Trump news at a glance: tariffs inflict more pain amid warning of rising prices

Dow drops more than 2,200 points

Donald Trump doubled down on his plan on Friday, insisting he would not back down even as the chairman of the Federal Reserve warned it would likely raise prices and slow down economic growth.

A stock-market rout continued apace, with the benchmark S&P 500 falling 322 points, or 6%, and the Dow Jones industrial average retreating 2,231.07 points, or 5.2%, in New York. The Dow’s two-day slump has wiped out $6.4tn in value, according to Dow Jones market data.

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China hits back hard at ‘bullying’ Trump

China has hit back hard against the US president’s “bullying” tariffs, raising fears that the escalating trade war could trigger a global recession and prompting fresh turmoil in financial markets.

Beijing retaliated on Friday with punitive 34% additional tariffs on all goods imported from the US, mirroring the US decision and exacerbating a sell-off on global stock markets.

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Fed chair defies Trump and warns of higher prices

Donald Trump’s global tariffs assault is set to raise prices and slow down economic growth, Federal Reserve chair Jerome Powell has warned, defying the US president’s demands for an immediate interest rate cut.

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Democrats decry firing of national security chief

Top congressional Democrats are protesting against the firing of Gen Tim Haugh as director of the National Security Agency (NSA), with one lawmaker saying the decision “makes all of us less safe”.

US defense department spokesperson Sean Parnell on Friday confirmed Haugh’s departure without elaborating on why.

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Supreme court allows DEI cuts to teacher training grants

The US supreme court is letting the Trump administration temporarily freeze $65m in teacher-training grants that would promote diversity, equity and inclusion (DEI) initiatives in a 5-4 decision.

The ruling came down on Friday afternoon, with five of the court’s conservatives – justices Amy Coney Barrett, Neil Gorsuch, Clarence Thomas, Samuel Alito and Brett Kavanaugh – in the majority. Justices Sonia Sotomayor, Elena Kagan and Ketanji Brown Jackson all dissented.

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TikTok sale deadline moved

Donald Trump said he would sign an executive order to extend the TikTok ban deadline. This is the second time the president will have delayed the ban or sale of the social media app, and will punt the deadline to 75 days from now.

China put a possible deal on hold this week after Trump announced his sweeping tariffs, according to Reuters.

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US ‘testing’ if Russia is serious about peace in Ukraine

The US will know within weeks whether Russia is serious about pursuing peace with Ukraine, the secretary of state has said, warning that Donald Trump was not “going to fall into the trap of endless negotiations” with Moscow.

“We’re testing to see if the Russians are interested in peace,” Marco Rubio told journalists in Brussels after talks with Nato allies. “Their actions – not their words, their actions – will determine whether they’re serious or not, and we intend to find that out sooner rather than later.”

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What else happened today:

• Chevron has been ordered to pay more than $744m in damages for destroying parts of south-east Louisiana’s coastal wetlands over the years. The ruling, which came in the form of a civil jury verdict on Friday, marks the conclusion of the first trial among 42 lawsuits filed about 12 years earlier.

• Texas on Friday reported another large jump in measles cases and hospitalizations, leaving the US with more than double the number of measles cases so far this year than it saw in all of 2024.

• Los Angeles county has reached a $4bn agreement to settle nearly 7,000 claims of sexual abuse in juvenile facilities since 1959, officials said on Friday. The agreement, which still needs approval from the Los Angeles county board of supervisors, would be the largest of its kind.