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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Good morning.

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Speaker 3: I'm Nathan Hager and I'm Karen Moscow. Here are the

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Speaker 3: stories we're following today.

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Speaker 4: Karen, we begin with tariffs. President Trump has made good

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Speaker 4: on a promise of sweeping levees on China and North

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Speaker 4: American allies. As of midnight, most goods from Canada and

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Speaker 4: Mexico now face a twenty five percent charge, while the

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Speaker 4: tariff on Chinese goods has been doubled to twenty percent.

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Speaker 4: In comments heard live on Bloomberg Radio, President Trump said

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Speaker 4: the tariffs will help bring manufacturing back to the US.

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Speaker 5: I would just say this to people in Canada or

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Speaker 5: Mexico if they got to build car plans to people

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Speaker 5: that are doing them, are much better off building here

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Speaker 5: because we have the market, with the market where they

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Speaker 5: sell the most.

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Speaker 4: President Trump says there was no room left to reach

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Speaker 4: a deal with Canada and Mexico as he hopes to

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Speaker 4: force them to address fentanyl flows into the US.

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Speaker 5: Vast amounts of fentanoil have poured into our country from

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Speaker 5: Mexico and as you know, also from China, where it

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Speaker 5: goes to Mexico and goes to Canada and China also

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Speaker 5: had an additional ten. So it's ten plus ten and

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Speaker 5: it comes in from Canada and it comes in from Mexico.

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Speaker 4: And President Trump added the tariffs will be exciting for

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Speaker 4: US automakers. The administration has delayed the removal of a

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Speaker 4: so called the Minimus exemption for now. That means Canada

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Speaker 4: and Mexico can continue shipping low cost goods over the

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Speaker 4: border without a tariff.

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Speaker 3: Well Nathan Trump's move has prompted a swift retaliation from

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Speaker 3: Canada and China. Canada has imposed phased levels on one

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Speaker 3: hundred and seven billion dollars worth of US goods, while

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Speaker 3: China imposed tariffs as high as fifteen percent, mainly on

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Speaker 3: agricultural shipments. Meanwhile, Mexican President Claudia Shanebaum said her government

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Speaker 3: would a wait for the tariffs to go into effect

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Speaker 3: before reacting, but they are ready to respond. Canadian Foreign

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Speaker 3: Minister Melanie jo Lace spoke before the terraffs are put

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Speaker 3: into place.

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Speaker 6: We know that this is an existential threat to US

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Speaker 6: and there are thousands of jobs in Canada at stake.

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Speaker 6: Now we've done the work we already should the US

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Speaker 6: decide to.

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Speaker 7: Launch the.

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Speaker 3: Trade war, Canadian Foreign Minister Melanie Sjoley said her government

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Speaker 3: was ready to go ahead with retaliatory duties and Karen.

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Speaker 4: President Trump also announced he's imposing tariffs on external agricultural

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Speaker 4: products on April second. He didn't provide detail on which

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Speaker 4: products would be affected or if there be any exemptions.

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Speaker 4: The US agriculture trade deficit is projected to hit a

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Speaker 4: record forty nine billion dollars this year.

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Speaker 3: Well, Nathan All, this has sparked a bearish mood across markets.

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Speaker 3: Asian A share sold off and the S and P

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Speaker 3: five hundred suffered its worst drop of the year. Joe

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Speaker 3: Lavarnia was chief economist at the White House National Economic

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Speaker 3: Council during President Trump's first term. He told Bloomberg's Balance

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Speaker 3: of Power the markets might have not priced in Trump's move.

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Speaker 8: The market's also I think we're not believing the President

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Speaker 8: was serious with these tariffs. So today might just reflect

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Speaker 8: the fact that for much I think of this year,

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Speaker 8: there was thoughts that they would actually never be able

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Speaker 8: mented or be watered down. So I think today was

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Speaker 8: really a reality check for many investors.

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Speaker 3: Former Trump official Joe Lavornia notes that Wall Street's so

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Speaker 3: called fear gauge, the Vicks hit its highest level since December.

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Speaker 4: And tonight, Karen many are going to be watching as

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Speaker 4: President Trump addresses Congress for the first time in his

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Speaker 4: second term. Bloomberg's Amy Morris is in Washington with a preview.

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Speaker 9: Since his re election, President Trump has blazed across the

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Speaker 9: federal government, dismantling norms and traditions and parts of the

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Speaker 9: government itself, firing thousands of federal workers, closing agencies, and

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Speaker 9: positioning the US closer to Russia, all issues that may

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Speaker 9: overshadow his address to Congress. The White House says President

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Speaker 9: Trump will also discuss his economic agenda in Washington. Amy Morris,

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Speaker 9: Bloomberg Radio.

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Speaker 4: Amy, thank you for full coverage of the President's addressed

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Speaker 4: to a Joint Session of Congress. To stay with Bloomberg

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Speaker 4: for a special edition of Balance of Power with Joe

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Speaker 4: Matthew and k adailely Lines. It starts at eight pm

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Speaker 4: Wall Street Time on Bloomberg Radio, Bloomberg Television, and the

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Speaker 4: Bloomberg Podcasts page on YouTube.

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Speaker 3: Well Nathan, China's biggest political event of the year is underway.

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Speaker 3: Policymakers are expected to push China's official budget deficit target

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Speaker 3: to its highest level in over three decades at the

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Speaker 3: National People's Congress. It would pump trillions if you want,

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Speaker 3: into a system battling in deflation, a property crash in

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Speaker 3: the new US trade clash. Investors will look for hims

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Speaker 3: as to whether the gathering can help sustain a recent

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Speaker 3: equity rally.

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Speaker 4: Elsewhere in geopolitics, Karen, President Trump is pausing all US

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Speaker 4: military aid to Ukraine. A senior defense official tells Bloomberg

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Speaker 4: the freeze will remain in effect until the President decides

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Speaker 4: Ukraine's leader, Vladimir Zelenski is committed to peace. The President

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Speaker 4: was asked about his recent meeting with Zelenski.

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Speaker 5: He said he thinks so war's going to go on

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Speaker 5: for a long time, and he'd better not be right

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Speaker 5: about that.

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Speaker 4: This morning, the Kremlin said the suspension of eight is

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Speaker 4: the best contribution to peace. President Trump had kept the

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Speaker 4: door open to signing the minerals deal with Ukraine that

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Speaker 4: was scrapped last week. He calls it a great deal

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Speaker 4: for the US well.

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Speaker 3: Nathan as the European Union looks for ways to support Ukraine,

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Speaker 3: and it's unveiled in early eight hundred and forty billion

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Speaker 3: dollar plan to fund rearmament. The proposal includes one hundred

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Speaker 3: and fifty eight billion dollars in loans to boost defense spending.

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Speaker 3: European Commissioned President Ursula Vonderlyon announced it this morning.

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Speaker 10: We are in an era of rearmament and Europe is

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Speaker 10: ready to massively boost its defense spending, both to respond

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Speaker 10: to the short term urgency to act and to support Ukraine,

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Speaker 10: but also to address the long term need to take

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Speaker 10: on more responsibility for our own European security and.

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Speaker 3: EC President Ursula Vonderlyon sent a letter to EU member

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Speaker 3: states listing possible options to bolster national defense in the

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Speaker 3: near term.

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Speaker 4: Back on Wall Street, Karen Traders have a key earnings

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Speaker 4: report to look ahead to this morning. Blomberg's Charlie Pellett

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Speaker 4: has a preview of the latest results from Target.

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Speaker 2: Target's outlook on consumer demand and macro economic uncertainties will

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Speaker 2: be among key areas of focus. Joe Feldman is an

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Speaker 2: analyst with Telsey Advisory Group. He's got an outperform rating

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Speaker 2: on the stock with a one hundred and fifty dollars

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Speaker 2: price target.

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Speaker 11: We're hoping to.

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Speaker 3: See better trend on the inventory side.

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Speaker 12: Their in stocks have been very good, which is a

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Speaker 12: good thing because you can sell the product.

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Speaker 2: The estimate on sales is thirty point six seven billion

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Speaker 2: dollars with gross margin a twenty five point five percent.

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Speaker 2: In New York, Charlie Pellett, Bloomberg Radio.

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Speaker 3: All right, Charlie, thank you. And finally, Bloomberg News has

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Speaker 3: learned about another big mistake as City Group the bank

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Speaker 3: almost transferred about six billion dollars to a customer's account

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Speaker 3: in a fat finger error. The near miss happened in

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Speaker 3: City's wealth management business rare till the staff member copied

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Speaker 3: and pasted the recipient's account number where the dollar amount

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Speaker 3: should have gone. This happened the same month or City

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Speaker 3: Division accidentally credited eighty one trillion dollars to a client.

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Speaker 3: Time now for a look at some of the other

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Speaker 3: stories making news in New York and around the world,

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Speaker 3: And for that we're joined by Bloomberg's Michael Barr.

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Speaker 13: Michael, good morning, Good morning, Karen. The Senate voted Monday

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Speaker 13: to confirm former wrestling executive Linda McMahon as Secretary of Education.

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Speaker 13: Shield now had a department. President Trump has vowed to

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Speaker 13: dismantle Randy Winingarten is president of the American Federation of Teachers.

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Speaker 14: The partners that she has are the people who are

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Speaker 14: in classrooms all across America. What we're asking her to

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Speaker 14: do is work with us, not against us. Don't take

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Speaker 14: a wrecking ball to the Department of Education, make cuts

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Speaker 14: with a scalpel, not with a hatchet, and ultimately help

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Speaker 14: us help children.

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Speaker 13: Winegarden adds one out of every nine dollars that go

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Speaker 13: to kids in school in America comes from the federal government.

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Speaker 13: The top agent at the FBI New York Field Office

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Speaker 13: said that he had been forced out of his job

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Speaker 13: following clashes with Justice Department officials over Trump administration directives.

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Speaker 13: In an email, James Denahey had told agents to dig

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Speaker 13: in in the face of the Trump administration's firing of

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Speaker 13: officials who investigated the January sixth Attech. Dennehee says he

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Speaker 13: was told Friday to retire from his role. Officials are

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Speaker 13: rushing to reschedule Marty Grass celebrations and warning revelers against

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Speaker 13: bringing umbrellas and tents as powerful storms with a threat

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Speaker 13: of tornadoes are expected to strike Louisiana and other parts

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Speaker 13: of the South today. The Supreme Court is scheduled to

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Speaker 13: hear the case Mexico filed against US gun manufacturers. Mexico

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Speaker 13: alleges that Smith and Wesson and other manufacturers aided an

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Speaker 13: embedded illegal gun trafficking in violation of the US law,

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Speaker 13: which in turn harms Mexico. Former federal prosecutor and Loyola

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Speaker 13: Law School professor Lorie Levinson.

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Speaker 7: This might be an uphill battle, frankly for the Mexican government,

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Speaker 7: because there are so many legal issues that the Supreme

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Speaker 7: Court will look at, and frankly, the Supreme Court has

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Speaker 7: been very open to gun rights in the last decade

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Speaker 7: or so.

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Speaker 13: Professor Levinson. The hearing marks the first time that the

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Speaker 13: Supreme Court will consider a federal law known as the

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Speaker 13: Protection of Lawful Commerce in Arms Act. The two thousand

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Speaker 13: and five law provides a legal shield for gun companies

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Speaker 13: from civil suits. Global news twenty four hours a day

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Speaker 13: and whenever you want it with Bloomberg News Now. I'm

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Speaker 13: Michael Barr, and this is Bloomberg kron.

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Speaker 3: Or Ry Michael Barr. Thank you time now for the

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Speaker 3: Bloomberg Sports up date, brought to you by try STANKOUDI.

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Speaker 3: Here's John Stanshawer. John, Good morning, Goo Morning.

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Speaker 11: Care's gonna be quite a fight to see who gets

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Speaker 11: the last couple of playoff spots in the NHL's Eastern Conference.

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Speaker 11: Right now, there are six teams separated by only four points.

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Speaker 11: Rangers among those in the Hut. Night after a shutout

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Speaker 11: win at the Garden, they were right back the MSG,

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Speaker 11: this time against the Islanders. Will Cooley scored off his

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Speaker 11: helmet in five minutes later first period. It was time

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Speaker 11: for another will back to the other.

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Speaker 13: Way, Carrick.

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Speaker 11: Carrick dropped it off for Bugin.

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Speaker 6: He starts.

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Speaker 5: Will Morgan was a short headed goal against the Rangers.

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Speaker 2: Aren't two nothing lead the Rangers. He loveth short handed

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Speaker 2: golden season, second best in the league.

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Speaker 13: Call on MSG.

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Speaker 11: J Et Miller scored third period Art Semi pinera and

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Speaker 11: empty ed of his twenty fifth. Twenty four hours after

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Speaker 11: shutting out Nashville for nothing, the Rangers blank the Islanders

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Speaker 11: for nothing, this time with a different goal in Igor

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Speaker 11: Sisterkin twenty one saves his fourth shot out of the season.

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Speaker 11: The Capitol's top to Attawa five to four and a

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Speaker 11: shoot out the Knicks at the Garden tonight to play

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Speaker 11: Golden State college basketball teams ran second and third of

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Speaker 11: the country. Both won at home. Duke by thirty three

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Speaker 11: over Wake Forest as the star freshman Cooper Flag scored

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Speaker 11: twenty eight. Duke is eighteen and one in the ACC.

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Speaker 11: Houston is eighteen and one of the Big twelve. The

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Speaker 11: Cougars beat Kansas, who began the season Ranke number one.

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Speaker 11: This was its eleventh loss. Saint John's doesn't play until Saturday.

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Speaker 11: Red Storm keep moving up the rankings, now sixth highestins

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Speaker 11: nineteen ninety one. The Yankees will begin the season without

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Speaker 11: Luis Heal. The last season, pitched to a three and

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Speaker 11: a half RA and was the American League Rookie of

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Speaker 11: the Year. He's got a lot strain when the Yanks.

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Speaker 11: Clark Schmidt had a similar injury last year. He missed

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Speaker 11: three months. Max Fried started last night in Tampa. Yanks

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Speaker 11: all over the Pirates twelve to three. Dom Smith drove

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Speaker 11: in four runs. The Mets had only two hits. Won

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Speaker 11: one tie with the Marlins. CODEI Senga and David Peterson

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Speaker 11: team per five scorelessennings. John stash Ellen Bloomberg Sports Kerry Nathan.

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Speaker 1: Coast to Coast on Bloomberg Radio, nationwide on Sirius XM

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Speaker 1: and around the world on Bloomberg dot Com and the

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Speaker 1: Bloomberg Business app. This is Bloomberg day Break.

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Speaker 4: Good morning, I'm Nathan Hager. The trade war is on.

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Speaker 4: President Donald Trump has made good on threats to impost

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Speaker 4: twenty five five percent tariffs on most imports from Canada

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Speaker 4: and Mexico and to double the levy on all Chinese

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Speaker 4: goods to twenty percent. The President says it's about stopping

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Speaker 4: illegal immigration and drug flows and boosting US manufacturing.

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Speaker 5: They can't come in and steal our money and steal

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Speaker 5: our jobs, and take our factories and take our businesses

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Speaker 5: and expect not to be punished, and they're being punished

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Speaker 5: by tariffs.

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Speaker 4: President Trump spoke there at a Winehouse news conference heard

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Speaker 4: live on Bloomberg Radio this morning. We are joined by

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Speaker 4: Bloomberg News Global Trade editor Brendan Murray. And Brendan, could

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Speaker 4: we see trade flows up ended dramatically following this first

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Speaker 4: major salvo in what looks like a new trade war.

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Speaker 2: Good morning morning.

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Speaker 12: Yeah, it could. It could happen fairly quickly. Now we

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Speaker 12: haven't heard the retaliation yet from Mexico. That will be

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Speaker 12: something to watch today and tomorrow. Mexico is, of course

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Speaker 12: a big supplier of food products and consumer electronics and

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Speaker 12: automobiles and and uh. And so we'll see how you know,

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Speaker 12: a lot of the a lot of the food products

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Speaker 12: are are perishable too, so you know, you can't really

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Speaker 12: stick those in a warehouse for very long. So we'll

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Speaker 12: see how the trade flows play out here. But it

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Speaker 12: seems that all three sides are are kind of, you know,

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Speaker 12: talking a big talk right now about how tough they're

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Speaker 12: going to be on their retaliation. There's even some a

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Speaker 12: Canadian politician who's saying, we're going to cut off your

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Speaker 12: electricity supply from our province to into into the US.

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Speaker 8: UH.

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Speaker 12: So we'll see how you like that. So it's getting

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Speaker 12: it's getting. It's I wouldn't call it, you know that

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Speaker 12: the tone isn't you know, very very sharp just yet.

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Speaker 12: But both sides are kind of sharpening up there, sharpening

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Speaker 12: up the rhetoric. And and you know, we'll see how

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Speaker 12: if this is a short run uh situation, or or

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Speaker 12: something that turns into a more prolonged trade war that

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Speaker 12: starts to hit the economy.

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Speaker 4: Well, as we start to see these rhetorical knives get

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Speaker 4: sharpened here or Brendan, we've heard Canada announce phased in

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Speaker 4: tariffs on one hundred and seven billion dollars in US

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Speaker 4: goods China with fifteen percent tariffs, mainly on US agriculture.

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Speaker 4: What kind of impact could that have on the US economy.

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Speaker 12: So China's uh, China's retaliation that they announced just a

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Speaker 12: few hours ago was fairly reserved. It was on, you know,

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Speaker 12: a tiny fraction of the goods that China imports from

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Speaker 12: the US, but more symbolic than anything, they targeted agricultural products.

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Speaker 12: US farmers and US farmers for years have tried to

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Speaker 12: develop markets in China and to and to and to

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Speaker 12: increase all the soybeans and and and all the wheat

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Speaker 12: and crops that they that they that they ship overseas.

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Speaker 12: China has been the big market for those at the

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Speaker 12: at the moment, guess who's having a bumper harvest, Brazil.

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Speaker 12: So it it if you if China says, look, we're

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Speaker 12: going to slapff's on American agricultural products, the messages we've

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Speaker 12: got somewhere else to buy from. So American farmers, you know,

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Speaker 12: would be getting nervous about this. And I think that's

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Speaker 12: why one of the reasons why you saw Trump post

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Speaker 12: on social media yesterday something about farmers are going to

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Speaker 12: do great because we're going to put We're going to

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Speaker 12: put tariffs on all food food imports, and so American

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Speaker 12: farmers are going to do great. So a bit of

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Speaker 12: preemptive reassurance there, I think maybe the President Trump anticipating

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Speaker 12: that China would come back and retaliate against, you know,

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Speaker 12: the heartland of America.

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Speaker 4: All about thirty seconds left, Brendon, what does this mean

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Speaker 4: for the existing US trade deal with Canada and Mexico

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Speaker 4: and is the door still open to a trade deal

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Speaker 4: with China.

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Speaker 12: Well, that's there's an interesting role that that trade deal,

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Speaker 12: the USMCA previously NAFTA, plays into this. That's supposed to

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Speaker 12: be renegotiated in twenty twenty six. This was the deal

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Speaker 12: that Trump renegotiated in his first term. It's up for

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Speaker 12: renegotiation in twenty twenty six. And so perhaps what the

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Speaker 12: that the strategy here is to put Mexico and Canada

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Speaker 12: on the back feet, hit them with these tariffs, drive

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Speaker 12: them to an early renegotiation in more favorable terms to

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Speaker 12: the US. That's one way some folks are speculating this

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Speaker 12: could play out, that this is really just a kind

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Speaker 12: of a flurry of things that the US could do

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Speaker 12: to sort of enter those negotiations in the strongest position possible.

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