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AP News Digest 6 p.m.

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AP News Digest 6 p.m.
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AP News Digest 6 p.m.

2024-07-15 06:07 Last Updated At:06:10

Here are the AP’s latest coverage plans, top stories and promotable content. All times EDT. For up-to-the-minute information on AP’s coverage, visit Coverage Plan in AP Newsroom.

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Italy's Giulio Ciccone applauds for cheering spectators as he climbs towards Plateau de Beille during the fifteenth stage of the Tour de France cycling race over 198 kilometers (123 miles) with start in Loudenvielle and finish on Plateau de Beille, France, Sunday, July 14, 2024. (AP Photo/Jerome Delay)

Italy's Giulio Ciccone applauds for cheering spectators as he climbs towards Plateau de Beille during the fifteenth stage of the Tour de France cycling race over 198 kilometers (123 miles) with start in Loudenvielle and finish on Plateau de Beille, France, Sunday, July 14, 2024. (AP Photo/Jerome Delay)

Kate, Princess of Wales waves as she arrives on Centre Court ahead of the men's singles final at the Wimbledon tennis championships in London, Sunday, July 14, 2024. (AP Photo/Kirsty Wigglesworth)

Kate, Princess of Wales waves as she arrives on Centre Court ahead of the men's singles final at the Wimbledon tennis championships in London, Sunday, July 14, 2024. (AP Photo/Kirsty Wigglesworth)

Martin Truex Jr. drives through Turn 3 during a NASCAR Cup Series auto race at Pocono Raceway, Sunday, July 14, 2024, in Long Pond, Pa. (AP Photo/Derik Hamilton)

Martin Truex Jr. drives through Turn 3 during a NASCAR Cup Series auto race at Pocono Raceway, Sunday, July 14, 2024, in Long Pond, Pa. (AP Photo/Derik Hamilton)

Spain's Mikel Oyarzabal, center, scores his side's second goal during the final match between Spain and England at the Euro 2024 soccer tournament in Berlin, Germany, Sunday, July 14, 2024. (AP Photo/Thanassis Stavrakis)

Spain's Mikel Oyarzabal, center, scores his side's second goal during the final match between Spain and England at the Euro 2024 soccer tournament in Berlin, Germany, Sunday, July 14, 2024. (AP Photo/Thanassis Stavrakis)

Palestinians evacuate a dead person from a site hit by an Israeli bombardment on Khan Younis, southern Gaza Strip, Saturday, July 13, 2024. Israel said it targeted Hamas’ shadowy military commander in a massive strike Saturday in the crowded southern Gaza Strip that killed at least 71 people, according to local health officials. Hamas immediately rejected the claim that Mohammed Deif was in the area. (AP Photo/Jehad Alshrafi)

Palestinians evacuate a dead person from a site hit by an Israeli bombardment on Khan Younis, southern Gaza Strip, Saturday, July 13, 2024. Israel said it targeted Hamas’ shadowy military commander in a massive strike Saturday in the crowded southern Gaza Strip that killed at least 71 people, according to local health officials. Hamas immediately rejected the claim that Mohammed Deif was in the area. (AP Photo/Jehad Alshrafi)

Palestinians evacuate a body from a site hit by an Israeli bombardment on Khan Younis, southern Gaza Strip, Saturday, July 13, 2024. Israel said it targeted Hamas' shadowy military commander in a massive strike Saturday in the crowded southern Gaza Strip that killed at least 71 people, according to local health officials. Hamas immediately rejected the claim that Mohammed Deif was targeted. (AP Photo/Jehad Alshrafi)

Palestinians evacuate a body from a site hit by an Israeli bombardment on Khan Younis, southern Gaza Strip, Saturday, July 13, 2024. Israel said it targeted Hamas' shadowy military commander in a massive strike Saturday in the crowded southern Gaza Strip that killed at least 71 people, according to local health officials. Hamas immediately rejected the claim that Mohammed Deif was targeted. (AP Photo/Jehad Alshrafi)

A campaign rally site for Republican presidential candidate former President Donald Trump is empty and littered with debris Saturday, July 13, 2024, in Butler, Pa. (AP Photo/Evan Vucci)

A campaign rally site for Republican presidential candidate former President Donald Trump is empty and littered with debris Saturday, July 13, 2024, in Butler, Pa. (AP Photo/Evan Vucci)

People hug after Republican presidential candidate former President Donald Trump was helped off the stage at a campaign event in Butler, Pa., Saturday, July 13, 2024. (AP Photo/Gene J. Puskar)

People hug after Republican presidential candidate former President Donald Trump was helped off the stage at a campaign event in Butler, Pa., Saturday, July 13, 2024. (AP Photo/Gene J. Puskar)

Republican presidential candidate former President Donald Trump is covered by U.S. Secret Service agents at a campaign rally, Saturday, July 13, 2024, in Butler, Pa. (AP Photo/Evan Vucci)

Republican presidential candidate former President Donald Trump is covered by U.S. Secret Service agents at a campaign rally, Saturday, July 13, 2024, in Butler, Pa. (AP Photo/Evan Vucci)

Republican presidential candidate former President Donald Trump is moved from the stage at a campaign rally, Saturday, July 13, 2024, in Butler, Pa. (AP Photo/Evan Vucci)

Republican presidential candidate former President Donald Trump is moved from the stage at a campaign rally, Saturday, July 13, 2024, in Butler, Pa. (AP Photo/Evan Vucci)

Republican presidential candidate former President Donald Trump is surrounded by U.S. Secret Service agents at a campaign rally, Saturday, July 13, 2024, in Butler, Pa. (AP Photo/Evan Vucci)

Republican presidential candidate former President Donald Trump is surrounded by U.S. Secret Service agents at a campaign rally, Saturday, July 13, 2024, in Butler, Pa. (AP Photo/Evan Vucci)

WEEKEND COVERAGE

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For weekend stories, please click here for the Weekend Lookahead digest.

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NEW/DEVELOPING

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FATAL-SHOOTING-BIRMINGHAM; ELECTION-2024-TRUMP-MISINFORMATION; ELECTION-2024-TRUMP-THE-IMAGE; ELECTION-2024-TRUMP-VICTIMS; OBIT-VIOLA; SOC-EURO-2024-FINAL; ELECTION-TRUMP-TIMELINE; BRITAIN-ROYALS

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TOP STORIES

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ELECTION 2024-TRUMP — Former President Donald Trump has called for unity and resilience after an attempt on his life added fresh uncertainty to an already tumultuous presidential campaign and raised sharp questions about how a gunman was able to open fire from a rooftop near a Pennsylvania campaign rally. By Julie Carr Smyth, Jill Colvin, Colleen Long, Michael Balsamo, Eric Tucker and Michelle L. Price. SENT: 1,870 words, photos, graphics, videos, audio. With ELECTION-TRUMP-SHOOTER — What we know about the 20-year-old suspect in the apparent assassination attempt of Donald Trump; ELECTION-TRUMP-TIMELINE; ELECTION 2024-TRUMP-WHAT TO KNOW; and ELECTION-2024-THE-LATEST. (All SENT.)

ELECTION 2024-TRUMP-THE IMAGE — Donald Trump had just been struck and was bleeding from the head after a barrage of bullets rang out at his rally when his Secret Service agents gave the go-ahead that it was safe to move from the stage. But Trump had something he needed to do. “Wait, wait, wait!” the former president could be heard telling his agents as he returned to his feet. Trump, his face smeared with blood, then forced his right fist through a tangle of agents’ arms and raised it high into the air before pumping his fist. “Fight!” he mouthed. SENT: 850 words, photos.

ELECTION-2024-BIDEN — President Joe Biden has appealed for the country to “unite as one nation” after the attempted assassination of his predecessor, Donald Trump, and said he was ordering an independent security review of how such an attack could have happened. Biden delivered short afternoon remarks from the White House after receiving a briefing on the investigation in the Situation Room. By Will Weissert and Zeke Miller. SENT: 930 words, photos.

ELECTION 2024-TRUMP-SECRET-SERVICE — The U.S. Secret Service is investigating how a gunman armed with an AR-style rifle was able to get close enough to shoot and injure former President Donald Trump at a rally Saturday in Pennsylvania, a monumental failure of one of the agency’s core duties. By Rebecca Santana, Michael Biesecker and Michael Kunzelman. SENT: 1,200 words, photos, video, audio. See below for more on the shooting at the Trump rally.

ISRAEL-PALESTINIANS — Hamas says that Gaza cease-fire talks continue and the group’s military commander is in good health, a day after the Israeli military targeted Mohammed Deif with a massive airstrike that local health officials said killed at least 90 people, including children. By Wafaa Shurafa and Melanie Lidman. SENT: 730 words, photos, videos, audio.

RUSSIA-HIGH-CRIMES — Treason cases were once rare in Russia, a handful each year. But they — along with espionage prosecutions — have skyrocketed since the invasion of Ukraine in 2022. The crackdown is ensnaring Russians and foreigners alike, regardless of their political views. By Dasha Litvinova. SENT: 1,580 words, photos, audio. This is the Monday spotlight. With RUSSIA-HIGH-CRIMES-CASES — Scientists, a journalist and even a bakery worker are among those convicted of treason in Russia; RUSSIA-HIGH-CRIMES-TAKEAWAYS. (All SENT.)

HOUSTON-POWER-OUTAGES-AGRICULTURE — The misery of Houston’s lasting power outages extend beyond the big city and onto surrounding farms and ranches, where everything from animal bedding to feed is harder to come by since Hurricane Beryl turned off the lights. Extreme weather like drought, floods and storms all hit farmers hard and scientists expect many of those nasty conditions to get worse as a result of climate change. By Melina Walling and Juan A. Lozano. SENT: 900 words, photos.

OBIT-SHANNEN-DOHERTY — The “Beverly Hills, 90210” star whose life and career were roiled by tabloid stories, Shannen Doherty has died at 53. Doherty’s publicist said the actor died Saturday following years with breast cancer. Catapulted to fame as Brenda in “Beverly Hills, 90210,” she worked in big-screen films including “Mallrats” and “Jay and Silent Bob Strike Back” and in TV movies including “A Burning Passion: The Margaret Mitchell Story,” in which she played the “Gone with the Wind” author. SENT: 1,160 words, photos, video audio.

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SHOOTING AT THE TRUMP RALLY

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ELECTION-2024-TRUMP-MISINFORMATION — Within minutes after Trump shooting, misinformation started flying. SENT: 970 words, photo.

ELECTION-2024-TRUMP-VICTIMS — Former fire chief who died at Trump rally used his body to shield family from gunfire. SENT: 680 words, photos.

ELECTION-2024-REAGAN-ASSASSINATION-ATTEMPT — President Ronald Reagan survived an assassination attempt and his response changed the trajectory of his presidency. SENT: 940 words, photos.

ELECTION 2024-TRUMP-REACTION — Condemnation of Trump rally shooting crosses party lines, and blame game and calls for probe begin. SENT: 850 words, photos, videos, audio.

ELECTION-2024-TRUMP-WORLD-REACTS — Global leaders condemn apparent assassination attempt targeting former US President Donald Trump. SENT: 1,230 words, photos, audio.

ELECTION-2024-TRUMP-HISTORY — A look at the history of presidential assassination attempts in America SENT: 1,160 words, photos.

ELECTION-2024-TRUMP-PHOTO-GALLERY — AP PHOTOS: Shooting at a Trump rally in Pennsylvania. SENT: 25 photos, 70 words.

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SPOTLIGHTING VOICES

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KENYA-BEES-AND-MANGROVES — Some conservation-minded Kenyans are trying to protect threatened mangroves from loggers by hiding beehives in them. One longtime resident on the country’s Indian Ocean coastline recalls pleading with loggers to spare the mangroves or at least cut selectively. It didn’t work. Now his bees are based in mangrove tops and are ready to sting unsuspecting loggers. It’s part of a local conservation project. By Zelipha Kirobi. SENT: 670 words, photos, video.

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ISRAEL-HAMAS WAR

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ISRAEL-BRITAIN — The new British foreign secretary has called for an immediate cease-fire in Gaza during a visit to Israel and the Palestinian territories, his second international trip since Labour’s resounding victory in elections earlier this month. SENT: 430 words, photo.

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MORE NEWS

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OBIT-VIOLA — Bill Viola, a video artist who combined with director Peter Sellars on a groundbreaking production of Wagner’s “Tristan und Isolde” originally seen in Los Angeles, Paris and New York, has died at age 73. SENT: 670 words, photos.

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NATIONAL

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BANK-FRAUD — What’s worse than thieves hacking into your bank account? When they steal your phone number, too. Associated Press writer Fatima Hussein recently fell victim to a type of fraud known as port-out hijacking, also called SIM-swapping. It’s a less-common form of identity theft, but the data shows its on the rise. SENT: 1,090 words, photo. With ONE-TECH-TIP-SIM-SWAPPING — One Tech Tip: Protecting yourself against SIM swapping. (SENT.)

FATAL-SHOOTING-BIRMINGHAM — Four people died in a shooting at a Birmingham nightclub late Saturday, while an earlier shooting outside a home in the city killed three people, including a young child, authorities in Alabama say. SENT: 380 words.

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INTERNATIONAL

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KOREAS-TENSIONS — The powerful sister of North Korean leader Kim Jong Un vowed to respond to what she called a fresh South Korean civilian leafleting campaign, signaling North Korea would soon resume flying trash-carrying balloons across the border. SENT: 400 words, photos.

MYANMAR-CONFLICT — Recently renewed combat in northeastern Myanmar between troops of the military government and ethnic minority militias has in the past few days become more complicated, as two minority groups not previously involved in the fighting stepped into the fray, claiming to act as a third force for stability. SENT: 750 words.

BRITAIN-ROYALS — King Charles III is preparing to visit Australia and Samoa in October, an itinerary that will span 12 time zones and test the monarch’s stamina as he recovers from cancer treatment. SENT: 590 words, photos.

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BUSINESS

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FINANCIAL-WELLNESS-AMAZON-PRIME-SALES — It’s summertime, and the bargains seem easy at a time when many consumer prices are high. July sales events have become a seasonal revenue driver for the retail industry since Amazon launched its first Prime Day in 2015. While consumers may be enticed by the advertised can’t-miss savings on some products, personal finance experts say shoppers should be careful not to fall for potentially misleading marketing or give in to impulse buys. SENT: 1,150 words, photos, audio.

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SPORTS

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SOC-EURO-2024-FINAL — Spain has won a record fourth European Championship title after Mikel Oyarzabal’s 86th-minute goal clinched a 2-1 victory over England, whose painful decades-long wait for a major trophy goes on. SENT: 650 words, photos.

WIMBLEDON — Carlos Alcaraz has defeated Novak Djokovic in the Wimbledon men’s final for the second year in a row to collect his fourth Grand Slam title at age 21. Alcaraz won 6-2, 6-2, 7-6 (4) on Sunday in front of a Centre Court crowd that included Kate, the Princess of Wales. SENT: 840 words, photos. With WIMBLEDON-PRINCESS-OF-WALES — Kate, Princess of Wales, is at Wimbledon in a rare public appearance since revealing she has cancer. (SENT.)

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HOW TO REACH US

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At the Nerve Center, Vincent K. Willis can be reached at 800-845-8450, ext. 1600. For photos, ext. 1900. For graphics and interactives, ext. 7636. Expanded AP content can be obtained from AP Newsroom. For access to AP Newsroom and other technical issues, contact apcustomersupport@ap.org or call 844-777-2006.

Italy's Giulio Ciccone applauds for cheering spectators as he climbs towards Plateau de Beille during the fifteenth stage of the Tour de France cycling race over 198 kilometers (123 miles) with start in Loudenvielle and finish on Plateau de Beille, France, Sunday, July 14, 2024. (AP Photo/Jerome Delay)

Italy's Giulio Ciccone applauds for cheering spectators as he climbs towards Plateau de Beille during the fifteenth stage of the Tour de France cycling race over 198 kilometers (123 miles) with start in Loudenvielle and finish on Plateau de Beille, France, Sunday, July 14, 2024. (AP Photo/Jerome Delay)

Kate, Princess of Wales waves as she arrives on Centre Court ahead of the men's singles final at the Wimbledon tennis championships in London, Sunday, July 14, 2024. (AP Photo/Kirsty Wigglesworth)

Kate, Princess of Wales waves as she arrives on Centre Court ahead of the men's singles final at the Wimbledon tennis championships in London, Sunday, July 14, 2024. (AP Photo/Kirsty Wigglesworth)

Martin Truex Jr. drives through Turn 3 during a NASCAR Cup Series auto race at Pocono Raceway, Sunday, July 14, 2024, in Long Pond, Pa. (AP Photo/Derik Hamilton)

Martin Truex Jr. drives through Turn 3 during a NASCAR Cup Series auto race at Pocono Raceway, Sunday, July 14, 2024, in Long Pond, Pa. (AP Photo/Derik Hamilton)

Spain's Mikel Oyarzabal, center, scores his side's second goal during the final match between Spain and England at the Euro 2024 soccer tournament in Berlin, Germany, Sunday, July 14, 2024. (AP Photo/Thanassis Stavrakis)

Spain's Mikel Oyarzabal, center, scores his side's second goal during the final match between Spain and England at the Euro 2024 soccer tournament in Berlin, Germany, Sunday, July 14, 2024. (AP Photo/Thanassis Stavrakis)

Palestinians evacuate a dead person from a site hit by an Israeli bombardment on Khan Younis, southern Gaza Strip, Saturday, July 13, 2024. Israel said it targeted Hamas’ shadowy military commander in a massive strike Saturday in the crowded southern Gaza Strip that killed at least 71 people, according to local health officials. Hamas immediately rejected the claim that Mohammed Deif was in the area. (AP Photo/Jehad Alshrafi)

Palestinians evacuate a dead person from a site hit by an Israeli bombardment on Khan Younis, southern Gaza Strip, Saturday, July 13, 2024. Israel said it targeted Hamas’ shadowy military commander in a massive strike Saturday in the crowded southern Gaza Strip that killed at least 71 people, according to local health officials. Hamas immediately rejected the claim that Mohammed Deif was in the area. (AP Photo/Jehad Alshrafi)

Palestinians evacuate a body from a site hit by an Israeli bombardment on Khan Younis, southern Gaza Strip, Saturday, July 13, 2024. Israel said it targeted Hamas' shadowy military commander in a massive strike Saturday in the crowded southern Gaza Strip that killed at least 71 people, according to local health officials. Hamas immediately rejected the claim that Mohammed Deif was targeted. (AP Photo/Jehad Alshrafi)

Palestinians evacuate a body from a site hit by an Israeli bombardment on Khan Younis, southern Gaza Strip, Saturday, July 13, 2024. Israel said it targeted Hamas' shadowy military commander in a massive strike Saturday in the crowded southern Gaza Strip that killed at least 71 people, according to local health officials. Hamas immediately rejected the claim that Mohammed Deif was targeted. (AP Photo/Jehad Alshrafi)

A campaign rally site for Republican presidential candidate former President Donald Trump is empty and littered with debris Saturday, July 13, 2024, in Butler, Pa. (AP Photo/Evan Vucci)

A campaign rally site for Republican presidential candidate former President Donald Trump is empty and littered with debris Saturday, July 13, 2024, in Butler, Pa. (AP Photo/Evan Vucci)

People hug after Republican presidential candidate former President Donald Trump was helped off the stage at a campaign event in Butler, Pa., Saturday, July 13, 2024. (AP Photo/Gene J. Puskar)

People hug after Republican presidential candidate former President Donald Trump was helped off the stage at a campaign event in Butler, Pa., Saturday, July 13, 2024. (AP Photo/Gene J. Puskar)

Republican presidential candidate former President Donald Trump is covered by U.S. Secret Service agents at a campaign rally, Saturday, July 13, 2024, in Butler, Pa. (AP Photo/Evan Vucci)

Republican presidential candidate former President Donald Trump is covered by U.S. Secret Service agents at a campaign rally, Saturday, July 13, 2024, in Butler, Pa. (AP Photo/Evan Vucci)

Republican presidential candidate former President Donald Trump is moved from the stage at a campaign rally, Saturday, July 13, 2024, in Butler, Pa. (AP Photo/Evan Vucci)

Republican presidential candidate former President Donald Trump is moved from the stage at a campaign rally, Saturday, July 13, 2024, in Butler, Pa. (AP Photo/Evan Vucci)

Republican presidential candidate former President Donald Trump is surrounded by U.S. Secret Service agents at a campaign rally, Saturday, July 13, 2024, in Butler, Pa. (AP Photo/Evan Vucci)

Republican presidential candidate former President Donald Trump is surrounded by U.S. Secret Service agents at a campaign rally, Saturday, July 13, 2024, in Butler, Pa. (AP Photo/Evan Vucci)

Next Article

Trump disrupts global economic order even though the US is dominant

2025-04-09 13:39 Last Updated At:13:41

WASHINGTON (AP) — By declaring a trade war on the rest of the world, President Donald Trump has panicked global financial markets, raised the risk of a recession and broken the political and economic alliances that made much of the world stable for business after World War II.

Trump's latest round of tariffs went into full effect at midnight Wednesday, with higher import tax rates on dozens of countries and territories taking hold.

Economists are puzzled to see Trump trying to overhaul the existing economic order and doing it so soon after inheriting the strongest economy in the world. Many of the trading partners he accuses of ripping off U.S. businesses and workers were already floundering.

“There is a deep irony in Trump claiming unfair treatment of the American economy at a time when it was growing robustly while every other major economy had stalled or was losing growth momentum,” said Eswar Prasad, professor of trade policy at Cornell University. “In an even greater irony, the Trump tariffs are likely to end America’s remarkable run of success and crash the economy, job growth and financial markets.’’

Trump and his trade advisers insist that the rules governing global commerce put the United States at a distinct disadvantage. But mainstream economists — whose views Trump and his advisers disdain — say the president has a warped idea of world trade, especially a preoccupation with trade deficits, which they say do nothing to impede growth.

The administration accuses other countries of erecting unfair trade barriers to keep out American exports and using underhanded tactics to promote their own. In Trump’s telling, his tariffs are a long-overdue reckoning: The U.S. is the victim of an economic mugging by Europe, China, Mexico, Japan and even Canada.

It's true that some countries charge higher taxes on imports than the United States does. Some manipulate their currencies lower to ensure that their goods are price-competitive in international markets. Some governments lavish their industries with subsidies to give them an edge.

However, the United States is still the second-largest exporter in the world, after China. The U.S. exported $3.1 trillion of goods and services in 2023, far ahead of third-place Germany at $2 trillion.

The fear that Trump’s remedies are deadlier than the maladies he’s trying to cure has sent investors fleeing American stocks. Since Trump announced sweeping import taxes on April 2, the S&P 500 has cratered 12%.

Trump and his advisers point to America’s lopsided trade numbers — year after year of huge deficits — as proof of foreigners’ perfidy. He’s seeking to restore justice and millions of long-gone U.S. factory jobs by taxing imports at rates not seen in America since the days of the horse and buggy.

“They’ve taken so much of our wealth away from us,” the president declared last week at a White House Rose Garden ceremony to celebrate the tariffs announcement. “We’re not going to let that happen. We truly can be very wealthy. We can be so much wealthier than any country.’’

But the U.S. is already the wealthiest major economy in the world. And the International Monetary Fund in January forecast that the United States would outgrow every other major advanced economy this year.

China and India did grow faster than the United States over the past decade, but their living standards still don’t come close to those in the U.S.

Manufacturing in the U.S. has been fading for decades. There is widespread agreement that many American manufacturers couldn’t compete with an influx of cheap imports after China joined the World Trade Organization in 2001. Factories closed, workers were laid off and heartland communities withered.

Four years later, nearly 3 million manufacturing jobs had been lost, though robots and other forms of automation probably did at least as much to reduce factory jobs as the “China shock.’’

To turn around this long decline, Trump has repeatedly unsheathed the tariffs that are his weapon of choice. Since returning to the White House in January, he’s plastered 25% taxes on foreign cars, steel and aluminum. He’s hit Chinese imports with 20% levies, on top of hefty tariffs he imposed on China during his first term.

On April 2, he blasted his big bazooka: 10% “baseline’’ tariffs on just about everybody and “reciprocal’’ tariffs on everyone else that the Trump team identified as bad actors, including tiny Lesotho (a 50% import tax) and China (34% before adding earlier levies).

Trump views tariffs as an all-purpose economic fix that will protect American industries, encourage companies to open factories in America, raise money for the U.S. Treasury and give him leverage to bend other countries to his will, even on issues that have nothing to do with trade, such as drug trafficking and immigration.

The president also sees a smoking gun: The United States has bought more from other countries than it has sold them every year for the past half-century. In 2024, the U.S. trade deficit in goods and services came to a whopping $918 billion, the second-highest amount on record.

Trump trade adviser Peter Navarro calls America’s trade deficits “the sum of all cheating’’ by other countries.

However, economists say trade deficits aren’t a sign of national weakness. The U.S. economy has nearly quadrupled in size, adjusted for inflation, during that half-century of trade deficits.

“There is no reason to think that a bigger trade deficit means lower growth," said former IMF chief economist Maurice Obstfeld, senior fellow at the Peterson Institute of International Economics and an economist at the University of California, Berkeley. “In fact, the opposite is closer to the truth in many countries."

A trade deficit, Obstfeld said, does not mean a country is losing through trade or being "ripped off."

The faster the U.S. economy grows, in fact, the more imports Americans tend to buy and the wider the trade deficit tends to get. The U.S. trade deficit — the gap between what it sells and what it buys from foreign countries — hit a record $945 billion in 2022 as the American economy roared back from COVID-19 lockdowns. Trade deficits typically fall sharply in recessions.

Nor are trade deficits primarily inflicted on America by other countries’ unfair trading practices. To economists, they’re a homegrown product, the result of Americans' propensity to save little and consume more than they produce.

American shoppers' famous appetite for spending more than the country makes means that a chunk of the spending is used for imports. If the United States boosted its saving — for example, by reducing its budget deficits — then that would reduce its trade deficit as well, economists say.

“It's not like the rest of the world has been ripping us off for decades,” said Jay Bryson, chief economist at Wells Fargo. “It's because we don't save enough.”

The flip side of America’s low savings and big trade deficits is a steady inflow of foreign investment as other countries sink their export earnings into the United States. Direct foreign investment into the U.S. came to $349 billion in 2023, the World Bank reported, nearly double No. 2 Singapore’s inflows.

The only scenario in which tariffs reduce the U.S. deficit is if they cause investment in the U.S. to crash, said Barry Eichengreen, an economist at the University of California, Berkeley. That "would be a disaster.’’

Harvard University economist Dani Rodrik said a “well-designed industrial policy” supported by select tariffs "might have fostered increased investment and capacity in manufacturing."

Instead, Rodrik said, Trump’s actions just “throw up a lot of uncertainty” and alienate America’s best allies, making for "a terrible policy all in all.’’

AP Economics Writer Christopher Rugaber contributed to this report.

President Donald Trump arrives to speak during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)

President Donald Trump arrives to speak during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)

An Indian worker checks thread reels on a carpet weaving machine at a factory on the outskirts of Jammu, India, Tuesday, April 8, 2025. (AP Photo/Channi Anand)

An Indian worker checks thread reels on a carpet weaving machine at a factory on the outskirts of Jammu, India, Tuesday, April 8, 2025. (AP Photo/Channi Anand)

Export vehicles are parked at Daikoku Pier in Yokohama, near Tokyo, Tuesday, April 8, 2025. (AP Photo/Hiro Komae)

Export vehicles are parked at Daikoku Pier in Yokohama, near Tokyo, Tuesday, April 8, 2025. (AP Photo/Hiro Komae)

Factory workers operate machines to make garments at UHM Ltd. in Narayaganj, Bangladesh, Tuesday, April 8, 2025. (AP Photo/Mahmud Hossain Opu)

Factory workers operate machines to make garments at UHM Ltd. in Narayaganj, Bangladesh, Tuesday, April 8, 2025. (AP Photo/Mahmud Hossain Opu)

The New York Stock Exchange is seen in New York, Tuesday, April 8, 2025. (AP Photo/Seth Wenig)

The New York Stock Exchange is seen in New York, Tuesday, April 8, 2025. (AP Photo/Seth Wenig)

Traffic flows on Interstate 5 past shipping containers near downtown Los Angeles, Tuesday, April 8, 2025. (AP Photo/Jae C. Hong)

Traffic flows on Interstate 5 past shipping containers near downtown Los Angeles, Tuesday, April 8, 2025. (AP Photo/Jae C. Hong)

Commerce Secretary Howard Lutnick holds a chart as President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

Commerce Secretary Howard Lutnick holds a chart as President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

Cranes move containers aboard the ship Polar Mexico at the Port of Philadelphia, Tuesday, April 8, 2025. (AP Photo/Matt Rourke)

Cranes move containers aboard the ship Polar Mexico at the Port of Philadelphia, Tuesday, April 8, 2025. (AP Photo/Matt Rourke)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein)

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