Axios Mar 2
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Trade wars: The effect of Trump's tariffs

'Trade Wars'
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President Trump announced on Thursday that he's going to impose tariffs on imports of steel (25%) and aluminum (10%). He has long called for these tariffs, saying America is being cheated by foreign competitors and its large trade deficits.

The big picture: Trump's announcement jolted markets, upset allies and led to rebukes from The Wall Street Journal and some congressional Republicans.

Winners and losers

Winners: Domestic steel and aluminum manufacturers avoid getting undercut on prices from abroad.

Losers: Companies that rely on steel and aluminum for production and services will face higher costs. Consumers could pay higher prices. Conservatives and free-traders are losing in their long-term effort to minimize tariffs and other import duties.

What's next: An escalating trade war?


In Washington

Inside the White House

  • From Mike Allen and Swan: Trump has grown to especially hate Kelly’s rigid rules, so he purposely blew off Chief of Staff John Kelly’s process and announced planned tariffs in a haphazard way.
  • Staff can try to impose their views on Trump. But when it comes to trade — the one thing he’s believed consistently for 30 years — they will inevitably fail.
  • Staff to flee? Trump just completely circumvented the interagency process and is executing a policy chief economic advisor Gary Cohn and other free traders think is calamitous.
  • A 24% steel tariff was recommended to Trump, but he increased to 25% because it's a nice round number.
  • Trade is one of Trump's oldest consistent policy issues. In an Oval Office meeting last year, he told advisers: "I want tariffs. Bring me some tariffs!"

International fallout

Haley Britzky 1 hour ago
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Zuckerberg happy to testify if it is "the right thing to do”

A portrait of Facebook founder Mark Zuckerberg
A portrait of Facebook founder Mark Zuckerberg. Photo: Jaap Arriens / NurPhoto via Getty Images

Facebook CEO Mark Zuckerberg said he would be "happy" to testify before Congress if it was "the right thing to do," in an interview with CNN's Laurie Segall.

Why it matters: Facebook has been under the microscope lately for what Zuckerberg called earlier today the "Cambridge Analytica situation." Zuckerberg said if he as the "person...who will have the most knowledge," than he'd be the one to testify in the face of Facebook's data-collection situation.

Ina Fried 1 hour ago
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Zuckerberg: Facebook may have influenced election, may need to be regulated

Zuckerberg at F8 in 2017
Zuckerberg at F8 in 2017. Photo: Facebook

In a flurry of media interviews on Wednesday, Facebook CEO Mark Zuckerberg said he is willing to testify before Congress, that he can't guarantee that Russians didn't get their hands on Facebook user data and that he isn't sure Facebook shouldn't be regulated.

Why it matters: After remaining silent for several days, Mark Zuckerberg has given interviews with outlets including CNN, Wired, the New York Times and Recode. The interviews answer some, but definitely not all of the questions left unanswered by his earlier Facebook post.