Weekly Digest News 04.04.2025

Weekly News Digest for April 4th, 2025

Compiled by Lydia Wong, Trinity De Lima, Tobyn Smith, Nila Karunakaran, Layla Jeeth, Mary WahnEdited by John Gooden, Lydia Wong, Joey Quinn, Ryan Simons, Sara Anis Ali

Asia and the Pacific

Global Markets Reel from U.S.-China Standoff

The global trade war is escalating as countries and industries scramble to respond to United States President Donald Trump’s latest tariff hikes on all Chinese goods imported into the United States—a move poised to reset relations and heighten tensions between the world’s two largest economies. On Friday morning, China followed through on its promise to retaliate, announcing a reciprocal 34% tariff on all U.S. imports starting April 10th. The country also added eleven American companies, including drone manufacturers, to its “unreliable entity list” and imposed export controls on sixteen U.S. firms, restricting access to Chinese dual-use items.

Since returning to the Oval Office in January, Trump and his administration have already imposed two tranches of 10% additional duties on all Chinese imports. The White House justified these measures as necessary to curb the flow of illicit fentanyl from China to the U.S.—an initiative Trump prioritized during his presidential campaign. Combined with pre-existing tariffs, Chinese goods entering the U.S. would now face levies exceeding 54%. Beijing’s latest response marks a significant escalation, going beyond previous, more measured retaliatory actions. Earlier, China had targeted specific U.S. imports such as agricultural products and fuel while taking action against select American firms and increasing export controls.

The latest U.S. tariffs on Chinese goods, however, are steeper than many analysts had anticipated and could fundamentally reshape trade relations—affecting nearly half a trillion dollars in economic exchanges after decades of interdependence. In a statement announcing its retaliatory measures, China’s State Council Commission condemned the U.S. actions, calling them “not in line with international trade rules, seriously undermining China’s legitimate rights and interests, and a typical example of unilateral bullying.” The tariffs also come at a precarious time for China’s slowing economy, prompting officials to ramp up efforts to boost domestic consumption in anticipation of the widening trade war’s further economic strain.

Financial markets, already on edge, plunged on Friday. The Dow Jones Industrial Average dropped nearly 4%, the S&P 500 fell 5%, and the Nasdaq tumbled almost 6%, marking the worst performance for major U.S. indices in five years. Stock futures sank further after China announced its countermeasures. Speaking at a NATO foreign ministers' meeting in Brussels, U.S. Secretary of State Marco Rubio acknowledged the market turmoil but assured that “once businesses around the world understand the new rules, they will adjust.” While the Trump administration remains confident in the markets' resilience, China’s Finance Ministry has urged the U.S. to immediately withdraw its unilateral tariff measures and resolve trade disputes through equal, respectful, and mutually beneficial negotiations. With global economic stability and supply chain integrity at stake, the U.S. faces a pivotal choice—stand firm or seek compromise.

Central America and the Caribbean

Protests Begin in Haiti Against Gang Violence 

On Wednesday, protesters created barriers and disrupted traffic on a journey to the offices of the Presidential Transitional Council or CPT and the prime minister before the police dispersed them. The protests included dissent over the inactivity of authorities that are failing to provide security in Haiti. The CPT is a transitional government from the past prime minister Ariel Henry who stepped down last year. The goal of the CPT was to hold off gang advances by filling the power vacuum left behind through the formation of a rotating body of presidential council members. However, this transitionary body has not been very effective in quelling political instability in Haiti. 

Protests began after a major jailbreak in the town of Mirebalais. Within three days, the gangs attacked the police station and prison, freeing 529 inmates in the process. Between this attack and another in the nearby town of Saint d’Eau there were about 5,981 people forced to flee their homes. Critics claim that the Haitian government’s inactivity against gangs is tied to corruption with the gangs and their financial backers. The government rejects these claims but it has still led to mass protests. 

An unnamed protestor stated, “We can’t stand this insecurity in the country any longer.” “It is unacceptable that we continue to lose territory. In reality, I believe that these terrorists are being handed over to bandits by the authorities, who are not rising to the occasion.” In addition another protestor dissented the government’s lack of attention to the issue, “If the authorities are overwhelmed with the events, they must leave.” The UN is supporting a Kenya-led Multinational Security Mission made up of 1,000 police officers from six different countries to combat these issues but so far their efforts are relatively futile. 

Middle East and North Africa

Israel Expands Military Operations in Gaza

Israel escalated its military operations in Gaza on Wednesday, taking control of additional land as part of an expanded security zone. Prime Minister Benjamin Netanyahu confirmed that Israeli Defense Forces (IDF) seized the Morag Axis, aiming to divide Gaza and pressure Hamas for the release of hostages. The Israeli military also encircled Tel al-Sultan, killing dozens of militants and uncovering rockets aimed at Israel. Defense Minister Israel Katz stated that the operation will continue until its objectives are met.

The escalation has forced large evacuations, with 64% of Gaza now under forced displacement orders or in the buffer zone. At least 60 Palestinians were killed in airstrikes on Wednesday, including 19 civilians in a U.N. clinic. Israel claims the building was a Hamas command center, but Hamas denies the accusation. As the violence intensifies, U.N. officials warn that no one in Gaza is safe.

Palestinians are increasingly worried that Israel’s actions will lead to permanent displacement. Rights groups estimate that Israel now controls 17% of Gaza’s land, and some officials hint at encouraging Palestinians to leave. Meanwhile, U.N. Secretary-General António Guterres condemned Israel’s actions, calling them violations of international law. Israeli leaders point to growing protests against Hamas in Gaza as a sign of success.

The conflict has spread beyond Gaza, with Israeli airstrikes targeting Hezbollah in Lebanon and Syria. Israeli officials say these attacks are connected to the ongoing war. Since Hamas’s deadly attack on Israel in October, Israel’s operations have killed over 50,000 Palestinians and displaced nearly all of Gaza’s population.

North America

Mexico Avoids New Round of U.S. Reciprocal Tariffs Following Initial Trade War 

President Donald Trump did not include Mexico on his list of countries with new tariffs imposed on them. The new, reciprocal tariffs target almost every country in the world that the United States trades with, including key allies such as Israel, the European Union, Japan, and South Korea. Mexico’s President, Claudia Sheinbaum, cited a key trade agreement between Mexico, the United States, and Canada that went into effect in 2020 as the reason for Trump’s decision not to impose reciprocal tariffs on the country. The agreement, known as the U.S.-Mexico-Canada Agreement (USMCA), requires automakers and companies in similar industries to produce and source a higher percentage of vehicle and product components from North America. It is important to note that Canada, in addition to Mexico, was also not included in Trump’s new list of reciprocal tariffs. 

Mexico’s exclusion from the new round of tariffs points to the Trump administration’s attempt to encourage all U.S.-Mexico trade to fall under USMCA and promote  North American factory production. Additionally, all goods from Mexico that do not fall under USMCA will be subject to an ad valorem duty of 25%, which may encourage manufacturers to source products under the agreement’s terms. 

Despite Mexico’s exclusion from Trump’s new round of reciprocal tariffs, the country remains subject to the 25% tariff on imports set in February. Considering the breadth of the most recent new tariffs on so many countries, some perceive the U.S.’s economic relationship with Mexico as preferential since it can still trade under USMCA conditions. However, with the recent limits set by the USMCA on the use of foreign parts in product manufacturing, many companies that operate factories in Mexico feel uncertain about what might follow the initial 25% tariff and Trump’s additional tariffs on other countries. 

South America

Rebel Group Hands Over Weapons to Colombian Government Amidst Peace Talks

On April 5th, a Colombian armed group “Comuneros del Sur” (Commoners of the South) broke away from the leftist National Liberation Army (ELN) rebels and handed over their war material to the government. The group stated that they have a desire for peace and therefore let go of explosives and grenades to signify this. One of the leaders named Royer Garzon stated, “We consider that the armed fight is obsolete, that there are new times and new needs. We refuse to return to war.” Negotiations for peace have been ongoing for the past year so this event is “historic” according to Colombia’s Defense Minister Pedro Sanchez. 

However, despite peace talks Colombia’s President Gustavo Petro is aware that there is still much more work to be done. The ELN is now angered that the “Comuneros del Sur” is in talks with the government and there are still other rebel groups to cater to. The administration plans to make peace with all nine separate rebel groups and drug trafficking gangs through the peace negotiations under a plan for “total peace”. 

The Colombian government is now working on providing security in remote rural areas where these groups are fighting over drug trafficking routes and natural resources. The groups forcibly recruit minors and tax local businesses to raise funds for their missions. The department of Nariño is now an area that the government is trying to protect from these groups by adding more security and economic development projects. The area is currently occupied by the “Comuneros del Sur” and many are anxious to see how the government will protect it from other armed groups if the “Comuneros del Sur” demobilize. 

Sub-Saharan Africa

South African Government Faces Collapse Over Budget Disagreement

South Africa’s coalition government could collapse after the two majority parties disagreed on the national budget. The center-right Democratic Alliance (DA) broke with the center-left African National Congress (ANC) and voted against an increase in the Value Added Tax (VAT). However, the ANC passed the budget with the support of smaller parties; a move the DA challenged in court. With the new budget, VAT will increase by half a percentage point next month and rise again next year to generate about $800 million in government revenue. The DA opposed this increase, calling it a hardship for the 20 million South Africans on welfare and the 32% unemployed.

The move comes alongside the U.S.’s suspension of aid to South Africa. Last month, the state department paused aid disbursements in response to claims of discrimination against white Afrikaners, who are the descendants of Dutch colonizers and comprise 7% of the South African population. Both the DA and ANC pushed back against online attacks from President Donald Trump and Elon Musk and attempted to clear up misinformation online.

South Africa’s election last May saw the ANC lose its majority for the first time since apartheid ended and Nelson Mandela became president 30 years ago. To maintain power, the ANC entered into a coalition with South Africa's only other major party, the DA. At the time, the unlikely alliance brought hope to many South Africans, who believed the coalition would work together to lift poverty and facilitate economic stability.