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Daily News Brief

April 9, 2025

Welcome to CFR’s Daily News Brief. Today we’re covering the implementation of U.S. President Donald Trump’s largest tariffs yet, as well as...

  • Ukraine’s detention of two Chinese fighters

  • A push to expand rare earth processing in Europe

  • U.S. Secretary of Defense Pete Hegseth’s trip to Panama

 
 

Top of the Agenda

Trump’s “Liberation Day” tariffs went into effect overnight, as did 104 percent duties on Chinese goods in response to China’s retaliation. Dozens of U.S. trading partners now face tariff rates of over 20 percent, and almost none have a rate lower than 10 percent. Many foreign leaders have scrambled to negotiate relief—and Trump has signaled openness to talks—though no deals to prevent the tariffs were finalized ahead of today. China has stood apart in its embrace of retaliatory duties, today announcing a hike in tariffs on U.S. goods to 84 percent.

 

Foreign responses. A Chinese foreign ministry spokesperson today said that if Washington insists on a tariff war, Beijing will “fight to the end.” A new Chinese government white paper on bilateral economic relations said that differences could be resolved through “equal-footed dialogue,” though none was immediately announced. In Europe, officials are due to set their response to U.S. steel and aluminum tariffs today, and Italian Prime Minister Giorgia Meloni announced plans to travel to Washington next week. Meanwhile, Trump celebrated a “great” call with South Korea’s acting president yesterday. 

 

Economic waves. Asian and European stocks slid today, and a selloff in U.S. Treasury bonds intensified overnight. U.S. firms have begun to announce how tariffs could affect their prices and delivery times. Reuters reported that plane part supplier Howmet declared a force majeure event and warned customers it is considering halting shipments. Companies including truckmaker Peterbilt, oil and gas equipment manufacturer DynaEnergetics, and industrial automation firm Honeywell have all announced tariff surcharges. 

 

Stances in Washington. Trump’s team has largely defended the levies, though Elon Musk has publicly criticized Trump’s trade advisor. While Republican lawmakers have mostly defended the tariffs as well, some voiced skepticism after a Senate hearing yesterday with Trump’s trade representative Jamieson Greer. Greer is due to be questioned at a House hearing today. 

 

“The only path to U.S. scale relative to China—the world’s most formidable manufacturer—is U.S. alliances and partnerships. Tariffing allies ensures we end up divided against China’s scale. So potential deals like [that with South Korea], if concluded quickly, are critical. More [are] needed. Fast.”

—CFR expert Rush Doshi on X

 

Vietnam Scrambles in a Tariff Bind

Vietnam's Communist Party General Secretary To Lam speaks during a press conference on March 10, 2025.

Dinar Ulfiana/Reuters

Despite Vietnam’s strategic importance and early concessions, it has become the most vulnerable target of Trump’s tariffs—and now faces an uphill battle to protect its economy and reset trade ties with the United States, CFR expert Joshua Kurlantzick writes for Asia Unbound.

 
 

Across the Globe

Ukraine reports Chinese fighters. Ukrainian forces captured two Chinese nationals fighting for Russia in eastern Ukraine, President Volodymyr Zelenskyy said yesterday. A Chinese foreign ministry spokesperson said today that Beijing “asks its nationals to stay away from areas of armed conflict,” while unnamed Western officials told CNN they did not see “evidence of state sponsorship.” Also yesterday, the United States said it would pull troops and equipment from a logistics hub in Poland used to supply Ukraine. Poland said other NATO allies would fill the United States’ role.

 

Senior U.S. official at NATO fired. Defense Secretary Hegseth removed Vice Admiral Shoshana Chatfield “due to a loss of confidence in her ability to lead,” a spokesperson for Hegseth said. Four of the nine senior military officers dismissed during the Trump administration have been women; the percentage of women who become U.S. generals or admirals is in the single digits. Chatfield did not immediately comment publicly. 

 

Rare-earth plant expansion. Belgian chemical company Solvay inaugurated a plant expansion of their La Rochelle, France, facility yesterday that will be devoted to rare earth processing. China has recently restricted its exports of rare earths, and Solvay says it aims to provide 30 percent of processed rare earths for magnets in Europe by 2030. 

 

U.S. pullback of migration parole. Some migrants allowed into the United States during the Joe Biden administration under a policy called humanitarian parole received notification that their legal status was terminated yesterday and were told “to leave the United States.” The messages went out to people who had obtained appointments at the U.S.-Mexico border via a Customs and Border Protection app. Hundreds of thousands of migrants have entered the United States using the app since January 2023. It was not immediately clear how many received the termination notice. 

 

Clean power’s global growth. More than 40 percent of worldwide electricity was generated from renewable or nuclear energy in 2024, think tank Ember said in a new report. Solar is the fastest-growing energy source; the amount of power it produces has doubled in the last three years. Even so, the report cautioned, factors including the increased demand for air conditioning meant that fossil fuel generation rose, too.

 

U.S. relations with Panama. Hegseth said the two countries would work in “partnership” on a visit to Panama yesterday. While in recent months Trump has threatened to “take back” the Panama Canal, Hegseth praised Panama’s security cooperation and said that “together we will take back the canal from China’s influence.” Also yesterday,  the country’s top auditor said the Hong Kong company that owns two ports on the canal owes hundreds of millions of dollars in unpaid fees.

 

Zimbabwe’s land compensation. Zimbabwe issued more than $300 million in bonds as part of measures to repay farmers whose land was seized twenty-five years ago in a land reform program. The program sparked violent land evictions in 2000 and prompted Western sanctions in the past. 

 

Argentina’s new IMF deal. Argentina reached a preliminary agreement with the International Monetary Fund (IMF) for a $20 billion loan, the fund said yesterday. Details are due to be confirmed at an upcoming IMF board meeting. Buenos Aires has been negotiating a new agreement with the IMF for months as part of President Javier Milei’s economic reforms. 

 
 

Who Controls the Panama Canal?

An aerial view shows cargo vessels docked at Balboa Port, operated by Panama Ports Company, at the Panama Canal, in Panama City, Panama, February 1, 2025.

Enea Lebrun/Reuters

Panama has owned and administered the Panama Canal for nearly three decades. President Trump has sought to change that to counter growing Chinese influence in Latin America, CFR’s Diana Roy writes in this article.

 
 

What’s Ahead

  • Today, Honduras hosts a leaders’ summit for the Community of Latin American and Caribbean States.

  • Today, Spanish Prime Minister Pedro Sánchez is on a visit to Vietnam before traveling on to China.

  • Today, a group of European Parliament delegates begins a visit to the United States.

  • Tomorrow, defense ministers of the Coalition of the Willing group to support Ukraine are due to meet at NATO headquarters in Brussels.
  • Tomorrow, the United States and Russia will hold consultations on embassy relations in Istanbul.

 
 

Shrinking the Trade Deficit With China

An electronic board shows stock indices at the Lujiazui financial district in Shanghai, China April 2, 2025.

Go Nakamura/Reuters

One tool to minimize the trade deficit would be ending the U.S. tax subsidy for Chinese inward portfolio investment. Experts explored the implications of this approach for U.S. markets and the bilateral relationship at this RealEcon meeting.

 
 

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