The Latest: EU targets products from GOP-led states in response to Trump tariffs

The European Union announced retaliatory trade actions Wednesday, focusing new duties on U.S. industrial and farm products from Republican-led states, within hours of the Trump administration’s 25% tariffs on all steel and aluminum imports. Trump promises the taxes will help create U.S. factory jobs, but his seesawing threats are jolting the stock market and raising fears of an economic slowdown.

The Education Department announced plans to lay off more than 1,300 employees, a prelude to Trump’s plan to entirely dismantle the agency. And the Trump administration is halting a $1 billion program that helps keep tens of thousands of units livable for low-income Americans, according to a document obtained by The Associated Press.

Here's the latest:

President Donald Trump spent the night angry at Rep. Thomas Massie

“GRANDSTANDER!” Trump posted on Truth Social, his social media platform, at 1:23 a.m.

The Kentucky congressman was the only House Republican to vote against legislation to prevent a government shutdown.

The president previously suggested Massie would face a primary challenge, although he’s been able to maintain support in his home state despite antagonizing leaders in Washington.

Massie said the funding legislation didn’t do enough to address the federal deficit. Trump and other Republicans have said that will be addressed in other measures this year.

Education Department cuts half its staff, a prelude to Trump's elimination

The Education Department plans to lay off more than 1,300 of its employees, a prelude to Trump’s plan to dismantle the agency.

The Trump administration had already been whittling the agency’s staff, through buyout offers and the termination of probationary employees. After Tuesday’s layoffs, the department’s staff will sit at roughly half of its previous 4,100, the agency said.

The layoffs are part of a dramatic downsizing directed by Trump as he moves to reduce the footprint of the federal government. Thousands of jobs are expected to be cut across the Department of Veterans Affairs, the Social Security Administration and other agencies.

Department officials said it would continue to deliver on its key functions such as the distribution of federal aid to schools, student loan management and oversight of Pell Grants.

Education Secretary Linda McMahon said when she got to the department, she wanted to reduce bloat to be able to send more money to local education authorities.

▶ Read more about the layoffs at the Department of Education

Trump’s 25% tariffs on all steel and aluminum imports go into effect

Trump officially increased tariffs on all steel and aluminum imports to 25% on Wednesday, promising that the taxes would help create U.S. factory jobs at a time when his seesawing tariff threats are jolting the stock market and raising fears of an economic slowdown.

Trump removed all exemptions from his 2018 tariffs on the metals, in addition to increasing the tariffs on aluminum from 10%. His moves, based off a February directive, are part of a broader effort to disrupt and transform global commerce.

Trump told CEOs in the Business Roundtable on Tuesday that the tariffs were causing companies to invest in U.S. factories. The 8% drop in the S&P 500 stock index over the past month on fears of deteriorating growth appears unlikely to dissuade him, as Trump argued that higher tariff rates would be more effective at bringing back factories.

▶ Read more about Trump’s tax on steel and aluminum

UK calls Trump tariffs disappointing but doesn’t retaliate

The British government called the Trump administration’s tariffs on global steel and aluminum imports “disappointing,” but said that it won’t impose retaliatory measures.

Business Secretary Jonathan Reynolds, however, did not rule out future tariffs on U.S. imports and said he would “continue to engage closely and productively with the U.S. to press the case for U.K. business interests.”

Britain is not part of the European Union, which Wednesday announced import taxes on American goods, ranging from steel and aluminum to bourbon, peanut butter and jeans in response to Trump’s move.

Center-left U.K. Prime Minister Keir Starmer has worked to build strong ties with Trump, in hope of avoiding the tariffs levied on many other U.S. trading partners.

▶ Read more about the UK not retaliating against Trump’s tariffs

The EU retaliates against Trump's tariffs, slapping duties on produce from Republican states

The European Union on Wednesday announced retaliatory trade action with new duties on U.S. industrial and farm products, responding within hours to the Trump administration’s increase in tariffs on all steel and aluminum imports to 25%.

The world’s biggest trading bloc was expecting the U.S. tariffs and prepared in advance, but the measures still place great strain on already tense transatlantic relations. Only last month, Washington warned Europe that it would have to take care of its own security in the future.

The EU measures will cover goods from the United States worth some 26 billion euros ($28 billion), and not just steel and aluminum products, but also textiles, home appliances and agricultural goods.

The EU duties aim for pressure points in the U.S. while minimizing additional damage to Europe. The tariffs — taxes on imports — primarily target Republican-held states.

▶ Read more about the EU’s tariffs on GOP states