Trump’s Tariff Offensive Sparks Fears of an Economic 'Nuclear Winter'
While America Stumbles, China Builds: Asia’s Alliances in Flux
European stock markets plunge in early trading, following stock market slumps across Asia. The Dax index in Germany was down almost 10%, before recovering slightly, while the FTSE 100 in London was down almost 6%. The Hang Seng index in Hong Kong closed down 13.22% - the worst one-day slump since the 1997 Asian financial crisis. Today's slumps - which follow drops last week - follow Donald Trump's imposition of worldwide tariffs on good entering the US But Trump defends his policy, telling reporters on Air Force One "sometimes you have to take medicine to fix something" - BBC
UK Prime Minister Keir Starmer will give a major speech today announcing support for the British car industry amid fears of a major hit from Donald Trump's tariffs
Asia Pacific stocks fell sharply on Monday amid a global market rout caused by an intensifying U.S. trade war, reminding some traders of a similar slide at the outset of the COVID-19 pandemic. Japan’s Nikkei Stock Average nosedived 7.8% and closed at 31,136.58, its lowest finish since October 2023. It recorded the third largest point drop in its history and its 11th biggest percentage decline in a single day. The index had sunk around 22% since its January peak. The broader Tokyo Stock Price Index also closed down at 7.8% at 2,288.26 - Nikkei Asia
Hedge fund manager Bill Ackman has said Trump's tariffs could lead the world into a "economic nuclear winter" as he called for a 90-day pause on the taxes. Ackman, who is one of Trump's most prominent Wall Street backers, said in a lengthy social media post that the president was losing the confidence of business leaders. “The country is 100% behind the president on fixing a global system of tariffs that has disadvantaged the country. But, business is a confidence game and confidence depends on trust," Ackman said. “The president has an opportunity to call a 90-day time out, negotiate and resolve unfair asymmetric tariff deals, and induce trillions of dollars of new investment in our country," he added. If not, Ackman added that Trump was "in the process of destroying confidence in our country as a trading partner, as a place to do business, and as a market to invest capital" - BBC
Trump’s exceptionally steep tariff risks disrupting supply chains, weakening trust and pushing Vietnam to seek alternative economic alliances, potentially undermining US influence in the region at a time when geopolitical stability is paramount. The White House’s draconian position is based on the US’s US$123.5 billion trade deficit with Vietnam, making it the third largest worldwide behind only China and Mexico, according to Morningstar analyst David Swartz. In response, Vietnamese officials have attempted to negotiate a deal before the onerous tariff levy comes into force on April 9. - Asia Times
Robert Habeck, Germany’s economy minister, called on Monday for his European partners to stand together to take clear, decisive action against the U.S. tariffs. He rejected the idea that they are in any way reciprocal, saying the calculation used to draw them up was “nonsense.” Habeck stressed Europe’s position of strength, if the 27 member states are successful in acting as a bloc. “I can only say to the European partners, we have to stay united,” he said. - NYT
Malaysia will lead efforts to coordinate a regional response in Southeast Asia towards US President Donald Trump’s tariffs, the country’s Prime Minister Anwar Ibrahim said. “Malaysia, as Asean chair, will lead efforts to present a united regional front, maintain open and resilient supply chains, and ensure Asean’s collective voice is heard clearly and firmly on the international stage,” Anwar said during a video address. In a separate post, Anwar said he had a call with Vietnamese Prime Minister Pham Minh Chinh on a collective response by the region. The Malaysian leader also discussed the tariffs with Indonesian President Prabowo Subianto. Countries in the Association of Southeast Asian Nations — a collective grouping of 10 countries in the region — are among those hardest hit by US tariffs. Vietnam and Cambodia were slapped with 46% and 49% tariff rates, respectively, by the Trump administration, while Malaysia received a 24% rate - Bangkok Post
The completion of Chinese-sponsored upgrades to a naval base in Cambodia is part of Beijing’s bigger plan to break maritime chokepoints and de-risk supply chains. Chinese and Cambodian officials, including Cambodian Prime Minister Hun Manet and members of the People’s Liberation Army (PLA), attended a ceremony at the Ream Naval Base to launch the new facilities on Saturday. The upgrades include a joint logistics and training centre and a 650-metre (2,130-foot) pier that can handle big warships such as aircraft carriers, vessels that Cambodia’s navy does not have. In particular, the base would improve access to the strategic Andaman Sea, bypassing chokepoints imposed by Vietnam, Singapore and Indonesia. - SCMP
Prime Minister Hun Manet said that Chinese President Xi Jinping will visit Cambodia in two weeks, according to the Phnom Penh Post.
Separately, one day after the expanded Ream Naval Base was inaugurated, warships from China and Cambodia conducted drills including formation manoeuvring, China Central Television (CCTV) reported late on Sunday. In the future, such exercises will most likely become more frequent, involving not only naval but also land and air elements, and would help "safeguard peace and stability in the South China Sea," China's state-run Global Times reported, citing Chinese military experts - Bangkok Post
Three USAID workers who travelled to Myanmar after the devastating earthquake were informed that they were being let go, according to Marcia Wong, a former senior USAID official, speaking to Reuters. “This team is working incredibly hard, focussed on getting humanitarian aid to those in need. To get news of your imminent termination – how can that not be demoralising?” Wong said. The UN Office of the High Commissioner for Human Rights reported on April 4 that the junta was restricting aid supplies to quake-affected areas where communities did not support its rule. The US, which was until recently the world's leading humanitarian donor, has pledged at least US$9 million (307.50 million baht) to Myanmar to support earthquake-affected communities. However, current and former US officials have stated that the scaling back of its foreign aid programme has hindered its response. - Asia News Network
Iran's foreign minister rejected US proposals for direct negotiations over Tehran’s nuclear ambitions, days after US President Donald Trump called for face-to-face talks. In a statement released on April 6 by the Foreign Ministry, Abbas Araghchi said Tehran was prepared to hold indirect talks with Washington. “Iran keeps itself prepared for all possible or probable events, and just as it is serious in diplomacy and negotiations, it will also be decisive and serious in defending its national interests and sovereignty," he was quoted saying. Araghchi's comments came three days after Trump called for "direct talks" with Tehran, saying they were "faster" and offered a better understanding than using intermediaries - RFE/RL
Ukrainian President Volodymyr Zelensky criticized the U.S. Embassy in Ukraine over its “surprisingly disappointing” response to Russia’s strike on the city of Kryvyi Rih, Zelensky’s hometown. Zelensky, in a lengthy Saturday post on the social platform X, accused the U.S. Embassy in Ukraine of being afraid to mention Russia when commenting on the Friday attack that killed at least 19 people and injured nearly 70 more. “Unfortunately, the response from the U.S. Embassy is surprisingly disappointing — such a strong country, such a strong people, and yet such a weak reaction,” Zelensky wrote. “They are afraid to even say the word ‘Russian’ when speaking about the missile that murdered children.” Following the deadly Russian attack on Kryvyi Rih, a city in central Ukraine, U.S. Ambassador to Ukraine Bridget Brink said she was “horrified that tonight a ballistic missile struck near a playground and restaurant in Kryvyi Rih. More than 50 people injured and 16 killed, including 6 children. This is why the war must end.” Zelensky, in the Saturday morning post, agreed that the three-year war in Eastern Europe “must end.” “But to end it, we must not be afraid to call things by their names. We must not be afraid to pressure the one who continues this war and ignores all the world’s proposals to end it,” Zelensky said. “We must pressure Russia — the one choosing to kill children instead of choosing a ceasefire. There must be additional sanctions against those who cannot exist without ballistic strikes on their neighboring nation,” Ukraine’s leader added. “We must do everything in our capacity to save lives.” - The Hill
Hundreds of thousands of protesters have rallied across 40 Spanish cities to protest overtourism and its impact on the nation’s escalating housing crisis. While Spain boasts Europe's fastest-growing economy, average rents have doubled and house prices have surged by 44 per cent in the last decade, according to data from property website Idealista. In Madrid, the epicentre of the protests, over 150,000 people marched through the city centre, according to the local tenants' union. Spain is the second-most visited country in the world behind France, receiving a record 94 million tourists in 2024 - The Independent
The circulating horror stories of random interrogations and incarceration of foreign nationals at U.S. border entry points are apparently to blame for a double digit drop in overseas visitors. Goldman Sachs Global Investment Research found a 13% drop compared to a year ago. Canada is among several countries which have issued travel advisories for the U.S., warning that random searches and interrogations - including seizures of mobile phones - are occurring more frequently.
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