Brooks added 24 points on a night when all five Houston starters scored in double figures.
VanVleet, a nine-year veteran who won a title against Golden State while with Toronto in 2019, tried to encourage his young teammates by reminding them that they've been in every game.
“Keep everything light and fresh and and confident and understand that we have played good basketball,” he said. “It's not like we were getting our (expletive) kicked the whole time.”
A 9-5 run by the Warriors got them within 114-101 before a fracas broke out with about four minutes to go. Pat Spencer pushed Brooks and then was ejected after headbutting Alperen Sengun in the ensuing scuffle.
Houston went on a 7-2 run after that to put the game away.
“Houston was great and they took it to us right away,” Kerr said. “But like I said, it was an important finish.”
Reserve Moses Moody led the Warriors with 25 points. Golden State's 76 bench points were the most in a playoff game for the franchise since 1970-71, when starters began being tracked.
The Rockets put together their best performance this postseason after losing both games in California, including Game 3, which Jimmy Butler sat out with an injury.
“We came out aggressive, executed offensively and defensively,” Jalen Green said. “We had a professional approach and handled business.”
The Rockets raced to a 14-point lead after one quarter and by the time Stephen Curry made his first basket on a 3-pointer midway through the second, they led 55-32.
They had a 27-point lead at halftime behind 19 points from VanVleet.
Butler managed just eight points in 25 minutes on 2-of-10 shooting after combining for 52 points in the two full games he’d played in this series.
Curry was 4 of 12 for 13 points after scoring more than 30 points in two of the first four games to move the Warriors within a game of clinching the series.
The Warriors made 15 of 44 3-pointers and shot 41.7% overall. The Rockets made 13 of 30 3s and shot 55.1%.
By extending the series, the Rockets have a chance to become the 14th team in NBA history to overcome a 3-1 deficit in a best-of-seven series. Houston has done it twice, most recently in the 2015 Western Conference semifinals against the Clippers.
The Warriors were on the wrong end of such a comeback, losing the 2016 NBA Finals to LeBron James and Cleveland after having a 3-1 advantage.
Golden State has dominated the Rockets in the playoffs, eliminating them four times between 2015 and 2019.
AP NBA: https://apnews.com/NBA
Houston Rockets forward Jabari Smith Jr. (10) shoots over Golden State Warriors center Quinten Post (21) during the second half of Game 5 of an NBA basketball first-round playoff series, Wednesday, April 30, 2025, in Houston. (AP Photo/David J. Phillip)
Houston Rockets forward Amen Thompson has his shot blocked by Golden State Warriors forward Braxton Key (12) during the second half of Game 5 of an NBA basketball first-round playoff series, Wednesday, April 30, 2024, in Houston. (AP Photo/David J. Phillip)
Brandin Podziemksi (2), Jimmy Butler (10) and Stephen Curry (30) react on the bench in the final seconds of the second half as the Golden State Warriors played the Houston Rockets in Game 5 of the First Round of the NBA Playoffs at Toyota Center in Houston, Texas on Wednesday, April 30, 2025. (Carlos Avila Gonzalez/San Francisco Chronicle via AP)
Stephen Curry (30) walks off the court after the Golden State Warriors lost to the Houston Rockets in Game 5 of the First Round of the NBA Playoffs at Toyota Center in Houston, Texas on Wednesday, April 30, 2025. (Carlos Avila Gonzalez/San Francisco Chronicle via AP)
Golden State Warriors forward Jimmy Butler III (10) shoots around Houston Rockets center Alperen Sengun during the first half of Game 5 of an NBA basketball first-round playoff series, Wednesday, April 30, 2024, in Houston. (AP Photo/David J. Phillip)
Houston Rockets forward Amen Thompson high fives fans after Game 5 of an NBA basketball first-round playoff series against the Golden State Warriors, Wednesday, April 30, 2025, in Houston. (AP Photo/David J. Phillip)
Golden State Warriors guard Buddy Hield (7) sits on the bench during the second half of Game 5 of an NBA basketball first-round playoff series against the Houston Rockets, Wednesday, April 30, 2025, in Houston. (AP Photo/David J. Phillip)
Golden State Warriors guard Moses Moody (4) dunks against the Houston Rockets during the first half of Game 5 of an NBA basketball first-round playoff series, Wednesday, April 30, 2024, in Houston. (AP Photo/David J. Phillip)
From left; Golden State Warriors forward Jimmy Butler III, guard Brandin Podziemski and guard Stephen Curry (30) sit on the bench during the second half of Game 5 of an NBA basketball first-round playoff series against the Houston Rockets, Wednesday, April 30, 2025, in Houston. (AP Photo/David J. Phillip)
Golden State Warriors forward Jimmy Butler III (10) shoots over Houston Rockets forward Amen Thompson (1) during the second half of Game 5 of an NBA basketball first-round playoff series, Wednesday, April 30, 2025, in Houston. (AP Photo/David J. Phillip)
Houston Rockets guard Jalen Green, left, drives on Golden State Warriors guard Stephen Curry during the second half of Game 5 of an NBA basketball first-round playoff series, Wednesday, April 30, 2025, in Houston. (AP Photo/David J. Phillip)
Golden State Warriors guard Stephen Curry (30) watches from the sidelines during the first half of Game 5 of an NBA basketball first-round playoff series against the Houston Rockets, Wednesday, April 30, 2025, in Houston. (AP Photo/David J. Phillip)
Houston Rockets center Alperen Sengun (28) shoots over Golden State Warriors forward Kevon Looney during the first half of Game 5 of an NBA basketball first-round playoff series, Wednesday, April 30, 2025, in Houston. (AP Photo/David J. Phillip)
Houston Rockets guard Fred VanVleet (5) drives past Golden State Warriors guard Moses Moody during the first half of Game 5 of an NBA basketball first-round playoff series, Wednesday, April 30, 2025, in Houston. (AP Photo/David J. Phillip)
Houston Rockets center Alperen Sengun, left, argues with the referee during the second half of Game 5 of an NBA basketball first-round playoff series against the Golden State Warriors, Wednesday, April 30, 2025, in Houston. (AP Photo/David J. Phillip)
Golden State Warriors guard Stephen Curry watches from the bench during the second half of Game 5 of an NBA basketball first-round playoff series against the Houston Rockets, Wednesday, April 30, 2025, in Houston. (AP Photo/David J. Phillip)
Houston Rockets forward Dillon Brooks (9) backs down Golden State Warriors guard Moses Moody (4) during the second half of Game 5 of an NBA basketball first-round playoff series, Wednesday, April 30, 2025, in Houston. (AP Photo/David J. Phillip)
Houston Rockets guard Fred VanVleet (5) shoots against he Golden State Warriors during the first half of Game 5 of an NBA basketball first-round playoff series, Wednesday, April 30, 2025, in Houston. (AP Photo/David J. Phillip)
