Global Crisis Watch 326

You are invited to join us for Global Crisis Watch 326, on Friday, April 4th at 17:00 BST / 12:00 EDT.

The highlighted topics will include:

Trump’s Economic Nationalism Risks America’s Global Influence

On Wednesday 2nd , President Trump formally announced his long-anticipated tariffs policy, under the banner of ‘Liberation Day’. While Trump frames the move as necessary to fix trade imbalances and boost domestic industry, critics warn it could trigger retaliatory tariffs, disrupt global markets, and raise costs for American consumers.

The announcement, which confirmed tariffs of 20% on EU, 10% on UK and 34% on China, was accompanied by rhetoric that accused US’s trading partners of ‘looting, pillaging, raping and plundering’, and claiming that ‘This is one of the most important day, in my opinion, in American history’.

European Commission President Ursula von der Leyen has vowed to respond with countermeasures, and public sentiment in Europe is turning against the US. In France and Germany, polls show growing distrust of Washington, while Canada’s new Prime Minister Mark Carney declared that the US is no longer a “reliable partner.”

China is poised to take advantage of the rift. Analysts suggest that Trump’s actions could weaken transatlantic ties, softening Europe’s stance on Beijing. Under Biden, Washington sought to unite allies against China, but Trump’s isolationist policies may push them closer to economic cooperation with Beijing. Experts argue that the US is now adopting aspects of China’s economic model –  protectionism, state intervention, and industrial subsidies – giving China a strategic advantage.

Trump’s tariffs have also prompted rare economic talks between Japan, South Korea, and China, raising concerns about shifting alliances in Asia. While Japanese and South Korean officials deny deeper coordination with Beijing, Trump’s policies are driving regional actors to explore new strategies.

Despite warnings from economists, the Trump administration remains committed to its protectionist approach, arguing that past concerns over tariffs proved exaggerated. However, experts warn that alienating allies could have lasting consequences, potentially accelerating China’s global influence while fracturing Western economic unity.

Venezuelan Deportations to El Salvador Prompt Legal Challenges Amid Claims of Mistaken Gang Identification

In March 2025, the Trump administration deported 238 Venezuelans to El Salvador, alleging they were members of the Tren de Aragua, a Venezuelan transnational gang. This deportation was carried out under the Alien Enemies Act of 1798, a law historically used in wartime, which allows for the removal of foreign nationals considered threats to national security. However, the operation has instigated significant legal challenges and human rights concerns, as many of the deported individuals had active asylum cases and were not given a fair opportunity to contest their deportations in court.

Of the 50 deportees interviewed, at least 27 had scheduled immigration hearings, and many had been living in the US under legal statuses such as work permits. Family members and advocates argue that some of the individuals were targeted based on superficial markers like tattoos, which immigration experts caution can be misleading. Tattoos honoring family members or representing professions were misinterpreted as gang symbols, leading to wrongful deportations.

The deportations have drawn criticism from civil rights groups like the ACLU, who argue that the administration violated due process by removing individuals without presenting clear evidence of gang affiliation. Despite these objections, the Trump administration has defended the deportations, claiming that these individuals pose a national security risk, referencing vague identifiers such as tattoos, hand gestures and even clothing choices associated with gangs.

Upon arrival in El Salvador, the deportees were sent to a high-security prison, where their treatment has been controversial. Salvadoran President Nayib Bukele supported the operation, releasing videos showing the deportees being processed. Legal challenges to the deportations continue, with a court temporarily halting the use of the Alien Enemies Act, though deportations have continued.

UK Finalizes Chagos Handover, Secures Military Base Lease

The UK government is close to finalizing a deal with Mauritius to transfer sovereignty over the Chagos Islands while maintaining the US-UK military base on the largest island, Diego Garcia, under a 99-year lease. The agreement, which had faced delays due to political changes in both Mauritius and the US, was recently approved by President Donald Trump, easing concerns over potential US opposition.

Despite this approval, some senior Republicans and UK conservatives have criticized the deal, citing concerns over national security, Mauritius’s ties to China and the financial burden on the UK, which could reportedly reach £18bn. However, UK officials argue that Mauritius’s relationship with China is overstated and emphasize India’s stronger regional influence.

The Chagos Islands, separated from Mauritius in 1965 while the country was still under British colonial rule, have been a long-standing point of dispute. International legal rulings, including from the UN’s top court, have supported Mauritius’s sovereignty claims. The UK government has defended the handover, citing legal obligations and the need to ensure the stability of the military base.

In parallel, the UK has announced an enhanced foreign influence registration scheme targeting Russia and Iran for their threats to national security. However, China has not been placed under stricter monitoring, leading to criticism from opposition figures who argue that China’s espionage activities pose a major security risk.

The Chagos agreement marks a significant geopolitical shift for the UK, balancing legal pressures, military strategy and diplomatic relations amid global security concerns.

Carney Declares End of US-Canada Trade Era, Calls for Economic Reimagination

Canadian Prime Minister Mark Carney declared that the longstanding economic and security relationship between Canada and the United States, based on deep integration and cooperation, is over. In response to President Donald Trump’s tariffs, including a 25% tax on imported vehicles, Carney emphasized that Canada must “reimagine” its economy and reduce reliance on the US. While Canada has retaliated with tariffs on US goods, Carney stressed the importance of building a self-sustaining economy through diversification and stronger partnerships with other trade allies.

Trump’s tariffs, particularly on the automotive sector, have forced Canada to rethink its trade strategy. Carney stated that the Canada-US Automotive Products Agreement, signed in 1965, no longer holds under these new trade conditions. This shift is especially critical as the US imports about 8 million cars annually from Canada, which significantly impacts Canadian manufacturing and trade.

The Canadian government is now focused on retooling its industry to withstand these new tariffs, ensuring long-term economic resilience. Carney’s government aims to safeguard jobs and trade, particularly in the auto industry, which is crucial for Canada’s economy. His response to the tariffs reflects a desire for a more independent and flexible Canadian economy, less dependent on US demands and pressures.

The growing trade tensions have led to changes in the political landscape, with opposition parties criticizing the tariffs as unjustified. Carney’s government is navigating these challenges while preparing for Canada’s upcoming federal election. His diplomatic efforts include building stronger ties with European allies and reaffirming Canada’s security interests, especially in the Arctic, to counterbalance the rising global tensions around trade and territorial sovereignty.

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.