The Morning Sixpack - April 30, 2025

US cracks down on foreign students, Trump tariffs taking YUGE toll on US economy, and Wisconsin judge arrested and then suspended from her position.

U.S. Cracks Down on International Students with New Policy for Legal Status Termination

The U.S. government has unveiled a controversial new policy that expands the grounds for terminating international students' legal status, including the revocation of their visas.

This crackdown, recently revealed through ongoing lawsuits, has left thousands of students in turmoil, with some fearing deportation or being forced to abandon their studies. While federal officials announced the restoration of students' legal status amidst mounting court challenges, the new framework dramatically increases ICE's authority to cancel legal status based on minor infractions or even no charges at all.

In a recent court filing, immigration attorney Brad Banias criticized the new guidelines, asserting that the policy grants ICE "carte blanche" to deport students, even when they’ve committed no significant violations. Many of the affected students, like Akshar Patel, a Texas student whose status was initially terminated over a dropped reckless driving charge, are now scrambling to regain their legal footing. The government, using a National Crime Information Center database to track student records, removed students’ names from an immigration database without proper review, prompting chaos at colleges across the country.

The situation has raised serious questions about due process and the government's commitment to students who have followed the law. U.S. District Judge Ana Reyes, in a hearing, expressed frustration over the rushed decision-making and lack of concern for the individuals involved, calling for a more thoughtful approach moving forward.

Source: AP News

This has ELON MUSK and DOGE written all over it… Oh, and Baby Goebbels, Stephen Miller:

Shipping Crisis Looms as Port of Los Angeles Braces for 35% Drop in Volume Due to China Tariffs

The Port of Los Angeles is preparing for a dramatic 35% drop in cargo volume next week as the impact of President Donald Trump's tariffs on China starts to take its toll.

Gene Seroka, the executive director of the port, announced that the slowdown is already becoming evident, with major U.S. retailers slashing their import orders in response to the rising costs. The port’s business, which relies heavily on Chinese imports, is facing a sharp decline in shipments, and it could have ripple effects across the U.S. economy.

"This is a precipitous drop in volume with a number of major American retailers stopping all shipments from China based on the tariffs," Seroka said during an appearance on CNBC’s Squawk Box.

As tariffs on Chinese goods ramp up, many U.S. companies are forced to re-evaluate their supply chains, leading to significant disruptions in the usual flow of goods. Seroka also noted that some companies are attempting to make up for the lost Chinese shipments by picking up cargo in other parts of Southeast Asia, but that’s unlikely to fill the void completely.

The downturn in shipments from China, which makes up about 45% of the business for the Port of Los Angeles, is expected to worsen in May, with roughly a quarter of the usual number of arriving ships likely to be canceled. Seroka explained that until there’s a resolution to the ongoing trade conflict between the U.S. and China, the volume of goods flowing through the port will remain low, with only a few select commodities escaping the broader decline.

The broader economic impact of the tariff war is already being felt, with economists warning of potential layoffs in transportation and retail industries. Apollo Global Management's chief economist, Torsten Slok, has predicted that lower imports from China could lead to empty store shelves, further driving up inflation, and potentially even triggering a recession later this year.

Source: CNBC

But wait, it gets better! Read on.

U.S. Economy Contracts for First Time in Three Years as Trump Tariffs Spark Record Trade Deficit

The U.S. economy shrank by 0.3% in the first quarter of 2025, marking the first contraction in three years.

The decline is largely attributed to the fallout from President Donald Trump's tariffs, which triggered a record surge in imports as businesses rushed to stock up on foreign goods before tariffs increased their costs. The trade deficit alone cut a staggering 4.8 percentage points off GDP, highlighting the deep economic disruption caused by the ongoing trade wars.

While the surge in imports ahead of tariff hikes significantly impacted the GDP, consumer spending also slowed considerably. Spending grew just 1.8% in the first quarter, well below the previous quarter’s gains, as Americans pulled back on purchases following a strong holiday season. Despite a brief uptick in spending late in the quarter—primarily driven by car sales—economists warn that consumer and business confidence are expected to decline further, leading to even slower economic growth.

The economic slowdown is further exacerbated by business investment, which spiked due to tariff-driven stockpiling, and government spending cuts. With trade wars escalating and inflation pressures mounting, the Federal Reserve faces a tough decision on whether to adjust interest rates to combat inflation or brace for a potential recession. The road ahead remains uncertain, with the White House working to negotiate new trade deals that may take time to yield results.

Source: MarketWatch

Trump is a one-man economic wrecking crew! This is going to be BAD.

Amazon Bows to Trump Pressure, Denies Plans to Display Tariff Impact After White House Criticism

In a stunning capitulation, Amazon’s Jeff Bezos backed down from his plans to show how much President Trump's tariffs were inflating prices at checkout, after a public scolding from the White House and a personal phone call from Trump.

The e-commerce giant had considered displaying these price increases on its budget-friendly Haul site, but swiftly retreated after President Trump called Amazon CEO Jeff Bezos to voice his concerns. The White House wasted no time, calling the idea “a hostile and political act” and slamming the company for timing its tariff disclosure with the Biden administration's inflation surge.

Despite the backlash, Amazon tried to downplay the situation, claiming that the tariff impact display was “never approved” and would not be implemented. However, the damage was done. Shares dipped slightly in early trading after White House press secretary Karoline Leavitt fired off her comments, making it clear that the administration wouldn’t tolerate Amazon’s potential political move.

While Amazon was forced to backpedal, the company had been preparing for the expiration of a tariff exemption on small shipments from China, which had benefited low-cost competitors like Temu and Shein. These e-commerce players had flourished under the exemption, but Amazon was hoping to counteract the rising prices by offering ultra-cheap goods on Haul. However, the pressure from the Trump administration put a quick stop to those plans, leaving Amazon scrambling to figure out how to maintain its competitive edge as tariffs take full effect.

Source: WSJ

When has it ever been okay for a president to tell a business what to do and how to run their operations? Never. Okay, times of war—maybe?

Trump’s Tariff War Threatens to Derail U.S. Supply Chains, Pushing Economy Toward Shortages and Price Hikes

President Trump's trade war with China, still in its early weeks, is already starting to send shockwaves through global supply chains.

According to experts, even if the tariffs were lifted today, the repercussions would continue for months—maybe even years. As businesses scramble to adjust to erratic policies and ongoing disruptions, U.S. consumers are already bracing for empty shelves and rising prices.

“We are in a period of unprecedented disruption that's not going to stop,” says Bryan Gross, principal in operations transformation at PwC. The chaos stems not just from the pandemic’s lingering effects but also from the unpredictable nature of the trade war. As of now, retail CEOs and economists are warning that we could see shortages of goods as soon as a few weeks from now, and any disruptions are expected to grow more severe in the long term.

Even as some businesses try to manage their inventory in anticipation of these disruptions, others are already facing the consequences of a trade embargo with China. Retailers are grappling with the fallout of tariffs that have pushed up prices, and the toy industry, for example, may soon be forced out of business due to the skyrocketing costs. “They’re either going out of business, or they’re just going to wait and see what happens,” said Gary Cohn, former Trump adviser.

The sheer complexity of global commerce makes these disruptions particularly challenging. Goods must be manufactured, shipped, and then offloaded at U.S. ports—a process that typically takes weeks even under normal conditions. But with the ongoing uncertainty, it’s becoming increasingly difficult for businesses to forecast demand and place orders.

“Just about everything that we purchase in the US in some way relies on a supply chain that starts outside of the US,” Mark Malek of Siebert Financial explained.

As U.S. port activity slows and businesses adjust their order patterns, experts like Jason Miller from Michigan State’s Broad School of Business warn that even a slight change could set off a cascade of problems. “The shelves are not going to be as stocked as they were,” he predicts, leaving consumers to face a tough summer of uncertainty.

Source: Axios

You have to hand it to Trump—he’s recreating the supply chain woes of COVID-19 without a fucking pandemic. That’s impressive!

Wisconsin Judge Suspended After Allegedly Helping Man Evade Immigration Authorities

The Wisconsin Supreme Court has suspended Milwaukee County Circuit Judge Hannah Dugan after she was accused of helping a man evade immigration authorities.

The FBI arrested Dugan on Friday morning at the courthouse, where she faces federal charges for concealing an individual to prevent his discovery and arrest, as well as obstructing legal proceedings.

The state Supreme Court issued a two-page order on Tuesday, stating that Dugan's suspension is in the public interest due to the serious federal charges against her.

The court noted that it was necessary to temporarily relieve her of her judicial duties while the case unfolds. Dugan's attorney had no immediate comment on the suspension.

The arrest has sparked controversy, with Democrats accusing the Trump administration of attempting to intimidate the nation’s judiciary. This incident is yet another example of how political tensions continue to impact the legal system at multiple levels.

The charges against Dugan are significant, as they highlight the ongoing battles over immigration enforcement and the role of the judiciary in such matters. As the case proceeds, it could set important precedents for how judges are held accountable for their actions in the context of national security and immigration policy.

Source: AP News

The judge literally sent the suspect into the hallway where she knew federal law enforcement was. They should have easily taken him into custody but they are incompetent losers who had to chase him down because he ran.