Apr. 7, 2025

Over 50 nations reach out to negotiate tariffs, South Sudan on brink of civil war, U.S. futures fall, Israel and Hamas renew conflict

Your Executive Brief 🌐

Nations Reach Out to Negotiate Tariffs with Trump Administration

On April 2, President Donald Trump announced a comprehensive tariff plan, imposing a universal 10% tariff on all imports, with higher rates for specific countries, such as 34% on China and up to 50% on others, citing the need to address trade imbalances and protect American industries. This announcement led to significant market reactions, with the S&P 500 and Nasdaq Composite experiencing substantial declines, and similar downturns in Asian markets. In response, over 50 countries have reached out to the U.S. seeking negotiations, while some, including China, have implemented retaliatory tariffs. Commerce Secretary Howard Lutnick stated that the tariffs would remain in place for the coming weeks, emphasizing their role in revitalizing U.S. manufacturing. Critics from both conservative and liberal perspectives have raised concerns about the potential for a global recession and questioned the legality of the tariffs, while the administration maintains that these measures are necessary for long-term economic restructuring. The situation continues to evolve as international negotiations and domestic debates unfold.​

The last time the U.S. implemented across-the-board tariffs on imports was under the Smoot-Hawley Tariff Act in 1930. The U.S. Constitution gives Congress the power to regulate commerce with foreign nations, although presidents can impose tariffs under certain conditions (e.g., national security).

South Sudan Teeters on Brink of Civil War Amid Power Struggle and Ethnic Tensions

A renewed political crisis in South Sudan is threatening to plunge the world’s youngest nation back into ethnic conflict. The fragile peace between President Salva Kiir and Vice President Riek Machar has collapsed after Kiir’s forces detained Machar and disarmed his security detail, a move Machar’s party claims violates the 2018 peace agreement that ended the previous civil war. The tensions have sparked fears of a repeat of the 2013–2018 conflict that killed approximately 400,000 people. Ethnic militias are already active: Machar’s Nuer-aligned White Army recently attacked government forces, resulting in the deaths of dozens, including soldiers attempting to evacuate via a U.N. helicopter. Meanwhile, Kiir has removed Machar’s allies from government positions, closed opposition offices, and received military backing from Uganda, whose warplanes have struck Machar-held areas. As international efforts, including calls from the U.N. and U.S., fail to halt the escalation, over 100,000 people have already been displaced amid widespread fears of another devastating war.

NotSouth Sudan gained independence from Sudan in 2011 after decades of civil war. The country’s first civil war post-independence began in 2013, fueled by ethnic rivalry between Kiir’s Dinka group and Machar’s Nuer.

Markets React to Trump’s Tariffs, U.S. Stock Futures Fall

U.S. stock futures fell sharply Sunday evening, continuing a dramatic sell-off that began after President Donald Trump imposed sweeping tariffs on virtually all U.S. trading partners. Dow futures plunged nearly 1,000 points, while the Nasdaq and S&P 500 futures dropped 3.9% and 2.9%, respectively, indicating more pain ahead after last week's historic rout. The Dow had already suffered back-to-back drops of over 1,500 points, a first in history, with the Nasdaq entering bear market territory and the S&P 500 nearing it. The market reaction was exacerbated by the Trump administration's defiant stance over the weekend, confirming that tariffs would go into effect and remain despite international backlash and economic fallout. China, Canada, and the EU are preparing retaliatory measures, while global markets, oil prices, and cryptocurrencies have also plunged amid rising fears of a recession. The administration insists the tariffs are essential to correct longstanding trade imbalances, particularly with China, but investor anxiety over potential economic stagnation continues to mount.

The Nasdaq has now fallen 22% from its record high, marking the official entry into a bear market. Bitcoin, often considered a risk asset, fell under $80,000 after resisting broader market drops last week.

Israel and Hamas Trade Strikes in Renewed Violence

Tensions flared again between Israel and Hamas on April 6, 2025, as the Palestinian militant group launched a rocket barrage into southern Israel, citing retaliation for what it called Israeli "massacres" of Gaza civilians. Around 10 rockets were fired, most of which were intercepted by Israeli defenses, though a direct hit was confirmed in Ashkelon. Emergency responders reported at least one injury and minor damage. In response, Israeli forces launched airstrikes that killed at least 39 people in Gaza, according to local health officials. The Israeli military also issued new evacuation orders for residents in Deir Al-Balah, warning of imminent operations. Prime Minister Benjamin Netanyahu, en route to Washington for a meeting with President Trump, was briefed on the developments and authorized continued military action. The hostilities mark a breakdown in the ceasefire that began in January and follow Israel’s resumption of ground operations in March. The Gaza Health Ministry claims over 50,000 Palestinians have been killed since the war began in October 2023, after Hamas-led attacks killed 1,200 Israelis and took 251 hostages.

Netanyahu’s trip to Washington may now be dominated by calls for restraint, as the U.S. seeks to prevent further regional destabilization. Both sides blame each other for the failed peace talks, but lack of transparency over negotiation efforts hampers conflict resolution.

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