Trump's New Tariffs, Global Tariff Reactions, TikTok Deadline

Summary

Up First from NPR: Detailed Summary of April 3, 2025 Episode

Title: Trump's New Tariffs, Global Tariff Reactions, TikTok Deadline
Hosts: Leila Fadel, Scott Horsley, Michelle Martin
Release Date: April 3, 2025

NPR's Up First delves into two significant stories shaping the global economic landscape: President Trump's implementation of sweeping new tariffs and the impending deadline for TikTok's ownership restructuring. This summary captures the key discussions, insights, and reactions from various stakeholders as presented in the episode.

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I. President Trump's New Tariffs: A Trade War Escalates

A. Introduction to the Tariffs

The episode opens with Michelle Martin outlining President Trump's assertion that the new tariffs aim to rejuvenate American industry. However, this move has led to apprehension among U.S. exporters.

• Michelle Martin [00:03]: "President Trump says tariffs will spark a rebirth of American industry, but US Exporters are bracing for the worst."

B. Domestic Reactions and Economic Implications

Layla Fadel highlights the negative domestic impact, emphasizing reduced demand due to retaliatory tariffs.

• Layla Fadel [00:09]: "The retaliatory tariffs are going to be really ugly and it's just going to kill demand."

Scott Horsley questions the potential success of Trump's trade war strategy.

• Scott Horsley [00:13]: "Will Trump's gamble on a trade war pay off?"

John Ruich provides critical insights into the administration's rationale and the arbitrary nature of the tariff rates.

• John Ruich [03:20]: "We're talking about a 20% tax on goods coming in from the European Union, much higher than the US charges today."

The discussion includes the economic consequences, such as higher consumer prices and slower growth, with Layla Fadel reinforcing the bleak outlook for U.S. manufacturers.

• Layla Fadel [05:12]: "The retaliatory tariffs are going to be really ugly. I mean, it's just going to kill demand."

C. International Reactions and Comparisons

The episode draws parallels between Trump's tariffs and the historical Smoot-Hawley tariffs of the 1930s, suggesting severe global repercussions.

• John Ruich [05:32]: "The US launched a similar worldwide trade war back in the 1930s. It did not end well."

Larry Ellison, speaking from Beijing, details the global market's negative response and the swift backlash from various countries.

• Larry Ellison [06:23]: "Some of the countries that are hardest hit by the tariffs...markets were down."

The discussion touches upon the European Union's threat of countermeasures and China's readiness to retaliate.

• John Ruich [07:11]: "The administration's tariffs have no basis in logic and they go against the basis of our two nations partnership. This is not the act of a friend."

Economists warn of a potential global recession stemming from these aggressive trade policies.

• Larry Ellison [08:47]: "A lot of economists think these tariffs are going to be a big global shock anyway and could push many countries into recession."

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II. TikTok Deadline: Oracle Emerges as Leading Bidder

A. Background on the TikTok Ban

The episode transitions to the impending deadline for TikTok's ownership change, mandated by a law passed earlier in the year due to national security concerns over its Chinese ownership.

• Michelle Martin [06:16]: "More on this, we turn to Beijing now with NPR's John Ruich."

B. Potential Buyers and Oracle's Advantage

Layla Fadel discusses the array of bidders, highlighting Oracle as the frontrunner due to its existing infrastructure and connections.

• Layla Fadel [09:31]: "Oracle already operates almost all of TikTok's cloud... Oracle is run by billionaire Trump supporter Larry Ellison."

C. Details of Oracle's Proposal

The proposed deal involves Oracle leasing TikTok's algorithm from ByteDance, circumventing the need for Chinese government approval.

• Layla Fadel [10:26]: "A new U.S. entity would be created, led by Oracle, that can oversee TikTok... lease TikTok's algorithm from ByteDance."

Scott Horsley seeks clarification on whether this arrangement would effectively sever TikTok's ties with China.

• Scott Horsley [11:15]: "But a source close to the negotiations explained the logic behind it this way... leasing TikTok's algorithm."

Larry Ellison defends the proposal, emphasizing Oracle's capability to handle national security data.

• Larry Ellison [10:06]: "Oracle has experience with high-level national security data... parts of the government, including the CIA."

D. Timeline and Potential Outcomes

The deadline for TikTok to secure a new owner is set for Saturday, with expectations of an announcement before then. Layla Fadel notes the strategic concessions to ByteDance, allowing a minority stake to facilitate negotiations.

• Layla Fadel [11:23]: "Trump set this Saturday as the deadline for when TikTok needs to be sold."

However, uncertainties remain regarding China's response and the efficacy of the Oracle deal in addressing national security concerns.

• Layla Fadel [11:15]: "It's extremely unusual... hoping to strike up negotiations."

The episode concludes with a light-hearted moment regarding less serious bidders, underscoring Oracle's dominant position in the negotiations.

• Scott Horsley [12:34]: "And so you're telling me that Mr. Beast doesn't have a chance?"

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III. Conclusion

The April 3, 2025 episode of Up First from NPR provides a comprehensive analysis of President Trump's aggressive tariff policy and its far-reaching implications on both the U.S. and global economies. Simultaneously, it covers the high-stakes scenario surrounding TikTok's ownership, highlighting Oracle's strategic positioning in the negotiations. The episode underscores the complexities and potential consequences of these major economic and technological maneuvers.

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Notable Quotes with Timestamps:

• Layla Fadel [00:09]: "The retaliatory tariffs are going to be really ugly and it's just going to kill demand."
• John Ruich [05:32]: "The US launched a similar worldwide trade war back in the 1930s. It did not end well."
• Layla Fadel [05:12]: "The retaliatory tariffs are going to be really ugly. I mean, it's just going to kill demand."
• Layla Fadel [10:44]: "Because if they don't, they got a big tax to pay."
• Scott Horsley [12:34]: "And so you're telling me that Mr. Beast doesn't have a chance?"

This structured summary encapsulates the critical elements of the episode, providing listeners and non-listeners alike with a clear understanding of the discussions and their broader implications.

Transcript

[Michelle Martin]

President Trump says tariffs will spark a rebirth of American industry, but US Exporters are bracing for the worst.

[Layla Fadel]

The retaliatory tariffs are going to be really ugly and it's just going to kill demand.

[Scott Horsley]

Will Trump's gamble on a trade war pay off?

[Michelle Martin]

I'm Michelle Martin. That's Layla Fadel. And this is up first from NPR News. We also get reaction from markets and leaders around the world.

[John Ruich]

The administration's tariffs have no basis in logic and they go against the basis of our two nations partnership. This is not the act of a friend.

[Scott Horsley]

And TikTok has until Saturday to find a new owner. A number of high profile buyers are lining up, but who is leading the pack? Stay with us. We'll give you the news you need to start your day.

[Bobby Allen]

Support for NPR and the following message come from Betterment, the automated investing and savings app. CEO Sarah Levy shares how Betterment utilizes tech tools powered by human advice.

[Scott Horsley]

Betterment is here to help customers build wealth their way. And we provide powerful technology and complete human support where technology can deliver ease of use and affordability. And the people behind that technology can provide advice and guidance.

[Bobby Allen]

Learn [e-mail] Investing involves risk, performance not guaranteed. This message comes from BetterHelp. Therapy can be expensive, but at BetterHelp, they believe therapy should feel accessible, not like a luxury, which is why they offer quality care at a price that makes sense and can help you with anything from anxiety to everyday stress. Your mental health is worth it, and now it's within reach. Visit betterhelp.com NPR to get 10% off your first month. That's betterhelp.com NPR this message comes from PEMCO Mutual Insurance Company. You know that moment when things take an unexpected turn and you get that sudden sinking feeling that maybe it could have been avoided? Pemco Insurance wants to help you avoid that feeling by sharing prevention tips that empower you to prevent some of life's preventable pitfalls. Because Pemco's commitment to their customers goes beyond the moment of acclaim, it's about being with their customers every day. [e-mail] Prevention President Trump is building an.

[Scott Horsley]

Economic barrier designed to limit imports and encourage domestic manufacturing.

[Michelle Martin]

Starting this weekend, Trump plans to charge a minimum 10% tax on virtually all foreign goods coming into the US with imports from dozens of countries facing much higher levies. Speaking in the White House Rose Garden yesterday, Trump said the tariffs would help spark a rebirth of American industry.

[Layla Fadel]

We're going to produce the cars and ships, chips, airplanes, minerals and medicines that we need right Here in America, the.

[John Ruich]

Pharmaceutical companies are going to become roaring back.

[Layla Fadel]

They're coming roaring back.

[John Ruich]

They're all coming back to our country.

[Layla Fadel]

Because if they don't, they got a big tax to pay.

[Michelle Martin]

Early reaction to the president's move has been mostly negative. Stock futures fell sharply overnight. The European Union has threatened countermeasures. And other U.S. trading partners are expected to retaliate with tariffs of their own on U.S. exports.

[Scott Horsley]

NPR's chief economics correspondent Scott Horsley joins us now to break this down. Good morning, Scott.

[John Ruich]

Good morning, Lila.

[Scott Horsley]

All right, so you know President Trump promised high tariffs throughout the campaign. So is anyone actually surprised by this move?

[John Ruich]

I think they're surprised by the magnitude. For example, we're Talking about a 20% tax on goods coming in from the European Union, much higher than the US Charges today. In other ways, though, this is not surprising. Despite the United States wealth and power, Trump has been complaining for decades that this country is being taken advantage of. And he's determined to fight back with tariffs, even as financial markets have been flashing red, saying dormant, don't do it. Now, Canada and Mexico, two of our biggest trading partners, are being spared these additional tariffs for now. But Trump is slapping stiff due taxes on imports from economies around the world, even for products we cannot produce in the US like the coffee and banana you might be having for breakfast this morning.

[Scott Horsley]

Oh, wow. So how did the White House decide who pays what?

[John Ruich]

Trump calls these reciprocal tariffs, saying they're simply designed to match the trade barriers that other countries impose on U.S. exports.

[Layla Fadel]

That means they do it to us and we do it to them. Very simple. Can't get any simpler than that.

[John Ruich]

But the White House later acknowledged it would be too hard to calculate the actual trade barriers from every other country. So they just picked an arbitrary number they thought would be high enough to chip away at each country's trade surplus with the US and the result is a huge tariff increase. A 24% tax on imports from Japan, a 34% tax on imports from China, in addition to the 20% tariffs that were already in place. Now, other countries might absorb some of that cost, but a big part will be paid by businesses and consumers here.

[Scott Horsley]

In the U.S. so let's talk about that. What's the potential economic effect of that?

[John Ruich]

Economists say it will likely mean higher prices and slower growth. Consumers are nervous. So are exporters. Tim Fiore conducts a monthly survey of factory managers for the Institute for Supply Management. He says they're already bracing for retaliation.

[Layla Fadel]

Here it comes. And we're already seeing that we have Manufacturers in the US Already feeling that experience. So the retaliatory tariffs are going to be really ugly. I mean, it's just going to kill demand.

[John Ruich]

Domestic manufacturers are supposed to be the beneficiaries of this trade war, but factory orders, output, employment were all down last month in anticipation.

[Scott Horsley]

And what about international fallout?

[John Ruich]

This is an enormous gamble. The US launched a similar worldwide trade war back in the 1930s. It did not end well. The notorious Smoot Hawley tariffs are widely considered to have worsened the Great Depression. And economists say Trump's new import taxes are even more draconian than those almost a century ago.

[Scott Horsley]

NPR's Scott Horsley. Thank you, Scott.

[John Ruich]

You're welcome.

[Michelle Martin]

We have more now on the international response to President Trump's sweeping new tariffs. It's been swift.

[Scott Horsley]

Yeah. Leaders across the world have reacted with dismay and confusion following President Trump's announcement. Some are preparing countermeasures targeting the U.S. while others are hoping to strike up negotiations.

[Michelle Martin]

For more on this, we turn to Beijing now with NPR's John Ruich. John, good morning.

[Larry Ellison]

Good morning.

[Michelle Martin]

How have global markets taken the news?

[Larry Ellison]

Well, the fallout in markets has been far and wide. You know, some of the countries that are hardest hit by the tariffs and actually that are most dependent on trade with the US Are in Asia. And we saw a broad sell off here from Hong Kong and China to South Korea, all the way down to Southeast Asia, markets were down. Trump put a 24% tariff on Japanese goods, which apparently surprised markets there. The Nikkei 225 dropped close to 3% today in Vietnam, which has been a huge beneficiary of US China trade friction as manufacturers have moved south of the border. Trump hit it with one of the highest tariff rates, 46%. And the country's Ho Chi Minh stock index shed nearly 7% on the day. In Europe, it seems to be a similar story of selling. You know, economists are recalibrating their expectations now and investors are just nervous.

[Michelle Martin]

And what about governments? How are governments around the world reacting?

[Larry Ellison]

Unhappiness and frustration so far. I mean, many say these tariffs were unwarranted. Here's Prime Minister Anthony Albanese of Australia, which got the bare minimum 10%.

[John Ruich]

The administration's tariffs have no basis in logic and they go against the basis of our two nations partnership. This is not the act of a friend.

[Larry Ellison]

Britain was hit with a minimum 10% also, but the prime minister's office there expressed some relief that the country wasn't hit with 20% like the EU. Speaking of which, the European Commission president said Europe was open in negotiations, but working on countermeasures in case the talks fail. You know, President Trump has signaled that he's open to deal making. So many countries are taking these sweeping tariffs as kind of an open salvo for negotiations. Others are looking at a range of options. You know, Japan, Brazil, China have suggested that tariffs break World Trade Organization rules.

[Michelle Martin]

What about in China, where you are? What's been the reaction there?

[Larry Ellison]

Well, the Commerce Ministry issued a statement calling for the removal of these tariffs and it says protectionism leads nowhere. China's been hammered by tariffs before and was frankly girding for this moment. The across the board tariff rate on Chinese imports to the US now is about 54%. Trump was talking about 60% while he was campaigning, so it's not far off from that. Professor Wuximbo of Fudan University in Shanghai thinks China will retaliate once the Trump tariffs take effect in a few days and then hopefully at some point the two sides can talk.

[John Ruich]

If neither side doesn't want to get.

[Larry Ellison]

Locked down in a lose, lose situation.

[John Ruich]

We have to find our way out.

[Larry Ellison]

But he thinks China can afford to punch back and then wait for a bit to see if Trump administration feels some heat from all these tariffs.

[Michelle Martin]

Any sense of how damaging these tariffs will be to these countries?

[Larry Ellison]

Yeah, I asked Jack Zhang about this. He's a professor at the University of Kansas and he runs the Trade War Lab there. He says it kind of all depends. I still hold out a sliver of hope because it depends on how much trade destruction happens and that depends on how much retaliation we're going to see. You know, a lot of economists think these tariffs are going to be a big global shock anyway and could push many countries into recession.

[Michelle Martin]

That is NPR's John Wirich in Beijing. Thank you, John.

[Larry Ellison]

You're welcome.

[Scott Horsley]

The owners of TikTok have until Saturday to sell the app.

[Michelle Martin]

Earlier this year, lawmakers passed a lot banning the app, citing national security concerns unless it sheds its China based owner, bytedance. Following his inauguration, President Trump said he would not enforce the ban, which was still the law, and that he'd hold a public auction to sell TikTok over the coming months. Many bidders have lied, including one from a YouTuber known as Mr. Beast and a separate offer from Amazon.

[Scott Horsley]

But leading the pack is software company Oracle, according to NPR's Bobby Allen, who joins me now. Good morning, Bobby.

[Layla Fadel]

Good morning.

[Scott Horsley]

So why is Oracle's offer the Trump administration's preferred plan?

[Layla Fadel]

Yeah, for several reasons. First, Oracle already operates almost all of TikTok's cloud. So Oracle Systems are, you know, already supporting the app. Secondly, Oracle has experience with, with high level national security data. For instance, Oracle does cloud compute for parts of the government, including the CIA. And finally, Oracle is run by billionaire Trump supporter Larry Ellison. And he has been setting the stage, Layla, for this deal for years by warming up to Trump, by defending Trump. Ellison even hammered out this deal that we're talking about right now, which involves leasing TikTok's algorithm from its current owner, the Chinese company ByteDance.

[Scott Horsley]

Leasing an algorithm? Is that. Is that even a thing?

[Layla Fadel]

No, it's not really a thing, to be honest. It's extremely unusual. But a source close to the negotiations explained the logic behind it this way. A new U.S. entity would be created, led by Oracle, that can oversee TikTok. Okay. And this new entity would lease TikTok's algorithm from ByteDance. That would get around having to have the Chinese government sign off on the selling of the algorithm, which has always been an open question as to whether Beijing would approve that or not.

[Scott Horsley]

But I don't understand that because I thought the whole idea of TikTok ban was to split TikTok from China. Would this plan do that?

[Layla Fadel]

Yeah, that's. It depends on. On how you see that.

[Larry Ellison]

Right.

[Layla Fadel]

It's been a very divisive thing in the White House, which is full of China hawks. And this is the big question, Whether leasing the TikTok algorithm would mean China does not control it. This gets to why Congress passed a law forcing TikTok and China to break up in the first place, as you've mentioned. And lawmakers of both parties remain concerned that China will use TikTok to influence Americans to steal their data. Trump is hoping this deal, though, will put those fears to rest, but there is no guarantee.

[Scott Horsley]

Okay, so is there a timeline when this all might happen?

[Layla Fadel]

Yeah. Trump has set this Saturday as the deadline for when TikTok needs to be sold. Most are expecting a deal to be announced sometime before then. The question becomes, how is China going to respond under the Oracle deal under consideration? In the White House, they're making a concession to ByteDance by allowing ByteDance to keep a minority stake in the company. It's worth noting that, you know, Trump's stiff tariffs on Chinese imports are part of the TikTok conversation. Chinese authorities, I think we're hoping TikTok could be used as leverage to get a better deal on tariffs. Meaning, you know, if China supported a TikTok deal, maybe they would get some relief on tariffs, but it doesn't quite look like that. Is what happened.

[Scott Horsley]

And so you're telling me that Mr. Beast doesn't have a chance?

[Layla Fadel]

No, Mr. Beast doesn't have a chance. It's really Sad. I know.

[Scott Horsley]

Mr. Beast.

[Bobby Allen]

All right.

[Scott Horsley]

Thanks, Bobby.

[Layla Fadel]

Thanks, Leila.

[Scott Horsley]

And that's up first for Thursday, April 3rd. I'm Laila Falden.

[Michelle Martin]

And I'm Michele Martin. Your next listen is Consider this from npr. We here at up first give you the three big stories of the day. Our Consider this colleagues take a different approach. They dive into a single new story and what it means to you in less than 15 minutes. Listen now on the NPR app or wherever you get your podcasts.

[Scott Horsley]

And today's episode of Up up first was edited by Raphael Nam, Rylan Barton, Brett Neely, Lisa Thompson and Alice Wolfley. It was produced by Ziad Butch, Nia Dumas and Christopher Thomas. We get engineering support from Damien Herring Nathan. And our technical director is Carly Strange. Join us again tomorrow.

[Bobby Allen]

This message comes from Bombas. Nearly 30% of marathoners end their race blistered. Bombas running socks are strategically cushioned to help. Say bye to blisters. Run to bombas.com NPR and use code NPR for 20% off your first purchase. This message is from Synchrony bank, who wants to inspire you to keep dreaming the goal setting, retirement planning, sail off into the sunset kind of dreams that start with saving smart, open an account and dream [e-mail] NPR member FDIC.

[John Ruich]

This message comes from NPR sponsor 1Password Protect your digital life with 1Password if you're tired of family members constantly texting you for the passwords to streaming services, 1Password lets you securely share or remove access to logins access from any device anytime. 1Password lets you securely switch between iPhone, Android, Mac and PC with convenient features like autofill for quick sign insert. Right now, Get a free 2 week trial for you and your family at 1Password.com NPR.