Balance of Power

This is a special edition of the Bloomberg Daybreak: US Edition podcast. Subscribe to the show: on Apple: http://bit.ly/3DWYoAN on Spotify: http://bit.ly/3jGRYiB Anywhere: http://bit.ly/3J1bct9 On today's episode: President Donald Trump imposed the steepest American tariffs in a century as he steps up his campaign to reshape the global economy, sparking threats of retaliation and a selloff in markets around the world.Trump announced Wednesday he will apply at least a 10% tariff on all exporters to the US, with even higher duties on some 60 nations, to counter large trade imbalances with the US. That includes some of the country’s biggest trading partners, such as China — which now faces a tariff of well above 50% on many goods — as well as the European Union, Japan and Vietnam.“For years, hard-working American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense,” Trump said during an event in the White House Rose Garden to unveil the so-called reciprocal tariffs. “Now it’s our turn to prosper.”The move marks a dramatic escalation in Trump’s trade war, one that risks triggering retaliation from other countries and upends calculations for businesses and consumers at home. China and the EU, America’s largest trading partner, both said they were preparing to take countermeasures in response.The US president has embraced tariffs as a tool to assert US power, revive manufacturing at home and exact geopolitical concessions — counter to the decades-old consensus that lower trade barriers help to foster ties among nations and prevent conflicts. Economists say the near-term result of his measures will likely be higher US prices and slower growth — or perhaps even a recession.Global financial markets were hit by a sweeping selloff after Trump’s announcement, with US equity futures slumping as much as 4%.Gold hit an all-time high and the traditional haven Japanese yen soared, while China maintained its daily support of the yuan. Ten-year Treasury yields fell toward the closely-watched 4% level, their lowest since October.Read More: Fear Grips Markets as Trump Tariffs Raise Risks to Global GrowthLess than three months after returning to the White House, Trump has already erected trade barriers that are bigger by some measures than those imposed in the notoriously protectionist 1930s. Bloomberg Economics calculates that the effective tax rate the US now charges on more than $3 trillion of imported goods may climb to around 23% — higher than any point in more than a century.A statement published Wednesday by the United States Trade Representative explained the Trump administration calculated its raft of new tariffs primarily based on existing trade balances. Countries running a trade surplus with the US faced a flat 10% rate regardless, as did nations where trade was roughly even.There’s a small difference in the tariff rates first announced by Trump and more than a dozen of those listed in the annex that accompanied the White House executive order. For countries like South Korea, Myanmar, Pakistan and India, the rates in the annex are about 1 percentage point higher than the initial announcement.The 10% baseline charge on everyone takes effect after midnight Saturday. The higher duties on targeted countries — which replace, rather than add on top of the 10% rate — are due to kick in on April 9, the White House said.Read More: List of Reciprocal Tariffs by CountryFor now, the new measures don’t include Canada and Mexico, which are embroiled in a separate on-and-off tariff dispute with the US. They also won’t apply to some products that are subject to separate duties tied to so-called Sec. 232 investigations such as autos, semiconductors and lumber.The reciprocal tariffs were “much worse than we feared,” said Mary Lovely, a senior fellow at the Peterson Institute for International Economics. There’ll be “huge implications for rerouting of trade,” she said.The president, who’s sought...

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with: Host of Bloomberg Law on Bloomberg Radio June Grasso. Marquette University Professor of Political Science Julia Azari. Bloomberg Politics Contributor Jeanne Sheehan Zaino and Republican Strategist Maura Gillespie. Bloomberg Senior Editor for Technology and Strategic Industries Michael Shepard.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with: Bloomberg Politics Editor Laura Davison ahead of President Donald Trump's tariff announcement Wednesday. Managing Director of Policy and Advocacy at the Groundwork Collaborative Liz Pancotti about the possible economic impact of tariffs. Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino about elections in Wisconsin and Florida Tuesday. Constitutional lawyer Robert McWhirter as House Judiciary Chair Jim Jordan calls on appropriators to add language in legislation funding the federal judiciary limiting nationwide injunctions issued by district court judges.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with: Bloomberg Senior National Political Correspondent Nancy Cook to preview the week ahead for the Trump Administration. Founder and Managing Partner of International Capital Strategies Doug Rediker about the uncertainty as the world awaits US tariff implementation. Bloomberg Politics Contributor Rick Davis and former Democratic Congresswoman Stephanie Murphy as White House Press Secretary Karoline Leavitt confirms an April 2 Rose Garden tariff announcement by President Donald Trump. Bloomberg Senior Editor Michael Regan as markets react to the latest tariff news. Vice President of Federal Tax Policy at the Tax Foundation Erica York about tax and budget negotiations on Capitol Hill.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with: Stuart Paul and Anna Wong of Bloomberg Economics about the latest US inflation data. Former Chief Economist at the National Economic Council Joe Lavorgna ahead of the April 2nd tariff deadline from the Trump Administration. Nonresident Senior Fellow at the Atlantic Council's Europe Center Rachel Rizzo as Vice President JD Vance visits Greenland.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with: Bloomberg Detroit Bureau Chief David Welch about the Trump Administration's planned tariffs on auto imports. Former Chair of the White House Council of Economic Advisers Jared Bernstein about the impact of tariffs on the US economy. Bloomberg Politics Contributor Jeanne Sheehan Zaino and Republican Strategist Chapin Fay about the immigration policies of the Trump Administration. Bloomberg News SEC and CFTC Reporter Lydia Beyoud as Trump's SEC pick undergoes his confirmation hearing on Capitol Hill. Former Republican Congressman and Former Air Force Intelligence Officer Denver Riggleman about the continued fallout from the Signal group chat.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with: Bloomberg Politics Editor Laura Davison about the latest developments from the Trump Administration. American Action Forum President and former Congressional Budget Office Director Douglas Holtz-Eakin as the CBO announces that the federal government could run out of enough money to pay all of its bills on time as soon as August if lawmakers fail to raise or suspend the debt limit. Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino about the latest tariffs announcement from Trump. Ritholtz Wealth Management Founder Barry Ritholtz about his new book "How Not To Invest." Bloomberg Pentagon Reporter Tony Capaccio as The Atlantic released the transcript of a group chat between top US officials on Signal.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with: Bloomberg Capitol Influence Team Lead Megan Scully. Republican Congressman Marlin Stutzman of Indiana. Bloomberg Politics Contributor Rick Davis and Democratic Strategist Roger Fisk. Professor at the University of Virginia's Miller Center and former US Diplomat Mara Rudman.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with: Republican Congressman Bill Huizenga of Michigan as lawmakers return to Washington to kickoff reconciliation negotiations. Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino as President Donald Trump holds a cabinet meeting Monday at the White House. Bloomberg's Saleha Mohsin interviews Chair of the White House Council of Economic Advisers Stephen Miran about the Trump economic agenda.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Julie Fine speak with: Former RNC Communications Director Lisa Camooso Miller. Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino. Bloomberg White House Correspondent Josh Wingrove. American Enterprise Institute Senior Fellow Mackenzie Eaglen.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Julie Fine speak with: Bloomberg's Tyler Kendall. Former Acting White House Chief of Staff Mick Mulvaney. Senior advisor at Razom for Ukraine Melinda Haring. Bloomberg Senior Editor for Technology and Strategic Industries Michael Shepard.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with: Global Situation Room President and CEO Brett Bruen as President Donald Trump and Ukrainian President Volodymyr Zelenskiy spoke on the phone Wednesday morning. Lexington Institute Vice President of Defense Programs Rebecca Grant as Zelenskiy agreed to halt strikes on energy assets as an initial step to end the war with Russia. Bluestack Strategies Founder and Republican Strategist Maura Gillespie and Democratic Strategist Roger Fisk about the future of Democratic leadership in the Senate.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with: Bloomberg Politics Contributor Jeanne Sheehan Zaino and Republican Strategist Ashley Davis as US President Donald Trump and Russian President Vladimir Putin conclude their phone call Tuesday. Bloomberg News Correspondent Tyler Kendall from the White House as the US says work for a ceasefire between Russia and Ukraine will begin immediately. Bloomberg News National Security Reporter Dan Flatley as Putin agrees to limit attacks on Ukraine. Former Commanding General for US Army Europe Ben Hodges about the European reaction to talks between Trump and Putin.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with: Bloomberg Politics Contributor Jeanne Sheehan Zaino and Republican Strategist Jon Seaton as President Donald Trump’s administration is being accused of defying the judiciary after deporting hundreds of alleged Venezuelan gang members. Constitutional lawyer Robert McWhirter about the latest legal questions from actions taken by the Trump administration. Director of the Wadhwani AI Center at the Center for Strategic and International Studies Gregory C. Allen about his latest research on Huawei, DeepSeek and US export controls. Center Forward CEO Cori Kramer about their new Voter Research Journal.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with: Bloomberg Government Congress Reporter Jack Fitzpatrick as the Senate readies a vote on a stopgap spending deal to avoid a government shutdown. Republican Congresswoman Nicole Malliotakis of New York about the work in the upper chamber and negotiations with the Senate on a new tax bill. Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino as Senator Chuck Schumer says he will now vote in favorite of the Republican-backed continuing resolution. Former US Ambassador to NATO Kay Bailey Hutchison about the push for a ceasefire between Ukraine and Russia. Democratic Strategist Kevin Walling and Republican Strategist Alex Stroman about the state of both political parties and finding common ground across the aisle.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with: Bloomberg Chief Geoeconomics Analyst Jennifer Welch as NATO Secretary General Mark Rutte and President Donald Trump meet in the Oval Office. Chief Policy and Strategy Officer at the DC Fiscal Policy Institute Tazra Mitchell about the impact of the budget passed in the House of Representatives on the city. Bloomberg Politics Contributor Jeanne Sheehan Zaino and BGR Group's Lester Munson after Senate Democratic leader Chuck Schumer said his party will not support the GOP's plan to avert a government shutdown. Bloomberg's Saleha Mohsin interviews former US Treasury Secretary Steven Mnuchin about the state of the US economy, Trump's tariff policy and DOGE's actions at the Department of the Treasury.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF. Cooler-than-forecast February inflation pushed stocks higher after two days of heavy losses. A kneejerk rally in bonds quickly reversed and yields rose across the curve amid concerns over an escalating trade war. Equities advanced after a selloff that put the S&P 500 on the verge of a technical correction. The bounce was led by tech megacaps, which got heavily hit during the recent market meltdown. While the surprise slowdown in consumer prices brought relief to traders, several voices on Wall Street saw the data as the “calm before the storm” given all the uncertainties around the potential impacts of tariffs on the economy. Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with: Co-Host of the Bloomberg "Odd Lots" Podcast Joe Weisenthal about the latest US inflation data and the state of markets following a volatile start to the week. Senior Vice President at Boundary Stone Partners Emily Domenech about the latest developments from negotiations between the US, Ukraine and Russia over a ceasefire. Former Supreme Allied Commander for Europe Gen. Wesley Clark (Ret.) as President Donald Trump told reporters in the Oval Office Wednesday that he hoped it wouldn’t be necessary to pressure Russian President Vladimir Putin into accepting a ceasefire deal with Ukraine.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with: Bloomberg Politics Editor Laura Davison as President Donald Trump prepares to speak to the Business Roundtable Tuesday night. Managing Director and Chief Economist for SMBC Nikko Securities America and former Chief Economist at the National Economic Council under Donald Trump Joe Lavorgna as angst grows on Wall Street over Trump's tariff plans. Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino as Congress looks to avert a government shutdown at the end of the week. Bloomberg Senior Editor Michael Regan as the S&P 500 Index’s three-week selloff briefly reached 10% before a late rally pared much of the drop. Distinguished Professor at the University of Virginia's Miller Center Mara Rudman as US and Ukrainian officials meet in Saudi Arabia.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with: Bloomberg Politics Contributor Rick Davis and Jeanne Sheehan Zaino following President Donald Trump's comments Sunday that the US economy faces a transition. Republican Congressman Chuck Fleischmann of Tennessee as House Speaker Mike Johnson unveils a stopgap spending plan to avoid a government shutdown. Democratic Congressman Don Beyer of Virginia on the bill he introduced to restore tariff authority to Congress.

Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with: Bloomberg International Economics and Policy Correspondent Michael McKee following Federal Reserve Chairman Jerome Powell's speech at the Chicago Booth's 2025 US Monetary Policy Forum. Senior Strategic Advisor and Senior Fellow at the Groundwork Collaborative Kitty Richards about the latest US jobs data. Blockchain Association CEO Kristin Smith about the crypto summit being held at the White House Friday. Bipartisan Policy Center President and CEO and former US Education Secretary Margaret Spellings about President Donald Trump's plans for the Education Department.