Today in Politics, Bulletin 109. 4/10/25

… After yesterday’s exuberance on most tariffs being lifted, traders on Wall Street suddenly realized that Trump is now imposing 145% tariffs on China, 25% tariffs on some other countries, and 10% tariffs on everyone. The Dow was down 1,014 (2.50%) today.

… Democratic strategist Matt McDermott: “The markets woke up and realized that a 10% global tariff and 125% tariff on China is still going to devastate America’s economy.”

… CNBC: “A WH official confirms to me the new tariff against China this term now totals 145%, not 125% as the President said yesterday. The Executive Order spells out the ‘reciprocal’ rate jumped from 84% to 125% overnight. Combined with the 20% fentanyl tariff, we’re at 145%.”

… But perhaps the biggest loser on the day was Elon Musk, as Tesla took an absolute beating since their company is closely tied to China - relying on that country for car components and batteries. Tesla has also become very dependent on the Chinese market to buy their cars, and sales have been slumping there badly. Tesla was down an astonishing 19.80 (7.27%) today.

… Investors Business Daily: “Mizuho lowered its Tesla stock price target to 375 from 430. The firm kept an outperform rating on the shares. The analysts noted that Trump's 90-day pause on reciprocal tariffs does not apply to autos and auto parts. Mizuho analysts believe this will result in continued uncertainty and negative impacts.”

… “Meanwhile, UBS cut its TSLA price target to 190 from 225 and has a sell rating on the shares. The analysts noted broadly Thursday that Trump's new trade policies will raise the manufacturing costs for vehicles, which will increase consumer prices and negatively affect demand.”

… Trump claimed that he was only agreeing to lift most of the tariffs because the leaders of 75 countries supposedly called “kissing my ass” begging to make deals. But NBC reported when they followed up on that claim: “The White House will not release the list of 75 countries that have reached out on trade deals, despite requests from NBC News.”

… That’s because they weren’t any.

… Fox Business' Charlie Gasparino: "Let's be clear what happened, who capitulated here and why. It is the White House who capitulated based on everything I hear and all my sources, and the reason why is because of the bond market and what happened last night."

… Former Fox host Brit Hume: “I think President Trump basically confirmed Chuck Gasparino's analysis when he said he was watching the bond market last night when rates on the US treasury tend 10-year bond spiked dangerously. The bond market, Trump said, is ‘tricky.’”

… Rep. Dan Goldman (D-NY) on CNN: “It is a total cave because Trump recognized that whatever his rationale for the tariffs were was not being bought by the American people and by the global economy.”

… Sen. Ron Johnson (R-WI) to CNN: "I still don't know what his total strategy is. We know what his goal was, but I don't know what the end game is here."

… Then House Republicans made things even worse by narrowly approving a budget framework that would add a massive $5.8 trillion the debt as Republicans want Trump’s huge tax cuts while avoiding the difficult decisions on budget cuts. That news caused the T-bill bond rates to spike back up again today, raising the costs for the govt and corporations to borrow capital.

… There is only one way to keep the deficit at a reasonable level with Trump’s tax cuts - and that is to make massive cuts in entitlements. Republicans know this very well. But It seems that they are choosing the tax cuts without the spending cuts, and exploding the deficit more than any Congress in history by far.

… Market analyst Spencer Hakimian: “10-year T-bill - 10 Year is 4.42%. Credit spreads are still widening. An average 30-year mortgage is going to cost 7.00% right now - if the bank is even willing to lend to you in all this uncertainty. Going to be an ugly spring season for the housing market. Way too much economic uncertainty.”

… Right-wing Freedom Caucus members claim they have “received assurances” from Mike Johnson that there will be deep cuts made when details are hammered out during the reconciliation process with the Senate, but I will believe that when I see it. All those “fiscal conservatives” who complained that the budget of Biden/Pelosi were “mortgaging our kids’ futures” are now about to explode the deficit exponentially to numbers far greater than any of the Biden years, all to give a huge tax cut to the wealthy.

… Daniel Horowitz, Editor of the conservative website The Blaze: “I still don't understand how it's not news for conservatives that Senate Republicans responded to this election and Bidenflation by announcing a bill to add $5.8 trillion to the deficit in return for cutting 0.004% out of an 89 trillion budget over 10 years. Trump supports it, and only 15 or so House members have a problem with it. What a fraud.”

… Reporter: Did the bond market persuade you to reverse course? Trump: “I was watching the bond market. It's very tricky. If you look at it now it's beautiful. The bond market right now is beautiful. But I saw last night where people were getting a little queasy.”

… That was yesterday though. The bond market was not beautiful today.

… Rep. Thomas Massie (R-KY) was asked by CNN if he was surprised that the Freedom Caucus members caved again under pressure from Trump: “Nope, I knew all along they’d trade the cow for magic beans. These beans are like the rest, they don’t sprout.”

… The bond market rates spiked again with the passage of this budget which call for record debt, which means the cost of borrowing for the government and corporations just went up significantly. The 10-year T-Bill closed up to 4.425%.

… Former Trump economic advisor and Newsmax host Steve Cortes: “The T-Bill, which is way up. Why are yields spiking? Because of this completely ludicrous budget the House just passed. It’s ridiculous and totally irresponsible.”

… Nichola James, managing director of Global Sovereign Ratings at Morningstar DBRS: “Bond market discipline once again has shown itself to be a powerful tool for governments to reorient their approach. What we are looking at now though is not an abandonment of fundamental US policy, but an alternative pathway to achieve it, and in this environment, damaging uncertainty for companies continues.”

… Incoming German Chancellor Friedrich Merz said Trump backed down on the tariffs “as a direct consequence of the Europeans’ united approach. We are ready to talk, but we are also ready to defend our interests. That’s the right approach.” But he said Trump’s erratic tariff policy has caused “maximum uncertainty in the US. Trump is now facing massive criticism in his own ranks and from business. That’s why we need to be all the more reliable, clearer and better at the European level.”

… Sen. Rand Paul (R-KY) to Business Insider: “I think that the marketplace spooked them. Hopefully there'll be some people talking some sense into the policy and being less extreme. There should be a learning curve here. When you add a bunch of tariffs, you lose $6 trillion in the marketplace. When you get rid of the tariffs, guess what? It comes bounding back.”

… Trump’s Policy Advisor Stephen Miller: “You have been watching the greatest economic master strategy from an American President in history.”

… The new Quinnipiac poll has Trump’s approval rating falling to 41% approval and 53% disapproval.

… CNN’s Harry Enten: “There are only two presidents who have net approval ratings negative at this point. One of them was Donald Trump in his first term and the other one, Donald Trump in his second term.”

… Stock trading spiked sharply yesterday in the hour leading up to Trump’s announcement that he was lifting most of the tariffs, causing many to question again whether Trump and his inner-circle are tipping off their friends to make millions and billions. Sen. Adam Schiff to Time: “I’m going to do my best to find out. Family meme coins and all the rest of it are not beyond insider trading or enriching themselves. I hope to find out soon.”

… Schiff: “I think what American businesspeople need is some certainty, some predictability. They're getting anything but. Americans who have seen their retirement savings wiped out need to be made whole.”

… Sen. Tim Kaine (D-VA): “When my own barber asks me whether Trump is selling short or doing this to try to make money for himself, it shows that a lot of people are pretty suspicious about what’s going on.”

… AOC: “Any member of Congress who purchased stocks in the last 48 hours should probably disclose that now. I’ve been hearing some interesting chatter on the floor. Disclosure deadline is May 15th. We’re about to learn a few things. It’s time to ban insider trading in Congress.”

I took a deep dive into the biggest stories of the week on my weekly podcast Uncovered yesterday. We kicked off the show with all the tariff news and behind the scenes feuds in the Trump Admin, and covered lots of other topics. Link to the show is here.

… Sen. Bernie Sanders on CNN: “Would I be surprised if there are were people who, hours before, knew exactly what Trump was going to do in rescinding his tariff proposals, understanding that the stock market would soar and you make huge amounts of mone? No, I would not.”

… Sen. Chris Murphy (D-CT): “An insider trading scandal is brewing. Trump's 9:30am tweet makes it clear he was eager for his people to make money off the private info