What we’re covering
• US-China tensions: China has upped its retaliatory tariffs on US imports to 125%, raising the stakes in an unprecedented trade war between the world’s two biggest economic superpowers. President Donald Trump has expressed optimism that the two countries could reach a deal. But diplomatic efforts are facing challenges. Chinese leader Xi Jinping said his nation was “not afraid” in his first public comments on the trade war.
• Uncertainty roils markets: Stocks tumbled after the White House clarified that its tariff on Chinese goods was at least 145%. And the market for US Treasuries is again showing signs of distress. Trump conceded that there may be “transition problems” with his policies but said his team was working with partners on trade deals.
Deportation ruling: The Supreme Court is requiring Trump’s administration to facilitate the return of a Maryland man mistakenly deported to El Salvador but stopped short of requiring the government to return him to the US. The vague opinion did not set a deadline for Abrego Garcia’s return.
