The majority of Americans now fear a recession, new polling shows, while more than half agree that Donald Trump's policies would make a comfortable retirement more difficult.
In a softening of his stance towards Beijing, Trump said negotiations over a trade deal would “go pretty quickly” and that trade representatives from both countries would be “very nice” in upcoming talks.
However, China stated that the U.S. should cease making threats if it wants a trade deal, accusing America of exerting “extreme pressure” as it tried to reach an agreement.
The Wall Street Journal now reports that the White House is considering slashing China tariffs by as much as half in order to de-escalate tensions with Beijing.
The president also walked back a previous suggestion he could fire Federal Reserve chair Jerome Powell, telling reporters on Tuesday: "I have no intention of firing him. "
Those combined comments buoyed global financial markets on Wednesday, with stocks rising globally.
We’re pausing our live coverage of the Trump administration for today.
Here’s a selection of our coverage to get you up to speed:
- Rubio outlines plan to cut State Department ‘bloat’ as leaked memo details potential embassy cuts
- Murdoch-owned Wall Street Journal savages Donald Trump for historic economic bungle
- Trump’s tariffs driving thousands of layoffs at US manufacturing plants
- Pete Hegseth did share classified information with wife and brother despite White House’s claims, report says
- White House insists it can still seal 75 trade deals in 90 days – but says it’s currently only in talks with 34 countries
For the latest developments on the prospects of a peace deal in Russia’s war on Ukraine, check out The Independent’s live coverage from our colleagues in London.
Oliver O'Connell23 April 2025 16:15
Trump apparently discussing adding flagpoles to North Lawn
President Donald Trump was spotted exiting the White House just now and shouted to reporters he was there to determine where new flagpoles might be added to the North Lawn.
Keen-eyed White House observers will note that there is already a large flag on top of the building.
Oliver O'Connell23 April 2025 16:05
China insists on ‘equality, respect’ for any tariff talks
Beijing said Wednesday that “exerting pressure is not the right way to deal with China and simply will not work.”
President Donald Trump said he would not “play hardball” with China and that his tariffs would come down “substantially,” but the U.S. will “set the deal” if China doesn’t make a deal.
In response, Chinese foreign ministry spokesman Guo Jiakun said the U.S. “should stop threatening and blackmailing China” but “seek dialogue based on equality, respect and mutual respect.”
Treasury Secretary Scott Bessent, meanwhile, said the U.S. is helping China to change its economic model, which he said is built on “exporting its way out of its economic troubles” and is “an unsustainable model that is not only harming China but the entire world.”
AP23 April 2025 16:00
23 April 2025 15:46
Hegseth has surrounded himself with people who ‘don’t have his interests at heart’ as Pentagon infighting escalates
Defense Secretary Pete Hegseth has managed to surround himself at the Pentagon with advisers who have become power-hungry rivals, leading to surprise firings, leak accusations, and revenge attempts, according to a Politico report.
Unfortunate headlines are streaming out of the department, and it’s become a distraction to Trump’s agenda and possibly even a threat to Hegseth’s job, the outlet noted.
Incoming officials planned on having Hegseth be the face of the department while others ran the show behind the scenes. That hasn’t come to pass.
Gustaf Kilander reports from Washington, D.C.
Hegseth has surrounded himself with people who ‘don’t have his interests at heart’
‘A lot of people [are] trying to assert dominance in an area where it’s very hard to do without cutting somebody else’
Oliver O'Connell23 April 2025 15:40
Bessent says more sustainable economic system in interests of U.S. and allies
“I invite our allies to work with us as we rebalance the international financial system, refocus the IMF and World Bank on their founding charters. America first means we are doubling down on our engagement with the international economic system, including at the IMF and the World Bank. A more sustainable economic system will be one that better serves the interests of the United States and all the other participants in the system. We look forward to working with all of you in this endeavor.”
Oliver O'Connell23 April 2025 15:28
Bessent: No one who supported Russia's war on Ukraine eligible for reconstruction funds
Bessent says of Ukraine reconstruction: “No one who financed or supplied the Russian war machine will be eligible for funds earmarked for Ukraine's reconstruction. No one.”
Oliver O'Connell23 April 2025 15:26
Bessent: World Bank treating China as developing country 'absurd'
“Treating China, the second-largest country in the world, as a developing country is absurd. While it has been at the expense of many Western markets, China's rise has been rapid and impressive. If China wants to play a role in the global economy commensurate with its actual importance, then the country needs to graduate up, we welcome that."
Oliver O'Connell23 April 2025 15:24
Bessent says IMF and World Bank must step back from unfocused agendas
Bessent continues by saying that the World Bank and IMF “must step back from their sprawling and unfocused agendas, which have stifled their ability to deliver on their core mandates.”
He adds that the IMF has “suffered from mission creep” and is too focused on “climate change, gender and social issues.”
“The IMF mission is to promote international monetary cooperation, facilitate the balanced growth of international trade, encourage economic growth, and discourage harmful policies like competitive exchange rate depreciation; these are crucially important functions to support the US and global economies. Instead, the IMF has suffered from mission creep. The IMF was once unwavering in its mission of promoting global monetary cooperation and financial stability. Now it devotes disproportionate time and resources to work on climate change, gender, and social issues. These issues are not the IMF mission and the IMF focus in these areas is crowding out its work on critical macroeconomic issues. The IMF must be a brutal truth teller, and not just to some members."
Bessent says the Trump administration “will not abide” criticism from the IMF if the IMF doesn't also criticize "the countries that most need it, principally surplus countries, in line with its core mandate."
He adds: “The IMF needs to call out countries like China that have pursued globally distorted policies and opaque currency practices for many decades. I also expect the IMF to call out unsustainable lending practices by certain creditor countries.”
Oliver O'Connell23 April 2025 15:19
Bessent links trade and defense
“I believe global economic relationships should come to reflect security partnerships. Security partners are more likely to have compatible economies structured for mutually beneficial trade. If the United States continues offering security guarantees and open markets, then our allies must step up with stronger commitments to shared defense. The initial actions from Europe on increased fiscal and defense spending are proof that the Trump administration's policies are indeed working."
Oliver O'Connell23 April 2025 15:16
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