Trump's Next Steps with China Trade War; Canada Election Day
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Good morning, I'm Nathan Hager. And I'm Karen Moscow. Here are the stories we're following today. Karen, we begin with the latest on the trade war. President Trump is closing in on the 100-day mark of his second term, and he's still looking to make deals. The president says his 145% tariffs on China will force Beijing to the negotiating table. We were losing hundreds of billions of dollars a year with China, and now they're not doing any business with us, you know, because...

not because of them, because of me, because at 145 percent, you can't do business. But something's going to happen that's going to be positive. The president spoke with reporters on his way back to the White House from New Jersey this morning. China's foreign ministry reiterated that it is not engaged in trade talks with the U.S. China's promising more support for its exporters, including plans to direct loans to troubled firms and to boost domestic consumption.

Well, Nathan, the Trump administration is signaling that Asian countries such as South Korea, Japan and India are leading the way in tariff negotiations. Treasury Secretary Scott Besson says some nations are prepared to make significant concessions to secure a deal. We've had several of these Asian countries that come in and said, oh, well, we'll stop doing this, this and this. And I look at these lists.

And I think, how did we get here? How did we get here? Because this trading system has been so unfair. And as President Trump says, I don't blame the countries. I blame the previous administrations that let him get away with it. And Treasury Secretary Scott Besson tells ABC's This Week that there are 18 important trading partners, including China, which he says is undergoing a special negotiation. And you can hear This Week.

every Sunday on Bloomberg Radio.

And higher prices. And Apollo Global Management Chief Economist Torsten Slocke recently warned of looming COVID-like shortages and significant layoffs. Well, Nathan, in a post on Truth Social over the weekend, President Trump suggested that tariffs would help him reduce income taxes for people making less than $200,000 a year. Trump has previously argued that tariff revenue could replace income taxes.

though economists have questioned those claims. And Karen, as the president approaches that 100th day back in office, his popularity appears to be declining. We get that story from Bloomberg's Gina Cervetti.

A flurry of polls in recent days from NBC, CNN, The New York Times, ABC News and Fox News reveal the same theme. Voters perceive Trump to be falling short on his core campaign promise to strengthen the economy. The president's rollout of tariffs in early April sent global markets into shock. A CNN poll shows that just 39 percent of Americans approve of how Trump has steered the economy. That's the lowest of his two terms in the White House.

An NBC News poll showed tariffs were also deeply unpopular, with just 39% of respondents agreeing with Trump's tariff rollout. Trump rode the twin issues of the economy and immigration to his November election victory, sweeping each of the swing states and winning the popular vote.

vote. Gina Cervetti, Bloomberg Radio. All right, Gina, thank you. Now to the latest on the war in Ukraine. North Korea is acknowledging for the first time that it sent troops to the front lines. The official Korean Central News Agency reports North Korean forces helped regain control of Russia's Kursk border region. President Trump says he's hopeful that he's closer to a peace deal after meeting at the Vatican this weekend with Ukrainian President Volodymyr Zelensky. He told me

that he needs more weapons, but he's been saying that for three years. He needs more weapons and we're going to see what happens. I want to see what happens with respect to Russia because Russia had been surprised and disappointed, very disappointed that they did the bombing

of those places after discussion. And President Trump has floated the idea of secondary sanctions on Russia for firing into civilian areas in recent days. Karen, let's look north of the border this morning because Canadians are headed to the polls to vote for their next prime minister. We get that story from Bloomberg's David Gurra in Ottawa. Prime Minister Mark Carney, the leader of Canada's Liberal Party, called this election in March, shortly after he succeeded Justin Trudeau.

Carney's main rival is Pierre Polyev, the leader of the Conservatives. For Canadians, this is a referendum on their economic future. The country faces high inflation, a housing crisis, and concerns over job security. But what's front and center are President Donald Trump's aggressive trade policies, particularly new tariffs, and comments he's made suggesting Canada should become part of the United States.

The outcome of the election will determine how the country addresses these challenges and how it positions itself on the world stage. In Ottawa, I'm David Gurra, Bloomberg Radio. All right, David, thank you. Well, turning to the markets, futures are lower as we begin a new trading week. The S&P 500 down about 8% since Trump's inauguration, and it's on track for its worst run during a president's first 100 days since Gerald Ford in 1974.

Bob Michael is chief investment officer of fixed income at JPMorgan Asset Management, and he says Wall Street is bracing for more uncertainty. The bond market's telling us, watch out. As things stand, if the tariffs go through as they're currently spec'd out, the 90 days passes, and there's only some moderate compromise, the U.S. is going into recession.

JPMorgan Asset Management's Bob Michael. Earnings will also be in focus this week for the so-called Magnificent Seven. Microsoft, Apple, Meta, and Amazon are scheduled to report. And we have some deal news on this Monday morning, Karen. Germany's Merck is buying Stanford, Connecticut-based SpringWorks Therapeutics for $3.9 billion. SpringWorks makes medicines for cancer and rare diseases.

It's time now for a look at some of the other stories making news in New York and around the world. And for that, we're joined by Bloomberg's Michael Barr. Michael, good morning. Good morning, Karen. Murder charges have been filed against a suspect in a weekend car ramming attack that killed 11 people at a Filipino Heritage Festival in Vancouver. Hundreds attended vigils Sunday across the city for the victims, and the Canadian prime minister visited the site.

Prosecutors have charged the 30-year-old man. Investigators have ruled out terrorism and say he has a history of mental health issues. Mayor Ken Simm. He is known to police for a multitude of mental health interactions.

Now, it would appear that mental health appears to be the underlying issue here. Those killed were between the ages of 5 and 65. Canada's Prime Minister Mark Carney says all of Canada is in mourning over the attack. Families lost a sister, a brother, a mother, a father, a son or a daughter.

Those families are living every family's nightmare. Dozens were also injured when the man drove an SUV, struck people attending the Lapu Lapu Day Festival on Saturday.

We're learning a four-year-old and a seven-year-old with U.S. citizenship were deported alongside their undocumented mother to Honduras last week. It comes during the Trump administration's immigration crackdown. The family's lawyer said the mother was given no choice but to take her children. However, Trump border czar Tom Holman denies that.

The children aren't deported. The mother chose to take the children with her. When you enter the country illegally, and you know you're here illegally, and you choose to have your assistant child, that's on you. That's not on this administration. If you choose to put your family in that position, that's on them.

Tom Homan spoke on CBS's Face the Nation Heard Sundays on Bloomberg. Authorities say more than 100 immigrants suspected of being in the U.S. illegally were taken into custody during an ICE raid at an illegal after-hours nightclub in Colorado Springs, Colorado.

Video posted online by the Drug Enforcement Administration showed agents announcing their presence outside the building early Sunday. The DEA says the club has been under investigation for several months for alleged activities, including drug trafficking, prostitution and crimes of violence. Global News, 24 hours a day and whenever you want it, with Bloomberg News Now. I'm Michael Barr and this is Bloomberg. Karen. All right, Michael Barr, thank you.

When you have bars in the sky, onboard showers and award-winning in-flight entertainment, it's no surprise that Emirates was recently named the best airline in the world. We fly you to over 140 destinations and with partners across the globe, we connect you to another 1,700 cities across six continents. So when we say we're also the largest international airline, what we really mean is...

If you're going there, so are we. Book now on Emirates.com. Fly Emirates. Fly better.

Thrivent can help you plan your finances for the people, causes, and community you love. What makes Thrivent different? A combination of financial services and generosity programs. Thrivent offers advice, investments, insurance, banking, and generosity, as well as resources to fund service projects or direct dollars to causes you care about. With more than 120 years serving clients, you can plan your finances with confidence. Visit Thrivent.com to learn more. Thrivent.

where money means more. Time now for the Bloomberg Sports Update. Here's John Stashour. John, good morning. Good morning, Karen. Another wild Knicks-Pistons playoff game in Detroit. Game four saw the Knicks go from up 16 late in the second quarter to down 11 early in the fourth. Jalen Brunson then returned from a recurrence of his ankle injury to bring the Knicks back. They trailed by two in the final minute.

Time.

Pistons with 46.6 to play. ESPN Radio called it when the Pistons missed two shots on their final possession. The Knicks, who won game three by two points, won game four by one. Brunson scored 32. He had 13 after his return from the injury. Carl Anthony Towns, 27 points. That three-pointer was his fifth. Cade Cunningham again led Detroit. He had 25 and a triple-double. It's 3-1 Knicks.

Game five tomorrow with the Garden. The Celtics are up 3-1. They got 37 from Jason Tatum and won 107-98 at Orlando. Indiana with an easy win at Milwaukee for a 3-1 lead and Minnesota is up 3-1 on the Lakers. The Devils are down 3-1. They lost in North Carolina 5-2. Andre Svetnicek had the hat trick for the Canes. Capitals also won 5-2 and now up 3-1 on Montreal. The Mets bullpen which has been so good failed them in Washington. Mets had a 7-1 lead on the

seventh inning. Nationals scored five in the seventh, two more in the ninth to win eight to seven. The game ended on a Pete Alonzo throwing error second time in three days. The Nats have walked it off. Series ends this afternoon at the stadium. Yankees swept two from Toronto, 11-2 and 5-1 after Max Freed went to 5-0. Yanks allowed only three hits in the nightcap, hit three homers. Trent Grisham leading off and later Aaron Judge and then J.C. Escara, first homer of his career. Red Sox won 13-3 in Cleveland. John Staschauer, Bloomberg Sports, Karen and Nathan.

Coast to coast on Bloomberg Radio. Nationwide on Sirius XM. And around the world on Bloomberg.com and the Bloomberg Business App. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. As President Donald Trump closes in on his first hundred days back in office this week, he says he's got China right where he wants it on trade. And the tariffs are already having the impact he's looking for.

We're losing billions of dollars a day, and now we're doing great, and we haven't even kicked in yet. And eventually, we'll be reducing taxes very substantially for the people of our country because the money is so great coming in from tariffs. And that was the president speaking with reporters in New Jersey last night for the latest on where things stand now in the global trade war. We're joined by Bloomberg News senior editor Bill Ferrys.

Bill, good morning. The talk we're hearing from the White House is that 145 percent tariffs are going to force China to the negotiating table. Is that what we're seeing at this point? Good morning.

Good morning, Nathan. Thanks for having me. I think that is still very much an argument or a theory that's up in the air. Both sides in this trade war kind of refusing to blink so far. There have been some exceptions to those high tariffs on the U.S. side, but by and large, they're in place and seen as starting to have a big impact on trade. When you look at the number of cargo container ships

coming from China. We know those numbers are down. We know that the heads of companies like Walmart and Target and Home Depot were at the White House last week arguing for this period of high tariffs to be short. I think we're still waiting to see in the big economic indicators how serious of a hit this will be for either economy, China or the U.S. But I think analysts say that impact is going to be

be made clear very soon. But apart from the hard data, I mean, you mentioned some of the cargo shipments being reduced already, and we're already starting to see some of the major companies that are consumer facing in China appearing to be passing along a lot of these higher import taxes directly to consumers now.

That's right. I mean, we're talking about some of those fast fashion companies like Shein and Temu. They are already marking up their prices for deliveries to the U.S. by, in some cases, more than 200%.

So that's something that, you know, people will have to think about when they're doing some of their online orders and have to think about whether that's, you know, they can replace that with either products here in the U.S. or products somewhere else online. But retailers are starting to feel the pinch of tariffs and starting to pass those costs along. I think as this builds up.

particularly if there are fewer cargo ships coming into the U.S. You're going to see retailers running out of some of the inventory that got built up ahead of those tariffs, ahead of Liberation Day on April 2nd, and that's going to start having an impact in the economy as well. There's this idea as well, particularly floated by the Treasury Secretary, that if the U.S. starts to get more trade deals with some of these Asian trading partners like South Korea and Japan, that could put

more pressure on China to come to the table as well. Are we starting to see evidence that that's happening? Well, we've seen actually we've seen some pushback from Japan so far on trying to put restrictions on their trade with China. I suspect that's a position a lot of Southeast Asian nations in particular will have.

Usually the U.S. and China are the two biggest trading partners for most countries in Asia. So it's going to be they don't want to do without either one. But there's going to be a lot of scrutiny of that first first or first two trade deals that come through. We know Japan is supposedly near the top of the list. India as well. There's going to be a lot of scrutiny about whether whatever they agree to is really a framework that a lot of countries agree.

we can follow, or if it's going to be very much ad hoc and particular to each country. I think one big issue so far is there's just been a lot of confusion in terms of what countries need to do to try to keep that 90-day reprieve as a more permanent feature of the new world of tariffs. Now, I guess there's an open question as well as to whether investors are going to take a framework for an agreement as enough as a

opposed to a broader trade deal when the Treasury Secretary has said something like a deal with China could take two to three years. In our last 30 seconds, Bill, the market reaction to this trade war has been very tough on the president in the first 100 days.

Yeah, 100 days in, the S&P is looking like it's down about 8% since Donald Trump's inauguration. That would be it's on track for its worst run in the first 100 days of a new administration since Gerald Ford in 1974 following Nixon's resignation. So that is not what people expected. I think when Trump took office, they thought there'd be more of a stock market boom. We're still waiting to see that happen.

This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed by 6 a.m. Eastern each morning on Apple, Spotify, or anywhere else you listen. You can also listen live each morning starting at 5 a.m. Wall Street time on Bloomberg 1130 in New York, Bloomberg 99.1 in Washington, Bloomberg 92.9 in Boston, and nationwide on Sirius XM Channel 121.

Plus, listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Auto interfaces. And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it, in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. I'm Karen Moscow. And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.

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