C M Y K Nxxx,2018-04-05,A,001,Bs-4C,E2_+ Late Edition Today, partly sunny, brisk, chillier, high 46. Tonight, increasing clouds, rain or snow showers late, low 36. Tomorrow, morning rain and snow, high 56. Weather map, Page B12. VOL. CLXVII ... No. 57,923+ © 2018 The New York Times Company NEW YORK, THURSDAY, APRIL 5, 2018 $3.00 White House Edges Back From Brink of Trade War U.S. Risks Trapping Hints That Tariffs on Manufacturers in China May Never the Crossfire Go Into Effect By NATALIE KITROEFF By ANA SWANSON and BEN CASSELMAN and KEITH BRADSHER In the escalating economic WASHINGTON — White showdown between the United House officials moved on Wednes- States and China, President day to calm fears of a potential Trump is trying to put American trade war with China, saying the shoppers first. The administration administration’s proposed tariffs did not place tariffs on necessities were a “threat” that would help, like shoes and clothes, and mostly not hurt, the United States econ- spared smartphones from the 25 omy, hours after China said it percent levy on Chinese goods an- would punish American products nounced this week. with similar levies. But by shielding consumers, The administration’s insistence Mr. Trump has put American that a trade war was not imminent manufacturers — a group he has came as the United States and championed — in the cross hairs China traded tit-for-tat penalties of a potential global trade war. If that caused wild swings in stock the measures stand, along with markets from Hong Kong to New China’s retaliatory tariffs, they York. Led by more audacious could snuff out a manufacturing leaders than either country has recovery beginning to gain steam. had in decades, China and the “If you want to spare the con- United States are now locked in a sumer so you don’t get this mas- game of chicken, with the possibil- BRETT GUNDLOCK FOR THE NEW YORK TIMES sive backlash against your tariffs, ity to derail the global economic Inside a Caravan then there goes manufacturing, recovery, disrupt supply chains because that’s what’s left,” said and destabilize the huge yet debt- Migrants from Central America traveling through Mexico at a stop on Wednesday in Matías Romero, in Oaxaca State. Page A10. Monica de Bolle, an economist at laden Chinese economy. the Peterson Institute for Interna- White House officials reiterated tional Economics. “The irony is, you cannot spare manufacturing from anything because manufac- Facebook Puts A Google Military Project Fuels Internal Dissent turing is globally integrated. The sector sources its parts and com- tinctly foreign to Washington’s im- Profile Breach ponents from all over the world.” mense defense industry and cer- By SCOTT SHANE Some Employees Fear That intricate supply chain of- tainly to the Pentagon, where the and DAISUKE WAKABAYASHI ten runs directly between the two At 87 Million defense secretary, Jim Mattis, has WASHINGTON — Thousands Pentagon Could Turn countries, sometimes in both di- often said a central goal is to in- of Google employees, including rections. Chinese factories make crease the “lethality” of the dozens of senior engineers, have TechInto War Tool wing panels and doors for Boe- By CECILIA KANG signed a letter protesting the com- United States military. ing’s Next Generation 737 planes, and SHEERA FRENKEL pany’s involvement in a Pentagon From its early days, Google has which are assembled by union WASHINGTON — Facebook program that uses artificial intelli- not be in the business of war,” says encouraged employees to speak workers in Renton, Wash. General on Wednesday said that the data gence to interpret video imagery the letter, addressed to Sundar out on issues involving the com- Motors makes its Buick Envision, AGENCE FRANCE-PRESSE — GETTY IMAGES of up to 87 million users may have and could be used to improve the Pichai, the company’s chief execu- pany. It provides internal mes- a sport-utility vehicle, in Shan- American soybeans could be a been improperly shared with a po- targeting of drone strikes. tive. It asks that Google pull out of sage boards and social networks dong Province, and sells it to target of new Chinese tariffs. litical consulting firm connected The letter, which is circulating Project Maven, a Pentagon pilot where workers challenge man- American consumers. Construc- to President Trump during the inside Google and has garnered program, and announce a policy agement and one another about tion workers in Denver use build- 2016 election — a figure far higher more than 3,100 signatures, re- that it will not “ever build warfare the company’s products and poli- ing materials manufactured in on Wednesday that China must stop the “unfair” trading practices than the estimate of 50 million flects a culture clash between Sili- technology.” cies. Recently, the heated debate China, made in part from ethane President Trump believes have that had been widely cited since con Valley and the federal govern- That kind of idealistic stance, around Google’s efforts to create a gas produced in Texas. disadvantaged American compa- the leak was reported last month. ment that is likely to intensify as while certainly not shared by all more diverse work force spilled A central aim of Mr. Trump’s nies and workers, but they held Mark Zuckerberg, the compa- cutting-edge artificial intelligence Google employees, comes natu- out into the open. America First agenda is to bring ny’s chief executive, also an- Google employees have circu- back pieces of the supply chain ly- out the possibility that tariffs on is increasingly employed for mili- rally to a company whose motto is $50 billion worth of Chinese goods nounced that Facebook would of- lated protest petitions on a range ing outside the country. The tariffs tary purposes. “Don’t be evil,” a phrase invoked outlined on Tuesday might never fer all of its users the same tools “We believe that Google should in the protest letter. But it is dis- Continued on Page A19 Continued on Page A16 and controls required under Euro- go into effect. pean privacy rules. The European “There’s no trade war here,” rules, which go into effect next Larry Kudlow, Mr. Trump’s new top economic adviser, said in an month, give people more control interview on Fox Business Net- over how companies use their dig- work. He described the threat of ital data. tariffs as “just the first proposal” Facebook had not previously in a process that would involve ne- disclosed how many accounts had gotiations and back-channel talks. been harvested by Cambridge An- “I understand the stock market’s alytica, the firm connected to the anxiety,” he said. “But on the other Trump campaign. It has also been hand, don’t overreact.” reluctant to disclose how it was Behind the scenes, however, top used by Russian-backed actors to officials remained split over the influence the 2016 presidential administration’s approach as the election. United States and China move Among Facebook’s acknowl- into a period of high-stakes nego- edgments on Wednesday was the tiations. That includes how far to disclosure of a vulnerability in its go in punishing China and the search and account recovery types of concessions the White functions that it said could have House should accept to avoid a exposed “most” of its two billion damaging trade war. users to having their public profile People familiar with the negoti- information harvested. ations say Steven Mnuchin, the The new effort to appear more Treasury secretary, and Wilbur transparent about the data leaks Ross, the commerce secretary, — including a rare question-and- have at times argued for more dia- answer session with Mr. Zucker- logue with the Chinese and berg and reporters — came just BRENDAN SMIALOWSKI/AGENCE FRANCE-PRESSE — GETTY IMAGES quicker concessions that would before Mr. Zuckerberg’s expected help diminish the trade deficit — testimony next week on Capitol Commemoration and Call to Action the gap between what China ships Continued on Page A20 The 50th anniversary of the death of the Rev. Dr. Martin Luther King Jr. brought crowds to Memphis, where he was slain. Page A14. Continued on Page A17 New York Democrats End Their 7-Year Schism Mueller Witness Linked to Emirates and Russia known as the Independent Demo- primaries against most of the Mr. Nader’s ties to the United Nader used his longstanding ties By SHANE GOLDMACHER cratic Conference was formed breakaway Democratic lawmak- This article is by Mark Mazzetti, Arab Emirates are well docu- to Kirill Dmitriev, the manager of during Gov. Andrew M. Cuomo’s ers. And now Mr. Cuomo himself is mented — he is an adviser to its a state-run Russian investment Two warring factions of Demo- David D. Kirkpatrick, Ben Protess first week in office. It had since facing a primary challenge, from and Sharon LaFraniere. leader — but the extent of his links fund, to help set up a meeting in cratic lawmakers have agreed to amounted to one of the oddest po- the actress Cynthia Nixon, who to Russia have not been previ- the Seychelles between Mr. reunite and end seven years of in- litical arrangements in the coun- has made the bipartisan alliance WASHINGTON — A witness ously disclosed. Dmitriev and a Trump adviser fighting, a significant political re- try — and one that had become in- in Albany a focus of her attacks on who is cooperating in the special Mr. Nader, a Lebanese-Ameri- days before Donald J. Trump took alignment that ends an arrange- creasingly untenable in the cur- governor’s progressive creden- counsel investigation, George Na- can businessman, has a catalog of office.