This Week in Explainers: US vs China tariff war… what’s going on?

Donald Trump has been delivering one shocker after another. A week after Liberation Day (April 2), when he announced a range of tariffs on US trading partners, sending the world into a tizzy, he paused them for 90 days for most countries. The exceptions are China, Mexico and Canada.

The Asian nation is worst hit, having been slapped with 145 per cent tariffs. But Beijing is not backing down and has hiked its levies on the US to 125 per cent. The possibility of a full-blown trade war looms. However, there is another twist: Trump has exempted smartphones and computers from tariffs, a move likely to have a major impact on tech giants, especially Apple, which makes products in China.

The uncertainty continues. Financial markets are volatile, the dollar is getting hammered, and the fears of recession loom large. With the constant flip-flops, it’s impossible to guess what will happen next.

In the Ukraine war, North Korean soldiers have long been fighting on behalf of Russia. Now reports suggest that 155 Chinese nationals are also on the battlefield. What’s going on?

The US and Iran held their first talks in years on Saturday in Oman and will meet again next week. This comes after Trump’s repeated threat to use military force against the Islamic Republic if it doesn’t halt its nuclear programme.

Bangladesh was on the boil once again. Anti-Israel protests turned violent on Monday as mobs targeted businesses.

All this and more in our weekly round from around the world.

1. Donald Trump’s tariff policy sends mixed signals to the world. Just as the reciprocal tariffs were to come into effect, the US president decided to pause them for 90 days on most trading partners, including India. (The 10 per cent baseline tariffs remain). So what was behind the U-turn? We analyse.

2. It is a pattern. Tariffs are imposed, then paused or rolled back. As of now, Trump has slapped 145 per cent tariffs on China, and Beijing has hit back with 125 per cent on US imports. However, in another surprise development, the US administration has exempted smartphones, computers and some other electronic devices from reciprocal tariffs, including the levies imposed on Chinese imports.

The other import duties remain. What does a US-China trade war mean for the world economy? And why is Beijing defiant?

3. The pause on tariffs on most countries, except China, led the US and Asian stock markets to rise – but only for a day. On Friday (April 11), markets slid once again. Amid the turmoil, world leaders are scrambling to find answers on how to deal with the US. The escalating trade war between Washington and Beijing instils little confidence. Does this mean recession is still a possibility?

4. First, it was the North Korean soldiers; now it is the Chinese. Ukrainian President Volodymyr Zelenskyy said Wednesday that Ukrainian intelligence had identified 155 Chinese citizens fighting alongside Russian forces. This comes after Ukraine said that two Chinese nationals were captured in the country. Is Beijing sending its troops to fight this war? Why?

5. Once again, Bangladesh has been gripped by violence. Dhaka and other cities witnessed anti-Israeli protests earlier in the week. However, the demonstrations turned ugly as unruly mobs vandalised shops and businesses. They targeted outlets like Bata, KFC and Pizza Hut. Here’s what happened.

6. Many who planned to visit Mecca for Hajj this year might have to change their plans. Saudi Arabia has imposed new travel restrictions on 14 countries, including India, Pakistan, and Bangladesh. Umrah visas, business visit visas and family visit visas have been suspended temporarily. These guidelines will stay in place until the end of the pilgrimage in June. But why has this visa ban been imposed?

7. A shocking brothel scandal has unravelled in Boston, US, leading to the arrest of Indian-origin CEO Anurag Bajapaye. The brothel reportedly operated out of luxury apartments near Harvard University. It charged around $600 ( approximately Rs 50,000) per hour for sex and the clientele included doctors, lawyers, and corporate executives. Now, Bajapaye, co-founder of the billion-dollar water tech firm Gradiant, has been drawn into a high-profile investigation. Here’s what we know so far.

8. Our last story has a ‘Game of Thrones’ connection. If you’ve watched the drama, you are familiar with dire wolves. These fascinating creatures roamed the Earth more than 10,000 years ago before they went extinct. Now, a Dallas-based biotech company has announced the birth of three pups, who bear the DNA signatures of the predator. Is the dire wolf back from extinction? Experts have their reservations. This story explains it all.

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