China Slaps Further Tariffs on US; Deadly NYC Helicopter Crash
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Good morning, I'm Lisa Matteo. And I'm Karen Moscow. Here are the stories we're following today. Karen, we begin with an escalation in the trade war. Just a few hours ago, China announced it was once again increasing tariffs on U.S. goods. Let's go to Hong Kong, get the very latest with Bloomberg's Jill Desis. Jill.

Good morning, Lisa and Karen. Yes, so the latest we have from China is that they will raise tariffs on all U.S. goods from 84% to 125% that's starting April 12th. And then they say that they ultimately plan to ignore any further increases announced by Washington. The Chinese officials actually called the Trump administration's latest moves a joke. They said that given that American goods are no longer marketable in China under the current tariff rates,

if the U.S. further raises tariffs on Chinese exports, they are just going to disregard those measures. So it does seem that at least in response to that move from Donald Trump overnight to clarify actually that the tariff rates on Chinese goods flowing into the United States were actually 144,

if you were to take into account earlier measures, they raised these rates this time around and then say they are done at this point. We saw S&P 500 futures fall further after this announcement. We saw futures on the Hong Seng China Enterprises Index in Hong Kong pair gains that actually closed a little bit up

earlier today just on bets that China would introduce more stimulus to sort of help its economy. There's some speculation that that may be coming down the pike at some point. But ultimately, what we're really seeing here is this escalation in tensions between Beijing and Washington. Neither side has really blinked at this point. We'll have to see what ultimately happens in Washington in response to this. But at least from China's perspective, they're pretty much done here.

In Hong Kong, this is Jill Desas, Bloomberg Radio. All right, Jill, thank you. Well, the latest news on China increasing tariffs comes after President Trump expressed optimism a deal with Beijing will be reached. We're resetting the table, and I'm sure that we'll be able to get along very well. I have great respect for President Xi. He's been, in a true sense, he's been a friend of mine for a long period of time, and I think that we'll end up working out something that's very good for

both countries. The White House confirms China now faces a 145 percent levy on all goods it sends to the U.S. Well, Karen, Bloomberg News has learned top European officials are planning to visit China later this year to discuss trade with President Xi Jinping.

Sources say European Commission President Ursula von der Leyen and European Council President Antonio Costa have agreed to the summit in Beijing. The possible meeting comes as Spanish Prime Minister Pedro Sanchez visited Beijing today, saying he sees China as a partner of the EU. Lisa, Bridgewater Associates founder Ray Dalio says the tariff turmoil has damaged the U.S. reputation for reliability. Dalio spoke with Bloomberg's Francine Lacqua.

I'm not the politician. I'm not the negotiator. I'm not the person to say whether that style of handling it was better or worse. I would say that it dramatically affected psychology and attitude.

about the United States' reliability. And Dalio said that while he is pleased about Trump's decision to pivot, he cautioned that the volatility will have lasting effects. Hear the full conversation on the latest edition of the Bloomberg In the City podcast. And futures are lower this morning as a turbulent week to the markets comes to a close. Yesterday, stocks gave back a chunk of Wednesday's massive rally. The S&P 500 fell three and a half percent.

Well, there's another worry for Wall Street this morning, Lisa, as the safe haven status of U.S. Treasuries and the dollar have come into question. We get the latest with Bloomberg's John Tucker. John, good morning. Good morning, Karen. Normally, in periods of stress, money flows into the perceived safety of U.S. Treasuries. They rallied during the global financial crisis on 9-11, and even when America's own credit rating was cut,

But now as President Trump unleashes an all-out assault on global trade, their status as the world's safe haven is increasingly coming into question. Henry Allen at Deutsche Bank worries this could be the start of a regime change.

It's really striking that today we have seen U.S. Treasuries sell off quite severely in response to what's going on. So I think that does speak to that broader confidence crisis. As U.S. debt sold off, yields, especially on the longer-term debt, have surged in recent days. The dollar has also plunged.

and a disconcerting pattern has emerged. Investors dumping treasuries at the same time they sold stocks and other risky assets. As former Treasury Secretary Larry Summers says, they're trading like the debt of an emerging market country. In New York, I'm John Tucker, Bloomberg Radio. All right, thanks, John. It also remains to be seen what impact the tariff turmoil will have on corporate earnings. This morning, big banks begin to report. Let's get a preview with Bloomberg's Shanali Basik.

With JP Morgan kicking off big bank earnings in the middle of an escalating tariff war, investors will be watching out for how much money the big banks are making at their trading desks in the middle of historic volatility. Investors will also be keeping an eye on how much these banks are able to lend as consumers are becoming more wary about potential inflation on the heels of tariffs.

I'm Shanali Basik in New York for Bloomberg Radio. All right, Shanali, thank you. Well, in other news this morning, a New York City sightseeing helicopter broke apart in midair and crashed into the Hudson River, killing the pilot and a family of five Spanish tourists. New York Police Commissioner Jessica Tisch explained it was only in the air for 15 minutes when it reached the George Washington Bridge before turning south, then crashing.

Shortly thereafter, the aircraft lost control and hit the water just a few feet off the coast of Pier A Park in Hoboken. The victims included Siemens executive August Inesco Barr and New York City Mayor Eric Adams.

We lost five family members and a pilot to an incident. We're still investigating. There are many unknowns here, but with our federal, state, and city partners, we'll find out exactly what happened.

The helicopter identified by the FAA as a Bell 206 helicopter was on its sixth flight of the day. It was found upside down in the 50-degree water when rescuers arrived at the scene, which was closer to the New Jersey side of the Hudson River. The NTSB and the FAA are investigating. Well, looking at the nation's capital, the House narrowly passed a framework for a budget proposal that President Trump supported. But it's not a done deal. Bloomberg's Amy Morris is in Washington with what comes next.

House Speaker Mike Johnson celebrated the passage of the blueprint legislation. The big components of the one big beautiful bill is to ensure that we don't have the largest tax increase in U.S. history all at once. Johnson says this paves the way for Republicans to cut $1.5 trillion from the budget. House Minority Leader Hakeem Jeffries says that can't happen unless you cut Medicaid. Republicans can cut.

run from their proposal, which is the largest Medicaid cut in American history, but we will never allow them to hide. Johnson has set a target of the end of May to enact the bill. Senate Republicans talked about getting it done by August. In Washington, Amy Morris, Bloomberg Radio.

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. The Supreme Court says the Trump administration must work to bring back a Maryland man who was mistakenly deported to El Salvador. Kilmar Abrego-Garcia is a Salvadoran citizen who had an immigration court order preventing his deportation to his native country over fears he would face persecution from local gangs.

The administration has conceded that it made a mistake in sending him to El Salvador, where he is being held in a notorious prison, but also argued that it no longer could do anything about it. Former federal prosecutor and Loyola Law School professor Lori Levinson.

This has been the first big pushback on the administration by the Supreme Court. And it took the administration basically taking a hard line that they didn't have to do anything to bring back somebody, even though they wrongfully sent them to a foreign country. Loyola Law School professor Lori Levinson.

A Russian-American woman freed by Moscow has arrived back in the U.S. as part of a prisoner swap. A plane carrying Ksenia Karolina landed late last night at Joint Base Andrews, where she was greeted by her fiancé. She was released earlier in the day in exchange for a Russian-German man who'd been jailed in the U.S. on smuggling charges. Karolina was arrested last year and convicted of treason on charges stemming from a donation of just $52 to a charity aiding Ukraine.

There are now 222 reported deaths in the tragic roof collapse of a crowded nightclub in the Dominican Republic this week. The search for bodies in Santo Domingo has ended. And as we have been reporting, a New York City sightseeing helicopter broke apart in midair and crashed into the Hudson River, killing all six people on board. This witness saw it happen. It was just coming down in a 45 angle and it went straight into the water. It was a big splash. It was crazy.

The five passengers were all from Spain. The pilot also killed. 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.

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Time now for the Bloomberg Sports Update. Here's John Stashower. John, good morning. Good morning, Karen. Not the first time Justin Rose has had a good start to the Masters. In fact, no one has had the first-round lead more often. This is the fifth time. One more than Jack Nicklaus, who won the Masters six times. Rose has never won the green jacket. Will this be the year for the 44-year-old from England who's playing the Masters for the 20th time? He had a brilliant opening round, a 7-under 65. He needed only 22 putts.

It was a really good day's golf on a golf course. That was a stern test. I think if you look at the overall leaderboard, not many low scores out there. So you had to take a lot of quality shots and delighted with the way I played. Three golfers trailed by three. Ludwig Oberg, the Canadian Corey Connors, and the defending champion, Scotty Sheffler. Rory McIlroy.

was four under with four holes to play, then had two double bogeys. The Knicks in Detroit gave three of their top players the night off, lost 115-106. Cade Cunningham, 36 points for the Pistons, who've gone from 14 wins last season to 44 this year. And as of now, they'd play the Knicks in the first round of the playoffs, although...

The Knicks lead over Indiana for third in the East is down to one game. The Rangers took out some frustration for their disappointing season, blasting the Islanders at UBS Arena 9-2. Rangers scored four goals in the first period, four more in the third. Red Sox salvaged a game with the Blue Jays at Fenway 4-3 in 10-8.

Back home tonight to play the Giants. The Mets are in Sacramento taking on the A's. The Jets brought in Alan Lazar because of his history catching passes from Aaron Rodgers and Green Bay. Rodgers is gone. Lazar is staying, but his salary was cut from $11 million to $2 million. John Staschauer, Bloomberg Sports. 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.

It is 513 on Wall Street. Well, some more volatility thrust into the market yesterday. President Trump's tariffs on China actually higher than previously announced. And now China retaliating again. Here to break it down for us is Bloomberg senior editor Bill Farris. Bill, it's hard

to keep up with this news flow constantly changing. So now the White House says the total tariffs imposed on China now add up to 145%. And now we're learning China's going to raise tariffs on all U.S. goods from 84% to 125%. I mean, how long is this back and forth going to go on?

You know, yes, what we've been talking about all day. Thanks for having me. There's a real question. At what point do these tariffs kind of start becoming meaningless numbers? I mean, we know an analysis by Bloomberg Economics showed that once you get over 100 percent tariffs,

at least in the medium term, you basically bring an end to bilateral trade. It's basically a complete decoupling. But even in the short term, you know, the big question is when do you start seeing the impacts from this? And we're seeing it now with some companies already cutting back on purchase orders from China, U.S. companies cutting back on purchase orders.

And a lot of uncertainty, CEOs tossing out full year guidance. And no one really knows where this is headed, except that it's headed to a place we haven't been before. But China's saying they're raising U.S. tariffs on U.S. goods to 125 percent. And they added to that that they are not going to go any further. They said they won't respond to additional U.S. moves because they said what the Trump administration is doing now has, quote, become a joke. Yeah. And they said they are going to ignore it.

I mean, can they do that? Can you just ignore it?

I think, you know, at some level it becomes, it's not clear that it really makes a difference, right? Once you have 130% or 140% tariffs on something, does it really matter if you go to 160%? Maybe for some companies it does, but for the vast majority of products, if you're talking about more than a doubling of their costs, you're probably starting to wipe out that market for them. Okay. Now you talked about briefly some of the corporation businesses, how it's affecting them. Dignity.

more into the global impact of all of this back and forth? Well, it's obviously the biggest trading relationship in the world, the U.S.-China trade relationship, $700 billion in annual trade back in normal times.

But it's bigger than that because we're talking about American companies that have supply chains that maybe go from China into Vietnam, into another country, maybe even into Europe, then over to the U.S. We've already seen...

as of several days ago, 1,100 requests from American companies seeking exemptions from some of these tariffs because they're saying even if we want to produce more in the United States, the goods we need to make that production possible to build up that capacity

are getting tariffed. So we would like to have some of these exemptions. But you're also seeing Europe now, European leaders planning to go to China. You have the Spanish prime minister saying that the EU may need to shift more of its attention to better relations with China. So China is potentially going to become a big beneficiary of all this. They have things they can do to at least cushion the shock from the U.S. measures, but they certainly can't

overcome all of it. So we're really in a place, uncharted waters. We've never been before. 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

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