Trump says he’s joining Bessent and Lutnick for trade negotiations with Japanese at the White House

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By DARLENE SUPERVILLE and MARI YAMAGUCHI, Associated Press

WASHINGTON (AP) — President Donald Trump said he’s joining some of his top economic advisers on Wednesday for negotiations at the White House over tariffs and trade with a top Japanese official who is traveling to Washington for the talks.

The Republican president said in a post on his social media platform that he’ll attend the meeting alongside Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, top economic advisers with a central role in his trade and tariff policies.

Trump recently announced a round of global tariffs but then quickly put them on hold for 90 days after the markets tanked and fears of a recession mounted. He left steep tariffs in place against China.

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The move put Japan’s 24% across-the-board tariff on hold, but a 10% baseline tariff and a 25% tariff on cars, auto parts, steel and aluminum exports to the U.S. remain in place.

Japan, like many other nations around the world that are fearful of Trump’s tariffs and the likely economic fallout, has been scrambling to respond. It has set up a special task force to assess the impact of the tariffs and offer loans and consultation to anxious companies.

Although Prime Minister Shigeru Ishiba has been working hard to coax exemptions out of Trump, the government has said little officially on what concessions it might offer during these talks.

“Japan is coming in today to negotiate Tariffs, the cost of military support, and ‘TRADE FAIRNESS.’ I will attend the meeting, along with Treasury & Commerce Secretaries,” Trump wrote in the social media post. “Hopefully something can be worked out which is good (GREAT!) for Japan and the USA!”

Japan’s chief trade negotiator, Economic Revitalization Minister Ryosei Akazawa, was headed to Washington on a mission to convince U.S. officials to remove Trump’s tariff measures against the East Asian ally of the United States.

Akazawa is to hold his first talks with Bessent and U.S. Trade Representative Jamieson Greer through Friday.

“I am prepared for the talks,” Akazawa told reporters at Tokyo’s Haneda Airport before boarding his flight to Washington. “I will negotiate in order to firmly protect our national interest.”

He said that both Bessent and Greer are “known to be pro-Japan and professionally talented” and that he hopes to build a relationship of trust with them. “I believe we can have good talks toward a win-win relationship that will serve national interest for both Japan and the United States.”

FILE – Ryosei Akazawa, newly appointed Minister in charge of Economic Revitalization, arrives at the prime minister’s office Tuesday, Oct. 1, 2024, in Tokyo. (AP Photo/Hiro Komae)

Japan is among the first countries to start negotiations with the U.S. Trump and other administration officials have said the phones have been “ringing off the hook” with dozens of countries calling, eager to strike deals with a president who views himself as a master negotiator to avoid tariffs when the 90-day pause ends.

But it was not immediately clear what either side hoped to get out of the negotiations. The U.S. asks remain unclear, other than Trump’s desire for no bilateral trade deficit.

Japan’s asks also are unclear, although it contends that Trump’s tariff measures are likely to violate bilateral trade agreements or World Trade Organization rules. While Ishiba has said he opposes retaliatory tariffs, he also has said he is in no rush to push for a settlement because he doesn’t want concessions.

Trump said he also wants to discuss U.S. military support for Japan, or how much the Japanese contribute to the cost of American troops stationed there, largely as a deterrent to China.

Trump’s demand for more defense spending concerns the Japanese.

Under its national security strategy, Japan aims to double annual defense spending to nearly $10 trillion, or 2% of GDP, in 2027, while there is a concern that Trump may ask for that to be increased to 3% of GDP. Japanese Defense Minister Gen Nakatani said Tuesday that the military budget for this year is about 1.8% of Japan’s GDP.

Yamaguchi reported from Tokyo.

Retail sales rise 1.4% in March as shoppers stock up on big ticket items ahead of tariffs

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By ANNE D’INNOCENZIO, Associated Press Retail Writer

NEW YORK (AP) — U.S. shoppers increased their shopping last month, fueled by a spending spree on big ticket items from gadgets to cars before President Donald Trump’s expansive new tariffs started kicking in.

Retail sales rose 1.4% in March, after rising 0.2% in February, according to the Commerce Department. Retail sales fell 1.2% in January, hurt in part by cold weather that kept more Americans indoors, denting sales at car dealers and most other stores.

Excluding sales at dealers of autos and parts, sales only rose 0.5%.

Sales at dealers of autos and parts rose 5.3%, while electronics retailers had a 0.8% increase. Sporting goods retailers enjoyed a 2.4% gain. Grocery stores saw a 0.1% increase and clothing and accessories stores had a 0.4% increase. Online retailers posted a 0.1% gain and restaurants had a 1.8% increase. However, furniture and home furnishings stores posted a 0.7% decline.

“These are simply blow out numbers on March retail sales where the rush is on like this is one gigantic clearance sale,” said Christopher S. Rupkey, chief economist at FWDBonds LLC in a published note. “Consumers are expecting sharply higher prices the next year and are clearing the store shelves and picking up bargains while they can. ”

Analysts expect that sales will start falling off as the slew of tariffs increase costs for companies and many retailers are forced to raise prices, hurting shopper demand. Consumers’ confidence has already taken a hit. And a growing number of retailers and suppliers are halting shipments from China as well as pausing orders as they wait to see where the tariffs settle. In some cases, they are canceling orders.

The result of the trade wars so far: a baseline tariff on most countries of 10%, with imports from China getting taxed at a combined 145%. Goods from Canada and Mexico face tariffs of up to 25%, while imported autos, steel and aluminum are taxed at that same rate. China retaliated last week with a 125% tariff on U.S. goods.

Early this month, Trump announced sweeping and steep tariffs on nearly all trading partners. But after Trump’s U- turn last week that paused the new tariffs on about 60 nations for 90 days, average U.S. duties remain much higher than a couple of months ago.

Last Friday, the Trump administration announced tariff exemptions on electronics like smartphones and laptops but a few days later said they’re only a temporary reprieve.

Amid lots of uncertainty, U.S. consumer sentiment plunged in April, the fourth consecutive month of drops, in a seemingly sharp disapproval of Trump’s trade wars that have fueled anxiety over possible job cuts and rising inflation.

The preliminary reading of the University of Michigan’s closely watched consumer sentiment index, released Friday, fell 11% on a monthly basis to 50.8, the lowest since the depths of the COVID-19 pandemic. Over the past year, confidence has dropped 34%.

Analysts say that the big retailers will be able to navigate better than the smaller ones which don’t have the clout to absorb extra costs or pressure their suppliers. But it also depends on the type of goods they sell, particularly if they have goods sources from overseas.

Ashley Hetrick, principal and sourcing and supply chain segment leader at accounting firm BDO, noted that stores are taking a “wait and see” approach when it comes to ordering goods and are more cautious about ordering seasonal items because they have a shorter shelf life. She said that the cancelling of orders hasn’t been widespread.

Walmart executives offered a dose of confidence last week that the retailer will keep delivering low prices as it navigates Trump’s escalating trade wars with China.

But the nation’s largest retailer, whose competitive prices became a strong magnet for inflation-weary shoppers, told analysts that it’s still vulnerable to the challenges and is monitoring the fluid tariff situation. The company told analysts that sales have been volatile.

“While in the short term, we’re not immune to the effects, we are positioned to play offense,” Walmart’s CEO Doug McMillon said at an investor meeting. “Nothing about the current environment impacts our confidence in our business or our strategy.”

Amazon’s CEO Andy Jassy said last week that the company has been doing everything it can to keep prices low for customers, including bringing in goods early ahead of the barrage of tariffs and negotiating with suppliers.

But Jassy told CNBC’s Andrew Sorkin Thursday that its network of third-party sellers will have to pass on the higher costs to sellers.

“Depending on which country you’re in, you don’t have 50% extra margin that you can play with, so I think that they’ll try and pass the cost on,” Jassy said.

Jassy said that he hadn’t seen a notable change in consumer behavior since Trump’s sweeping tariffs. And while he sees that some shoppers are stocking up ahead of price increases, the data is limited and he was not sure how broad-based that behavior is.

But according to Bloomreach, which tracks sales from more than 1,000 global brands and retailers overall, North American e-commerce revenue marginally increased 0.4% during the week of March 31 compared with the first week of March. But sales increased 6% between the week of March 24 and the week of March 31.

Online sales in apparel increased 44.8% during the week of March 31 compared with the first week of March, according to Bloomreach.

RFK Jr.’s mixed message about the measles outbreaks draws criticism from health officials

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By AMANDA SEITZ, Associated Press

WASHINGTON (AP) — As measles outbreaks popped up across the U.S. this winter, pediatricians waited for the nation’s public health agency to send a routine, but important, letter that outlines how they could help stop the spread of the illness.

It wasn’t until last week — after the number of cases grew to more than 700, and a second young child in Texas had died from a measles infection — that the Centers for Disease Control and Prevention finally issued its correspondence.

The delay of that letter may seem minor. But it is one in a string of missteps that more than a dozen doctors, nurses and public health officials interviewed by The Associated Press identified in the Trump administration’s response to the outbreak.

Health secretary Robert F. Kennedy Jr.’s efforts to contain an epidemic in a tight-knit, religious community in West Texas have run counter to established public health strategies deployed to end past epidemics.

“What we are lacking now is one, clear strong voice — from the federal to the state to the local — saying that the vaccine is the only thing that will prevent measles,” said Patricia Stinchfield, a nurse and infectious disease expert who helped stop a 2017 measles outbreak in Minnesota’s Somali community.

An ‘extremely unusual’ approach to the outbreak

Behind the scenes, Kennedy has not been regularly briefed in person on the outbreak by his own infectious disease experts at the CDC at least through March 21, according to Kevin Griffis, a career staffer who worked as the agency’s communications director until he resigned that day.

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Even after the measles claimed its first young Texas victim in late February, Kennedy had still not been briefed by CDC staff, Griffis said. His account was confirmed by a second former federal health official, who resigned at the end of February.

A spokesperson for Kennedy did not answer specific written questions about how he had been briefed or his communications with CDC staff.

The spokesperson said the CDC activated an Atlanta-based response in early February to provide overall guidance on measles testing and vaccination strategy. An on-the-ground team was deployed to West Texas throughout most of March and withdrawn on April 1.

It was a “joint decision” between state and federal officials to send the team home, CDC spokesman Jason McDonald said. Another team of seven was dispatched back to the region this week.

In previous administrations, health secretaries held weekly briefings with CDC staff, lasting between 25 and 30 minutes, during infectious disease outbreaks, both former HHS officials said. Kennedy, instead, received updates on paper or through email, Griffis said.

“That is extremely unusual,” said Griffis, who sat in on such briefings with the previous health secretary and said that none were held for Kennedy during his first month on the job. “I’ve never seen that before.”

In another irregularity, the American Academy of Pediatrics, the nation’s largest network of pediatricians, has not been tapped to work with the CDC on the outbreak, according to the organization’s officials. Historically, the CDC and AAP have convened for monthly or biweekly briefings during outbreaks to share updates, which include details about what doctors are seeing and questions they’re fielding from parents in exam rooms. The officials spoke on the condition of anonymity to freely discuss the health department’s response.

The only updates provided widely to pediatricians by the CDC have come from a health alert network update sent on March 7, a week after the first U.S. measles death in a decade, and the letter sent to providers last week, which, according to the pediatric academy officials, was late in the outbreak.

Kennedy praised the CDC on Tuesday during an event in Indianapolis, saying it “had done a very good job controlling the measles outbreak.”

Kennedy endorses vaccines, but still raises safety doubts

Kennedy’s inconsistent and unclear message on the measles vaccines has also made the outbreaks difficult to contain, experts say.

He has occasionally endorsed the measles, mumps and rubella vaccine as “effective,” but also continues to raise safety concerns about the shots in other statements. In a CBS interview last week, he claimed the vaccines were “not safety tested.”

That approach has been the biggest flaw of the government’s response, said Dr. Carlos del Rio, the president of the Infectious Disease Society of America.

“Imagine if the captain of the Titanic had told you that you need to be careful about lifeboats and think about other opportunities,” del Rio said.

Trials were conducted on thousands of children before the vaccine was approved for use in the 1960s. The federal government has since used medical records to continue to monitor for side effects from use in millions of people since.

Health secretaries have typically delivered a clear message urging the public to get vaccinated during outbreaks, said Dr. Anne Schuchat, a former deputy director at the CDC who retired after 33 years at the agency in 2021.

President Donald Trump and his first-term health secretary, Alex Azar, urged people to get shots during news conferences in 2019, when measles ripped through Brooklyn and infected more than 1,200 nationwide.

“You don’t necessarily need the secretary of health to attend a funeral, OK, but you don’t want to have mixed messages on vaccines,” Schuchat said. “Someone in a federal building in Washington can do a lot of harm from the way that they are messaging.”

Texas Gov. Greg Abbott also quiet on vaccines

Local leaders have largely been left alone to urge the public to take up vaccinations.

Texas Gov. Greg Abbott, a Republican, has not urged the public to get vaccinated, either. He has not held any news conferences about the outbreak and posted just once on social media about measles since January. Any statements about the illnesses, which have also put 56 people in the hospital at some point, have been left to his aides.

Abbott’s office did not respond to questions about his response to the outbreak.

Governors in other states have responded more forcefully to the growing measles case count. Hawaii Gov. Josh Green, a Democrat and a doctor, made front page news last week after urging Hawaiians to take up vaccines when the state recorded its first measles case in a year.

Ahead of a busy travel week for the Easter holiday, Nebraska Gov. Jim Pillen, a Republican, unequivocally called on people to vaccinate themselves and their children. There are no known measles cases in Nebraska, but an outbreak is active in neighboring Kansas.

“If you’re not vaccinated, you’re going to get measles,” Pillen said last week.

Those types of statements are important for the public to hear leaders say from the top down, said Dr. Oxiris Barbot, who was New York City’s health commissioner during the 2019 measles outbreak.

Barbot worked with local rabbis, as well as doctors and nurses in the Jewish community, to send messages that encouraged vaccine uptake. Calls from Trump and Azar, who urged the public to vaccinate, helped her make the case, too.

When national leaders distance themselves from that message, she said it “starts to erode the effectiveness of people who are trying to convey those messages at the local level.”

Associated Press writers Paul Weber in Austin, Texas, Devi Shastri in Milwaukee and Margery Beck in Omaha contributed to this report.

China appoints a new trade negotiator during tariff fight with the US

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By CHRISTOPHER BODEEN, Associated Press

TAIPEI, Taiwan (AP) — China appointed a new trade negotiator Wednesday in the midst of its tariff fight with the U.S.

The government said Li Chenggang replaces Wang Shouwen, who participated in negotiations for the 2020 trade deal between the China and the U.S.

The world’s two largest economies have been steadily increasing tariffs on each other’s goods. China faces 145% taxes on exports to the U.S., while dozens of other countries were given a 90-day reprieve for most duties.

Earlier on Wednesday, China announced its economy expanded at a 5.4% annual pace in January-March, supported by strong exports. Analysts are forecasting that the world’s second largest economy will slow significantly in coming months, however, as tariffs on U.S. imports from China take effect.

Exports were a strong factor in China’s 5% annual growth rate in 2024, and the official target for this year is also about 5%.

Beijing has hit back at the U.S. with 125% tariffs on American exports, while also stressing its determination to keep its own markets open to trade and investment.

In the near term, the tariffs will put pressure on China’s economy, but they won’t derail long-run growth, Sheng Laiyun, a spokesperson for the National Bureau of Statistics, told reporters earlier.

It wasn’t clear why China was changing negotiators but the move comes as Chinese officials say the country has multiple options to respond to U.S. actions, including relying more on its own vast market of 1.4 billion consumers, and on Europe and countries in the global south. But as China’s domestic consumption continues to languish, it will be difficult to replace the U.S. consumer.

China also imposed more export controls on rare earths, which include materials used in high-tech products, aerospace manufacturing and the defense sector.

Prior to his new appointment, Li spent about 4 1/2 years as China’s ambassador to the World Trade Organization, the body that governs global commerce and to which Beijing has appealed in its tariff dispute with the U.S.

He was also deputy permanent representative to the Chinese delegation to the U.N. office in Geneva and other international organizations in Switzerland.

Perhaps more so than his predecessor Wang, Li’s experience at the Commerce Ministry and his participation in negotiating China’s accession to the WTO more than 20 years ago stand him in good steed as China continues to refuse to cave in to U.S. demands, said Tu Xinquan, director of the China Institute for WTO Studies at the University of International Business and Economics.

Still, a bevy of higher-ranking leaders from President Xi Jinping on down is likely to chart the course, with Li representing their case in any talks with the U.S., Tu said, adding that Li is considered pro-free trade.

“There might be another style of negotiations. Li Chenggang is an open-minded person and supports free trade,” Tu said.

Xi, meanwhile, was making the case for China as a source of “stability and certainty” in global free trade as he tours Southeast Asia this week — implying that China is a more reliable trade partner than the U.S.

After first visiting Vietnam, he arrived in Kuala Lumpur, Malaysia’s capital, later Tuesday, for a three-day visit and will end his tour with a stop in Cambodia. In Malaysia, Xi is expected to discuss a free trade agreement between China and 10-member Association of Southeast Asian Nation, one of several funds and agreements China has led as a means of sidestepping organizations and mechanisms dominated by the U.S. and the West.

Asked about the possibility of talks with the U.S., Chinese Foreign Ministry spokesperson Lin Jian said the U.S. had begun the tariff spat and China was only “taking necessary countermeasures to defend its legitimate rights and interests and international fairness and justice.”

“If the U.S. truly wants to resolve the issue through dialogue and negotiation, it should stop using maximum pressure and stop threats and blackmail. For any dialogue to happen, it must be based on equality, respect and mutual benefit,” Lin said at a daily briefing.