Today in Politics, Bulletin 110. 4/11/25

… Wall Street fund managers are concerned that Trump might be clinically insane. The New Republic highlighted recent statements made from managers who think that Trump’s behavior indicates he might’ve lost his marbles.

… Tom Lee, head of research at FSInsights: “In the last few days, we have had many conversations with macro fund managers, and their concern is that the WH is not acting rationally, but rather on ideology. And some even fear that this may not even be ideology - a few have quietly wondered if the President might be insane.”

… Rep. Jasmine Crockett (D-TX): “I like the fact that they sat around and called Joe Biden sleepy Joe Biden. But at least you could sleep at night because you didn't have to worry about your 401 K disappearing.”

… The average mortgage rate on 30-year fixed surged 1.3 basis points today to 7.1%.

… Matthew Graham, COO of Mortgage News Daily: “There have been some bad weeks for bonds here and there over the careers of most anyone who’s alive to read these words, but unless your career began before 1981, you just lived through the worst week you’ve ever seen in terms of the jump in 10-year yields.”

… As Trump waits by the phone for President Xi to call to negotiate tariffs, China responded by raising reciprocal tariffs to match those imposed by Trump on China, and said they will ignore him from this point forward. The Ministry of Finance: “Given that, at the current tariff level, US exports to China are no longer commercially viable, China will not respond to any further tariff hikes by the US on Chinese goods.”

… CNN reported that behind the scenes, officials in the Trump Admin have been trying desperately to get Xi to make the first move and call Trump. As Trump waited and waited, China ignored them and simply responded by announcing reciprocal tariffs with no call.

… “Two senior WH officials said that the US will not reach out to China first. Trump has told his team that China must be the first to make the move. That stance has been conveyed to Beijing for roughly two months, with Trump’s team clearly telling Chinese officials that Xi should request a call with Trump. But Beijing has repeatedly refused to arrange a leader-level phone call, according to three sources familiar with the official communications.”

… During a meeting with the Spanish PM, Xi was asked about the trade war with the US: “For over 70 years, China’s development has relied on self-reliance and hard work - never on handouts from others, and it is not afraid of any unjust suppression.”

… The Commerce Ministry also issued a statement saying that US tariffs have reached a level where they no longer have any “economic significance,” and are just being used by Trump as a “tool of bullying and coercion” that has made the US a “joke.”

… Reporter to Press Secretary Karoline Leavitt: Why would allies work with us to isolate China in a trade war if we are treating friend and foe alike? Leavitt: “You will have to talk to allies reaching out to us. The phones are ringing off of the hooks.”

… Reporter: Why is Trump optimistic that China wants to make a deal if they’re not talking? Where is that coming from? Leavitt: “He’s optimistic.”

… CBS reported that some businesses are now showing “Trump Tariff Surcharges” on receipts and bills to customers. Dame, a sexual wellness brand that makes adult toys and personal care products, even implemented a flat $5 "Trump tariff surcharge" that is automatically added to customers' online shopping carts at checkout.

… Dame CEO Alexandra Fine said most of their sex toys and products are made in China: "Our whole industry is in China, so we've already seen the impact. The intention of adding the Trump tariff surcharge as a line item at checkout was to remind people that this is an extra tax on us. I wanted people to understand why it's more expensive - that it's because of political decisions that were made."

… Rep. Riley Moore (R-WV) on China: "President Trump has done a brilliant job negotiating this. This is gonna be the biggest deal any president has closed since the Louisiana Purchase under Thomas Jefferson. It's gonna reorient the United States in that big of a manner. It's gonna be huge. It's gonna save states like WV."

… Bloomberg reported that Tesla stopped taking orders in China for Model S sedans and Model X sport utility vehicles — both of which are imported from the US — after the countries raised tariffs on one another in an escalating trade war because it will be impossible to sell them at the tariffed price.

… Reuters: “Tesla suspends taking orders for Model S and Model X in China → Tesla is probably DONE in China. This isn’t about ‘demand adjustments’ or ‘supply chain.’ This is China quietly killing off Tesla without saying it out loud. Why? 1. China is protecting BYD and its own EV industry. 2. Tesla became a Western pawn in a trade war. 3. Chinese buyers don’t trust instability – tariffs, Trump, Elon’s chaos — it’s poison in their market. 4. And this → EU cutting tariffs on Chinese EVs?

… China doesn’t need Tesla anymore. → Tesla’s future = Europe squeezed by Mercedes, BMW EVs. → China = dominated by BYD and local brands. → U.S. = hostile market with trade war uncertainty. Musk played both sides for too long. China just reminded him — they control the board, not him.”

… Bloomberg reporter Kiel Porter shared a personal experience of how the tariffs are making new cars difficult to sell as people turned to used ones: “History is now repeating itself somewhat after Trump’s tariff shock. This week, I got a panicked call from a manager at the dealership that sold me my CR-V. ‘I need to buy your car back, sir, and I’m willing to pay substantially more than you paid for it,’ he said.”

… “I asked if it was because there was a problem with the vehicle, and he replied that no — on the contrary, it was just the kind of car he could sell straight away. His lot of used vehicles that he typically keeps stocked with around 100 cars was below 40 and he was furiously looking to replenish inventory.”

… CNBC: “Many sellers on Amazon count on China for manufacturing and assembly due to lower costs and established infrastructure – up to 70% of goods on Amazon come from China, according to Wedbush Securities. With nearly all imports from China being taxed a staggering 145% under the latest tariffs, Amazon sellers are having to decide whether to raise prices or absorb the vastly increased cost of importing their goods.”

… “Dusty Kenney showed CNBC hundreds of boxes filled with her PrimaStella brand baby spoons, bento boxes and other kids products: “The admin would like people to think that this is a China problem, and that this is only hurting Chinese-based businesses and helping US-based businesses. But I am a US-based business. Everything’s warehoused here, designed here, photographed here. All the income that comes from that stays here.”

… French PM Macron: “The temporary suspension of US tariffs for 90 days is both a signal and an opening for negotiation. Yet this pause remains fragile. Fragile, because the 25% duties on steel, aluminum and automobiles, as well as the 10% tariffs on other products, are still in place. They amount to €52 billion in duties on the European Union. Fragile, because 90 days of pause means 90 days of uncertainty for our businesses, on both sides of the Atlantic and beyond.”

… “Alongside the European Commission and in full unity, our goal is clear: to negotiate the removal of these unfair tariffs and reach a balanced agreement without asymmetry. We must remain strong. Europe must keep working on all necessary countermeasures and mobilize every available tool to protect itself, including against redirected flows from third countries that risk destabilizing our market. France is ready. Europe must be too. Let us stay clear-eyed, united, and determined to defend our interests.”

Whew, what a week! 5 monster Bulletins which averaged 337,000 reads each, plus my podcast Uncovered which was watched by 222,000 people. The goal here is to build the best-informed army of activists as we gear up defeat this toxic MAGA movement one step at a time. It is going to be a long road and isn’t going to be easy, but knowledge is a key component. I try to do my part each day to arm you with as many key facts and info as possible.

If you missed yesterday’s Bulletin, you can read it here.

It has been especially difficult these past two days with The Masters on. The good news is that all 3 golfers I bet on made the cut to the weekend, so I will unplug from the news tomorrow to watch those guys before a nice dinner at our favorite restaurant in town. Thanks to all for supporting my work and I will see you all with the Weekend Bulletin on Sunday night!

… Col. Susannah Meyers, the Commander of the US Space Force base in Greenland, has been fired by Sec Def Pete Hegseth for disloyalty after she sought to distance the military base from political comments made by JD Vance about the host country.