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Daily News Brief

April 2, 2025

Welcome to CFR’s Daily News Brief. Today we’re covering U.S. President Donald Trump’s expected reciprocal tariff announcement, as well as...

  • An increase in U.S. military deployments in the Middle East

  • Moscow’s criticism of the Ukraine truce proposal

  • Talks on a partial purchase of TikTok

 
 

Top of the Agenda

U.S. trade partners are girding for Trump to announce a sweeping new set of tariffs. In February, Trump said he planned to set new duties on multiple countries in response to a range of tariff and non-tariff barriers to trade. The details are expected to be announced at a Rose Garden event at 4 p.m. Eastern time today; Trump aides were reportedly still finalizing the levies’ scope yesterday. Trump has described his reciprocal tariffs as tools for onshoring manufacturing, addressing unfair trade practices, and reducing the deficit—trade partners and economic analysts have said that the measures could upend alliances and global supply chains.

 

What’s known so far. In addition to the new reciprocal tariffs announcement, other previously ordered U.S. duties are set to go into effect today:

  • 25 percent tariffs on autos imported into the United States, which Trump ordered last week, are slated to take effect overnight. 
  • Another executive order from last week said that 25 percent tariffs could be imposed beginning today on goods sold by countries that buy Venezuelan oil.

U.S. Treasury Secretary Scott Bessent told lawmakers yesterday that the reciprocal tariffs would be a ceiling that countries could work to negotiate down from, one lawmaker told CNBC. White House Press Secretary Karoline Leavitt said the new tariffs would take immediate effect but that Trump was “always up for a good negotiation.”

 

How countries and markets are reacting. For weeks, countries have been trying to negotiate down the duties they will face—and in some cases, readying retaliation.    

  • After extensive conversations with Canada and Mexico, Trump relaxed some previously imposed duties for items traded under the U.S.-Mexico-Canada Agreement trade deal.
  • The European Union has a “strong plan to retaliate” against new U.S. tariffs, European Commission President Ursula von der Leyen said yesterday. 
  • Canadian Prime Minister Mark Carney has pledged retaliation with “maximum impact.” Yesterday, he held a call with Mexican President Claudia Sheinbaum, who has said she plans to announce her response on Thursday or Friday.

U.S. stocks have fallen in recent weeks after some of Trump’s previous tariff announcements; economic data yesterday showed that in the first months of 2025, U.S. stocks saw their biggest quarterly losses since 2022. Leavitt said yesterday that “Main Street” was the focus of Trump’s tariffs, adding that “Wall Street will be just fine.” 

 
 

“The United States has long been the biggest beneficiary of foreign direct investment. But tariffs threaten these flows too. Yes, some companies will invest in the United States to gain market access today. But they won’t be able to use U.S. operations as a profitable base for global consumers or to reach the fastest-growing commercial markets…U.S. makers will get cut out of global supply chains. And U.S. consumers and workers at home will be left to subsist on a much smaller economic pie.” 

—CFR expert Shannon K. O’Neil, Bloomberg Opinion

 
The tariffs that could go into effect today
 

Across the Globe

Russian pushback on Ukraine truce. Moscow cannot accept the U.S. proposal for a cease-fire in Ukraine “in its current form” because it does not address “problems related to the root causes of this conflict,” state media quoted Russia’s deputy foreign minister as saying. Separately, a Kremlin spokesperson said yesterday that the issue behind the war was “very complex.” The comments came after Trump on Sunday criticized Russian President Vladimir Putin over Russia’s approach to the cease-fire and threatened tariffs on buyers of Russian oil.

 

U.S. ups Mideast deployment. An aircraft carrier strike group will stay in the Middle East longer than originally planned while an additional group has been ordered to join it, the Defense Department said yesterday. It is unusual for two groups to be deployed so closely, though the Joe Biden administration took the same step last year. A Pentagon spokesperson warned against threats by Iran and its proxies while announcing the deployment. 

 

A possible TikTok divestment. At a meeting today, Trump is expected to consider a deal for U.S. investors to buy TikTok’s operations from its Chinese parent company, unnamed sources told CBS News. The firms involved in the deal reportedly include Oracle, Blackstone, and Andreessen Horowitz. They did not comment for reports in Bloomberg or the Financial Times. TikTok’s owner faces an April 5 deadline to sell its U.S. arm to non-Chinese entities or face a ban.

 

U.S.-South Africa dialogue. Senior South African officials met in Washington with White House, State Department, and Treasury officials to discuss “misconceptions on what has been presented by some as race laws designed to undermine minority rights in South Africa,” South Africa’s foreign ministry said yesterday. Citing Pretoria’s land expropriation policies, Washington has halted aid to South Africa and skipped a Group of Twenty meeting there. The Trump administration has also launched an on-the-ground initiative in South Africa to help white Afrikaners migrate to the United States.

 

Deportation error. The Trump administration said in a legal filing that it made an “administrative error” amid its immigration crackdown in transferring a Maryland man to prison in his home country of El Salvador last month. A U.S. judge granted Kilmar Abrego Garcia legal protection from removal in 2019 due to a credible fear of persecution in El Salvador. The Trump administration said in another filing that it cannot ensure Abrego Garcia’s return because he is no longer in U.S. custody.

 

U.S. strikes on Houthis. A U.S. attack in Yemen killed at least four people today, the Houthi rebels said. The group says at least sixty-five people have died since the latest U.S. air campaign began last month. Meanwhile, satellite images show that at least six U.S. nuclear-capable B-2 Spirit bombers are stationed at a base in the Indian Ocean, according to the Associated Press. It is rare for nearly a third of Washington’s B-2 fleet—planes worth around $1 billion each—to be stationed at a single overseas base.

 

Myanmar junta’s warning shots at Chinese relief convoy. The junta fired at a Chinese Red Cross convoy transporting earthquake relief supplies, a military government spokesperson said. He added that the aid group had not informed authorities of its presence and failed to stop their vehicles. A Chinese foreign ministry spokesperson said the team was safe and called for “open and unobstructed” relief routes.

 

Namibia, Russia nuclear energy talks. The two countries met to discuss boosting nuclear power cooperation in Namibia, Africa’s largest producer of uranium. Namibia is seeking international support for its local mineral processing and refining industries rather than solely for mining. The two countries have “room for further development,” Russia’s deputy prime minister said during his visit. Namibia has held talks with other partners, such as China, on the topic.

 
 

The Long, Proud History of Women in the Military

A U.S. military cadet team competes on the Squad Assault course during the 50th annual Sandhurst Military Skills Competition, a rigorous two-day event where teams of eight men and women from military academies and universities from 13 countries are tested.

Mike Segar/Reuters

Names of women veterans have been removed from the Department of Defense and Arlington Memorial Cemetery's websites. Public outcry has reversed some of these steps, but there are doubts about whether the information can be fully restored, CFR expert Linda Robinson writes for Women Around the World.

 
 

The Day Ahead

  • South Asian and Southeast Asian countries attend a Bay of Bengal economic cooperation conference in Thailand.

  • Danish Prime Minister Mette Frederiksen begins a visit to Greenland.

  • Cambodia inaugurates a port expansion at Ream Naval Base.

  • Vietnam’s foreign minister visits Moscow.
 
 

Mar-a-Lago Accord Is Not a Recipe for Success

U.S. President Donald Trump speaks at Mar-a-Lago in Palm Beach, Florida, U.S., February 18, 2025.

Kevin Lamarque/Reuters

A blueprint from one of President Trump’s top advisors would mark an inflection point for the global economic order. But it is unlikely to get the cross-border coordination required to succeed, CFR expert Rebecca Patterson writes in this article.

 
 

Council on Foreign Relations

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