You are invited to join us for Global Crisis Watch 328, on Friday, April 11th at 17:00 BST / 12:00 EDT.
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 rift.
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.
US Defense Secretary Vows to Regain Control Over Panama Canal from Chinese Influence
During a visit to Panama, US Defense Secretary Pete Hegseth declared that the United States will “take back” the Panama Canal from Chinese influence, emphasizing the importance of securing the strategic waterway. Hegseth, in discussions with Panama’s government, made it clear that China would not be allowed to “weaponize” the canal for espionage purposes. The US has longstanding concerns over Chinese firms’ involvement in Panama, particularly regarding the commercial presence near the canal, which could cause security risks.
Hegseth’s visit highlights growing tensions between the US and China over control and influence in key global trade infrastructure. Despite the rhetoric, he clarified that China does not operate or manage the Panama Canal, a claim also disputed by the Chinese Embassy in Panama, which argued that China’s presence is limited to commercial dealings, and not an operational role. The US sees the canal as vital for military and trade routes, with over 40% of US container traffic passing through it annually.
US officials have expressed concern that Chinese companies could use their operations in the region to gather intelligence, particularly as Chinese firms have also proposed building a bridge over the canal. Hegseth’s language reflected a balancing act, reassuring Panamanians that Panama would lead the programme in securing the canal, while also ensuring US influence remained in the region.
Panamanian President José Raul Mulino, who has steered Panama away from China’s Belt and Road Initiative, has proven to be a cooperative partner for the US, particularly in addressing migration issues. As tensions between the US and China continue to grow, both countries are committed to strengthening security cooperation to safeguard the canal’s future.
Trump’s Tariff Threat Puts Pharmaceutical Supply Chains at Risk
Global pharmaceutical share prices plunged after US President Donald Trump reaffirmed plans to impose a significant tariff on imported pharmaceuticals. This announcement threatens to disrupt the interconnected global pharmaceutical supply chain, which has traditionally seen minimal tariffs, especially for finished drugs. Trump’s initiative, part of a broader strategy to bring manufacturing back to the US, comes after tariffs were already introduced on other goods, intensifying the global trade war. The pharmaceutical industry has long been free from such tariffs, and this shift could severely impact companies that rely on international supply chains, such as those in India and Europe.
Shares of major US drugmakers, including Amgen, Pfizer and Merck, saw sharp declines as investors feared the impact of these tariffs. Indian pharmaceutical companies, which supply a significant portion of the US market with generics, also saw their stock prices fall. The tariffs could lead to increased drug prices in the US, with Indian companies warning that shifting production to the US would not be viable for their low-margin businesses.
European companies, such as Bayer and Novartis, expressed concerns that rising tariffs could lead to a shift in production to the US, threatening Europe’s competitive edge. The European Federation of Pharmaceutical Industries and Associations (EFPIA) urged the EU to act swiftly to prevent a “mass exodus” of production. Analysts warn that such tariffs would create additional costs, further impacting the global market and, ultimately, healthcare expenses for US consumers.
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.