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US President Donald Trump attends a Cabinet meeting at the White House in Washington, D.C., on April 10, 2025.
Wednesday’s tariff respite is firmly in the rearview mirror, as China announced on Friday it was raising its duty on US imports to an astronomical 125%, taking effect Saturday. The announcement came less than 24 hours after the White House clarified that the new levy on Chinese imports would be 145%.
With US President Donald Trump’s collision course with the rest of the world on hold — the EU delayed its planned retaliatory levies Thursday — his fully-fledged trade war with China now has the spotlight to itself. Whereas he dropped tariffs on other countries on Wednesday, the commander-in-chief raised them on Beijing three times within one week, with the White House clarifying on Thursday that the rate is now 145%. After a brief delay, China has now responded in kind.
And just like that. These extraordinary levies are already affecting businesses. US firms have started canceling orders and some Chinese companies are putting staff on temporary leave. Trans-pacific shipping bookings have plunged. The March inflation figures released Thursday suggested that US price growth was easing, but the data was taken before the new China tariffs were implemented. With the levies accelerating skyward, it’s only a matter of time before US prices follow suit.
Markets suffer again. The laws of gravity applied to the markets Thursday — before China announced its latest retaliation — with stocks reversing again as the reality of Trump’s new world trade order set in for investors. The S&P 500 dropped 3.5%, the Dow Jones Industrial Average fell 1,000 points, and the dollar lost ground against the major Asian currencies. On top of all this, Democrats are now questioning whether the president and his allies engaged in insider trading this week. Wednesday’s comeback looks like a fever dream.
The dust won’t settle. Trump acknowledged Thursday that there would be “transition problems” with the markets, while retaining his unfailing optimism that stock would turn around. The former “Apprentice” star added that he was open to extending the 90-day tariff pause on countries that aren’t China, but with Beijing further escalating the trade war, investors will remain unsettled.
Leader of Canada's Conservative Party, Pierre Poilievre, speaks during a 'Spike the Hike - Axe the Tax' rally in Edmonton, on March 27, 2024, in Edmonton, Alberta, Canada.
With two weeks to go until Canada’s 45th general election, the Liberals under new leader Mark Carney are now the favorites to win. It’s been a staggering turnaround: The party looked all but cooked a few months ago, but Donald Trump’stariffs and threats, along with Justin Trudeau’stimely resignation, gave the party wings.
What the polls say: 338Canada, a poll aggregator, shows an average Liberal lead of 6 points. Ipsos has them up by twice that. So, yeah, call it a trend.
Next week, party leaders will face off in two final debates, both in Montreal. The French-language debate is set for Wednesday night, followed by an English-language showdown on Thursday.
This will be one of Conservative Party leader Pierre Poilievre’slast chancesto gain ground on Carney and the Liberals. To do so, he’ll need to go hard against Trump and convince Canadians that, as a conservative, he’s better equipped to deal with the US president than Carney. So far, he trails the Liberal leader on that measure.
Poilievre must also continue to court and mobilize voters on the country’s affordability crisis, an area where his recent advantages are slipping.
In short, time is running out for the Conservative leader to stop what will go down as one of the most remarkable political resurrections in Canada’s history.
Listen: What does global energy transition look like in a time of major geopolitical change, including rebalancing of trade? In this special episode of "Energized: The Future of Energy,” host JJ Ramberg and Enbridge CEO Greg Ebel talk to Arjun Murti, partner at Veriten and founder of the energy transition newsletter Super-Spiked. They discuss the impact of President Trump’s new energy policies, the role of North America in the global energy transition, and the possible impact of tariffs and trade tension on the energy sector.
Catch up on other episodes of Energized: The Future of Energy below — or listen on Apple, Spotify, Goodpods, or wherever you get your podcasts.
President Donald Trump speaks as he signs executive orders and proclamations in the Oval Office at the White House on April 9, 2025.
With stock markets plunging and US Treasury yields reaching new heights, US President Donald Trump finally reneged on parts of his widescale tariff plan on Wednesday, declaring a 90-day pause to the far-reaching “reciprocal” levies that he introduced just one week ago while leaving a 10% across-the-board duty in place. He also escalated the already-burgeoning trade war with China by increasing the tariff on their imports to 125%.
“I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!” Trump declared on Truth Social.
Trump’s announcement brought some much-needed relief to the countries facing these tariffs.
“This is a much smaller tariff wall. It is less disruptive. It has the potential for landing in a better place with most of the US trading partners,” said Eurasia Group’s geoeconomics expert Jens Larsen.
All in a day. The S&P 500 index surged more than 9% within a few hours of the announcement, bringing some rare good news to the American markets in an otherwise-tawdry week. The Nikkei jumped 9% on Thursday, recording its second-best ever day. As for China, Trump said the 125% tariff would be implemented immediately, before expressing optimism that the two superpowers could reach a deal. Beijing had announced earlier on Wednesday that it was imposing an additional 50% tariff on US imports, matching the extra duty that Trump had placed on Chinese imports on Tuesday and bringing the total levy to 84%.
Not out of the woods yet. Though stocks rose following Trump’s pause, Treasury yields haven’t fully recovered from the sharp moves of earlier this week, reflecting some potential damage to the US economic brand. The dollar has continued falling, too. The political ramifications of this are potentially more widespread than any market drops, as the higher yields make it more difficult for small businesses to access loans, with knock-on effects for the US economy.
“Fundamental uncertainty remains. Not only could tariffs be implemented in the future, but the predictability and credibility of US economic policy has taken a serious hit,” Larsen added. “And at the end, we still end up with a more rapidly fragmenting world.”
Israeli police dispersed a demonstration in West Jerusalem in which Israelis gathered to demand an end to the ongoing Israeli attacks on the Gaza Strip, on April 9, 2025.
23: An Israeli airstrike hit a residential area in northern Gaza on Wednesday, reportedly killing 23 people, according to local health officials. A Hamas-run health ministry said that eight women and eight children were among the dead. Israel said it had struck a senior Hamas militant. Meanwhile, in West Jerusalem, police dispersed demonstrators who gathered to protest the ongoing Israeli attacks in Gaza and the killing of Palestinian emergency workers.
8.5 million: As if US tariffs haven’t caused enough of a rollercoaster, Universal announced this week that it plans to build its first-ever European theme park in the United Kingdom and estimated that 8.5 million people will visit during its first year. UK Prime Minister Keir Starmer hailed the plans, saying the news even piqued his children’s interests. The plan is for the park to open in 2031.
500: As part of its clampdown against higher education, the Trump administration has now revoked visas from more than 500 foreign students in the United States, according to NAFSA, an association dedicated to international education. Universities have started warning foreign students and faculty against traveling abroad, as it could allow authorities to take away their visas.
1.2 million: North Korea’s army, totaling 1.2 million soldiers, is reportedly gaining invaluable experience of modern combat from Russia’s invasion of Ukraine. Twelve thousand of these North Korean fighters helped the Russian ranks beat back the Ukrainians in the Kursk region in December, and South Korea has claimed that another 3,000 North Koreans are joining the Russian frontlines this year.
30: More than 30 human rights groups are pressing the United Kingdom and the European Union to reverse the extradition of Egyptian activist Abdulrahman al-Qaradawi from Lebanon to the United Arab Emirates, where he faces charges of undermining public security, according to UAE state media. An Egyptian activist who has been critical of several Arab states, Qaradawi has reportedly been held in solitary confinement for three months, and he also faces an extradition demand from his home country.
Democratic Republic of Congo's former President Joseph Kabila, attends a memorial service of Sam Nujoma, who became Namibia's first democratically elected president., February 28, 2025.
Former Democratic Republic of Congo President Joseph Kabila has announced his return to the country, vowing to halt the rapid advance of the Rwanda-backed M23 rebels who have seized significant territory in the country’s conflict-ridden east.
Background: Kabila left the DRC in 2018 amid intense public unrest following his refusal to step down at the end of his presidential term. Deadly protests eventually forced his departure, though he negotiated a deal allowing him to retain some influence from abroad, in cooperation with his successor, President Félix Tshisekedi.
Tshisekedi is none too happy about Kabila’s return and has resorted to political mudslinging, accusing the former president of having supported the M23 rebels during their recent capture of Bukavu, the DRC’s second-largest city. What’s more, Kabila has been holding talks with opposition leaders and civil society figures about the country’s political future as public dissatisfaction mounts over Tshisekedi’s response to the rebellion.
Kabila’s return sets the stage for a potential power struggle just as the DRC nears a major deal with the United States — an agreement exchanging access to critical minerals for security support. This deal is seen as crucial to strengthening Kinshasa’s position ahead of peace negotiations with M23, which were scheduled for Wednesday but got postponed.