You are invited to join us for Global Crisis Watch 327, on Friday, April 11th at 10:00 BST.
The highlighted topics will include:
US and China Exchange Sharp Tariff Blows, Global Markets Sway
President Donald Trump has temporarily suspended newly imposed tariffs on most countries, while sharply increasing duties on Chinese imports. The move, which raises tariffs on Chinese goods to 125% from a previous 104%, deepens the economic tensions between the US and China. Simultaneously, Trump announced a 90-day pause on targeted tariffs for other countries to allow for negotiations, though a blanket 10% duty on nearly all imports remains, along with existing auto, steel and aluminum tariffs.
In response, China escalated the trade war by announcing 84% tariffs on all US goods, up from 34%. Beijing pointed to the need to protect its economic interests, accusing Washington of escalating tensions and violating past agreements. The tit-for-tat measures sent shockwaves through global markets. European indexes like the FTSE 100, DAX and CAC 40 suffered significant losses, while Asian markets also declined. However, Chinese markets rebounded due to government intervention.
Initially rattled, US markets later recovered some ground after Treasury Secretary Scott Bessent hinted at the possibility of trade deals with allies and a future group agreement with China. Trump, meanwhile, used the opportunity to urge companies to relocate to the US, promising fast-track approvals and no environmental delays.
The White House maintains that the strategy is designed to revive domestic manufacturing and pressure trade partners into fairer agreements. Critics, however, warn that the rising tariffs could lead to inflation, slowdowns in global trade and a potential recession. Talks are planned with Japan, South Korea and Italy, with additional countries expressing interest in negotiating tailored trade deals.
This aggressive tariff strategy marks a sharp turn in US trade policy and places immense pressure on allies and rivals alike, as fears of a full-blown trade war continue to loom.
Netanyahu’s US Visit Yields No Breakthroughs on Trade, Iran or Gaza
Israeli Prime Minister Benjamin Netanyahu’s meeting with US President Donald Trump ended without tangible gains, despite high hopes for wins on trade and Iran. The visit came in response to Trump’s recently announced 17% tariffs on Israeli goods, part of his wider global trade push. To preempt the move, Israel dropped its own tariffs on US products, but Trump gave no indication he would reverse course, citing the $4 billion in annual US aid to Israel as justification.
Once a close beneficiary of Trump’s foreign policy gestures – like the US embassy move to Jerusalem and recognition of the Golan Heights – Netanyahu found himself without any deliverables to bring home. Even on Iran, a long-standing mutual concern, Trump surprised Netanyahu by announcing direct US–Iran nuclear talks would begin soon. The Israeli leader, visibly caught off guard, stated such diplomacy would only work if Iran fully dismantled its nuclear ambitions – comparing it to Libya’s 2003 denuclearization.
The perception was also unfavorable. Trump openly praised Turkish President Erdogan, a fierce critic of Israel, despite Erdogan’s inflammatory rhetoric. Netanyahu’s position was further weakened by Israel’s continued military actions in Gaza, which have resulted in over 50,000 Palestinian deaths according to health officials, and a blockade on humanitarian supplies.
The meeting, meant to boost Netanyahu amid international legal pressure and domestic criticism, instead drew attention to Israel’s diplomatic isolation and lack of influence over Trump’s second-term agenda. Trump’s statement that he wants the war to end, while Netanyahu relies on unwavering support to continue it, created a visible political split.
Netanyahu’s return from Washington was summed up by Israeli analysts as a failure: no reduction in tariffs, no new action on Iran and no progress on hostages – just empty hands and diplomatic frustration.
Ukraine Claims 155 Chinese Nationals Serving in Russian Military, Beijing Denies Involvement
Ukraine has reported the capture of two Chinese nationals fighting for Russian forces in eastern Ukraine, fueling concerns about China’s indirect involvement in the ongoing conflict. Ukrainian President Volodymyr Zelenskyy confirmed the capture, revealing that Ukrainian forces found documents, bank cards and personal data of the two individuals. Zelenskyy stated that there are likely many more Chinese citizens fighting for Russia, urging Ukraine to seek clarification from Beijing. The Chinese government has denied any involvement in the war, emphasizing that its citizens are advised not to engage in armed conflicts.
The issue has raised alarm over China’s growing support for Russia, with the US accusing China of providing essential supplies, including dual-use items, that help sustain Russia’s military operations. Zelenskyy called on international allies, particularly the US and Europe, to condemn China’s indirect role. Ukrainian intelligence has also identified 155 Chinese nationals allegedly fighting with Russian forces, most of whom are in lower military positions. Reports suggest that some Chinese nationals enlisted in the Russian military through intermediaries in China, paying significant sums for the opportunity to join and possibly gain Russian citizenship.
While China continues to deny the allegations, stating it is verifying the situation, the Kremlin has yet to comment on the captured individuals. This development follows other incidents of foreign fighters joining Russian forces, including North Korean soldiers, further complicating the war’s international dimension. Meanwhile, Russia has managed to recapture territory in the Kursk region, and Ukrainian forces continue to target Russian territory, including Belgorod, in an ongoing cross-border offensive.
The situation reinforces the increasing complexity of the war, with multiple nations indirectly involved through military support, raising diplomatic tensions on the global stage.
Germany’s New Coalition Deal Aims to Boost Economy and Strengthen Defense
German conservatives, led by Friedrich Merz, have reached a coalition agreement with the center-left Social Democrats (SPD) to revitalize Germany’s economy amidst the global trade conflict. The deal follows months of negotiations after Merz’s Christian Democratic Union (CDU) won the February election, but fell short of a majority due to the far-right Alternative for Germany (AfD)’s rise. The coalition aims to address the economic challenges posed by the trade war, particularly heightened by US President Donald Trump’s tariffs.
Merz emphasized that Germany is “back on track,” signaling a commitment to strengthening defense and boosting competitiveness. The coalition pact focuses on enhancing relations with the US, with plans for a free trade agreement and a unified European response to the US-China trade tensions. The government also agreed to tax cuts for middle and lower-income citizens, corporate tax reductions, support for electric vehicles and the reform of Germany’s “debt brake” policy, which critics argue has restricted economic growth.
In response to the rising popularity of the AfD, the coalition also adopted a stricter immigration policy, aiming to turn away asylum seekers at the borders and halt fast-tracked naturalization. Additionally, the coalition proposed the creation of a national security council and voluntary military service, alongside a pledge to accelerate defense procurement and support Ukraine’s NATO membership.
However, the new government faces challenges as the AfD continues to rise in popularity. Despite this, Merz is committed to navigating Germany through economic uncertainty and trade disruptions, with a focus on maintaining stability in an increasingly volatile global landscape.
Plus, all the stories that are catching our attention wherever we live in the world. Feel free to join us and add your voice to the conversation.