Pentagon ‘cherry picked’ studies to support transgender service member ban, judge says

Pentagon ‘cherry picked’ studies to support transgender service member ban, judge says
Pentagon ‘cherry picked’ studies to support transgender service member ban, judge says
Witthaya Prasongsin/Getty Images

(WASHINGTON) — 
 

A federal judge spent Wednesday morning grilling a Department of Justice lawyer about the legality of the Pentagon’s transgender service member ban, repeatedly suggesting the policy relies on a flawed understanding of gender dysphoria.

The Pentagon’s new policy to separate transgender U.S. service members from the military is facing its first legal test as U.S. District Judge Ana Reyes considers issuing an order blocking the policy from taking effect.

During Wednesday’s hearing, Judge Reyes said that the government “egregiously misquoted” and “cherry picked” scientific studies to incorrectly assert that transgender soldiers decrease the readiness and lethality of the military.

While Judge Reyes has not yet issued a formal ruling, she repeatedly suggested that the policy unfairly targets a class of people that the Trump administration dislikes.

“The question in this case is whether the military under the equal protection rights afforded to every American under the due process clause of the Fifth Amendment, if the military … can do that and targeting a specific medical issue that impacts a specific group that the administration disfavors,” she said.

Judge Reyes also pressed DOJ attorney Jason Manion to identify any other similar medical issues that has prompted a similar response from the Department of Defense.

“Identify for me a single other time in recent history where the military has excluded a group of people for having a disqualifying issue, because I can’t think of one,” Judge Reyes asked.

Manion answered that the military applied a similar policy for soldiers who declined to take the COVID-19 vaccine, prompting an incredulous Judge Reyes to ask anyone in the gallery to raise their hand if they had gotten COVID.

“Lots of people raise their hands, right?” Judge Reyes said. “All different kinds of people … so it wasn’t just aimed at getting rid of one group of people.”

The plaintiffs have argued that the DOD’s policy — which was finalized in late February and bans most transgender service members from serving with some exceptions — violates the Fifth Amendment’s right to equal protection and causes irreparable harm by denigrating transgender soldiers, disrupting unit cohesion and weakening the military.

“This case is a test of the core democratic principle that makes our country worth defending — that every person is of equal dignity and worth and is entitled to equal protection of the laws,” the plaintiffs argued.

Lawyers with the Department of Justice have defended the policy by arguing the court should not intervene in military decision-making, describing gender dysphoria as a condition that causes “clinically significant distress or impairment in social, occupational, or other important areas of human functioning.”

“DoD has been particularly cautious about service by individuals with mental health conditions, given the unique mental and emotional stresses of military service,” government lawyers argued.

During a hearing last month, Judge Reyes — a Biden appointee who was the first LGBT judge on the D.C. District Court — signaled deep skepticism with the government’s claim that transgender service members lessen the military’s lethality or readiness, though she declined to intervene until the DOD finalized their policy.

When the policy was formalized last month, she quickly ordered the government to clarify key tenets of their policy, including identifying what “mental health constraint” other than gender dysphoria that conflicts with the military’s standards of “honesty, humility, and integrity.”

She also raised doubts about the government’s claims about the exceptions to the policy, flagging on the court’s docket a recent DOD social media post that “transgender troops are disqualified from service without an exemption.”

The hearing comes amid an increasingly hostile relationship between Judge Reyes and the Department of Justice.

After Judge Reyes excoriated a DOJ lawyer last month during a hearing in the case, the Department of Justice filed a complaint with an appeals judge about what they alleged was Reyes’ “hostile and egregious misconduct.”

Attorney General Pam Bondi’s chief of staff Chad Mizelle alleged that Reyes demonstrated a political bias, compromised the dignity of the proceedings and inappropriately questioned a DOJ attorney about his religious beliefs.

“At minimum, this matter warrants further investigation to determine whether these incidents represent a pattern of misconduct that requires more significant remedial measures,” Mizelle wrote.

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Pope’s condition remains ‘stationary’ on 27th day in hospital, Vatican says

Pope’s condition remains ‘stationary’ on 27th day in hospital, Vatican says
Pope’s condition remains ‘stationary’ on 27th day in hospital, Vatican says
Massimo Valicchia/NurPhoto via Getty Images

(LONDON and ROME) — Pope Francis’ condition remained “stationary” on Wednesday, with tests confirming his improvement, according to the Vatican.

A chest X-ray performed on Tuesday confirmed improvements recorded over the past few days, the Vatican press office said in its Wednesday evening update.

The pope continues to undergo high-flow oxygen therapy during the day and “noninvasive mechanical ventilation during his night rest,” the Holy See, the Vatican’s press office, said.

“This morning, after following the Spiritual Exercises in connection with the Paul VI Hall, he received the Eucharist, dedicated himself to prayer and, subsequently, to motor physiotherapy. In the afternoon, after joining the Spiritual Exercises of the Curia, he continued his prayer, rest and continued his respiratory physiotherapy,” the Vatican said.

The pope rested peacefully overnight as he began his 27th consecutive day in the hospital Wednesday morning, the Vatican said earlier in the day.

The pope’s prognosis was “lifted” on Monday, meaning he is no longer in imminent danger, but the clinical picture still remains complex.

The 88-year-old pontiff will continue “for additional days, the pharmacological medical therapy in a hospital environment” due to the “complexity of the clinical picture and the significant infectious picture presented at hospitalization,” the Vatican said.

“The improvements recorded in previous days have further consolidated, as confirmed by both blood tests and clinical objectivity and the good response to pharmacological therapy. For these reasons, the doctors decided to lift the prognosis,” the Holy See said Monday in a statement.

Francis’ doctors said there are positive signs of the pontiff’s recovery, but caution remains, according to Vatican sources.

Francis was admitted to Rome’s Gemelli Hospital on Feb. 14 and was diagnosed with bilateral pneumonia.

Thursday will mark the 12th anniversary of when Pope Francis was voted to succeed Pope Benedict XVI, who previously resigned.

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ICE arrests over 32,000 migrants in US illegally in 1st 50 days

ICE arrests over 32,000 migrants in US illegally in 1st 50 days
ICE arrests over 32,000 migrants in US illegally in 1st 50 days
Matt Stone/MediaNews Group/Boston Herald via Getty Images

(WASHINGTON) — Immigrations and Customs Enforcement has arrested over 32,000 migrants who are living in the United States without legal status since Jan. 21, according to Department of Homeland Security officials.

This is a developing story. Please check back for updates.

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Judge sets expedited schedule for pro-Palestinian activist Mahmoud Khalil after ICE arrest

Judge sets expedited schedule for pro-Palestinian activist Mahmoud Khalil after ICE arrest
Judge sets expedited schedule for pro-Palestinian activist Mahmoud Khalil after ICE arrest
Timothy A. Clary /AFP via Getty Images

(NEW YORK) — A federal judge has set an expedited briefing schedule for Mahmoud Khalil — the Palestinian activist who was arrested by Immigration and Customs Enforcement on the campus of Columbia University, despite possessing a green card — saying “there is some need for speed here.”

His attorneys pointed out Khalil is a lawful permanent resident with no criminal record but they declined the Judge Jesse Furman’s invitation to immediately argue the merits of the case. Instead Khalil’s attorneys said they would file an amended petition by Thursday evening.

The government said it would argue Khalil’s petition should be heard either in New Jersey, where he was taken after his arrest Saturday night, or in Louisiana, where he is being held.

With activists like actress Susan Sarandon looking on in court and protesters chanting outside, the judge ordered a phone call be arranged for Khalil on Wednesday after his attorneys argued access to their client is “severely limited.”

“We have literally not been able to confer with our client once since he was taken off the streets,” Khalil’s attorney Ramzi Kassem said.

Khalil is currently being held in Louisiana after being detained in New York earlier this week. His legal team is asking the court to order the government to return him to New York while his legal fight plays out.

Khalil’s wife, who is 8 months pregnant, said the couple have been excitedly preparing for the arrival of their baby.

“Mahmoud has been ripped away from me for no reason at all. I am pleading with the world to continue to speak up against his unjust and horrific detention by the Trump administration,” she said in a statement to ABC News on Wednesday.

“Six days ago, an intense and targeted doxxing campaign against Mahmoud began. Anti-Palestinian organizations were spreading false claims about my husband that were simply not based in reality. They were making threats against Mahmoud and he was so concerned about his safety that he emailed Columbia University on March 7th. In his email, he begged the university for legal support,” she said.

She said Columbia University never responded to that email and he was arrested a day later.

President Donald Trump’s administration has alleged that Khalil — who was a leader of the pro-Palestinian encampment protests on Columbia’s campus — was a supporter of Hamas. Baher Azmy, one of Khalil’s lawyers, called his client’s alleged alignment with Hamas “false and preposterous.”

“Setting aside the false and preposterous premise that advocating on behalf of Palestinian human rights and to plead with public officials to stop an ongoing genocide constitutes alignment with Hamas, his speech is absolutely protected by the Constitution, and it should be chilling to everyone that the United States government could punish or try to deport someone because they disapprove of the speech they’re engaged in,” Azmy told ABC News on Monday.

Authorities have not charged Khalil with a crime and the administration has not provided any evidence showing Khalil’s alleged support for the militant group.

The Trump administration said it has the authority to remove Khalil under the Immigration and Nationality Act.

“Under the Immigration and Nationality Act, the secretary of state has the right to revoke a green card or a visa for individuals who serve, or are adversarial to the foreign policy and the national security interests of the United States of America,” White House press secretary Karoline Leavitt said Tuesday. “Mahmoud Khalil was an individual who was given the privilege of coming to this country to study at one of our nation’s finest universities and colleges and he took advantage of that opportunity, of that privilege, by siding with terrorists, Hamas terrorists.”

Attorney Amy E. Greer said Khalil’s detention in Louisiana is a “blatantly improper but familiar tactic designed to frustrate the New York federal court’s jurisdiction.”

Khalil’s arrest has prompted protests calling for his release. Fourteen members of Congress have also signed a letter demanding his release.

This is a developing story. Check back for updates.

ABC News’ Armando Garcia, James Hill, Laura Romero and Ely Brown contributed to this report.

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US to require Canadians who are in the country for longer than 30 days to register with government

US to require Canadians who are in the country for longer than 30 days to register with government
US to require Canadians who are in the country for longer than 30 days to register with government
Artur Widak/NurPhoto via Getty Images

(WASHINGTON) — Canadians who are in the United States for 30 days or longer and cross the land border will soon have to register their information with the U.S. government, according to a notice obtained by ABC News.

Foreign nationals who plan to stay in the U.S. for longer than 30 days will be required to apply for registration with the federal government and be fingerprinted starting on April 11, according to the rule, which was posted on the federal register on Wednesday.

Canadians are exempt from fingerprinting, which applies to other foreign nationals, according to an immigration lawyer who spoke with ABC News.

Traditionally, Canadians who cross the northern border by land and stay for longer than 30 days have not had to register with the federal government, but the secretary of the Department of Homeland Security can unilaterally change that rule.

Canadians who stay in the U.S. for 30 days or more and were not issued evidence of registration, such as Form I-94, at entry will need to complete the new Form G-325R through the myUSCIS online portal.

The rule would not require Canadians to apply for a visa but rather a different federal form to enter in the U.S.

Rosanna Berardi, an immigration attorney based in Buffalo, New York, told ABC News her firm has heard from many Canadians who have expressed “strong disappointment” in the new rule.

“It’s important to clarify that this measure specifically impacts Canadian citizens crossing land borders who intend to remain in the United States for periods exceeding 30 days,” she told ABC News. “Casual travelers visiting for tourism or shopping will not be affected. However, Canadian business professionals who regularly enter the U.S. for extended assignments will now face these new registration requirements.”

Berardi told ABC News that some Canadians are reconsidering their travel to the U.S. as a result of the “recent tensions” between the U.S. and Canada.

“Historically, Canadians have enjoyed visa-exempt status and have never been required to formally register their presence in the United States,” she said. “This development appears to align with recent tensions in U.S.-Canada relations, including the threat of the 51st state, the trade tariffs and other policy shifts.”

The Canadian Snowbird Association, which represents Canadian “snowbirds” who travel around the U.S. during the warmer months, said it is working with Congress to see if Canadians will be exempt from having to register.

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Menendez brothers to appear at parole board hearings in June, Newsom says

Menendez brothers to appear at parole board hearings in June, Newsom says
Menendez brothers to appear at parole board hearings in June, Newsom says
Ted Soqui/Sygma via Getty Images

(LOS ANGELES) — Lyle and Erik Menendez will appear at independent parole board hearings on June 13 as a part of the brothers’ bid for clemency, California Gov. Gavin Newsom announced.

“On June 13, we will have the parole hearing board recommendation,” the governor explained Tuesday on his podcast, “This is Gavin Newsom.” “That independent analysis will help guide the decision-making that my office is independently reviewing as it relates to the clemency application.”

The June hearings will follow the 90-day independent risk assessment that Newsom announced two weeks ago. He is ordering the parole board to conduct the assessment to determine whether the brothers pose “an unreasonable risk to the public” if released.

The governor wants an assessment of “the applicant’s current risk level, the impact of a commutation on victims and survivors, the applicant’s self-development and conduct since the offense, and if the applicant has made use of available rehabilitative programs, addressed treatment needs, and mitigated risk factors for reoffending,” his office said in a statement.

Newsom stressed on his podcast Tuesday that his clemency decision will only be “influenced by the facts.”

Celebrity does have “an impact, but in what direction does it weigh?” Newsom said. “Sometimes it’s used actually against people, because they’re so high profile, they’re actually held to a higher level of scrutiny and standards. At the same time, you don’t want that celebrity also to influence on the other side.”

“That’s why I move forward with the Board of Parole hearings to independently review with a group of experts — forensic psychologists and others — the facts of this case,” he said.

Newsom said he has not watched Ryan Murphy’s fictional series, “Monsters: The Lyle and Erik Menendez Story,” which premiered on Netflix in September 2024 and brought new attention to the infamous case.

“I’ve seen a few clips here and there on social media,” he said. “I don’t intend to watch these series because I don’t want to be influenced by them. I just want to be influenced by the facts.”

“I’m obviously familiar with the Menendez brothers, just through the news over the course of many decades,” Newsom added. “But not to the degree that many others are because of all of these documentaries and all of the attention they’ve received. So that won’t bias my independent and objective review.”

Lyle and Erik Menendez are serving life in prison without the possibility of parole for the 1989 murders of their parents Jose and Kitty Menendez. Over 20 of their relatives are pushing for their release after 35 years behind bars.

Besides clemency, the brothers are pursuing two other paths to freedom: resentencing and a petition to review new evidence.

Los Angeles County District Attorney Nathan Hochman announced Monday that he’s opposed to resentencing, arguing the brothers hadn’t taken responsibility for their actions and calling their claims of self-defense part of a litany of “lies.”

Because the “brothers persist in telling these lies for the last over 30 years about their self-defense defense and persist in insisting that they did not suborn any perjury or attempt to suborn perjury, then they do not meet the standards for resentencing,” Hochman said at a news conference.

Hochman’s decision is an about-face from his predecessor, George Gascón, who announced in October that he supported resentencing for the brothers. Gascón praised the work Lyle and Erik Menendez did behind bars to rehabilitate themselves and help other inmates.

Newsom said on his podcast that Hochman’s decision won’t impact the clemency process.

The final decision on resentencing is made by the judge; a hearing is set for March 20 and 21.

Hochman is also opposed to the brothers’ habeas corpus petition, which they filed in 2023 for a review of two new pieces of evidence not presented at trial: a letter Erik Menendez wrote to his cousin eight months before the murders detailing his alleged abuse from his father, and allegations from a former boy band member who revealed in 2023 that he was raped by Jose Menendez.

Hochman announced last month that he’s asked the court to deny the habeas corpus petition, arguing the new evidence isn’t credible or admissible.

ABC News’ Jenna Harrison contributed to this report.

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Inflation cools in first full month of Trump term but egg prices soar

Inflation cools in first full month of Trump term but egg prices soar
Inflation cools in first full month of Trump term but egg prices soar
Noel Hendrickson/Getty Images

(NEW YORK) — Consumer prices rose 2.8% in February compared to a year ago, easing slightly over the first full month under President Donald Trump and offering welcome news for markets roiled by a global trade war. Inflation cooled more than economists expected.

The major stock indexes climbed in early trading on Wednesday, minutes after the inflation report was released, but markets soon teetered amid an escalating trade war and recession concerns.

Speaking at the White House later in the morning, Trump touted the inflation report as “very good news.”

Price increases slowed from a 3% inflation rate recorded in January, though inflation remain nearly a percentage point higher than the Federal Reserve’s target of 2%.

Egg prices, however, a closely watched symbol of price increases, soared 58.8% in February compared to a year ago, accelerating from the previous month. Bird flu has decimated the egg supply, lifting prices higher.

The Justice Department opened an investigation into egg producers to learn if market practices have contributed to the price hikes, a source familiar with the matter told ABC News.

Prices dropped for tomatoes, cereal, cupcakes and cookies over the past year. Some grocery prices increased faster than the pace of overall inflation, however, including beef, biscuits and apples.

A rise in housing costs accounted for nearly half of the price increases last month, the U.S. Bureau of Labor Statistics said. A decline in the price of airline tickets and gasoline helped offset some of the increased costs, the agency said.

The inflation report arrived hours after the U.S. imposed 25% tariffs on steel and aluminum, prompting near-immediate retaliatory duties from the European Union and marking the latest escalation of trade tensions.

Tariffs are widely expected to raise prices for consumers, since importers typically pass along a share of the added cost to shoppers.

The stock market has plunged since Trump imposed tariffs on Mexico, Canada and China last week, giving rise to warnings on Wall Street about a potential economic downturn. Within days, Trump delayed some of the tariffs on Canada and Mexico.

The report on Wednesday may soften pressure on the Federal Reserve, which bears responsibility for keeping inflation under control.

Federal Reserve Chair Jerome Powell last week said the administration’s tariff plan would likely raise prices for U.S. shoppers and retailers.

The scale and duration of the tariffs remain unclear, but a portion of the taxes on imports will probably reach consumers, Powell told an economic forum in New York City last week.

“We’re at a stage where we’re still very uncertain about what will be tariffed, for how long, at what level,” Powell said. “But the likelihood is some of that will find its way. It will hit the exporters, the importers, the retailers and to some extent consumers.”

On multiple occasions in recent days, the White House declined to rule out a possible recession, saying the tariffs would require a “period of transition.”

A solid, albeit disappointing jobs report on Friday exacerbated concerns among some observers.

Employers hired 151,000 workers last month, falling short of expectations of 170,000 jobs added. The unemployment rate ticked up to 4.1%, which remains a historically low figure.

The Trump administration slapped 25% tariffs on goods from Mexico and Canada, as well as 10% tariffs on imports from China. The fresh round of duties on Chinese goods doubled an initial set of tariffs placed on China last month.

A day later, Trump issued a one-month delay for tariffs on auto-related goods from Mexico and Canada. The carve-out expanded soon afterward with an additional one-month pause for goods from Mexico and Canada compliant with the United States-Mexico-Canada Agreement, or USMCA, a free trade agreement.

On Tuesday, Trump announced plans to add another 25% tariff on Canadian steel and aluminum, bringing the total to 50%. The move came in response to threats made by Ontario to cut off electricity to parts of the U.S., Trump said.

Hours later, Ontario Premier Doug Ford issued a joint statement with U.S. Commerce Secretary Howard Lutnick on X announcing the suspension of the 25% surcharge on electricity sent to the U.S.

The tariffs slapped on Canada, Mexico and China are widely expected to increase prices paid by U.S. shoppers, since importers typically pass along a share of the cost of those higher taxes to consumers.

A key gauge of consumer confidence registered its largest monthly drop since August 2021, the nonpartisan Conference Board said in February.

The share of consumers who expect a recession within the next year surged to a nine-month high, the data showed. A growing portion of consumers believe the job market will worsen, the stock market will fall and interest rates will rise, the report added.

ABC News’ Katherine Faulders and Soo Youn contributed to this report.

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Evacuation orders issued in Los Angeles area amid fears of mudslides

Evacuation orders issued in Los Angeles area amid fears of mudslides
Evacuation orders issued in Los Angeles area amid fears of mudslides
ABC News

(LOS ANGELES) — Evacuation warnings and orders have been issued for parts of Los Angeles County on Wednesday, near burn scar areas from the Palisades Fire, due to high mudslide and debris flow risks, according to the LA Fire Department.

“These are recent burn areas and are especially susceptible to heavy rain,” LAFD said in its warning.

The Los Angeles Police Department has also visited and issued evacuation orders to 133 houses in the warning area that are at high risk, according to Mayor Karen Bass. 

Areas impacted by the Palisades Fire — including the Getty Villa area, Highlands near the burn areas, Bienveneda area near Temescal Canyon Park and Rivas Canyon/Will Rogers State Park area — are included in the warning area.

“While we prepare for another storm headed towards L.A., I want to urge Angelenos to stay vigilant, especially in burn scar areas,” Bass said in a statement. “My number one job is to keep Angelenos safe, so please heed all evacuation warnings, stay vigilant and stay informed.”

Over 20 million people are under a flash flood watch in Southern California due to heavy rain expected in the early morning hours Thursday.

Rainfall rates are expected to approach 0.75 inches per hour in these burn areas, lasting over a two- to three-hour period — from roughly midnight to 3 a.m. local time — and may result in quick accumulations of 1 to 3 inches of rain early Thursday. The heaviest rain will fall in that early morning period, with lighter rain continuing through 6 a.m. or 7 a.m., and then becoming much more scattered in nature through the day on Thursday. Thursday evening looks dry, with another round of light rain arriving for Friday morning and early afternoon. This round is not expected to cause any issues.

On Tuesday, as expected, the Los Angeles area only saw a quarter inch of rain at most in higher elevations, with less than a tenth of an inch at lower elevations like downtown LA. This rain will have actually helped slightly to prep the ground for the rain to come early Thursday, with the rain no longer falling on ground that is as dry and hard as it would have before.

The heavy rain reaches San Diego around 4 a.m. There is also a risk for flooding in San Diego on Thursday morning as this heavy rain reaches the Mexico border. They are also included in the flood watch along with Los Angeles.

The storm pushes into central California on Wednesday morning, with the heaviest rain arriving in San Francisco around noon.

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Canada, Europe hit back after US metals tariffs kick in

Canada, Europe hit back after US metals tariffs kick in
Canada, Europe hit back after US metals tariffs kick in
Philipp von Ditfurth/picture alliance via Getty Images

(LONDON) — The European Union and Canada announced retaliatory tariffs on Wednesday after the Trump administration’s metals duties went into effect, broadening a trade war with several of America’s top trading partners.

The U.S. at midnight began imposing 25% tariffs on all steel and aluminum imports from all trading partners, with no exceptions or exemptions, the White House said.

Global trade tensions rattled U.S. stocks. The Dow Jones Industrial Average fell 330 points, or 0.8%, while the S&P 500 dropped 0.25%. The tech-heavy Nasdaq ticked up 0.25%.

Officials representing the European Union said member states would place countermeasures on some 26 billion euros, or about $28 billion, worth of U.S. goods. Ursula von der Leyen, president of the European Commission, said in a statement that the EU “must act to protect consumers and business.”

“Tariffs are taxes. They are bad for business, and even worse for consumers,” von der Leyen said. “These tariffs are disrupting supply chains. They bring uncertainty for the economy. Jobs are at stake. Prices will go up. In Europe and in the United States.”

Canada followed by announcing tariffs on about 29.8 billion Canadian dollars, or about $20.7 billion, in U.S. goods expected to be imported, government officials said. The U.S. imports more steel and aluminum from Canada than any other country.

“Our sole focus is to stand up for Canada interests, Canadian jobs and Canadian workers,” Dominic LeBlanc, minister of Intergovernmental Affairs of Canada, said in a press conference in Ottawa.

The Canadian tariffs will begin at 12:01 a.m. on Thursday, LeBlanc said. They were designed to be proportional to the U.S. tariffs, he said.

The European measures were also designed to match the scope of those U.S. tariffs, which the European Union said would be worth about $28 billion. The countermeasures were expected to begin on April 1 and be fully in place by April 13, the commission said.

“In the meantime, we will always remain open to negotiation,” von der Leyen said.

The countermeasures comprise two steps, the first of which is to restore on April 1 a set of previously suspended 2018 and 2020 countermeasures against the U.S. on a range of products.

For step two, member states will then put in place by mid-April new countermeasures targeting about 18 billion euros worth of U.S. goods entering the bloc.

Those new countermeasures will target both industrial and agricultural products, including steel and aluminum, home appliances, wood products, poultry, beef and other food imports, according to a fact sheet released on Wednesday.

Maros Sefcovic, the EU’s trade commissioner, said European officials would continue working with their U.S. counterparts toward a “win-win” outcome, but the “unjustified tariffs on our exports will not go unanswered.”

“We should be making this great relationship stronger, not weaker,” he said in a statement.

ABC News’ Zunaira Zaki contributed to this report.

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Stock market teeters amid trade war, recession fears

Stock market teeters amid trade war, recession fears
Stock market teeters amid trade war, recession fears
Spencer Platt/Getty Images

(NEW YORK) — U.S. stocks teetered in early trading on Wednesday, posting shaky performance amid an escalating global trade war and concerns about a possible recession.

After some initial modest gains, the Dow Jones Industrial Average fell 330 points, or 0.8%, while the S&P 500 dropped 0.25%. The tech-heavy Nasdaq ticked up 0.25%.

Trading opened minutes after a fresh inflation report showed price increases had eased more than expected in February, the first full month under President Donald Trump.

Tit-for-tat tariffs continued to rattle global trade early Wednesday, however.

Trump’s 25% tariffs on all imported steel and aluminum products went into effect overnight. In response, Canada and the European Union slapped retaliatory duties on U.S. goods.

Tesla, the electric carmaker run by Elon Musk, soared about 6% in early trading on Wednesday. The gains came a day after Trump touted the company alongside Musk in an event at the White House.

Some economists say that while the U.S. tariffs could boost the local steel industry in the United States, they could also lead to higher prices for industries that purchase steel. Those higher prices may eventually reach consumers.

The U.S. relies heavily on imported aluminum and those costs are expected go up as well.

This is a developing story. Please check back for updates.

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