General Motors posted strong financial results for its first quarter Tuesday, but says it will reassess its expectations for 2025 due to auto tariffs.

The automaker is pushing back its conference call to discuss its guidance and quarterly results until Thursday, so that it can assess potential tariff changes.

GM said that its initial full-year financial forecast doesn’t contemplate the potential impact of tariffs. In January the company announced that it anticipated 2025 adjusted earnings in a range of $11 to $12 per share.

Late Monday The Wall Street Journal reported that President Donald Trump will possibly be dialing back on automotive tariffs, with anonymous sources claiming that he’ll stop duties on foreign-made cars from piling on top of other tariffs he implemented and easing some levies on foreign parts used to make cars in the U.S.

Trump will be holding a rally in Michigan, the heart of the nation’s auto industry, on Tuesday. Michigan has been jolted by his steep trade tariffs and combative attitude toward Canada.

Trump is making an afternoon visit to Selfridge Air National Guard Base for an announcement alongside Democratic Michigan Gov. Gretchen Whitmer. He’s expected to speak at a rally at Macomb Community College, north of Detroit.

Michigan was one of the battleground states Trump flipped from the Democratic column in his election. But it’s also been deeply affected by tariffs on imported cars and auto parts.

Michigan’s unemployment rate has risen for three straight months, including jumping 1.3% from March to reach 5.5%, according to state data. That’s among the highest in the nation, far exceeding the national average of 4.2%.

Industry groups have urged the White House to scrap plans for tariffs on imported auto parts, warning that doing so would raise prices on cars and could trigger “layoffs and bankruptcy.”

General Motors earned $2.78 billion, or $3.35 per share, for the three months ended March 31. A year earlier it earned $2.98 billion, or $2.56 per share.

Removing one-time charges and benefits, GM earned $2.78 per share, topping the $2.68 per share that Wall Street had expected, according to a survey by FactSet.

Revenue climbed to $44.02 billion from $43.01 billion.

GM’s stock declined more than 2% before the market opened.

President Donald Trump is badgering the Federal Reserve to cut interest rates, but even if the Fed gave in to the pressure, it wouldn’t necessarily lead to lower borrowing costs for consumers.

In fact, economists say, Trump’s ongoing attacks on Fed Chair Jerome Powell and his tariff policies could keep the longer-term interest rates that matter for consumers and businesses higher than they otherwise would be. A less-independent Fed can lead, over time, to higher borrowing costs, as investors worry that inflation may spike in the future. As a result they demand higher yields to own Treasury securities.

Trump has repeatedly urged Powell to cut the short-term interest rate that the central bank controls. The Fed typically reduces its rate during an economic downturn to encourage more borrowing and spending, and raises it to cool the economy and fight inflation when prices rise.

But long-term rates on things like mortgages, auto loans, and credit cards are largely set by market forces. And in recent weeks, fears that Trump’s sweeping tariffs could raise inflation, along with the administration’s threats to the Fed’s independence, have led markets to push those longer term rates higher. It’s not clear that the Fed can fully reverse those trends by itself.

“It’s not automatically true that even if the Fed were to cut rates, that you would see a measured decline in long-term interest rates,” Francesco Bianchi, an economist at Johns Hopkins University, said. “This kind of pressure on the Fed might backfire…if markets don’t believe the Fed has inflation under control.”

Trump renewed calls on Wednesday and Thursday for Powell to reduce the Fed’s short-term rate, telling reporters that the chair is “making a mistake” by not doing so.

And last week, Trump suggested he could fire Powell, while a top aide said that the White House was “studying” whether it could do so.

Stock markets plunged in response, the yield on the 10-year Treasury bond rose, and the dollar fell, an unusual combination that suggested investors were selling most American assets. Markets recovered those losses after Trump said on Tuesday that he had “no intention” of firing the Fed chair.

Still, the threats to the Fed’s independence unnerved Wall Street investors, because they see a Fed free from political pressure as critical to keeping inflation in check. An independent Fed can take unpopular steps, such as raising rates, to fight inflation.

“Threatening the Fed doesn’t soothe markets — it spooks them,” said Lauren Goodwin, chief market strategist at New York Life Investments. “And the result is often the opposite of what any administration wants to see: higher rates, weaker confidence, and more market turmoil.”

Since Trump began imposing tariffs in early March, when he slapped duties on Canada and Mexico, the 10-year Treasury yield has risen from 4.15% to about 4.3%. The yield is a benchmark for mortgage rates and other borrowing. Mortgage rates, in turn, have increased during that time, from 6.6% to 6.8%.

While Trump says he is negotiating over tariffs with many countries, most economists expect some level of duties to remain in place for at least this year, including his 10% duties on nearly all imports.

The 10-year yield did fall Thursday when two Federal Reserve officials said that rate cuts are possible as soon as this summer, should the economy falter and unemployment rise.

Yet last fall, longer-term interest rates also fell in anticipation of rate cuts, but then rose once the Fed cut in September and then continued to rise as the central bank reduced its rate again in November — two days after the election — and in December. Mortgage rates are now higher than they were when the Fed cut.

A range of factors can affect longer-term Treasury rates, including expectations for future growth and inflation, as well as the supply and demand for government bonds. Bianchi worries that stubbornly high government budget deficits — which are financed by trillions of dollars of Treasurys — could also lift long-term rates.

Should the Fed cut rates now, llonger-term borrowing costs “would move in the opposite direction, absolutely,” Goodwin said, “because the threat of inflation is so palpable — that move would call their credibility into question.”

Trump said in a social media post this week that there is “virtually No Inflation” and as a result, the Fed should lower its key rate, from its current level of about 4.3%. Many economists expect the central bank will do so this year. But Powell has underscored that the central bank wants to evaluate the impact of Trump’s policies before making any moves.

Inflation has fallen in recent months, dropping to 2.4% in March, the lowest level since last September. Yet excluding the volatile food and energy categories, core inflation was 2.8%. Core prices often provide a better signal of where inflation is headed.

A key issue for the Fed is that the economy is very different now than it was during Trump’s first term. Back then inflation was actually below the Fed’s target. At that time, it was a “no-brainer” to cut rates, Bianchi said, if there was a threat of a recession, because inflation wasn’t an issue.

But now, tariffs will almost certainly lift prices in the coming months, at least temporarily. That raises the bar much higher for a Fed rate cut, Bianchi said.

Still, once there are clear signs the economy is deteriorating, such as a rising unemployment rate, the Fed will cut rates, regardless of what Trump does, economists said.

Trump on Monday accused Powell of often being “too late” with his rate decisions, but ironically the Fed may move more slowly this time because of the threat of higher prices from tariffs. Without clear evidence of a downturn, Fed officials would worry about being seen as giving in to political pressure from Trump if they cut.

“Powell knows the irreparable damage that would occur if it was perceived that he cut because he was forced to by Trump,” said Tom Porcelli, chief U.S. economist at PGIM Fixed Income.

The Fed now “will be even more delayed because I think you’re going get more of an inflation lift initially, before you get the more pronounced slowing in growth,” Porcelli said.

Either way it may take more than a Fed cut or two to bring down longer-term borrowing costs, Bianchi said.

“To really lower long-term rates you need to provide a stable macroeconomic environment, and right now we are not there yet,” he added.

GENEVA — The Swiss president says Switzerland is among 15 countries with which the United States plans to conduct “privileged” negotiations to help reach a deal in the wake of sweeping U.S. tariffs on dozens of countries that have shaken global markets.

Karin Keller-Sutter, in an interview with broadcaster SRF published Friday, said she was “satisfied” with talks in Washington this week that included an International Monetary Fund conference and her one-on-one meeting with U.S. Treasury Secretary Scott Bessent. Keller-Sutter also serves as Switzerland’s finance minister.

“The United States has defined a group of 15 countries with which it wants to find … a quick solution in this tariff question. Switzerland is part of this group of these 15 countries,” she told reporters separately late Thursday in Washington.

It was not immediately clear which 14 other countries were included, but she told SRF that “the U.S. envisages conducting — I would say somewhat privileged — negotiations and finding solutions” with that group.

Before the Trump administration paused some of its most stringent tariff plans, products imported from Switzerland had been set to face tariffs of 31% — more than the 20% tariffs on goods from the European Union. Switzerland is not a member of the 27-country bloc.

According to figures published by the Swiss Embassy in Washington, the U.S. has been Switzerland’s most important goods export market worldwide since 2021, while Switzerland is the fourth most important export market for U.S. services. The bilateral trade volume in goods and services between Switzerland and the U.S. reached a total of $185.9 billion in 2023, the embassy says on its website.

Keller-Sutter said a memorandum of understanding was to be drawn up after which negotiations can begin. A document would also lay out the most important topics, and “we have also been assigned a specific contact person. This is not easy in the U.S. administration,” she was quoted as saying.

“The U.S. authorities have clearly expressed their desire to find a solution with Switzerland,” Keller-Sutter told SRF. She said no timetable had been set, but the two sides agreed to move forward quickly “because uncertainty is poison for the economy.”

Trump’s sweeping “Liberation Day” tariffs on April 2 set off turmoil in world stock markets. A week later, Trump spoke by phone with Keller-Sutter in a conversation that her office said focused on tariffs. She emphasized the “important role of Swiss companies and investments” in the U.S.

Hours later, Trump announced the U-turn that paused the steep new tariffs on about 60 countries for 90 days, fanning speculation — which was not confirmed — in some Swiss media that her chat with Trump might have played a role in the change of course.

On Thursday, Swiss Foreign Minister Ignazio Cassis, during a trip to Beijing, said the U.S. tariffs have thrust the affected countries into “a sort of coalition” to try to reach a deal with the United States. And on Monday, Swiss pharmaceuticals giant Roche announced plans to invest $50 billion in the U.S. over the next five years — an unspecified amount of which has already been under way.

BANGKOK — China on Thursday denied U.S. President Donald Trump’s assertion that the two sides were involved in active negotiations over tariffs, saying that any suggestion of progress in this matter was as groundless as “trying to catch the wind.”

China’s comments come after Trump said Tuesday that the final tariff rate on China’s exports would come down “substantially” from the current 145%.

“China’s position is consistent and we are open to consultations and dialogues, but any form of consultations and negotiations must be conducted on the basis of mutual respect and in an equal manner,” said Ministry of Commerce spokesman He Yadong. “Any claims about the progress of China-U.S. trade negotiations are groundless as trying to catch the wind and have no factual basis.”

Trump had told reporters earlier in the week that “everything’s active” when asked if he was engaging with China, although his Treasury Secretary had said there were no formal negotiations.

Trump had put 145% tariffs on imports from China, while China hit back with 125% tariffs on U.S. products. While Trump has given other countries a 90-day pause on the tariffs, as their leaders pledged to negotiate with the U.S., China remained the exception. Instead, Beijing raised its own tariffs and deployed other economic measures in response while vowing to “fight to the end.” For example, China restricted exports of rare earth minerals and raised multiple cases against the U.S. at the World Trade Organization.

China also made it clear that talks should involve the cancellation of all tariffs it currently faces.

“The unilateral tariff increase measures were initiated by the United States. If the United States really wants to solve the problem, it should face up to the rational voices of the international community and all parties at home, completely cancel all unilateral tariff measures against China, and find ways to resolve differences through equal dialogue,” said He, the spokesman.

Despite the economic measures leveled against China, Trump said Tuesday that he would be “very nice” and not play hardball with Chinese President Xi Jinping.

“We’re going to live together very happily and ideally work together,” Trump said.

WASHINGTON — The outlooks for the U.S. and global economies have significantly worsened in the wake of President Donald Trump’s tariffs and the uncertainty they have created, the International Monetary Fund said Tuesday.

The IMF said that the global economy will grow just 2.8% this year, down from its forecast in January of 3.3%, according to its latest World Economic Outlook. And in 2026, global growth will be 3%, the fund predicts, also below its previous 3.3% estimate.

U.S. economic growth will come in at just 1.8% this year, down sharply from its previous forecast of 2.7% and a full percentage point below its 2024 expansion. The IMF doesn’t expect a U.S. recession, though it has raised its odds of one this year from 25% to 37%.

The forecasts are largely in line with many private-sector economists’ expectations, though some do fear a recession is increasingly likely. Economists at JPMorgan say the chances of a U.S. recession are now 60%. The Federal Reserve has also forecast that growth will weaken this year, to 1.7%.

“We are entering a new era,” Pierre-Olivier Gourinchas, chief economist at the IMF, said. “This global economic system that has operated for the last eighty years is being reset.”

The IMF is a 191-nation lending organization that works to promote economic growth and financial stability and to reduce global poverty.

Gourinchas said that the heightened uncertainty around the import taxes led the IMF to take the unusual step of preparing several different scenarios for future growth. Its forecasts were finalized April 4, after the Trump administration announced sweeping tariffs on nearly 60 countries along with nearly-universal 10% duties.

Those duties were paused April 9 for 90 days. Gourinchas said the pause didn’t substantially change the IMF’s forecasts because the U.S. and China have imposed such steep tariffs on each other since then.

The uncertainty surrounding the Trump administration’s next moves will also likely weigh heavily on the U.S. and global economies, the IMF said. Companies may pull back on investment and expansion as they wait to see how the trade policies play out, which can slow growth.

China is also forecast to grow more slowly because of U.S. tariffs. The IMF now expects it will expand 4% this year and next, down roughly half a point from its previous forecasts.

While the U.S. economy will likely suffer a “supply shock,” similar to what hampered during the pandemic and which pushed up inflation in 2021 and 2022, Gourinchas said, China is expected to experience reduced demand as U.S. purchases of its exports fall.

Inflation will likely worsen in the United States, rising to about 3% by the end of this year, while it will be little changed in China, the IMF forecast.

The European Union is forecast to grow more slowly, but the hit from tariffs is not as large, in part because it is facing lower U.S. duties than China. In addition, some of the hit from tariffs will be offset by stronger government spending by Germany.

The economies of the 27 countries that use the euro are forecast to expand 0.8% this year and 1.2% next year, down just 0.2% in both years from the IMF’s January forecast.

Japan’s growth forecast has been marked down to 0.6% this year and next, 0.5% and 0.2% lower than in January, respectively.

BEIJING — China on Monday warned other countries against making trade deals with the United States to China’s detriment.

Governments including those of Taiwan, Japan and South Korea have begun negotiations with Washington after President Donald Trump announced sweeping tariffs against almost all of America’s trading partners on April 2. The import taxes were quickly paused against most countries after markets panicked, but he increased his already steep tariffs against China.

“China firmly opposes any party reaching a deal at the expense of China’s interests,” China’s Commerce Ministry said in a statement. “If this happens, China will never accept it and will resolutely take countermeasures in a reciprocal manner. China is determined and capable of safeguarding its own rights and interests.”

U.S. Treasury Secretary Scott Bessent said earlier this month the countries currently negotiating trade deals with the U.S. should “approach China as a group” together with Washington.

The U.S. tariffs against other countries are economic bullying, the ministry said in the statement attributed to an unnamed spokesperson.

“Appeasement cannot bring peace, and compromise cannot win respect,” it added. “For one’s own temporary selfish interests, sacrificing the interests of others in exchange for so-called exemptions is like seeking the skin from a tiger. It will ultimately only fail on both ends and harm others without benefiting themselves.”

China said it’s open to talks with Washington but no meetings have been announced.

Trump made China the target of his steepest tariffs, imposing several rounds of tariffs totaling 145% duties on Chinese imports. Beijing has retaliated with tariffs of 125% on U.S. imports.

The tariffs have spooked exporters and stalled shipments, while threatening to drag on the global economy.

JUNEAU, Alaska — After President Donald Trump returned to office, Alaska Republican Gov. Mike Dunleavy declared “happy days are here again.” He likened Trump’s friendly approach to energy development as “Christmas every day” for a state whose fortunes rise or fall with oil.

But the nearly three months since Trump’s inauguration have been tumultuous, roiling Alaska’s substantial federal workforce and raising questions about the reliability of federal funding.

And his on-again, off-again tariffs, and a related drop in oil prices, have compounded the uncertainty for Alaska lawmakers, who each year must craft a state budget based on volatile oil prices. The legislative session is set to end in mid-May, well before Trump’s recently announced pause on higher tariffs for many countries expires.

The whiplash has worsened long-standing tension over how much money should go toward the yearly oil-wealth fund check most Alaska residents receive as opposed to education or other needs. Lawmakers have shown scant interest in raising taxes and have blown through billions in savings plugging recurring budget deficits dating back more than a decade.

“We’re all in a pickle,” said House Speaker Bryce Edgmon, an independent who leads a coalition of Democrats, independents and two Republicans.

Alaska is no stranger to the boom-bust cycle of oil. The government spends more freely on infrastructure and other projects when prices are high and shutters facilities or slashes costs when they are low. Lawmakers base spending off twice-a-year revenue outlooks pegged to oil price and production forecasts.

A year ago, North Slope oil was around $90 a barrel. It settled in the low-to-mid-$70 range beginning last fall and hit as low as $65 this week before Trump announced the 90-day tariff pause.

At current prices, each dollar change in oil equates to about $35 million to $40 million in state revenue, according to the nonpartisan Legislative Finance Division. The March revenue forecast was based on $68-a-barrel oil for the upcoming budget year, down $2 from a December forecast.

Oil prices change frequently and plans by OPEC+ members to add more oil to the market could cause a price softening, said Dunleavy spokesperson Jeff Turner, who noted the governor is focused on Trump’s executive order supporting increased oil and gas drilling, mining and logging in Alaska, and that it is “great to have an administration that supports Alaska’s responsible resource development.”

Some state political leaders hope Trump’s threatened tariffs could prompt countries like Japan, South Korea and Taiwan to invest in or commit to buying gas from a proposed massive liquefied natural gas project in Alaska. The project, repeatedly touted by Trump, has struggled for years to gain traction amid cost concerns, competition from other projects and questions about its economic feasibility.

Trump carried Alaska in November’s election.

Besides oil, Alaska relies heavily on earnings from its nest-egg oil-wealth investment fund. The fund’s principal is protected, but its earnings can be spent. Lawmakers cap withdrawals based on a percentage of the fund’s average market value over a five-year period. The yearly dividend paid to residents has traditionally come from earnings, but since lawmakers also began using earnings for state services in 2018, there has been friction over how much should go toward each.

Dunleavy proposed a roughly $3,800 dividend per resident, which would cost $2.5 billion — two-thirds of this year’s earnings withdrawal — and result in a deficit he suggested covering by tapping the state’s diminished savings. That amount hews to a formula abandoned years ago by lawmakers as unaffordable.

The proposal is a nonstarter with legislative leaders, who are hearing pleas for more funding for K-12 schools squeezed by years of inflation and energy and health care costs. Education advocates also want the state to tackle a maintenance backlog that they say has created unsafe learning environments for students, including mold and structural issues at some schools.

Last year, residents received $1,702, a combined dividend and energy relief payment. The dividend the past five years has been as low as $992 in 2020 and as high as $3,284, another combined dividend and energy relief check.

House Majority Leader Chuck Kopp, a Republican, said politicians should not be “even stoking the fantasy” of a dividend as large as Dunleavy proposed.

“We cannot pay an unsustainable dividend, and that dividend distorts the fiscal reality that we’re facing,” he said. “Do we need new revenue, or do we need to get a handle on the size of the dividend we’re paying and honestly figure out how we’re going to prioritize that?”

Some members of the bipartisan-led Senate have urged changes to oil taxes to raise revenue, but overall support has been limited.

WASHINGTON — Manufacturers struggling to make long-term plans. Farmers facing retaliation from Chinese buyers. U.S. households burdened with higher prices.

Republican senators are confronting the Trump administration with those worries and many more as they fret about the economic impact of the president’s sweeping tariff strategy that went into effect Wednesday.

In a Senate hearing and interviews with reporters this week, Republican skepticism of President Donald Trump’s policies ran unusually high. While GOP lawmakers made sure to direct their concern at Trump’s aides and advisers — particularly U.S. Trade Representative Jamieson Greer, who appeared before the Senate Finance Committee Tuesday — it still amounted to a rare Republican break from a president they have otherwise championed.

Lawmakers had reason to worry: the stock market has been in a volatile tumble for days and economists are warning that the plans could lead to a recession.

“Whose throat do I get to choke if this proves to be wrong?” Republican Sen. Thom Tillis told Greer as he pressed for an answer on which Trump aide to hold accountable if there is an economic downturn.

Tillis’ frustration was aimed at the across-the-board tariff strategy that could potentially hamstring U.S. manufacturers who are currently dependent on materials like aluminum and steel from China. His home state of North Carolina, where he is up for reelection next year, has attracted thousands of foreign firms looking to invest in the state’s manufacturing industries.

Ever wary of crossing Trump, Republicans engaged in a delicate two-step of criticizing the rollout of the tariffs then shifting to praise for the president’s economic vision. In the afternoon, Tillis in a Senate floor speech said that the “president is right in challenging other nations who have for decades abused their relationship with the United States,” yet went on to question who in the White House was thinking through the long-term economic effects of the sweeping tariffs.

Tillis even allowed that Trump’s trade strategy could still turn out to be effective, but said there is a short window to show that it is worth the higher prices and layoffs that will burden workers.

For his part, Greer emphasized to the committee that the U.S. was engaged in negotiations with other countries but that “the trade deficit has been decades in the making, and it’s not going to be solved overnight.”

Republican leaders in Congress, as well as a sizeable chunk of lawmakers, have emphasized that Trump needs time to implement his strategy. They’ve mostly rejected the idea of putting a check on Trump’s tariff power, but it is clear that anxiety is growing among rank-and-file Republicans about what’s ahead.

Sen. James Lankford, an Oklahoma Republican, said there is a company in his state that had spent “millions of dollars” moving its parts production from China to Vietnam. But now that Vietnam is facing steep tariffs, the business is unable to move forward with negotiating prices with retailers.

Lankford pressed Greer for a timeline for negotiations, but the trade representative responded, “We don’t have any particular timeline. The outcome is more important than setting something artificially for us.”

Trade agreements between countries typically take months or even years to work out and often require the parties to navigate through a host of legal, economic and business issues. Still, Republicans said they were encouraged by the indications that Trump is entering into negotiations with other nations.

Sen. Steve Daines, a Montana Republican, said at the committee hearing that he was “very encouraged” by news of trade negotiations and attributed a momentary upward tick in the stock market to “hope that these tariffs are a means and not solely an end.”

He told Greer, “Who pays these high tariffs? It will be the consumer. I’m worried about the inflationary effect. I’m worried if there is a trade war that we’re going to have markets shutting down for American farmers, ranchers and manufacturers.”

Other GOP lawmakers contended that the pain was worth bearing. Republican Rep. Ralph Norman of South Carolina, a member of the conservative Freedom Caucus, said the president is on the right track.

“It’s pain, but it’s going to be,” he said. “The president will make the right call. He’s doing the right thing.”

Still, traditional Republicans were looking for ways to push back on Trump’s tariff plan.

Sen. Chuck Grassley, a senior Republican, has introduced a bipartisan bill to give Congress the power to review and approve of new tariffs, and Republican members in the House were also working to gain support for a similar bill. Such legislation would allow Congress to claw back some of its constitutional power over tariff policy, which has been almost completely handed over to the president in recent decades through legislation.

But the White House has already indicated that Trump would veto the bill, and both Senate Majority Leader John Thune, R-S.D., and House Speaker Mike Johnson, R-La., have said they are not interested in bringing it up for a vote.

Sen. Markwayne Mullin, a Republican closely aligned with Trump, said on social media that the bill was a bad idea because “Congress moves at the pace of a tortoise running a race.”

“The reason why Congress gave this authority to the president to begin with is because the ability to pivot,” he added.

But the president’s unclear messaging has also left lawmakers only guessing as they try to decipher which advisers and aides hold sway in the White House.

Sen. John Kennedy, a Louisiana Republican, said that as he’s received calls from the business community in his state, he’s had no answers for them besides telling them the prospects for the economy are uncertain. The communication from the president’s aides has often been conflicting, Kennedy said even as he voiced support for Trump’s long-term goals.

Kennedy told reporters, “I don’t think there’s any way to double or triple your tariffs on the world when you’re the wealthiest country in all of human history without being somewhat shambolic.”

BANGKOK — The impact of U.S. President Donald Trump’sblast of tariff hikes was reverberating across world markets Monday as America’s trading partners puzzled over whether there is room for negotiating better deals.

Several countries said they were sending trade officials to Washington to try to talk through the crisis, which has cast uncertainty over the global economic outlook, hammered markets and left U.S. allies wondering about the value of their ties with the world’s largest economy.

However, Germany’s economy minister, Robert Habeck, was defiant as he arrived at a meeting of European Union trade ministers in Luxembourg, saying the premise of the wide-ranging tariffs was “nonsense” and that attempts by individual countries to win exemptions haven’t worked in the past.

It’s important for the EU to stick together, he said. That “means being clear that we are in a strong position — America is in a position of weakness.”

China, which hit back Friday at Washington with 34% tariffs on U.S. products and other retaliatory moves, accused the U.S. of failing to play fair.

“Putting ‘America First’ over international rules is a typical act of unilateralism, protectionism and economic bullying,” Foreign Affairs spokesperson Lin Jian told reporters.

The ruling Communist Party struck a note of confidence even as markets in Hong Kong and Shanghai crumpled. “The sky won’t fall,” declared The People’s Daily, the party’s official mouthpiece. “Faced with the indiscriminate punches of U.S. taxes, we know what we are doing and we have tools at our disposal.”

Leading big drops in many markets, Hong Kong’s stock benchmark, the Hang Seng, plunged 13.2%. The Shanghai Composite index, meanwhile, lost 7.3% despite reported moves by regulators to staunch the losses.

China’s Commerce Ministry said officials met with representatives of 20 American businesses including Tesla and GE Healthcare over the weekend and urged them to take “concrete actions” to address the tariffs issue.

During the meeting, Ling Ji, a vice minister of commerce, promised that China will remain open to foreign investment, according to the readout by the ministry.

South Korea’s Trade Ministry said its top negotiator, Inkyo Cheong, will visit Washington this week to express Seoul’s concerns over the 25% tariffs on Korean goods and discuss ways to mitigate the damage to South Korean businesses, which include major automakers and steel makers.

Pakistan also planned to send a delegation to Washington this month to try negotiate over the 29% tariffs on its exports to the U.S., officials said. The prime minister ordered Finance Minister Muhammad Aurangzeb to assess the tariff’s potential impact on Pakistan’s fragile economy and draw up recommendations.

The U.S. imports around $5 billion worth of textiles and other products each year from Pakistan, which heavily relies on loans from the International Monetary Fund and other lenders.

In Southeast Asia, Malaysia’s Trade Minister Zafrul Abdul Aziz said his country will seek to forge a united response from the Association of Southeast Asian Nations to Trump’s sweeping tariffs.

As chair of the 10-nation body this year, Malaysia will lead a meeting Thursday in its capital Kuala Lumpur to discuss broader implications of the trade war on regional trade and investment, Zafrul told reporters.

“We are looking at the investment flows, macroeconomic stability and ASEAN’s coordinated response to this tariff issue,” Zafrul said. He denied reports Malaysia had imposed a 47% tariff on imports from the U.S., saying the actual average Malaysian tariff on American exports is 5.6%.

He said that he had met with the U.S. ambassador to Malaysia to try to clarify how the U.S. came up with its 24% tariff.

Indonesia, one of the region’s biggest economies, said it would work with businesses to increase its imports of U.S. wheat, cotton, oil and gas to help reduce its trade surplus, which was $18 billion in 2024.

Coordinating Economic Affairs Minister Airlangga Hartarto told a news conference that Indonesia will not retaliate against the new 32% tariff on Indonesian exports, but would use diplomacy to seek mutually beneficial solutions.

Some Southeast Asian neighbors, including Vietnam, Cambodia, Laos and Myanmar, face tariffs of over 40%, giving Indonesia a slight advantage, he noted.

“For Indonesia, it is also another opportunity as its market is huge in America,” Hartoto said. He said Indonesia would buy U.S.-made components for several national strategic projects, including refineries.

___

Associated Press journalists from around the world contributed to this report.

BIRMINGHAM, Ala. — On a day when stock markets around the world dropped precipitously, Alabama Republican Party Chairman John Wahl led a celebration of the president whose global tariffs sparked the sell-off.

With no mention of the Wall Street roller coaster and global economic uncertainty, Wahl declared his state GOP’s “Trump Victory Dinner” — and the broader national moment — a triumph. And for anyone who rejects President Donald Trump, his agenda and the “America First” army that backs it all, Wahl had an offer: “The Alabama Republican Party will buy them a plane ticket to any country in the world they want to go to.”

Wahl’s audience — an assembly of lobbyists and donors, state lawmakers, local party officials and grassroots activists — laughed, applauded and sometimes roared throughout last week’s gala in downtown Birmingham, the rare Democratic stronghold in one of the nation’s most Republican states. The president’s son Donald Trump Jr. elicited perhaps the most enthusiasm with an unapologetically partisan pitch, even repeating the lie that his father won the 2020 election over Democrat Joe Biden.

Yet beyond the cheerleading, there were signs of a more cautious optimism and some worried whispers over Trump’s sweeping tariffs, the particulars of his deportation policy and the aggressive slashing by his Department of Government Efficiency.

That doesn’t mean Trump or Republicans are in danger of losing their grip in Alabama, where the GOP holds all statewide offices, dominates the Legislature and has won every presidential electoral vote since 1980. But it’s a notable wrinkle in a place where there’s long been tension between relying on the federal government for funding and jobs, and an embrace of the kind of anti-Washington, anti-establishment populism that has twice propelled Trump to the Oval Office. And any cracks for Trump in Alabama — where he got 65% of the vote in 2024 — could portend trouble elsewhere, as the effects of a seismic shift in U.S. policy reach across the economy and society.

“There are some concerns, some conversations,” said John Merrill, a former secretary of state, over just what Trump’s agenda will mean on the ground. Alabama, he acknowledged, has “been a net recipient” of the very federal government and economic model Trump is upending, meaning it receives more money back from Washington than its taxpayers send the federal government.

“It’s a big risk,” said Merrill, who sported a Trump 45-47 pin on his lapel, a nod to the president’s two terms.

Blocks to the south of the complex where Republicans convened sits the multibillion-dollar University of Alabama at Birmingham health system, a regional gem where research depends on grants from the National Institutes of Health.

Republican Alabama Attorney General Steve Marshall, listed as a “Silver Sponsor” of the gala, didn’t join the Democratic attorneys general suing the Trump administration to stop the cancellation of certain research funding streams Congress already has approved.

Most of the medical services provided at UAB and many other hospitals throughout the state are covered by Medicare and Medicaid, two of the largest federal outlays. Alabama, because its per-capita income ranks among the lower tier among states, has one of the most generous federal match rates for Medicaid funding.

A short drive west toward Tuscaloosa sits a gargantuan Mercedes-Benz complex, one of the earliest examples of foreign auto manufacturers coming to the American South, where state laws are hostile to organized labor. The plants have provided jobs at wages higher than the local norms but in some cases lower than in union shops of the Great Lakes region around Detroit. Many suppliers have followed in the South, but not so many that the assembly plants don’t still import many parts that now will be subject to Trump’s tariffs.

Terry Martin, a county GOP committeeman in Tallapoosa County, said he supports the tariffs as leverage. Trump has “something to bargain with,” Martin said. But, “the parts that are coming from overseas … it’s going to pop it up” in price, he said, at least in the short term.

Agriculture, meanwhile, is still a dominant Alabama industry. Meat processing plants in the North and row crop farms in the South depend on migrant labor that Merrill, the former secretary of state, said involves workers who are in the U.S. both legally and illegally. Alabama, he recalled, passed its own strict immigration bill during Barack Obama’s presidency only to roll it back after industry leaders complained of a depleted workforce.

Wahl, in an interview after the gala, took a more nuanced approach than he did at the podium.

“It is possible to secure our border and still take into account migrants who deserve to be here,” he said. “This has to be a two-pronged approach.”

Back in Birmingham, Interstate 65 splits the city. The aging, increasingly congested artery is a local priority for widening. The proposal has support from Alabama’s two Republican senators, Tommy Tuberville and Katie Britt. U.S. interstate projects, though, are typically a 90-10 split, meaning 90% of the money comes from Washington, 10% from the state.

That funding — along with money for schools, Medicaid and other areas — could be at risk with Trump adviser Elon Musk and DOGE carrying Trump’s blessing to slash spending. GOP lawmakers who control Congress have supported Trump’s agenda, which also includes dismantling the Education Department.

Tallapoosa County GOP Chair Denise Bates said “absolutely” there’s a possibility DOGE could go too far. “I hope there are guardrails,” she said, noting she was once a local school board member.

“Am I 100% for getting rid of the Department of Education? I can’t say that I am,” she said, adding a phrase similar to Merrill’s description of the state as a whole. “You know, we’re a net receiver.”

Yet for all the caveats offered in one-on-one conversations, the GOP crowd cheered when Tuberville, the former football coach turned Trump acolyte on Capitol Hill, offered a plainspoken defense of Musk and his pop-up agency, telling the crowd, “We’re dead broke.” And they roared as he addressed tariffs.

“It’s past time we level the playing field and tell the rest of the world to get off their ass and start paying their fair share,” Tuberville said.

Bates argued that Alabama’s embrace of Trump’s “America First” push is not simply loyalty to the president. She said it reflects generations of voters watching the steel industry decline in Birmingham and, after the North American Free Trade Agreement was enacted in 1994, the textile industry leaving for Mexico and, eventually, Southeast Asia.

“We just want jobs,” she said.

Still, state Sen. Jabo Waggoner, the longest-serving member of the Alabama Legislature, made clear Trump’s visceral appeal, declaring him “the most popular president here since Ronald Reagan, hands down.”

Wahl recalled Trump’s first massive outdoor rally as a presidential candidate: 30,000 people at Ladd-Peebles Stadium in Mobile, Alabama, in August 2015.

Wahl, who owns a butterfly farm outside Huntsville, said perhaps the best way to understand Trump and Alabama and this moment of uncertainty is to see a president who, at least to his supporters in the state, has earned the benefit of the doubt.

“He’s going to let everybody know he’s serious,” the chairman said. Trump is “going to bring people to the bargaining table. We’re actually going to see the negotiator conduct business.”