Russia, U.S. Carry Out Prisoner Exchange Involving Spa Worker And Electronics Smuggler

Apr 10 2025, 20:59

On Thursday, Russia freed a spa worker from Los Angeles who had been sentenced to 12 years in prison for donating to a charity supporting Ukraine. In return, the U.S. handed over a man accused of running a global operation that smuggled sensitive American electronics to the Russian military.

The exchange, which took place on the tarmac of Abu Dhabi airport, indicates significant detailed contacts between President Vladimir Putin’s Kremlin and the administration of U.S. President Donald Trump, who says he wants to strike a peace deal to end the war in Ukraine.

Footage on Russian state television showed Ksenia Karelina, a dual citizen who was found guilty last year of treason by a Russian court for donating $51.80 to a U.S.-based charity providing humanitarian support to Ukraine, flying out of Russia.

Arthur Petrov, a dual German-Russian citizen arrested in 2023 in Cyprus at the request of the U.S. for allegedly exporting sensitive microelectronics, was shown walking past Karelina towards a Russian plane where he underwent medical check-ups, complaining only of fatigue.

“Petrov was exchanged for U.S. citizen Ksenia Karelina, who also holds Russian citizenship and was sentenced to 12 years in a penal colony for treason in the form of financial assistance to a foreign state,” Russia’s Federal Security Service (FSB), the main successor to the Soviet-era KGB, said.

“We express our gratitude to the UAE leadership for their assistance,” the FSB said. The UAE posted a picture of Karelina on the tarmac in Abu Dhabi beside a Russian plane.

‘Goodwill Gesture’

A U.S. official told Reuters that U.S. special envoy Steve Witkoff brought up the case of Karelina with Putin during a call last week and that Putin’s reaction was to “do something as a goodwill gesture because he wants to settle the war”.

U.S. talks with Russia and Ukraine about ending the war were to continue and Witkoff would travel to Russia soon, the official, who spoke on condition of anonymity, said.

The Wall Street Journal, which first reported the swap, said that the deal was negotiated by CIA Director John Ratcliffe and an unidentified senior Russian intelligence official. Ratcliffe confirmed the exchange to the Journal.

Love And Smuggling

Beyond the spymasters and high intrigue of Russian-U.S. relations, Karelina’s fiance expressed joy and thanked Trump for his efforts to secure her release, saying their dog was awaiting her return.

“I am overjoyed to hear that the love of my life, Ksenia Karelina, is on her way home from wrongful detention in Russia,” Chris van Heerden said. “I cannot wait to hold her. Our dog, Boots, is also eagerly awaiting her return.”

A U.S. official said Karelina is expected to arrive at Joint Base Andrews, in Maryland, later on Thursday.

The United States lists a number of Americans – some dual citizens – who are in jail in Russia, including Stephen Hubbard who has been officially declared by Washington as wrongfully detained.

U.S. teacher Marc Fogel was released from a Russian prison in February during a visit by Witkoff to Moscow. Saudi Crown Prince Mohammed bin Salman and Russia’s sovereign wealth fund chief Kirill Dmitriev were involved in those negotiations.

In August last year, the United States and Russia carried out their biggest prisoner swap since the Cold War, with 24 prisoners gaining their freedom, including U.S. journalist Evan Gershkovich and ex-U.S. Marine Paul Whelan.

The U.S. Justice Department said last year that Petrov had participated in a scheme to procure U.S.-sourced microelectronics for manufacturers supplying weaponry and other equipment to the Russian military.

The Justice Department said that Petrov had formed an elaborate tech-smuggling syndicate which spirited sensitive technology to Russia’s military-industrial complex through a web of shell companies. Petrov was unavailable for comment.

(With inputs from Reuters)

Accepting Military Curbs A Red Line In Peace Talks, Ukraine Tells US

Team StratNews;

Apr 10 2025, 19:43

A senior Ukrainian official said Kyiv has informed the U.S. that any restrictions on the size or readiness of Ukraine‘s armed forces would be a red line, as Donald Trump pushes to broker an end to the war with Russia.

Russian President Vladimir Putin has said he wants the size of Ukraine’s army to be limited. He has also said Kyiv must drop its ambitions to join NATO and that Moscow must control the entirety of four Ukrainian regions it claims as its own.

“This is a principled position of Ukraine – no one, and certainly not the aggressor country Russia, will dictate to Ukraine what kind of armed forces Ukraine should have,” the senior official, Pavlo Palisa, told Reuters in an interview.

Palisa is a deputy head of President Volodymyr Zelenskyy’s office and was part of the Ukrainian delegation that met U.S. officials for talks in Saudi Arabia last month.

Well-Prepared Military

A well-prepared Ukrainian military would be Kyiv’s best security guarantee against new Russian attacks if and when a ceasefire or peace deal is reached, he said.

“I can guess what the Russian Federation is guided by — maybe they want to prepare, to make it easier for themselves in the future, but no. Our task is to learn the lessons (of the past) well,” Palisa added.

During a first meeting with U.S. officials in Saudi Arabia, Ukraine agreed to an unconditional 30-day ceasefire proposed by the U.S. after which Washington resumed military aid and intelligence sharing with Kyiv following a brief pause.

But Russia said crucial conditions needed to be worked out before a ceasefire could be reached. The sides then separately agreed to halt attacks on each other’s energy facilities, but have since accused each other of flouting the agreements.

Kyiv says it may hold a new round of talks with U.S. officials next week.

Ukrainian officials say they have shared evidence of Russian attacks on energy infrastructure with the United States. Kyiv is honouring the agreement, Palisa said.

Trump’s administration has pushed for a quick end to the full-scale war launched by Russia in February 2022, but a lasting peace deal appears far from imminent.

Fighting rages on, and Ukraine’s top general has said a new Russian offensive push is already underway in the northeast of the country. Russia already controls around a fifth of Ukrainian territory.

Apart from the matter of its armed forces, Ukraine has said it will never recognise Russian sovereignty over Ukrainian land, though it has publicly acknowledged that it will not be possible to recover some of the territory by force.

Russia’s Spring Offensive

In addition to maintaining a strong Ukrainian army, Palisa emphasised the importance of security guarantees from Kyiv’s U.S. and European partners that could help deter future Russian attacks.

The United States has not committed to providing security guarantees, though some European powers have discussed a “coalition of the willing” that could deploy a troop contingent to bolster deterrence.

Palisa said he expected Russia to step up its assaults later this month and in May.

The official said he thought Russia would focus its offensive push on the eastern city of Pokrovsk, but could also push around the eastern fronts near Kupiansk and Lyman as well as the southeastern fronts of Zaporizhzhia and Novopavlivka.

“The absolute priority, in my opinion, will now be on the Pokrovsk direction,” he said.

Russian forces have been trying to encircle the strategically important city of Pokrovsk to advance their goal of taking full control of Ukraine’s Donetsk region.

Kyiv, meanwhile, faces uncertainty over the future of U.S. military aid. A lack of new aid could, in time, impact the supply of missiles for its Patriot air defence systems, as well as its offensive HIMARS and ATACMS systems.

Palisa said earlier this month that Ukraine had not yet discussed additional aid with the U.S., but that the issue could be raised as the ceasefire negotiations continue.

Ukraine is investing resources in developing its own air defences, he said, adding that several nations had agreed to transfer licences and technical documentation for the production of “certain equipment” in the country.
“The process is moving, and quite dynamically.”

(With inputs from Reuters)

Zelenskyy Says 155 Chinese Soldiers Fighting For Russia Against Ukraine

Team StratNews;

Apr 10 2025, 19:33

Ukraine’s President Volodymyr Zelenskyy has claimed 155 Chinese nationals are fighting for Russia in the ongoing war that commenced in 2022.

He made the comment after two Chinese nationals were captured fighting for Russia earlier this week.

Speaking to journalists on Wednesday, Zelenskyy reiterated his claim that there are “many more” Chinese nationals engaged in the conflict, based on information gathered by his government, reported BBC.

Zelenskyy wrote on his X page: “As of now, we have precise data on over 150 Chinese citizens who were involved in the war against Ukraine by Russia. We know that the actual number is higher. Ukraine believes that such blatant involvement of Chinese citizens in hostilities on the territory of Ukraine during the war of aggression is a deliberate step towards the expansion of the war, and is yet another indication that Moscow simply needs to drag out the fighting.”

China Rejects Claim

The Chinese government, meanwhile, rejected his claim and said it is not based on facts.

Chinese foreign ministry spokesman Lin Jian told reporters: “Such claim has no basis in facts. China’s position on the issue of the Ukraine crisis is very clear and is widely recognized by the international community.”

“The Ukrainian side needs to view correctly China’s effort and constructive role for the political settlement of the Ukraine crisis. As to your question on whether the two sides have communicated with each other, I have no information to offer on that,” he said.

Earlier, Ukraine had claimed to have captured two injured North Korean soldiers who were fighting the battle for Russia.

Deadly Month For Ukrainians

With at least 164 Ukrainians killed and 910 injured, March 2025 saw a 50% spike in civilian casualties from the previous month. These numbers represent a 71% increase in civilian casualties compared with March last year, says the latest HRMMU Protection of Civilians Report.

Russian attacks on cities such as Dnipro, Kharkiv, and Sumy, combined with multiple munitions strikes on Dobropillia, exacerbated the high number of casualties in March.

Kryvyi Rih, located around 65 kilometers from the frontline, was one of the places most heavily affected, suffering five waves of Russian attacks which killed at least six civilians and injured 66.

Civilian buildings in the city – home town of Ukraine’s President Volodymyr Zelenskyy – including two hotels and a restaurant, were amongst the sites hit.

Some 29 medical and 50 educational facilities were damaged by Russian armed forces during last month, while two medical centres and six educational facilities were totally destroyed.

(With inputs from IBNS)

European Commission Chief Welcomes Trump’s 90-Day Tariff Pause

Team StratNews;

Apr 10 2025, 19:23

European Commission president Ursula von der Leyen has welcomed United States President Donald Trump‘s decision to pause his planned tariff hike for 90 days, saying it is an important step towards stabilising the global economy.

In her X handle, the European Commission chief wrote, “I welcome President Trump’s announcement to pause reciprocal tariffs. It’s an important step towards stabilising the global economy.”

“Clear, predictable conditions are essential for trade and supply chains to function,” she said.

‘Tariffs Hurt Businesses, Consumers’

She said Tariffs are taxes that only hurt businesses and consumers.

“That’s why I’ve consistently advocated for a zero-for-zero tariff agreement between the European Union and the United States,” she said.

Ursula von der Leyen said the European Union remains committed to constructive negotiations with the United States, with the goal of achieving frictionless and mutually beneficial trade.

She said: “At the same time, Europe continues to focus on diversifying its trade partnerships, engaging with countries that account for 87% of global trade and share our commitment to a free and open exchange of goods, services, and ideas.”

Donald Trump announces 90-day pause on tariffs with a twist.

Tariff War

Amid a trade war with China, U.S. President Donald Trump on Wednesday announced a 90-day hold on tariffs for all other countries except Beijing.

After the U.S. raised tariffs on China to 104%, Beijing retaliated, announcing that it would impose a levy of 84% on U.S. imports, up from 34%, marking a significant escalation of the tariff trade war between the countries.

The U.S. counter-strike was swift, with Trump announcing that he was raising tariffs on China even further- to 125%- effective immediately.

“At some point, hopefully in the near future, China will realise that the days of ripping off the U.S., and other countries, are no longer sustainable or acceptable,” he posted on Truth Social.

For other countries, though, the president announced a 90-day pause on reciprocal tariffs, while the base tariff of 10% will remain.

(With inputs from IBNS)

India Bets On BIMSTEC

Anil Padmanabhan;

Apr 10 2025, 19:00

Last weekend, leaders of BIMSTEC (Bay of Bengal Initiative for Multi Sectoral and Technical Cooperation) countries, converged in Bangkok to give a fresh start to this regional body consisting of countries flanking the Bay of Bengal.

Coincidentally, the meeting happened just around the time when the world was soaking in the impact of Act-II of President Donald Trump’s tariff war.

Most analysts fear that the US action could hurt the world economy, particularly global trade. Global sentiment has taken a beating with stock markets in a nosedive.

In this backdrop, will the fresh efforts to revive BIMSTEC, which has been around since 1997, work? Why is India so invested in BIMSTEC?

To answer all this and more, StratNewsGlobal.Tech spoke to Sachin Chaturvedi, Chairman, Research and Information System on Capital Calculus.

Dominican Republic Ends Search For Survivors At Jet Set Nightclub

Team StratNews;

Apr 10 2025, 18:39

The Dominican Republic authorities have ended search and rescue operations at a popular Santo Domingo nightclub after its roof collapsed during a merengue concert, killing at least 184 people and leaving more than 100 others injured, media reports said on Thursday.

The incident marked one of the worst disasters registered by the country in a decade.

According to reports, at least 300 people were present inside the Dominican Republic’s iconic Jet Set nightclub on Tuesday morning when the disaster occurred.

Merengue artist Rubby Pérez and his orchestra were performing at the venue when the roof collapsed.

Pérez’s body was recovered from the scene on Wednesday morning, emergency services told CNN.

The deceased also included two former Major League Baseball players.

The exact number of the injured has yet to be provided by officials, with Juan Manuel Méndez, the director of the Emergency Operations Center, quoted as saying by CNN earlier that 145 people who had been rescued on Tuesday were “alive.”

Over 300 rescue workers, aided by sniffer dogs, searched through the rubble to find the survivors.

Desperate family members were seen standing anxiously with the hope that their loved ones would be rescued safely from the collapsed site.

“The past two days have been difficult because when people are trapped, you’re not feeling well mentally,” one responder told CNN.

Several videos of the venue are now circulating online, showing the moment when the roof collapsed.

President Luis Abinader mourned the loss of lives in the tragedy and wrote on X: “We deeply regret the tragedy that occurred at the Jet Set nightclub. We have been following the incident minute by minute since it occurred. All relief agencies have provided the necessary assistance and are working tirelessly in the rescue efforts. Our prayers are with the affected families.”

US National Dies

US Secretary of State Marco Rubio said one American citizen died in the tragedy.

He posted on X: “Jeanette and I are united in prayer as the people of the Dominican Republic grieve the recent tragedy that took place in Jet Set night club in Santo Domingo, which also resulted in the unfortunate death of at least one U.S. citizen and U.S. Legal Permanent Residents, while rescue efforts remain ongoing.”

Mourning the loss of lives in the tragedy, he said: “Our hearts go out to the families and loved ones affected by this devastating event. The U.S. stands ready to support our Dominican allies amid this difficult time.”

Two Major League players who lost their lives in the tragedy were identified as Octavio Dotel and Tony Blanco.

MLB Commissioner Rob Manfred issued a statement where he said: “Major League Baseball is deeply saddened by the passings of Octavio Dotel, Tony Blanco, Nelsy Cruz, and all the victims of last night’s tragedy in Santo Domingo. We send our heartfelt condolences to the families and friends of all those who have been affected and to our colleague Nelson and his entire family. The connection between baseball and the Dominican Republic runs deep, and we are thinking of all the Dominican players and fans across the game today.”

Survivor Shares Experience

Another survivor, Jenniré Mena of Venezuela, told CNN that she was at the club celebrating her 40th birthday with two of her friends.

Mena said one of them died while the other friend got trapped under the rubble.

“I’m grateful to be alive, feeling a lot of pain, but grateful to have the opportunity to feel this pain,” she said.

(With inputs from IBNS)

After Map Row, Nepal Now Throws Kalapani ‘Book’ At India

Huma Siddiqui;

Apr 10 2025, 18:38

Nepal has reignited its border dispute with India by including the contentious territories of Kalapani, Lipulekh, and Limpiyadhura in the Class 8 social studies curriculum. These areas lie in Uttarakhand’s Pithoragarh district, and have been claimed by Nepal in the past. But their inclusion in school textbooks marks a move to institutionalise the claim among Nepal’s youth.

Domestic Unrest

This development comes amid widespread domestic unrest in Nepal. There’s frustration over political corruption, economic stagnation and growing Chinese influence in the Himalayan nation. Major protests have erupted in capital Kathmandu, with citizens demanding the return of monarchy. Many in Nepal view the government’s alignment with Beijing—and growing distance from India—as part of the broader problem.

India’s Firm Response

India’s PM Narendra Modi met his Nepalese counterpart KP Sharma Oli last week on the sidelines of the BIMSTEC summit in Bangkok. Did they discuss this issue? StratNews Global asked Ministry of External Affairs (MEA) spokesperson Randhir Jaiswal at a weekly press briefing yesterday. His response: “We have a bilateral mechanism with Nepal to discuss border issues. When a country takes unilateral action, that doesn’t mean the situation on the ground or the reality will change. So that is how we look at these border issues.”

Disputed Territories & Background

The dispute centres around a 370-square-kilometre region near the tri-junction of India, China and Nepal. According to experts, the Kalapani region holds strategic importance, especially the Lipulekh Pass, which serves as a route for Indian pilgrims travelling to Kailash Mansarovar in Tibet.

The origin of the dispute lies in the 1816 Treaty of Sugauli between the British East India Company and Nepal, which defined the Mahakali River as the western boundary. The disagreement arises over identifying the river’s true source. Historical maps, including the 1879 and 1924 editions from the Survey of India, show these regions as part of India.

In 2020—amid heightened India-China tension following the Galwan Valley clash—Nepal’s then PM Oli released a new national map claiming Kalapani, Lipulekh and Limpiyadhura as part of Nepal. The move followed India’s construction of a strategic 80-km road to Lipulekh, an effort to bolster connectivity and defence readiness.

Nepal escalated the dispute by printing the altered map on its currency notes. And by incorporating the claim into its school curriculum, Nepal appears to be hardening its stance, possibly under China’s influence. China has made inroads into Nepal’s education sector through student exchange programmes, civil society partnerships and financial support.

Ties Strained

India and Nepal have long shared a close relationship—culturally, economically and geographically. Often described as having a “roti-beti” (bread and daughter) bond, India is Nepal’s largest trading partner. Thousands of Nepalese citizens work in India across various sectors. In this year’s annual budget (2025), India has set aside a grant of ₹700 crore for Nepal. Despite this, successive Nepalese governments have drifted towards China, leading to growing discomfort among their citizens.

The Modi-Oli Meeting

Amid strained relations, a high-stakes meeting took place between Modi and Oli on April 4 in Bangkok. The two leaders met one-on-one for over 35 minutes, marking their first substantial interaction since Oli returned to power in July last year with support from the Nepali Congress. Official statements from both sides described the meeting as “frank and candid”. But all, it seems, is not well.

US-China Tariff War May Reduce Trade Between Two By 80%, WTO Warns

Team StratNews;

Apr 10 2025, 18:11

The World Trade Organization (WTO) chief has said the ongoing tariff war between the United States and China may lead to merchandise trade between the two economies decreasing by 80%.

WTO Director General Ngozi Okonjo-Iweala said the escalating tariff war between the United States and China poses a significant risk of a sharp contraction in bilateral trade.

“Our preliminary projections suggest that merchandise trade between these two economies could decrease by as much as 80%,” Ngozi Okonjo-Iweala said.

She alerted that the decrease in trade between the two largest economies in the world could severely damage the global economic outlook.

“This tit-for-tat approach between the world’s two largest economies — whose bilateral trade accounts for roughly 3% of global trade — carries wider implications that could severely damage the global economic outlook. Our assessments, informed by the latest developments, highlight the substantial risks associated with further escalation,” the WTO chief said.

She said: “Our assessments, informed by the latest developments, highlight the substantial risks associated with further escalation.”

Two Blocs

She said the world economy is facing the potential risk of breaking into two blocs centred around the U.S. and China.

“The negative macroeconomic effects will not be confined to the United States and China but will extend to other economies, especially the least developed nations. Of particular concern is the potential fragmentation of global trade along geopolitical lines. A division of the global economy into two blocs could lead to a long-term reduction in global real GDP by nearly 7%,” she said.

She said it is critical for the global community to work together to preserve the openness of the international trading system.

90-Day Tariff Pause

Amid a trade war with China, U.S. President Donald Trump on Wednesday announced a 90-day pause on reciprocal tariffs for all other countries except Beijing.

The U.S. counter-strike was swift, with Trump announcing that he was raising tariffs on China even further- to 125%- effective immediately.

“At some point, hopefully in the near future, China will realise that the days of ripping off the U.S., and other countries, are no longer sustainable or acceptable,” he posted on Truth Social.

For other countries, though, the billionaire also appeared to apply a salve on tariff wounds, announcing a 90-day pause on tariffs over the baseline, universal rate of 10%.

China implemented the move just hours after the U.S. officially imposed a massive 104% tariff on Chinese imports.

The Chinese tariff declaration will further escalate the trade tension sparked by U.S. President Donald Trump.

(With inputs from IBNS)

France May Recognise Palestinian State Soon, Macron Says

Team StratNews;

Apr 10 2025, 17:40

French President Emmanuel Macron has said France may soon recognise the Palestinian state in the ‘coming months’.

“We must take the path of recognition [of the Palestinian state], so that’s what we’re gonna do in the coming months,” Macron says to France 5, as quoted by The Times of Israel.

He indicated that the step could be taken during the June United Nations conference, which is scheduled to be hosted by France and Saudi Arabia.

“Our goal is something like June with Saudi Arabia to hold this conference to finalise the mutual recognition movement by several countries,” Macron said.

“I’ll do it because I think that at some point it would be fair. And also because I want to take part in a collective dynamic, one that allows everyone who defends Palestine to also recognize Israel,” he said.

The French leader said he felt the move would ensure regional security.

Palestine has been recognised as a sovereign state by 146 out of 193 UN members so far, with Armenia, Slovenia, Ireland, Norway, Spain, the Bahamas, Trinidad and Tobago, Jamaica and Barbados joining their ranks last year, reported Al Jazeera.

‘Boost For Hamas’

Israeli Foreign Minister Gideon Saar reacted to Macron’s proposal and said a unilateral recognition of Palestine would be a boost for Hamas.

In his X post, the Minister said: “A ‘unilateral recognition’ of a fictional Palestinian state, by any country, in the reality that we all know, will be a prize for terror and a boost for Hamas.”

“These kinds of actions will not bring peace, security and stability in our region closer – but the opposite: they only push them further away,” he said.

Trump’s Riviera Plan

In February, President Donald Trump said the U.S. will ‘take over’ war-hit Gaza and create a “Riviera of the Middle East” after resettling Palestinians elsewhere.

Trump was quoted as saying by BBC: “The US will take over the Gaza Strip, and we will do a job with it too. We’ll own it and be responsible for dismantling all of the dangerous unexploded bombs and other weapons on the site”

He further said: “Level the site and get rid of the destroyed buildings. Level it out and create an economic development that will supply unlimited numbers of jobs and housing for the people of the area.”

“We’ll do a real job. Do something different. Just can’t go back. If you go back, it’s going to be the same way it has for 100 years,” he said.

Speaking on the authority of removing 1.8 million people from Gaza, Trump, whose inauguration took place on January 20, said: “I do see a long-term ownership position, and I see it bringing great stability to that part of the Middle East, and maybe the entire Middle East, and everybody I’ve spoken to, this was not a decision made lightly.”

He said the US would create jobs after taking over the area.

(With inputs from IBNS)

Australia Turns Down China, Eyes Trade Diversification

Team StratNews;

Apr 10 2025, 16:04

Australian Deputy Prime Minister and Defence Minister Richard Marles speaks during a tour of the Sheffield Forgemasters site, where steel used in defence programmes including a future fleet of nuclear-armed submarines is manufactured, in Sheffield, Britain, July 13, 2024. REUTERS/Temilade Adelaja/Pool/File Photo

Australia on Thursday rejected Beijing’s offer to jointly oppose U.S. tariffs, saying it will focus on diversifying trade and reducing its dependence on China, its top trading partner.

“We are not going to be holding hands with China in respect of any contest that is going on in the world,” Deputy Prime Minister Richard Marles told Sky News, referring to the Chinese ambassador’s proposal for countries to “join hands” on trade.

“We are not doing that. What we are doing is pursuing Australia’s national interests and diversifying our trade around the world.”

He said Australia would build its economic resilience by strengthening trade ties with the European Union, Indonesia, India, Britain and the Middle East.

China Losing Allies

In an opinion column in The Age newspaper, China’s ambassador to Australia Xiao Qian urged Canberra to collaborate with Beijing to defend the multilateral global trading system.

“Under the new circumstances, China stands ready to join hands with Australia and the international community to jointly respond to the changes of the world,” Xiao said.

Chilling Effect On Business

U.S. President Donald Trump, in a stunning reversal, on Wednesday said he would temporarily lower hefty duties on dozens of countries but continue to target China, raising the tariff to 125% from 104%, further escalating a trade war between the world’s two largest economies.

That could pose a risk to Australia, which ships almost a third of its goods to China. Exports to the United States are less than 5% of Australia’s total goods exports.

Australia’s central bank has warned the ongoing uncertainty over tariffs and other trade restrictions between the U.S. and other major economies could have a chilling effect on business investment and household spending decisions in the country.

Trump has imposed a unilateral 10% tariff on Australia, the low end of his reciprocal tariffs for all imports into the United States.

Prime Minister Anthony Albanese has said that while the duty on Australia, a key U.S. security ally in the Indo-Pacific, has “no basis in logic”, his government would not retaliate.

(With inputs from Reuters)

Apple Flies iPhones From India To Dodge Trump Tariffs

Team StratNews;

Apr 10 2025, 15:46

Apple iPhones are seen inside India's first Apple retail store during a media preview, a day ahead of its launch in Mumbai, India, April 17, 2023. REUTERS/Francis Mascarenhas/File Photo

Tech giant Apple arranged chartered cargo flights to transport 600 tons of iPhones — up to 1.5 million units — from India to the United States, according to sources cited by Reuters. The move came as Apple ramped up production in India to avoid tariffs imposed under President Donald Trump.

The details of the push provide an insight into the U.S. smartphone company’s private strategy to navigate around the Trump tariffs and build up inventory of its popular iPhones in the United States, one of its biggest markets.

Analysts have warned that U.S. prices of iPhones could surge, given Apple’s high reliance on imports from China, the main manufacturing hub of the devices, which is subject to Trump’s highest tariff rate of 125%.

That figure is far in excess of the tariff of 26% on imports from India, but which is now on hold after Trump called a 90-day pause this week that excludes China.

Apple “wanted to beat the tariff,” said one of the sources familiar with the planning.

‘Green Corridor’

The company lobbied Indian airport authorities to cut to six hours the time needed to clear customs at the Chennai airport in the southern state of Tamil Nadu, down from 30 hours, the source added.

The so-called “green corridor” arrangement at the airport in the Indian manufacturing hub emulated a model Apple uses at some airports in China, the source said.

About six cargo jets with a capacity of 100 tons each have flown out since March, one of them this week just as new tariffs kicked in, the source and an Indian government official said.

The packaged weight of an iPhone 14 and its charging cable come to about 350 grams (12.35 oz), Reuters measurements show, implying the total cargo of 600 tons comprised about 1.5 million iPhones, after accounting for some packaging weight.

Apple and India’s aviation ministry did not respond to a request for comment. All the sources sought anonymity as the strategy and discussions were private.

Increasing Tariffs

Apple sells more than 220 million iPhones a year worldwide, with Counterpoint Research estimating a fifth of total iPhone imports to the United States now come from India, and the rest from China.

Trump consistently increased U.S. tariffs on China, to stand at 125% by Wednesday, from 54% earlier.

At the 54% tariff rate, the $1,599 cost of the top-end iPhone 16 Pro Max in the United States would have surged to $2,300, calculations based on projections by Rosenblatt Securities show.

Sunday Shifts

In India, Apple stepped up air shipments to meet its goal of a 20% increase in usual production at iPhone plants, attained by adding workers, and temporarily extending operations at the biggest Foxconn India factory to Sundays, the source added.

Two other direct sources confirmed the Foxconn plant in Chennai now runs on Sundays, which is typically a holiday. The plant turned out 20 million iPhones last year, including the latest iPhone 15 and 16 models.

As Apple diversifies its manufacturing beyond China, it has positioned India for a critical role. Foxconn and Tata, its two main suppliers there, have three factories in all, with two more being built.

Apple spent about eight months to plan and set up the expedited customs clearance in Chennai, and Prime Minister Narendra Modi’s government asked officials to support Apple, one senior Indian official said.

Foxconn shipments from India to the United States surged in value to $770 million in January and $643 million in February, compared to the range of $110 million to $331 million in the prior four months, commercially available customs data shows.

More than 85% of the January and February air shipments of Foxconn were offloaded in Chicago, Los Angeles, New York and San Francisco.

Foxconn did not respond to Reuters’ queries.

(With inputs from Reuters)

South Korea’s Opposition Leader Lee Declares Presidential Bid, Vows Economic Reform

Team StratNews;

Apr 10 2025, 15:29

South Korea’s opposition leader Lee Jae-myung, the frontrunner in polls to become the country’s next president, announced his candidacy Thursday, pledging to tackle inequality and boost economic growth.

The presidential election will be held on June 3, after the impeachment of former president Yoon Suk Yeol for his December martial law declaration was upheld on April 4.

In a video released on Thursday, Lee pledged to fix South Korea’s economic polarisation that he said was a key source of social conflict, highlighting how he felt this had exacerbated the recent political turmoil in the wake of Yoon’s martial law order.

Large-Scale Investments

Lee vowed to drive large-scale investments at the government level in technology and talent development to resuscitate economic growth.

Conservative critics have warned that a return to power by the opposition could undermine the alliance with the United States and threaten improved ties with Japan, but Lee proposed a pragmatic approach to diplomacy.

“Realistically speaking, the South Korea-U.S. alliance is important, and South Korea, the U.S., and Japan’s cooperation is important. Within that, the consistent principle is that the national interest of the Republic of Korea is the top priority,” Lee said.

A new South Korean leader will likely face the daunting task of negotiating with the U.S., the country’s leading security ally, over tariffs that have cast a cloud over the export-reliant economy.

Lee, 61, lost by the slimmest margin in the country’s history when he ran against Yoon in the 2022 presidential election.

But last year, he led his liberal Democratic Party to a landslide victory in a parliamentary election, and enjoys strong support from liberal voters.

Lee Steps Down

On Wednesday, Lee stepped down as leader of the main opposition party, preparing to switch gears to focus on his election campaign.

A Gallup poll announced on April 4 put Lee as the favourite to become the next president with 34% support, versus 9% for the top conservative contender, 73-year-old former labour minister Kim Moon-soo.

The conservatives have a wide-open presidential field. The ruling People Power Party (PPP) plans to confirm its candidate through a primary in May.

Han’s Presidential Bid

Han Dong-hoon, a former PPP leader, also said on Thursday he was running for president, joining a growing group of potential and declared candidates that includes the mayor of Seoul, Oh Se-hoon, and ruling party member Ahn Cheol-soo.

More hopefuls are expected to join, but so far apart from Lee, the field has polled single-digit public support in surveys.

Han was previously a justice minister close to ousted leader Yoon and entered politics in late 2023, but their ties have soured after he backed Yoon’s impeachment.

Meanwhile, Lee still faces legal uncertainties that could affect his candidacy.

He is on trial for charges ranging from alleged bribery to involvement in a $1-billion property development scandal.

Prosecutors have also appealed against a court’s decision in March to overturn Lee’s guilty verdict on election law violations.

It was unclear if any of the ongoing court cases would present a roadblock to Lee’s presidential bid.

In January 2024, Lee survived a knife attack and underwent surgery when he was stabbed in the neck by a man during an event.

(With inputs from Reuters)

Trump Issues Orders Against Ex-Officials Who Criticised Him During First Term

Team StratNews;

Apr 10 2025, 15:08

U.S. President Donald Trump on Wednesday signed directives targeting two former government officials who had criticised him during his first term, labelling one a traitor and calling for an investigation into both.

One of Trump’s directives named Christopher Krebs, his former cybersecurity chief, and said any security clearance he has would be revoked.

A second presidential memorandum targeted Miles Taylor, who was a top official at the Department of Homeland Security during Trump’s first term and anonymously wrote a 2019 book criticizing the then-president. Taylor made his identity public in October 2020.

The order stripped Taylor of any security clearance he might have and ordered the Justice Department to investigate him.

“I think it’s a very important case, and I think he’s guilty of treason, if you want to know the truth, but we’ll find out,” said Trump as he signed the order on Taylor.

In response, Taylor said via text message: “I said this would happen. Dissent isn’t unlawful. It certainly isn’t treasonous. America is headed down a dark path.”

Krebs had questioned Trump’s claims of election fraud in the 2020 presidential election, in which he lost to Democrat Joe Biden.

The order signed on Wednesday called for a review of Krebs’ activities as a government employee, including his leadership of the Cybersecurity and Infrastructure Security Agency, a White House fact sheet said.

“We’re going to find out about this guy too because this guy is a wise guy,” said Trump, calling Krebs “a disgrace.”

Krebs did not immediately reply to a request for comment.

Fired In 2020

Trump fired Krebs in a November 17, 2020, tweet, five days after CISA posted a statement saying the 2020 election was “the most secure in American history.” Trump has falsely claimed that Biden’s win resulted from fraud.

After leaving government, Krebs co-founded the Krebs Stamos Group, a cybersecurity consultancy, along with former Facebook Chief Security Officer Alex Stamos.

Cybersecurity firm SentinelOne acquired the consultancy in November 2023, and Krebs became SentinelOne’s chief intelligence and public policy officer.

Trump’s order said security clearances for individuals at Sentinel One would also be revoked pending review.

In a statement, SentinelOne said the company’s focus would remain on “being a force for good in this industry and the world” and that it would continue to nurture partnerships in the U.S. government, military and intelligence community.

It said the company would actively cooperate in any review of security clearances held by any of its personnel, which numbers less than 10 employees overall, and “only where required by existing government processes and procedures to secure government systems.”

“Accordingly, we do not expect this to materially impact our business in any way,” SentinelOne said.

(With inputs from Reuters)

US, Russia To Hold Talks In Turkey On Diplomatic Normalisation

Team StratNews;

Apr 10 2025, 14:50

TrumpPutin — U.S. President Donald Trump and Russian President Vladimir Putin hold a bilateral meeting at the G20 leaders summit in Osaka, Japan, June 28, 2019. REUTERS/Kevin Lamarque/File Photo/File Photo

Russia and the United States will hold talks in Turkey on Thursday aimed at normalising the operations of their diplomatic missions, following heightened tensions sparked by the war in Ukraine — the most serious standoff between Moscow and the West since the Cold War.

The diplomatic talks in Istanbul will be led by Russia’s new ambassador to Washington, Alexander Darchiev, and Deputy Assistant Secretary of State Sonata Coulter, Russia’s foreign ministry said.

The main focus, according to Moscow and Washington, is restoring the work of diplomatic missions after years of rows, mutual claims of intimidation and even the freezing of diplomatic property complicated relations between the two nuclear powers.

Ukraine ‘Not On Agenda’

“Ukraine is not, absolutely not on the agenda,” State Department spokesperson Tammy Bruce said on Tuesday.

“These talks are solely focused on our embassy operations, not on normalizing a bilateral relationship overall, which can only happen, as we’ve noted, once there is peace between Russia and Ukraine.”

Diplomat Credential Difficulties

Both Moscow and Washington have complained in recent years about the difficulties of getting credentials for their diplomats, making the operation of their embassies extremely difficult.

Russia has said that even paying diplomats has become difficult due to Western limits, while U.S. diplomats say their movements are restricted in Russia. Both sides have complained of intimidation.

Diplomatic Properties

Among the issues is diplomatic property.

Washington has put six Russian properties under restrictions, including the Killenworth estate on Long Island, the Pioneer Point “dacha” in Maryland, the Russian consulates in San Francisco and Seattle and the trade missions in Washington and New York.

Tit-For-Tat Measures

Russia and the United States have expelled diplomats and limited the appointment of new staff at each other’s missions in tit-for-tat measures over the past decade, leaving their embassies thinly staffed.

(With inputs from Reuters)

Congestion Or China? Why India Ended Transshipment Facility For Bangladesh

Surya Gangadharan;

Apr 10 2025, 14:17

Just eight months after former prime minister Sheikh Hasina’s ouster by angry mobs, it seems the India Bangladesh relationship has reached an inflexion point.

India’s decision late on Wednesday to ban transshipment of Bangladeshi goods at Indian ports due to “congestion”, does suggest a new low in the relationship. The ban does not apply to Bangladeshi goods transiting India by land, that remains untouched.

“But the ban could trigger retaliation by Dhaka, that could include not allowing Indian transit traffic to the northeastern states,” warned a former diplomat with long experience of Bangladesh.

Yunus could also stop Indian goods using Chittagong and Mongla Ports, although that may not be such a big deal.

“India did send a consignment of LPG cylinders to the northeast some years through Chittagong but that seems to have been discontinued due to clogging at Chittagong,” the former diplomat said.

In his view, more serious is the implication that the meeting between Prime Minister Modi and Bangladesh Chief Interim Adviser Mohd Yunus, at the BIMSTEC summit in Bangkok, did not go off well.

The Indian readout of the meeting had Modi calling for a peaceful, stable and progressive Bangladesh, underscoring the strong people to people ties and the need to ensure safety of minorities including Hindus.

The Bangladesh version, attributed to Shafiqul Alam, press adviser to Yunus, claimed that Modi was not negative about the extradition of Sheikh Hasina. Later Indian sources were quoted as saying that Alam’s remarks were “mischievous and politically motivated”.

But it may have been Yunus’ China visit which sent alarm bells ringing in Delhi. He invited the Chinese to invest in a big way in Bangladesh, claiming that his country was the natural gateway to the oceans for India’s northeastern states.

But his invitation to China to refurbish the former British World War II airbase at Lalmonirhat, in Rangpur Division of northern Bangladesh, may have been the trigger for India slamming the brakes on Dhaka.

The airbase in northern Bangladesh is no more than 10 km from the Indian border, and 160-km from the Siliguri Corridor, which connects India’s northeastern states to the mainland.

If China is brought in to modernise the base, expect Chinese air force personnel to be involved … could Yunus allow the Chinese air force to operate from there? He could, it’s Bangladeshi soil.

But that would be the red rag to India, crossing our red lines, therefore unacceptable, and with unforeseen consequences.

As Indian diplomats who told StratNewsGlobal, the understanding with ousted former prime minister Sheikh Hasina ensured no Chinese or Pakistani presence in northern Bangladesh, basically Rangpur Division. When she went that understanding, it seems, also went.

The million-dollar question is who is advising Yunus? Is it elements of the Jamaat-e-Islami, is it disgruntled elements from the army or is it a cabal of people, believed to be pro-US but India haters, who seem determined to push the bilateral relationship to the brink?

Former intelligence officers are clear that if the Chinese or Pakistanis are given access to Lalmonirhat, Yunus would have crossed a Rubicon from which there may be no turning back.

New Zealand Parliament Votes Down Controversial Indigenous Bill

Team StratNews;

Apr 10 2025, 12:54

New Zealand’s parliament on Thursday overwhelmingly rejected a bill that sought to redefine the principles of the nation’s founding treaty, after months of public protests and heated debate over the role of the indigenous Maori people in the country.

The Treaty of Waitangi, first signed in 1840 between the British Crown and more than 500 Maori chiefs, lays down how the two parties agreed to govern. The interpretation of clauses in the document guide legislation and policy today.

The failed bill was a policy of David Seymour’s ACT New Zealand party, which garnered 8.6% of the party vote at the 2023 election.

Seymour had said the purpose of the Treaty Principles Bill was for parliament to define the principles of the treaty, provide certainty and clarity, and promote debates on its place in constitutional arrangements.

In coalition negotiations, ACT’s governing coalition partners National and New Zealand First had committed to support the bill through the first of three readings but had said they would not support it into law.

Bill Fails To Get Majority

The law, needing a simple majority to pass its second reading, failed with 112 votes against it and just 11 votes for it.

The bill’s defeat was influenced by overwhelming public opposition, with over 300,000 submissions—90% against—and mass protests, including the largest Māori rights demonstration in New Zealand’s history.

“The Treaty Principles Bill is dead. Our movement for Te Tiriti o Waitangi (Treaty of Waitangi) justice lives on,” said Green Party co-leader Marama Davidson, whose party did not support the bill. “Instead of dividing and conquering, this Bill has backfired and united communities across the motu (country) in solidarity for our founding agreement and what it represents.”

The bill has garnered significant attention. In November, tens of thousands of people marched on New Zealand’s parliament as a show of opposition to the bill, in what was one of the largest protests ever in New Zealand. A deluge of submissions to the committee considering the bill followed.

(With inputs from Reuters)

U.S. Intelligence Probes Possible FBI Involvement In 2021 Capitol Riot

Team StratNews;

Apr 10 2025, 12:24

The chief of staff to America’s top intelligence said on Wednesday that the U.S. intelligence community is looking into whether the FBI played any part in planning the January 6, 2021 attack on the Capitol by supporters of then-President Donald Trump.

“We’re looking into it right now,” Joseph Kent, chief of staff to Director of National Intelligence Tulsi Gabbard, said during a Senate intelligence committee hearing on his nomination to head the U.S. National Counterterrorism Center.

He did not elaborate on which of the 18 U.S. intelligence agencies is conducting the probe. Gabbard oversees the FBI’s intelligence functions.

A U.S. Justice Department watchdog report released in December debunked claims by far-right conspiracy theorists who falsely alleged that FBI operatives were secretly involved in the Capitol attack.

The report found there were 26 FBI informants in Washington on the day of the attack. But, it said, the FBI did not authorize any to enter the Capitol or engage in violence.

Kent’s Response To Democratic Senator

Kent’s comments came in response to questions from Democratic Senator Mark Kelly about the attack by Trump supporters trying to prevent Congress from certifying Democrat Joe Biden’s 2020 presidential election victory.

Trump falsely claimed he lost the contest due to widespread voting fraud. In January, he pardoned more than 1,500 people charged in the assault by a mob of his supporters who stormed the Capitol in an unsuccessful effort to overturn his election defeat.

Kelly asked Kent, a former Green Beret and CIA officer and staunch Trump loyalist, what evidence he had to back up a post on what is now the social media platform X that the FBI and U.S. spy agencies were involved in planning the assault on Congress.

“We’ve already identified that there were multiple confidential human informants run by the FBI and other law enforcement agencies that were present in the crowd that day, directing, removing barriers, those types of things,” Kelly said. “That has been investigated widely. We continue to look into that intelligence.”

He alleged that the FBI and law enforcement elements that he did not identify “attempted to suppress the fact” that informants were among the thousands of rioters.

Information that forewarned of violence indicated that there had been “some degree of intelligence infiltration” of groups who stormed the Capitol, he said.

Kent said that it “probably” was the bureau’s Washington Field Office that was involved and that it was “being looked into” by the intelligence community.

Gabbard ‘Executing’ Trump’s Orders

Asked for comment, a spokesperson for Gabbard’s office referred to her announcement on Tuesday that a new task force she has formed is “executing” Trump’s executive orders to rebuild trust in the intelligence community “starting with investigating weaponization, rooting out deep-seeded politicization, exposing unauthorized disclosures of classified intelligence, and declassifying information that serves a public interest.”

Gabbard campaigned for Kent during his failed 2022 run to represent Washington state’s 3rd congressional district.

He was quoted by local media as questioning the validity of Biden’s victory and called the Capitol attack an “intelligence operation,” and rioters charged in the assault “political prisoners.”

Several Democratic senators questioned Kent about his participation in a group chat on the Signal messaging app in which top Trump national security officials discussed plans for March 15 airstrikes against Houthi militants in Yemen.

Kent said that material posted in the chat was unclassified, but he declined to answer questions, saying the matter is the subject of litigation.

The Pentagon’s Inspector General’s office announced earlier this month that it was opening a probe into Defence Secretary Pete Hegseth’s use of Signal to coordinate the strikes.

(With inputs from Reuters)

Death Toll Nears 200 After Nightclub Roof Collapse In Dominican Republic

Team StratNews;

Apr 10 2025, 12:00

At least 184 people have died after the roof of a popular nightclub in the Dominican Republic’s capital collapsed, officials said on Wednesday. Rescue workers continue searching for survivors, but hopes are fading.

The nightclub collapsed on Tuesday and for two days families have gathered outside the wreckage of the Jet Set club in Santo Domingo, anxious for information about their missing relatives and sharing photos with police.

“We are not going to abandon nobody,” Juan Manuel Mendez, head of the country’s emergency operations center, said at a press conference.

Hopes Are Fading

Emergency crews will continue to work until the last body will be found, but hopes of finding more survivors under the rubble were diminishing while no one had been pulled out alive in more than 24 hours, Mendez added.

“In the coming hours there will be a transition from a search and rescue phase to the recovery of the bodies phase,” presidential spokesperson Homero Figueroa said in a statement.

Families continued to hold out hope. Along with dozens of others, Alex de Leon was looking for his ex-wife, mother of their two children, and a close mutual friend at the area surrounding the nightclub.

“Unfortunately I don’t have any information about where they are,” he said. “My 15 year-old son is devastated, and the little one who is 9 remains calm because we’ve told him that his mom is at work.”

Relatives and friends of people who are still missing held their photos and described the clothes they were wearing when the tragedy struck, hoping that it will help identify their loved ones if they were disfigured.

Earlier on Wednesday authorities reported that 155 people had been rescued from the rubble and transferred to hospitals. The exact number of people inside the club at the time of the collapse remained unclear.

From Celebration To Tragedy

The tragedy unfolded during a concert by popular Dominican singer Rubby Perez. The event, which had drawn politicians, athletes and other prominent figures, turned into a nightmare after midnight as the roof suddenly collapsed.

Perez was one of the victims and the Ministry of Culture announced it will hold a tribute on Thursday to honor his memory as “one of the great figures of the country’s art” and the merengue scene.

The families of the victims whose bodies have already been recovered have begun to hold their funerals.

President Luis Abinader attended the funeral ceremony on Wednesday of Nelsy Cruz, governor of the northern Monte Cristi province and sister of former MLB player Nelson Cruz, a seven-time All-Star.

“We are left to mourn her and the other victims,” Abinader said during the service.

Pitcher Octavio Dotel and slugger Tony Blanco, both former Major League Baseball players, were also killed.

The son of the public works and communications minister also died in the disaster.

(With inputs from Reuters)

OpenAI Countersues, Accuses Elon Musk Of Harassment

Team StratNews;

Apr 10 2025, 11:18

OpenAI filed a countersuit against Elon Musk on Wednesday, accusing him of a pattern of harassment and requesting a federal judge to block any further “unlawful and unfair” actions by Musk. The legal move comes amid an ongoing court battle over the future structure of the company that played a key role in launching the AI revolution.

Musk and OpenAI CEO Sam Altman cofounded OpenAI in 2015, but Musk left before the company became a technology star.

Recently Musk, who went on to create his own AI firm, xAI, in 2023, has tried to prevent the ChatGPT maker from transitioning to a for-profit model, culminating in the current court case. In order for OpenAI to secure the entire $40 billion of its current fundraising round, the company must complete its transition by the end of the year.

Hold Musk Responsible

“Through press attacks, malicious campaigns broadcast to Musk’s more than 200 million followers on the social media platform he controls, a pretextual demand for corporate records, harassing legal claims, and a sham bid for OpenAI’s assets, Musk has tried every tool available to harm OpenAI,” the company wrote in a filing in Musk’s existing lawsuit against OpenAI in U.S. District Court for the Northern District of California.

OpenAI asked the judge to stop Musk from any further attacks, as well as be “held responsible for the damage he has already caused.”

The two parties are set to begin a jury trial in spring next year.

‘Bad-Faith Tactics’

In response, Musk’s legal team referred to a $97.4 billion unsolicited takeover bid earlier this year from a Musk-led consortium, which OpenAI rejected. “Had OpenAI’s Board genuinely considered the bid as they were obligated to do, they would have seen how serious it was. It’s telling that having to pay fair market value for OpenAI’s assets allegedly ‘interferes’ with their business plans,” Musk’s lawyer Marc Toberoff said in a statement provided to Reuters.

In a post on X, the social media platform which Musk owns, OpenAI said: “Elon’s nonstop actions against us are just bad-faith tactics to slow down OpenAI and seize control of the leading AI innovations for his personal benefit.”

Musk’s xAI last month acquired X in a deal that values the social media company at $33 billion and allows the value of his artificial intelligence firm to be shared with co-investors in X.

Is Musk Killing Competition?

Last year, Musk, who is also the CEO of electric carmaker Tesla, sued OpenAI and Altman, accusing OpenAI of straying from its founding mission – to develop AI for the good of humanity, not corporate profit. Musk did not respond to a request for comment on the OpenAI filing.

OpenAI and Altman have denied the allegations, while Altman alleges that Musk has been trying to slow down a competitor.

At stake in the lawsuit is the ChatGPT maker’s transition to a for-profit model, which the startup says is crucial to raising more capital and competing well in the expensive AI race.

(With inputs from Reuters)

Global Stocks Surge As Trump Temporarily Rollbacks Tariffs

Team StratNews;

Apr 10 2025, 08:55

Global stocks rallied, the dollar steadied, and the recent bond selloff calmed on Thursday after President Donald Trump announced a temporary rollback of the steep tariffs he had recently imposed on dozens of countries.

Following a days-long market rout that erased trillions of dollars from global stocks and jolted U.S. Treasury bonds and the dollar, Trump on Wednesday announced a 90-day pause on many of his new tariffs in a shock reversal.

The move sent Wall Street’s “Magnificent Seven” stocks surging again and tacking on more than $1.5 trillion in market value overnight. The S&P 500 and Nasdaq Composite Index clocked their biggest daily percentage gains in more than a decade.

But U.S. futures turned lower on Thursday, with Nasdaq futures falling 0.7% and S&P 500 futures down 0.3%.

Slow Recovery

The dollar logged its largest one-day jump against the yen in two months and in five against the Swiss franc in the previous session. The greenback though pared some of those gains in Asia on Thursday, highlighting market uncertainty over the longer term outlook and as the Sino-U.S. trade war showed few signs of abating.

“I think the initial move was just massive short cover, and this has given the world a bit of a breathing space, except for China… because markets were starting to price in the worst-case scenario,” said Khoon Goh, head of Asia research at ANZ.

“But now that the dust has settled, I think markets will seem to sort of figure out where to go from here.”

In Asia, however, investors still cheered the temporary tariff reprieve. Japan’s Nikkei surged 8%, while European futures shot up.

EUROSTOXX 50 futures and DAX futures climbed roughly 8% each. FTSE futures jumped 5.5%.

No Respite For China

Trump’s reversal on the country-specific tariffs is not absolute. A 10% blanket duty on almost all U.S. imports will remain in effect, the White House said. The announcement also does not appear to affect duties on autos, steel and aluminium that are already in place.

He also heaped pressure on China, saying he would raise the tariff on Chinese imports to 125% from the 104% level that came into effect on Wednesday.

China on Wednesday raised additional duties on American products to 84% and imposed restrictions on 18 U.S. companies, mostly in defence-related industries.

Still, Chinese equity markets opened on a strong note on Thursday, with CSI300 blue-chip index rising 1.6%. Hong Kong’s Hang Seng Index jumped 3.3%.

“I guess at least the relief is now global trade won’t grind to a complete halt,” said Wong Kok Hoong, head of equity sales trading at Maybank.

“The China + 1 supply chain route (is) still intact. As the rest of the world will be at workable 10% tariffs for 90 days, companies/businesses have time/alternatives to adjust supply chain routes.”

But the move in the yuan painted a different story as the onshore unit fell to its weakest level since December 2007 at 7.3518 per dollar.

Prior to market opening, the People’s Bank of China (PBOC) set the midpoint rate, around which the yuan is allowed to trade in a 2% band, at its lowest level since September 11, 2023.

Bonds Selloff

A steep selloff in bonds this week also showed some signs of easing on Thursday.

The benchmark 10-year Treasury yield dropped to 4.2889%, having touched a high of 4.5150% in the previous session and rising some 13 basis points.

A violent U.S. Treasury selloff in the previous sessions, evoking the COVID-era “dash for cash”, had reignited fears of fragility in the world’s biggest bond market.

“Sticky inflation, a patient (Federal Reserve), potential foreign buyer boycotts, hedge fund deleveraging, rebalancing out of bonds into cash, and an illiquid Treasury market are all reasons why Treasury yields continue to move higher,” said Lawrence Gillum, chief fixed income strategist at LPL Financial.

Fed policymakers signalled they will not be quick to ride to the rescue with interest rate cuts because they expect higher tariffs to boost inflation, even as they worry Trump’s trade policy could deal a blow to economic growth, minutes of the central bank’s mid-March meeting out on Wednesday showed.

Markets are now pricing in just about 80 basis points of rate cuts by December, down from more than 100 bps earlier in the week.
Elsewhere, oil prices fell as investors fretted about the escalating Sino-U.S. trade tensions.

Spot gold extended its climb and was last up 0.5% at $3,097.52 an ounce.

(With inputs from Reuters)