104% Tariff

Hi Global Recap readers,

I hope you had a wonderful weekend!

I had to cut back on screen time this weekend—life got busy. But the moment I checked in on social media and the news, it was all “Black Monday,” “Tariffs,” “Market Crash,” “Trade War,” “China,” “World War III”—just headline after headline screaming chaos.

Overreaction? Maybe. Maybe not.

But I realize these two things:

• I need to break down this whole tariff situation in the newsletter

• Sometimes, it’s better to just focus on what’s right in front of you—mow the lawn, hang out with family. Meanwhile, the world keeps spinning, regardless of my attention.

🇺🇸 UNITED STATES
Tariff War:
China vs US

President Trump is doubling down on tariffs against China, threatening a huge hike if Beijing doesn’t back down.

Deadline? Tomorrow, April 8.

Context

After President Trump tacked on an extra 34% tariff to the existing 20% on Chinese goods—bringing the total to 54%—China hit back with a 34% tariff of its own on US products.

• Last Friday, right after Trump dropped the tariff bomb, China clapped back with export restrictions on rare earth elements—critical stuff for making weapons, electronics, and pretty much anything high-tech the US relies on.

• On Monday, Chinese foreign ministry spokesperson Lin Jian slammed Trump’s tariffs as a case of “typical unilateralism, protectionism, and economic bullying.”

The Latest Threat

In retaliation against China’s retaliation against the US’s retaliatory tariffs, Trump announced yet another retaliation—declaring that if China doesn’t walk back its 34% retaliatory tariff by April 8, the US will retaliate with an additional 50% tariff starting April 9.

• Trump’s tariffs on Chinese goods could hit a combined 104%.

• He’s also halting trade talks with China unless a “fair deal” is reached.

• Beijing has vowed to “fight to the end,” calling the US approach “blackmail.”

Canceled Talks

But that’s not all. Trump said that he is canceling all meetings requested by the Chinese side, effectively throwing the ball into the Chinese courts.

Now, China has two options:

• Keep trying to engage with the US.

• Drop all tariffs.

Global Reactions

The tariff war is sparking international concern and criticism.

• European Commission President Ursula von der Leyen is pivoting to trade with other nations, citing “vast opportunities” outside the US.

• Japanese Prime Minister Shigeru Ishiba expressed “strong concern” over the impact on Japanese investments in the US.

• Even allies like Israel are feeling the heat, with Prime Minister Netanyahu pledging to drop tariffs on US goods, though Trump remains noncommittal.

Extra

Not sure if I’ve already shared this, but here’s a short video of the legendary economist Milton Friedman breaking down how free trade and capital promote cooperation and peace. He illustrates a concept beautifully captured in Leonard Read’s 1958 essay, I, Pencil.

It makes sense. When countries’ economies are tightly interwoven and depend on each other for prosperity, there’s a built-in incentive to keep things peaceful. Starting a fight means risking your own well-being.

🇨🇳 CHINA
More on the TikTok Deal

This story broke over the weekend—so in case it flew under your radar, here it is:

What Happened?

Over the weekend, word got out that Trump gave TikTok a 75-day extension to keep the app alive while negotiations keep rolling.

• But here’s the twist: China and the US pretty much had a deal locked down—until China pulled out after President Trump slapped on new tariffs.

• ByteDance, TikTok’s parent company, informed the White House that China wouldn’t approve the deal without trade negotiations.

• Now, TikTok’s future in the US is up in the air.

Violating Law?

Senator Mark Warner has accused President Trump of allegedly breaking a 2024 law that gave ByteDance until January 19, 2025, to sell off TikTok’s US operations—claiming Trump crossed the line by handing out deadline extensions.

• The extension allows ByteDance to retain influence over TikTok’s US operations.

• Warner argues this jeopardizes national security and compliance with the law.

Who’s Interested in Buying?

Several big names have shown interest in acquiring TikTok’s US operations.

• Amazon, Oracle, and Blackstone have reportedly placed bids.

• A consortium led by billionaire Frank McCourt offered $20 billion, aiming to redesign TikTok with blockchain technology.

• Another group, including Roblox’s CEO, has bid over $30 billion.

🇺🇸 UNITED STATES 🇮🇷 IRAN
US Sends Second Carrier Near Iran

The USS Carl Vinson is moving into the Indian Ocean, on its way to join the USS Harry S. Truman in the Middle East.

What’s Happening?

Satellite images from April 5 show the USS Carl Vinson cruising out of the Malacca Straits. The aircraft carrier isn’t traveling solo either—it’s rolling in with its strike group, including the USS Princeton and USS Sterett.

• The Carl Vinson started in the western Pacific and is now heading straight toward the Middle East.

• Two carriers are better than one, and they’ll be backed by numerous B-2 stealth bombers stationed at Diego Garcia.

Why the Drama?

This isn’t just a random naval redeployment. It’s all about Iran and, by extension, the Houthis in Yemen.

• Tensions have been heating up since 2023 when the Iran-backed Houthi rebels began targeting commercial ships in the Red Sea—supposedly in solidarity with Palestinians after the Gaza-Israel conflict.

• Iran’s Supreme Leader, Ayatollah Khamenei, warned of a “strong reciprocal blow” if the US acts.

Defense Secretary Hegseth

The US government isn’t hiding its intentions.

Here’s US Defense Secretary Pete Hegseth talking about it:

Surprise

But it’s not all fire and fury.

In a curveball announcement, former President Trump revealed that the US is holding direct talks with Iran over its nuclear program.

• He broke the news during a press conference with Israeli Prime Minister Benjamin Netanyahu.

• Trump made it clear: “Iran cannot have a nuclear weapon. That’s all there is to it.”

Netanyahu, however, isn’t convinced a deal is in the cards. He laid out his own idea of what a “good deal” should look like:

• He’s pushing for the “Libya model,” which calls for Iran to completely dismantle its nuclear program.

Good Signs?

You might think Iran isn’t serious about cutting a deal with the US—but their latest move could be a clue to what’s really going on behind the scenes:

• Iran’s Press Supervisory Board has slapped the hardline Kayhan newspaper with a warning after it ran a column that talked about assassinating US President Donald Trump, according to state media.

• The column read, "a few bullets are going to be fired into that empty skull of his."

• Later adding, "he makes threats and then backs down! The result? The situation in America gets worse by the day.”

🇺🇦 UKRAINE
First Time: Zelenskyy Confirms Cross-Border Operations

For the first time, Ukrainian President Volodymyr Zelenskyy has openly acknowledged that Ukrainian troops are active in Russia’s Belgorod region.

This aims to protect Ukrainian towns near the border and shift the war’s focus back to its origin.

What Zelenskyy Said

In his nightly address, Zelenskyy confirmed Ukrainian military presence in Belgorod and neighboring Kursk.

• He emphasized that these operations are “absolutely justified” to safeguard Ukrainian regions like Sumy and Kharkiv.

• Zelenskyy praised the 225th Assault Regiment for their efforts in the area.

Strategic Impact

The operations have reportedly eased pressure on Ukraine’s main front lines, particularly in Donetsk.

• Zelenskyy highlighted that the Kursk operation successfully diverted Russian forces from key battle zones.

• Despite Russia reclaiming some territory in Kursk, Ukraine views the mission as a strategic win.

Russia’s Response

Russia claims to have seized the village of Basivka in Ukraine’s Sumy region, intensifying attacks on Ukrainian forces.

• Russian President Vladimir Putin has proposed creating a buffer zone along the border.

• Ukrainian officials, however, deny that Basivka is under Russian control.