Trump's Reciprocal Tariffs Plan; TikTok Returns to Apple and Google
17:27 Share

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...

This show is sponsored by BetterHelp. BetterHelp has been revolutionary in connecting people to mental health services. Using BetterHelp can be as easy as opening your laptop or your phone and clicking a button, and the session begins.

Clients are able to choose in what way they would like to communicate with me, whether video or on the phone or chat texting. BetterHelp is there when you need it, and that's what makes all the difference. Visit betterhelp.com slash podbusiness to get 10% off your first month. Therapists were compensated. Bloomberg Audio Studios. Podcasts. Radio. News.

Good morning, I'm Nathan Hager. And I'm Karen Moscow. Here are the stories we're following today. Karen, we begin with what could be a major change to President Donald Trump's trade war. The president has signed an executive order to consider reciprocal tariffs on a whole host of trading partners. I have decided for purposes of fairness that I will charge a reciprocal tariff, meaning whatever countries charge the United States of America, we will charge them no more, no less.

President Trump's directive calls for the U.S. Trade Representative and the Commerce Secretary to propose new levies on a country-by-country basis. Commerce nominee Howard Lutnick says the review could be complete by April 1st and Trump could act immediately after. The White House memo says the levies could offset not just other countries' tariffs, but non-tariff barriers like unfair subsidies, regulations, and value-added taxes.

Well, Nathan, the latest salvo on tariffs came as Trump and India's Prime Minister Narendra Modi met in Washington. The two leaders agreed to begin negotiations to address what Trump described as long-running disparities in their trade relationship.

India has been to us just about the highest tariffed nation anywhere in the world. They've been very strong on tariffs and I don't blame them necessarily, but it's a different way of doing business. It's very hard to sell into India because they have trade barriers, very strong tariffs.

The president's comments came as Narendra Modi said the two men had agreed to more than double bilateral trade to $500 billion by 2030. Meanwhile, Karen, there's been a legal setback for the president in his effort to freeze funds for foreign assistance programs. We get the very latest on that with Bloomberg's John Tucker. Good morning, John. And Nathan, a federal judge temporarily blocked

the Trump administration from enforcing that broad freeze on USAID. Judge Amir Ali determined that the Trump administration's blanket suspension of foreign aid funding had a catastrophic impact for thousands of nonprofits who rely on the aid to carry out their work abroad and was likely illegal.

The judge's ruling came after the U.S. Agency for International Development saw thousands of staff fired or put on leave, and its name was actually stripped off its Washington headquarters. A report by the agency's inspector general estimated that nearly $500 million of emergency food assistance is at risk of being ruined. Well, that inspector general was fired after that report came out.

Dozens of lawsuits have been filed challenging the slew of executive orders issued by President Trump. I'm John Tucker, Bloomberg Radio. All right, John, thank you. Well, even with the legal setbacks, the Trump administration is moving ahead with its effort to shrink the federal workforce. This time, probationary workers are on notice. Bloomberg News has learned the Office of Personnel Management has told multiple government agencies to lay off their probationary employees, with some exceptions.

As of last year, about 10 percent of federal workers were under a probationary period, most of them in defense and veterans affairs. Meanwhile, a government union chief tells Bloomberg Law the Department of Housing and Urban Development plans to cut half its workforce. The official says the cuts affect employees who enforce civil rights law, compile housing data, and rebuild after disasters.

Overseas, Karen, Vice President J.D. Vance is set to meet with Ukrainian President Volodymyr Zelensky today on the sidelines of the annual Munich Security Conference. Bloomberg's Amy Morris reports.

Vice President Vance and Secretary of State Marco Rubio are set to sit down with Zelensky to discuss President Trump's intensifying push for Ukraine and Russia to begin negotiations to end the war. President Trump says Russia President Vladimir Putin wants peace. I know him very well. Yeah, I think he wants peace. I think he would tell me if he didn't. It's not a question of liking Russia or not liking Russia. It was the G8-

And, you know, I said, what are you doing? You guys, all you talk about is Russia and they should be sitting at the table. The meeting comes just two days after Trump spoke separately with Putin and Zelensky. Trump says he and Putin agreed it was time to start negotiations. Amy Morris, Bloomberg Radio.

All right, Amy, thank you. Well, Jamie Dimon says JPMorgan Chase will scale back spending on some diversity initiatives that he sees as a waste of money. At the same time, he also reiterated the bank's commitment to working with black, Hispanic and LGBTQ communities. Meantime, Dimon was in Washington for a roundtable on debanking, which has been a hot topic after President Trump accused some big banks of not doing business with conservatives.

Diamond says J.P. Morgan does not debank people for their political affiliations. But there are a lot of things that can be fixed, and we should fix them. The rules and the requirements are so onerous, and it does cause people to be debanked who, in my opinion, should not be debanked.

Diamond pointed to anti-money laundering and financial crime rules as a cause for debanking. Staying with banking, Karen, HSBC is planning a new round of job cuts next week. Bloomberg News has learned the changes to the investment banking workforce will affect employees globally, starting in Asia.

Well, Nathan, Apple and Google have both restored TikTok to their mobile app store. Sources say the iPhone maker made the move following a letter from U.S. Attorney General Pam Bondi. Both companies had removed TikTok in the U.S. to comply with a law passed last year. Let's check some stocks on the move this morning, Karen. Starting with Applied Materials, those shares are down 5%. The largest U.S. maker of chip manufacturing equipment gave a lukewarm revenue forecast for the current period.

AMAT expects a $400 million revenue hit in fiscal 2025 due to export rules. On the flip side, Nathan, shares of Intel are on track for their biggest weekly gain in 25 years. The stock is up more than 3.5% this morning and 25% for the week. Earlier this week, Baird noted talk that the U.S. government could get involved with a plan involving both Intel and Taiwan Semiconductor Manufacturing.

Shares of Airbnb, Karen, are up 14%. The company issued an upbeat forecast for the first three months of 2025, citing continued strong demand after a strong holiday travel season. And Nathan shares of GameStop are up almost 7%. CNBC is reporting the video game retailer is considering investing in Bitcoin and other cryptocurrencies. On the flip side in a big way, Karen, shares of Informatica are plunging nearly 35%. The software company's revenue forecast...

trailed analyst estimates. And 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. Manhattan's top federal prosecutor, Danielle Sassoon, and five high-ranking Justice Department officials have resigned after she refused an order from the Trump Department of Justice to drop corruption charges against New York City Mayor Eric Adams.

It says soon a Republican accused the department of a quid pro quo, namely dropping the case to ensure Adams' help with Trump's immigration agenda. And she said she was confident Adams committed the crimes in his indictment and even more.

A Texas judge has fined a New York doctor for prescribing abortion pills to a woman near Dallas in one of the first challenges in the U.S. to shield laws enacted in Democratic-controlled states where abortion is legal. The ruling was handed down on the same day New York Governor Kathy Hochul rejected a request from Louisiana to extradite the same doctor.

Never, under any circumstances, will I sign an extradition agreement. Dr. Maggie Carpenter was charged in Louisiana with prescribing abortion pills to a pregnant minor.

The Stonewall National Monument and New York City's Stonewall Inn continue to celebrate the transgender community, but the National Park Service webpage tells a different story. The page has removed all mention of the transgender community from its website. The latest effort by the Trump administration to demand that the federal government recognize only two genders. City Council Co-Chair of the LGBTQ Caucus, Eric Botcher.

The gay and the lesbian New Yorkers are sticking with our transgender siblings. We're not going to abandon them. We're going to fight alongside them. New York Governor Hochul calling the decision by the Trump administration cruel and petty.

Robert F. Kennedy Jr. is officially President Trump's new Secretary of Health and Human Services head. He sworn in yesterday in the Oval Office after the Senate confirmed him on a 52-48 vote earlier in the day. President Trump. He's a fierce advocate for the health of our children and for the values of free speech, democracy, and peace. Mitch McConnell of Kentucky, the former Senate Majority Leader, was the only Republican to vote against Kennedy.

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. Running a business, it's a lot, right? Orders to place, expenses to track, procurements to manage. It feels like there are never enough hours in the day. We could all use more time. That's where Amazon Business comes in. They offer smart buying solutions to help you make the most of yours.

like Spend Visibility, a cloud-based system to track your buying pattern so you can optimize your savings, and Bulk Buying, so you can continue to save costs on select products with quantity discounts. Now that's smart. Amazon Business handles the heavy lifting, so you can finally focus on growing your business instead of drowning in admin. From customized recommendations to real-time spend tracking and delivery options tailored to your schedule, they've got your back.

A business prime membership is required to access spend visibility.

Time now for the Bloomberg Sports Update brought to you by Tri-State Audi. Here's John Stashour. John, good morning. Good morning, Karen. The Giants were born 100 years ago and Tim Mara put up $500. Tisch family came aboard in 1991, paid $75 million for 50%. John Mara and Steve Tisch control the team who put out a statement last night that they are putting an ownership stake of up to 10%.

Up for sale, they've hired a banker, perhaps with an eye to the NFL, now allowing private equity firms in on partial ownership. Forbes has valued the Giants at $7.3 billion. As for the Jets, now official Aaron Rodgers will not be back for salary cap reasons. He won't be officially cut.

until June 1st, but he can sign with another team before then. Rodgers hasn't decided whether he wants to keep playing or retire. Travis Kelsey also hasn't decided. The Chiefs have told him they need to know by March 14th when they're due to pay him $12 million. Four nations face off hockey. U.S. against Finland. This was 1-1 with three minutes left in the second period, but the U.S. with two goals in a span of 11 seconds, opening into the third when they would later add to the lead.

Losing his stick was Lindell. Able to recover and get back in front of the finish net. Eichel to Wierenski. He takes the shot. Loose. Scores. Matthew Kachuk has another. It's a Kachuk night.

In Montreal.

For Sunday night in San Francisco, four teams with a roster of eight playing games of first to 40. The Knicks being represented by Jalen Brunson and Carl Anthony Towns. Big college game tomorrow. Top-ranked Auburn visiting second-ranked and in-state rival Alabama. St. John's at the Garden Sunday to play Creighton. That's for first place in the Big East. 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. It is a move that could upend decades of trade policy that the U.S. helped to shape after World War II. President Trump is ordering his administration to consider reciprocal tariffs on a country-by-country basis. The president says it's all about righting the trade balance.

In other words, they charge us a tax or tariff and we charge them the exact same tax or tariff. Very simple.

Nobody knows what that number is unless you go by the individual country. That was the president as he signed the executive order in the Oval Office. Joining us this morning for more is Bloomberg News senior editor Derek Walbank. Derek, the president says it's simple. You go country by country, but it really is something that would completely shape the trade landscape around the world, isn't it? Good morning.

Yeah, Nathan, you're exactly right. It is going to be a very difficult thing to figure out how this is going to get levied country by country, item by item, sector by sector. There is a lot of work to do. That's why this White House has been given until at least April to figure out how these would be levied, where they would be levied,

on whom and in what amount. And I say that level of vagueness because it's really important when you're considering markets. There was some view by some that this was going to be some version of an on-off switch. That is not what happened. The delay was something that was a respite for a lot of traders. You saw a lot more green than you would have seen otherwise. And you saw a little bit of an unwinding of some of those risk positions. The

The other part of that that's really critical is that markets are starting to think of the word delay or the word sort of like a time window in the terms of negotiation, right?

Trump was talking through his sectoral tariffs on steel and aluminum about maybe there could be a way that Australia could pull an exemption. He put on a 10% China tariff that's short of 60. He put on the 25% against Canada and Mexico and then suspended that for a month. So there really is a certain sentiment in markets that's saying maybe there's a little bit of breathing room, even as the president is saying there will not be exceptions to this.

Derek, is April 1st enough time given how much the Commerce Department and the USTR are being told they need to look at not just tariffs on a country by country basis, but non-tariff barriers as well? Yeah, I do think it's quite a lot.

there. And then once those are, uh, once those are, those are figured out, you could imagine that there's going to be a case for time to implementation, right? You have to tell people exactly what's going to be levied, how it's going to be levied, et cetera. So it's very possible that

April, and I wouldn't even say April 1 is a firm deadline, but it's possible that April is the sort of starting point for something else. But I do think back to your original point, this is a really major move to sort of upend the way that trade goes. And Trump is pitching this as simple, right? Trump is basically saying, look,

Whatever you do, we're going to do back. It's going to be that easy. And we've even seen some countries, India was a great example. Narendra Modi was at the White House yesterday. But India, walking into that visit, had already started changing their own tariffs on certain goods to try and get a little bit closer into Trump good graces.

On top of the trade moves, Derek, we've seen and continue to follow the president making moves to assert pretty sweeping control over the federal government, among them to cut off foreign aid to administered under USAID. A federal judge has just blocked that effort. Where do you see this going from here now?

I think right exactly where you were saying is about where everyone's expected this was going is to the courts to figure out what they're allowed to do. But look, make no mistake, this is something that the Trump campaign said that it was going to do, that it was going to be very aggressive, that they had spent the four years in the political wilderness, so to speak, figuring out what they might do as and when Trump got back in. And they were ready to go.

There is a certain shock and awe idea to it. If you sort of listen to someone like Steve Bannon, the sort of longtime whisperer of the MAGA right, Bannon has argued for a while, you go absolutely maximally. And even if you can't get everything, eventually you'll still get a lot because you'll overwhelm your opposition. And indeed we are seeing a lot of discontent on the left trying

Trying to figure out how to respond.

and having some trouble being able to not just respond at scale, but at the swiftness that some of these actions are coming. 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. Never settle unless it's in the electrifying BMW i4. Blend the lines of cutting edge and classic with groundbreaking technology at your fingertips. Experience M-engineered precision while you twist around every turn. After all, electric doesn't have to be static. If you thought EVs couldn't live up to your expectations, then you've never experienced the ultimate electric driving machines.

I think a

A lot of people think that you're supposed to be going to therapy once you're like having panic attacks every day. But before you get to that point, I think once you start even noticing that you feel a little bit off and you can't maintain this harmony that you once had in relationships, that could be a sign that maybe you want to go talk to somebody.

There's always a benefit in talking to someone because we can all benefit from improved insight about ourselves and who we are and how we behave with other people. So if you're human, that's like a good indicator that you could benefit from talking to somebody. Find out if therapy is right for you. Visit BetterHelp.com today. That's BetterHelp.com.