Good morning. Here's what you need to know to start your day.
It's the U.S. versus 'friend and foe alike' as President Trump's tariff tussle goes global.
Trump announced Wednesday that the U.S. would begin applying a universal baseline tariff of 10% on imported goods from all foreign countries. That's in addition to existing tariffs imposed on Mexico, Canada and China. Some nations will be slapped with higher rates, including the European Union and India.
Trump called it "Liberation Day" as he accused nations around the world, both "friend and foe," of having "looted, pillaged, raped and plundered" the U.S.
"This is one of the most important days, in my opinion, in American history," Trump said during his announcement at the White House. " It's our declaration of economic independence."
"This is one of the most important days, in my opinion, in American history," President Trump said in announcing tariffs. (Mark Schiefelbein / Associated Press)
Canada and Mexico look to have escaped country-specific tariffs but are still contending with Trump's earlier 25% tariff on many products. A few import taxes were imposed on the two major U.S. trade partners, though the broader tariffs have been delayed twice. But a pause on them expired Wednesday.
"These tariffs will remain in effect until such a time as President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated," administration staff wrote on the White House website. The new tariffs won't include imports of copper, pharmaceuticals, semiconductors, lumber or bullion, the site states. Also excluded: "energy and other certain minerals that are not available in the United States."
Several countries are expected to respond with their own tariffs against the U.S., which experts warn could turn Trump's recent import skirmishes into a global trade war that could spiral into a recession.
"While Trump acknowledged the tariffs are likely to bring 'a little disturbance' to the markets, he has underscored that their purpose is to reignite the American economy," The Times' Faith E. Pinho, Michael Wilner and Kate Linthicum reported Wednesday. "White House officials have repeated that tariffs will be lifted on companies that decide to move their manufacturing to the U.S."
What will this mean for our wallets?
Avocados imported from Mexico are on display at a grocery store in San Francisco. The cost of everyday purchases, including produce, is expected to rise. (Godofredo A. Vásquez / Associated Press)
Trump has asserted multiple times that tariffs are paid by the foreign countries they're imposed on. The reality is that importers — U.S.-based businesses — will be paying these tariffs. And to offset paying 25% to bring the products they aim to sell over the border, those businesses are expected to start charging customers more.
Given that the U.S. imports the most foreign goods of any nation, it's likely you regularly purchase food, beverages, clothing, electronics and an array of other products that are shipped here from other countries. After Trump's new tariffs take effect, expect the cost of many of those items to start rising. Some businesses might not do that right away, experts say, but if the added cost of importing starts affecting bottom lines, consumers can expect to make up for that.
That includes such everyday purchases as produce, toys and shoes but also major purchases including household appliances, new homes and, of course, new cars.
The U.S. auto industry is largely a misnomer, as new cars and trucks are built along a complex continent-spanning assembly line where car parts cross between Mexico, Canada and the U.S. multiple times before rolling to a dealership.
A worker loads new Subarus onto a transport truck in a storage lot at Auto Warehouse Co. in Richmond, Calif., on March 26. (Bloomberg / Bloomberg via Getty Images)
Now some Southern California car buyers are scrambling to avoid the looming price hikes, my colleagues Andrea Chang and Caroline Petrow-Cohen reported this week.
"Tariff-related price hike estimates vary depending on the vehicle," they wrote, "but most industry experts predict new cars will cost several thousand more."
Dining out could also get more expensive. The National Restaurant Assn. is warning that the tariffs will hit restaurants hard and have requested that food and beverages be exempt.
"Applying new tariffs at this scale will create change and disruption that restaurant operators will have to navigate to keep their restaurants open," the trade group's president and chief executive, Michelle Korsmo, wrote in a statement. "The biggest concerns for restaurant operators — from community restaurants to national brands — are that tariffs will hike food and packaging costs and add uncertainty to managing availability, while pushing prices up for consumers."
It's worth noting that the current trade deal among the three North American nations was signed by Trump in his first term. At that time, his administration trumpeted the agreement as "a tremendous victory for American workers, farmers, manufacturers, and businesses alike."
Here's more of our news coverage and opinion pieces on the tariff tussle:
Today's top stories
A meadow at Phillips Station in the Sierra Nevada, where officials held California's final snow survey of the season on March 28. (Ken James / California Department of Water Resources)
For the first time in 25 years, California has a snowpack trifecta
Former federal Health Secretary Xavier Becerra announces a run for California governor
- Becerra joins a growing field of Democrats hoping to succeed termed-out Gov. Gavin Newsom. But a crucial question is whether former Vice President Kamala Harris will join the race, which would immediately jolt the contest.
- "Watching what's unfolding before our eyes made it clear this is not a time to sit on the sidelines," Becerra said in an interview.
More water recycling could help fix the Colorado River shortfall. California has a ways to go
- Analyzing data for large sewage treatment plants in seven states that rely on Colorado River water, UCLA researchers found California is recycling only 22% of its treated wastewater. That's far behind the country's driest two states: Nevada, which is recycling 85% of its wastewater, and Arizona, which is reusing 52%.
What else is going on
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This morning's must reads
(Photo illustration by Jim Cooke / Los Angeles Times; Photos via Mel Melcon / Los Angeles Times, Evan Agostini/AP)
Kanye West and the story of Donda Academy's spectacular spiral. Less than four years after opening its doors, Donda was shuttered, leaving unanswered questions for many of those who attended the school and worked there. Lawsuits and interviews The Times conducted with nearly a dozen individuals with knowledge of the academy provide a fresh glimpse into the extraordinary dysfunction inside Donda and the erratic behavior of its controversial founder.
Other must reads
How can we make this newsletter more useful? Send comments to essentialcalifornia@latimes.com.
For your downtime
Going out
Staying in
And finally ... from our archives
(Steve Schapiro; courtesy of Fahey/Klein Gallery, Los Angeles)
On April 3, 1968, Martin Luther King Jr. delivered what became known as the "I've Been to the Mountaintop" speech at an event for the Memphis sanitation workers' strike. It was also his final speech. He was assassinated the next day.
Seven years ago, The Times reflected on King's speech and how his death affected the nation.
Have a great day, from the Essential California team
Ryan Fonseca, reporter
Andrew Campa, Sunday reporter
Kevinisha Walker, multiplatform editor
Hunter Clauss, multiplatform editor
Christian Orozco, assistant editor
Karim Doumar, head of newsletters
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