New tariffs on wood products took effect Tuesday. CBS News MoneyWatch correspondent has more details, while Lana Zak has more details on how soybean farmers have been impacted by the government shutdown.

Washington

The Trump administration has implemented new tariffs on timber, lumber, and certain wood products, with rates of 10% for timber and 25% for kitchen cabinets and vanities. These measures are expected to increase costs for home construction and furnishings, although countries with recent trade deals with the US, such as the UK, Japan, and the EU, will see lower tariffs. The market has responded with volatility, reflecting investor concerns over the broader US-China trade relationship and its potential impact on inflation and interest rates.

At the same time, American farmers are experiencing significant challenges due to the ongoing trade dispute with China and the effects of a government shutdown. Many are unable to sell their soy crops, leading to financial strain and concerns about long-term market access as China sources soy from other countries. Farmers are either storing their crops at additional cost or selling at a loss, while hoping for government assistance from tariff revenues.

Trump's tariff on wood takes effect as farmers feel shutdown impact

OK, new tariffs take effect today on timber, lumber, and certain wood products. The president's new levies arrived just as he begins to soften his tone, as uncertainty has been growing over the past few days over his threat to impose new 100% tariffs on China. So joining me in Studio 55, CBS News Money Watch correspondent Kelly O'Grady. What's up, Kelly? Hey there. All right. So lumber, Tim, I'm looking at the market, not liking what we're seeing right now. Let's talk about what it means on a practical level, these levies that are being established over products that people use to build their homes. Yeah, that's right. So let's start with the timber, the kitchen cabinets, the vanities, right? So timber, you're going to see a 10% tariff. And then kitchen cabinets and vanities are going to be 25%, though those are going to actually go up come January. And if you think about the things that might see an impact, the cost to build a new home, we don't have enough of a supply, especially of those starter homes in this country. You could see an increase there. Also, you could see, if you're trying to refurnish, we were talking about on CBS Mornings, my mom is doing that. You could see price increases there. UK, Japan, and EU, though, because they made trade deals with the US, you're going to see lower tariffs than the ones that were just on screen. But broadly, you could see prices go up unless the companies are able to absorb some of those tariffs, as we've seen in other industries. So let's talk about what's happening with China. We see the market down about 200 points. We saw it rebound yesterday as the president sort of seemingly softened his tone. But what I was curious about is the president's always talking about tariffs. He's always talking about China. Why is the market sort of gyrating sometimes? Like yesterday, it was up. Today, it's down. What do you think? So I think it shows that this relationship with China is of a different magnitude than the tariffs I just talked about or the sector tariffs or country tariffs that we've seen percolate over the last few months. You really didn't see a huge dip in the market that we saw on Friday unless you go back to April. And so what it tells you is investors are really worried about this particular trade relationship. I think it's for two reasons. One, we all remember 2018 when the China-US trade relationship, it took over two years to actually come to an agreement. And I think investors have a little bit of PTSD. We're hoping it was going to be sooner rather than later. This tit-for-tat that's happening is certainly not giving anyone or is not calming anxiety. The other thing is if you're going to have 100% tariff on top of a 30% tariff, businesses are not going to be able to eat that. And so that could mean higher inflation. And it could give the Federal Reserve a reason to pause interest rates when they meet at the end of this October. That being said, we've been here before. You see the gyrations back and forth. And that's exactly why investors are buying the dip and then selling because they're just not sure what to do. Yeah. All right. We'll be watching. Thank you as always, Kelly. Appreciate you. Meanwhile, as the trade war between the US and China rages on, farmers in the US are caught in the middle. We've been talking about how in some cases, their soy crops are just sitting in silos between that and the government shutdown. Time is running out for some of them to stay solvent. CBS News correspondent Lania Zak is the only network correspondent based in Iowa and has been speaking with farmers about their concerns. And she joins us now. Lania, good to see you, my friend. So with this new tariff from the president last week, I mean, this is just adding to the pressures that farmers are already feeling, right? That's exactly right, Vlad. So every time the United States has issued another tariff or threatened another tariff, China has been hitting right back, tariff for tariff. And the loser in all of this are American farmers, as well as everybody else who is supported by the agriculture industry in this country. I've been talking to farmers all across the state of Iowa and throughout the Midwest about their concerns. Take a listen. We appreciate that those resources are likely coming. But you don't know when. You don't know how much. You don't know what those dollars are going to look like. But when you start to stack all of those things together, you're really coming up against some real pressures that make it very difficult for families to navigate how to get to the other side. And so they are hopeful that President Trump is going to make good on that promise to use the new tariff to help farmers make good on that promise, to use some of the revenue that the US is taking in from tariffs like he did in his first trade war with China during his first term in office, to help supplement the losses, which are estimated at about 40% of soy crops this year over just a few years ago, Vlad. And the real problem for these farmers is not merely that they can't offload their soy now, but that they are worried that as China is continuing to buy soy from other countries, that those markets will be closed off to them indefinitely. So what options do they have, Lana, to save their crops? So right now, they are busy harvesting. And I can tell you that's happening around the clock. Even late at night, I've seen those combines out in the field and they're trying to get every last penny that they can from what has been otherwise a banner year for these crops. But with so much supply and so little demand, there is definitely an oversupply right now. So a lot of farmers are considering putting them in those grain silos. You always see them in my reporting, those big metal structures. But if you don't already own a grain silo, well, then you're paying for storage fees. And the other problem with all that, farmers are telling me, is that if you're storing it and everybody else is as well, you're just continuing the oversupply of the market. So some of them are taking a deep loss and selling their crops for whatever they can just to try and get some revenue in. But with those additional tariffs that are set to go into effect on November 1st, they're also looking at the potential for increased expenses for them. So it's really a lot of nail-biting that's happening out here, Vlad. Yeah. Lana Zak, always great to talk to you on such an important subject. Thank you very much for your reporting.

The U.S. military struck a fifth apparent Venezuelan boat allegedly carrying drugs, U.S. President Donald Trump announced on social media Tuesday. CBS News' Natalie Brand has more details.

Caracas

Trump says U.S. struck another alleged Venezuelan boat

News organizations including The New York Times, The Associated Press and Newsmax as well as ABC, CBS, NBC, CNN and Fox News say they will not sign new press rules as laid out in a Defense Department document. This could mean the Trump administration will evict reporters from the Pentagon.

Major U.S. news media outlets refusing to sign new Pentagon rules

Madagascar’s president ousted in a military takeover — Youth-led protests and parliament’s impeachment vote spark political turmoil.

Antananarivo

Madagascar's military seizes power, president ousted

Thousands of messages shared in a group chat of Young Republicans are revealing some racist thoughts that even they worried about being leaked. The exchanges obtained by Politico are part of a Telegram chat among Young Republican leaders in New York, Kansas, Arizona and Vermont. Jason Beeferman, New York state politics reporter for Politico, joins with more.

Politico exposes racist messages sent by Young Republican leaders

The U.S. stock market rebounded on Monday (October 13) after President Trump appeared to walk back imposing new tariffs on Chinese goods.

Markets rebound after Trump softens tone on China tariffs

U.S. President Donald Trump is heading back to the U.S. after his whirlwind trip to the Middle East, where he celebrated the first phase of a peace plan between Israel and Hamas.

Sharm El-Sheikh

Middle East Conflict

Trump, world leaders sign Gaza peace plan and discuss next steps

The government shutdown entered its third week on Monday as the Senate is set to reconvene on Tuesday. CBS News' Nikole Killion has more from Capitol Hill.

Shutdown drags into third week as Senate set to reconvene

U.S. President Donald Trump was greeted in Tel Aviv with cheers and a military ceremony as he met families of hostages held in Gaza and addressed Israel's parliament. He now travels to Sharm El Sheikh, Egypt, to join world leaders in discussions on Gaza's future.

Tel Aviv-Yafo

Trump meets with Israeli leaders and hostage families

Twenty living hostages were released by Hamas after more than two years in captivity as a ceasefire continues to hold. Families in Israel describe emotional reunions while others continue to await confirmation about missing relatives.

Families reunite as ceasefire brings hostages, prisoners home

Israeli officials have confirmed that all 20 living captives have been released in Gaza.

Israel confirms all 20 living captives in Gaza have been released

The carefully choreographed Israel-Hamas exchange is underway, with Israel set to release around 2,000 Palestinian prisoners following the release of remaining hostages held in Gaza. Noga Tarnopolsky reports from Tel Aviv’s Hostage Square.

Israel-Hamas swap begins as 2,000 Palestinian prisoners set for release

Following his visit to Israel, President Trump will stop in Egypt to co-host a major summit in Sharm el-Sheikh alongside Egyptian President Abdel-Fattah el-Sissi. The meeting will bring together leaders from more than 20 countries to discuss efforts toward peace in Gaza and the wider Middle East.

Donald Trump to co-host chair Gaza peace summit in Egypt

The French presidency announced Prime Minister Sebastien Lecornu's new cabinet line-up on Sunday (October 12), with most top jobs remaining unchanged at a time when opponents are demanding a political shift to win their support for urgent budget talks.

Paris

French presidency unveils new cabinet as budget pressure intensifies

Seven captives have been handed over to the Red Cross, who will facilitate their transfer to Israeli forces.

Israeli military says Red Cross has received 7 captives in Gaza

On his way to the Middle East, U.S. President Donald Trump told reporters he expects the ceasefire between Israel and Hamas to hold, despite concerns Hamas won’t abide by the deal.

Trump says the 'war is over', Gaza rebuild to start immediately

China on Sunday (October 12) called U.S. President Donald Trump's latest tariffs on Chinese goods hypocritical and defended its curbs on exports of rare earth elements and equipment, but stopped short of imposing new levies on U.S. products.

Beijing

Global Tariffs

Beijing blames U.S. for trade tensions, defends rare earth curbs

Afghanistan and Pakistan said they killed dozens of each other's troops during a night of heavy border clashes between the two countries. Afghanistan's Taliban forces launched attacks on Pakistani troops along their shared border in what it called "retaliation for air strikes carried out by the Pakistani army on Kabul".

Chaman

Border clashes between Afghanistan and Pakistan leave dozens dead

A ceasefire between Israel and Hamas held in Gaza for a third day ahead of the expected release of Israeli hostages and Palestinian prisoners and an address by U.S. President Donald Trump to Israel's parliament.

Ceasefire holds in Gaza ahead of hostage release, Trump visit

Zelenskyy called Trump for a second consecutive day to discuss defence and Ukraine's energy sector. It comes as Russia further intensifies its attacks on Ukraine's critical infrastructure ahead of its harsh winter.

Kyiv

Ukraine Invasion

Zelenskyy has second call with Trump amid Russian strikes

On Sunday, the minister of armed forces in Madagascar acknowledged an officer selected by a military group supporting demonstrators calling for President Andry Rajoelina to resign as the country's new army chief.

Madagascar’s president says coup underway

With a trade war between the U.S. and China intensifying ahead of a Nov. 1 tariff deadline, there’s growing concern Beijing will use Taiwan as a bargaining chip.

Taipei City

Growing fear China will use Taiwan to bargain with U.S.

In a televised address ahead of the planned release of Israeli captives and Palestinian prisoners, Israeli Prime Minister Benjamin Netanyahu called for unity despite ongoing divisions.

Netanyahu urges Israel put aside ‘differences’ with Gaza

U.S. President Donald Trump blamed Democrats for his decision to lay off thousands of workers across the U.S. government as he followed through on his threat to cut the federal workforce during the government shutdown.

Trump lays off thousands of U.S. government workers amid shutdown

Thousands gathered in Tel Aviv as 48 of the last remaining hostages are expected home after two years of the Israel-Hamas war. The crowd cheered Donald Trump as the peace deal's broker but there were jeers for Israeli Prime Minister Benjamin Netanyahu.

Tel Aviv braces for hostage release planned for Monday

Diane Keaton, the Oscar-winning star of Annie Hall and The Godfather films, died Saturday at the age of 79, according to U.S. media reports. Entertainment journalist Johanna Schneller remembers Keaton as 'feisty and funny'.

Hollywood

Oscar winner Diane Keaton dead at 79

Former President Biden is now receiving radiation and hormone therapy to treat his prostate cancer, an aide said. The cancer is considered aggressive.

Biden receiving radiation, hormone therapy to treat aggressive cancer

It is unclear how many people were inside the Tennessee plant that exploded on Friday, but at least 16 people were reported on Saturday. Sheriff Chris Davis announced that there are no survivors. Nicole Valdes reports.

Tennessee

No survivors in Tennessee plant explosion, sheriff says

Thousands of pro-Palestinian protesters in London marked two years since the War in Gaza. However, the British government has seen enough. Haley Ott reports that police have been given sweeping powers to curb repeated demonstrations.

London

British Parliament designates Palestine Action a terrorist organization

Middle East Envoy Steve Witkoff has addressed hundreds of thousands of Israelis in what's known as “Hostages Square” in Tel Aviv. Witkoff hailed President Donald Trump for securing the ceasefire. The crowd was less receptive to his praise for Benjamin Netanyahu.

U.S. envoy booed for praising Netanyahu at Tel Aviv rally

A ceasefire is in effect between Hamas and Israel after just over two years of war. An exchange of Israeli hostages and Palestinians held prisoner is set to take place in the coming days, and U.S President Donald Trump is set to visit the region on Monday.

Breakdown