Trump Sets Tariffs on Steel and Aluminum, Altman Responds to Musk's OpenAI Offer
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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 tariffs and President Trump following through on his pledge to place a 25% duty on all U.S. steel and aluminum imports. The tariffs will go into effect March 12th. The president is warning, though, that the rate may go higher. Speaking from the Oval Office, the president insisted the move would help boost domestic production and bring jobs to the U.S.

- Protecting our steel and aluminum industries is a must, and today I'm simplifying our tariffs on steel and aluminum so that everyone can understand exactly what it means. It's 25% without exceptions or exemptions, and that's all countries, no matter where it comes from, all countries. If made in the United States, however,

There is no tariff, zero. President Trump's move comes on top of new 10% tariffs on goods from China and 25% levies on Canadian and Mexican products that are currently paused for one month.

And Nathan, these latest tariffs are leading to retaliation overseas. The European Union says it will respond to any tariffs the U.S. might impose on it. The bloc's trade chief, Maro Sefcovic, spoke today in the European Parliament. We are currently assessing the scope of the measures announced overnight and will be responding in firm and a proportionate way by countermeasures.

In addition to Maros Sefcovic's comments, European Commission President Ursula von der Leyen said in a statement today the EU will not go unanswered. Well, President Trump says there are zero exemptions to these tariffs, Karen, but one nation may be getting a carve-out, Australia. Its Prime Minister, Anthony Albanese, said he made the case for an exemption in a phone call with the president and said he agreed to consider an exemption.

on Australian steel and aluminum. Both leaders cited the U.S. trade surplus with Australia as a key reason for a carve-out. Well, Nathan, turning to geopolitics, President Trump has given Hamas a warning after it announced it was indefinitely postponing the next release of Israeli hostages that was set to happen this weekend. Trump says if the hostages are not freed, Israel should end its ceasefire. As far as I'm concerned, if all of the hostages aren't returned by

I think it's an appropriate time. I would say, you know, I think

cancel it and all bets are off and let hell break out. President Trump also threatened to cut off foreign aid to Jordan and Egypt if they don't agree to take Palestinian refugees from the Gaza Strip. Trump reiterated his plan to take control and rebuild the Gaza Strip, saying Palestinians might not have the right to return to the area under his proposal. And in a conversation with Fox News, President Trump was asked if he views his vice president, J.D. Vance, as his successor.

No, but he's very capable. I mean, I don't think that it, you know, I think you have a lot of very capable people. So far, I think he's doing a fantastic job. It's too early. We're just starting. And the president's comments come as the vice president is in Europe attending a summit on artificial intelligence in Paris.

And in a stunning move, Nathan, the Trump administration has ordered federal prosecutors to drop their corruption case against New York City Mayor Eric Adams. Bloomberg's John Tucker joins us with the details. And John, what do we know? Well, the demand, Karen, to drop the charges, this comes in a memo by a high-ranking Department of Justice official. It claims the case against Adams, a Democrat, was politically motivated and is preventing him from tackling immigration and violent crime.

The highly unusual intervention, it comes after months of Adams trying to curry favor with President Trump. Adams is New York City's first sitting mayor in modern history to be charged with a federal crime. A prosecutor said at the time that he accepted illegal campaign donations and luxury travel upgrades.

Adams, in recent months, traveled to Florida to meet Trump at Mar-a-Lago and attended the president's inauguration. And he's avoided criticizing the president. Trump, who was indicted on federal charges himself, has expressed sympathy for Adams. In New York, I'm John Tucker, Bloomberg Radio. All right, John, thank you. This move for New York City's mayor comes after President Trump officially pardoned disgraced former Illinois governor Rod Blagojevich. The president announced that from the Oval Office.

It's my honor to do it. I've watched him. He was set up by a lot of bad people, some of the same people that I had to deal with.

President Trump says he knows Rod Blagojevich from his time on The Celebrity Apprentice. Blagojevich served as a Democrat. He was removed from office in Illinois in 2009 for attempting to solicit bribes to fill the Senate seat that Barack Obama vacated when he became president. In 2020, President Trump commuted Blagojevich's 14-year prison sentence.

Well, to the economy now, Nathan and Fed Chair Jay Powell will face tough hearings on Capitol Hill starting today during what's expected to be hypercharged hearings overshadowed by President Trump. Bloomberg's Amy Morris has more from Washington. Democrats and Republicans are likely to question Powell on President Trump's policies, including banking regulations and a rollback of

diversity efforts. During the FOMC news conference last month, Powell explained they are in a wait-and-see mode. We need to let those policies be articulated before we can even begin to make a plausible assessment of what their implications for the economy will be.

Lawmakers are likely to raise concerns about the Fed's miss of its 2% inflation target, its response to Donald Trump's executive order on DEI policies, and its stance on bank regulations, among other issues. In Washington, Amy Morris, Bloomberg Radio. All right, Amy, thank you. And Bloomberg will bring you live coverage of Powell's testimony starting at 10 a.m. Wall Street time on Bloomberg Radio and the Bloomberg podcast page on YouTube.

Let's turn to tech now, Karen. A group of investors led by Elon Musk has offered to buy the nonprofit that controls OpenAI for $97.4 billion. But in response, the CEO of OpenAI, Sam Altman, posted on Musk's X platform, quote, no thank you, but we will buy Twitter for $9.74 billion if you want. At the AI Action Summit in Paris, Sam Altman spoke with Bloomberg's Tom McKenzie about Elon Musk's influence.

I mean, look, OpenAI is not for sale. The OpenAI mission is not for sale. Elon tries all sorts of things for a long time. This is the late, you know, this week's episode. That's OpenAI CEO Sam Altman speaking with Bloomberg's Tom McKenzie from the AI Action Summit in Paris. Well, Nathan, also at the AI Action Summit was Vice President J.D. Vance making his debut on the world stage. He just delivered a keynote speech where he talked about the promise of the fast developing technology.

"AI, I really believe, will facilitate and make people more productive. It is not going to replace human beings. It will never replace human beings. And I think too many of the leaders in the AI industry, when they talk about this fear of replacing workers, I think they really miss the point. AI, we believe, is going to make us more productive, more prosperous, and more free."

And Vice President J.D. Vance also warned against AI dealing with ideological bias and said excess regulation could kill the developing industry. 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. Here comes another batch of winter weather for the Mid-Atlantic. How much snow will the tri-state area get? Bloomberg meteorologist Rob Carolin has the latest.

Michael, a double-barreled low-pressure system is going to bring some rain and snow to portions of the mid-Atlantic and the Northeast over the next several days. The first batch is snow today. That's why winter storm warnings are in effect for much of the mid-Atlantic and some winter weather advisors as far north as central New Jersey. The district in Baltimore could see as much as three to six inches of snow today and into tonight, while New York City and Philadelphia will pick up a couple of inches later tonight and into early tomorrow morning.

The second storm brings a mixed bag of precipitation portions in the northeast Wednesday night and on into Thursday. I'm Rob Carroll in Bloomberg Radio. Thank you, Rob. Authorities are investigating a small jet crash that happened in Scottsdale, Arizona. Officials say the Learjet's landing gear failed, causing it to crash into a Gulfstream jet just off the runway.

One person was killed and four were injured. Kelly Keister is the aviation planning and outreach coordinator at the Scottsdale Airport. The National Transportation Safety Board is on scene. They will be taking over the investigation at this point. The Learjet is registered to a company owned by Motley Crue lead singer Vince Neil. The rock star was not on the plane.

Today, at a Manhattan criminal court, a hearing is set to discuss a possible plea deal for former Trump advisor Steve Bannon. Bannon's attorney says he is planning on pleading guilty in a fraud case involving fundraising for a piece of U.S.-Mexico border wall. The deal will likely allow him to avoid prison time.

Finally tonight, we'll find out who is top dog. Hundreds of dogs and their handlers have taken over New York's Madison Square Garden this week as the Westminster Kennel Club Dog Show is underway. They are competing for the coveted Best in Show title, which will be awarded tonight. This woman who is participating with her beaver terrier says everyone at the show comes with the same goal.

They just love us, and we love them. That's why I'm here today, the love for the breed and dogs in general. It is the 149th year for the show. Global News 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr, and this is Bloomberg, Karen.

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. Okay, business leaders, are you playing defense or are you on the offense? Are you just... Excuse me. Hey, I'm trying to talk business here.

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Time now for the Bloomberg Sports Update brought to you by Tri-State Audi. Here's John Stashower. John, good morning. Good morning, Karen. Luke Adonis, hadn't played a game since a leg injury suffered on Christmas. That was when he was with Dallas. He's now a Laker, made his debut in L.A. Threw an alley-oop pass in the opening minute. Played 24 minutes, scored 14 points, shooting 5 of 14, only 1 of 7 from 3. 5 rebounds, 4 assists in the Lakers. Easy win over Utah.

Special. The way they received me, everybody. It was amazing to see. I was a little nervous before. I remember it was the last time I was nervous before the game. But once I stepped on the court, it was fun. And just being out there again felt amazing. Lakers have won 12 of the last 14. They've moved into fourth place in the West. We'll play the Jazz again tomorrow. Last game before the All-Star break. Knicks played tonight at Indiana. It was the Pacers who took the Knicks out of the playoffs last year at Barclays.

Nets put six in double figures, beat Charlotte 97-89. Celtics last week had those big road wins in Cleveland, then at the Garden they won in Miami, 103-85. Jason Tatum scored 33. The dispute over ownership of the Minnesota Timberwolves went to an arbitration panel that ruled in favor of the hopeful incoming group headed by Mark Loran. Alex Rodriguez, current owner of Glen Taylor,

felt they had missed the deadline for a payment. Latest college basketball rankings have Auburn first, Alabama second, and the arch rivals will play on Saturday. Red Hot St. John's now ranked ninth in the country, playing tomorrow at Villanova College. Hockey in Boston. Sellout crowd for the final of the annual Beanpot Tourney. BU upset top-ranked BC 4-1. Due to the fires, the Genesis Golf that starts Thursday was moved from Riviera in L.A. down to Torrey Pines outside San Diego. Tiger Woods is the host.

He was going to play. He's withdrawn, saying he's still processing the death of his mother last week. Pitchers and catchers report today for spring training. First workouts tomorrow. The parade for the Eagles will be Friday in Philadelphia. John Stasiewicz, Bloomberg Sports. Karen 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. It is the latest salvo in President Donald Trump's bid to protect U.S. industries by getting tough on trade. The president is ordering 25% tariffs on steel and aluminum imports into the U.S. And he says it's only the beginning. It's a big deal. It's a big deal. This is the beginning.

of making America rich again. That was the president as he signed the order at the Oval Office last night. For more, we are joined this morning by Bloomberg News senior editor Bill Ferry. So Bill, looks like the president is serious about tariffs, at least when it comes to metals. Good morning.

Hey, good morning, Nathan. Yeah, I mean, if you remember just a couple of weeks ago, we were talking about the president's threat to put 25 percent tariffs on all goods coming from Canada and Mexico. And at the last minute, literally the day of, there was an agreement reached to postpone that until early March.

It did raise questions about how far the president was willing to go. But he acted very quickly here. He announced his plan to put in these tariffs on Super Bowl Sunday. And now we have them and we're already starting to see a reaction. Now, he said that the tariffs will come into effect on March 12th.

uh... so that does leave a lot of time for negotiating we've heard him say already that australia is uh... one country that he would consider for some but uh... you can rest assured that there's going to be a a lobbying spree taking off among other nations that would be affected by this includes places like united arab emirates uh... south korea taiwan and uh... and many others so

They are set to come into place, but we still don't know what that impact will be just yet. Well, what kind of impact could we see, Bill, in terms of the global reaction? I mean, we've already heard from the European Commission saying that they've got countermeasures ready to go. I mean, are we looking ahead to a potentially fraught negotiation here?

I think very potentially, yeah. I mean, one thing is that President Trump's order goes beyond just steel and aluminum. It includes finished metal products. So that carries it a little bit further than the last time he used steel.

tariffs on imports like this before. We know from past experience that the EU had about $3 billion in tariffs set against some of those iconic American goods, things like Harley Davidson motorcycles and Kentucky bourbon.

They could easily put that back in place very quickly after March 12th if these actually go into effect. It does raise questions, too, about the inflationary impact. We'll just have to wait and see whether these things and then whether those price increases start showing up for consumers. In our last minute, Bill, on top of these tariffs, we're hearing the president talking even tougher as well when it comes to the ceasefire in Gaza.

That's right. He was, I think, reacting to this Hamas deciding that it wanted to delay implementation or release of additional hostages for a little bit. The president showing his impatience with that. And he basically set this somewhat arbitrary deadline of noon on Saturday. And he said if all the hostages aren't released by then,

then Israel should consider the whole truce to be off and go back to conflict there. So we still have a few weeks left in this conflict, this truce, I'm sorry. And there's still, I think, almost 70 hostages still held by Hamas. So it's a pretty fragile time there and the president drawing a hard line.

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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