<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127367-1744016460156-gettyimages-2202949274-AFP_36ZD4EZ-820x461.jpeg" alt="" class="wp-image-607544" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127367-1744016460156-gettyimages-2202949274-AFP_36ZD4EZ-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127367-1744016460156-gettyimages-2202949274-AFP_36ZD4EZ-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127367-1744016460156-gettyimages-2202949274-AFP_36ZD4EZ-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127367-1744016460156-gettyimages-2202949274-AFP_36ZD4EZ-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127367-1744016460156-gettyimages-2202949274-AFP_36ZD4EZ-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127367-1744016460156-gettyimages-2202949274-AFP_36ZD4EZ.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The Chinese flag flies in Tiananmen square, as seen from the Great Hall of the People where meetings of the National People’s Congress continued in Beijing on March 6, 2025. Greg Baker | Afp | Getty Images</figcaption></figure>



China has pushed back again on U.S. President Donald Trump’s tariff policies by hiking its levies on U.S. imports to more than 80%.



Tariffs on U.S. goods entering China will rise to 84% from 34% starting April 10, according to a translation of a Office of the Tariff Commission of the State Council announcement. The hike comes in response to the latest U.S. tariff increase on Chinese goods to more than 100% that began at midnight.



The tit-for-tat escalation of tariffs threatens to crush trade between the world’s two largest economies. According to the Office of the U.S. Trade Representative, the U.S. exported $143.5 billion of goods to China in 2024, while importing products worth $438.9 billion.



The Trump administration announced a sweeping new tariff policy last week, warning other countries not to retaliate. Some nations, including Japan, have seemed willing to negotiate on tariffs, but China appears to be taking a more hardline stance and quickly announced a countertariff.



After China’s initial response to the April 2 tariff rollout, Trump announced an additional 50% hike, putting the total level for import taxes on Chinese goods at 104%.



“It’s unfortunate that the Chinese actually don’t want to come and negotiate, because they are the worst offenders in the international trading system,” U.S. Treasury Secretary Scott Bessent told Fox Business on Wednesday after China’s latest announcement. “They have the most imbalanced economy in the history of the modern world, and I can tell you that this escalation is a loser for them.”



The U.S. had already imposed new tariffs on China before it rolled out its full trade policy in April. China, along with Canada and Mexico, was hit with new levies at the start of Trump’s second term as part of what the administration said was an effort to stop fentanyl from entering the U.S.



The trade war has spooked investors around the world by increasing the odds of slower economic growth, higher inflation and lower corporate profits, sparking a sharp sell-off in April. The S&amp;P 500 finished Tuesday down nearly 20% from its peak, putting the U.S. large-cap stock index in a bear market. South Korea’s Kospi Index fell into a bear market of its own on Wednesday. Stocks in Shanghai and Hong Kong are also down sharply since the U.S. tariff announcement on April 2.

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China slaps retaliatory tariffs of 84% on U.S. goods in response to Trump

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108128682-17441449612025-04-08t204125z_1005197937_rc2wtda2i2uw_rtrmadp_0_usa-trump-820x461.jpeg" alt="" class="wp-image-607508" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108128682-17441449612025-04-08t204125z_1005197937_rc2wtda2i2uw_rtrmadp_0_usa-trump-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108128682-17441449612025-04-08t204125z_1005197937_rc2wtda2i2uw_rtrmadp_0_usa-trump-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108128682-17441449612025-04-08t204125z_1005197937_rc2wtda2i2uw_rtrmadp_0_usa-trump-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108128682-17441449612025-04-08t204125z_1005197937_rc2wtda2i2uw_rtrmadp_0_usa-trump-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108128682-17441449612025-04-08t204125z_1005197937_rc2wtda2i2uw_rtrmadp_0_usa-trump-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108128682-17441449612025-04-08t204125z_1005197937_rc2wtda2i2uw_rtrmadp_0_usa-trump.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



<h2 class="wp-block-heading" id="h-ship-building-to-be-key-negotiating-tool-in-south-korea-u-s-tariff-talks">Ship-building to be key negotiating tool in South Korea-U.S. tariff talks</h2>



Major U.S. ally South Korea, which was slapped with a 25% rate under the latest Trump tariff regime, says ship-building could be a key advantage in negotiations with the White House.



“Since President Trump and the Trump administration are showing great interest in shipbuilding cooperation, we believe that the shipbuilding sector will be a very important negotiating card for us,” South Korea’s Minister of Trade, Industry, and Energy Ahn Duk-geun said on Wednesday, according to Reuters.



This comes after U.S. President Donald Trump and South Korea’s interim leader Han Duck-soo held talks on Tuesday to discuss tariffs.&nbsp;Several nations are looking to negotiate with the U.S to mitigate the effect of the U.S. protectionist trade policy.



—&nbsp;Lily Meckel



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<h2 class="wp-block-heading" id="h-india-s-central-bank-governor-signals-growth-concerns-amid-u-s-tariffs">India’s central bank governor signals growth concerns amid U.S. tariffs</h2>



Speaking after the Reserve Bank of India’s decision to cut interest rates, the central bank’s Governor Sanjay Malhotra said he was “concerned about growth” in India due to the impact of U.S. tariffs.



He pointed out India is better placed than other countries to tackle the tariff-led&nbsp;hikes due to its&nbsp;narrower&nbsp;trade surplus with the U.S. and&nbsp;the&nbsp;lower “reciprocal” tariff rate&nbsp;it received from Washington, compared with other nations.



“My understanding is that the impact of these tariffs on India vis-à-vis some of the other countries [such as] China and some of the other countries,&nbsp;[is]&nbsp;much less,” Malhotra said.



— Lim Hui Jie



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<h2 class="wp-block-heading" id="h-deutsche-bank-downgrades-swathe-of-european-firms-in-tariff-firing-line">Deutsche Bank downgrades swathe of European firms in tariff firing line</h2>



<figure class="wp-block-image"><img decoding="async" src="https://image.cnbcfm.com/api/v1/image/108094081-1738161352098-gettyimages-2020858462-FRANCE_PARIS.jpeg?v=1744184433&amp;w=1858&amp;h=1045&amp;vtcrop=y" alt="The Louis Vuitton boutique in the Place Vendome luxury retail area in central Paris, France, on Tuesday, Feb. 21, 2024."/><figcaption class="wp-element-caption">The Louis Vuitton boutique in the Place Vendome luxury retail area in central Paris, France, on Tuesday, Feb. 21, 2024. Andrea Mantovani | Bloomberg | Getty Images</figcaption></figure>



In a note to clients on Wednesday, strategists at Deutsche Bank downwardly revised target prices for 19 companies.



Many of the companies were in the European luxury and mining sectors. Gucci owner Kering’s target price was slashed by 39.7%, while British luxury giant Burberry’s target price was lowered by 35.7%. French conglomerate LVMH’s target price was cut by 16.5%.



In the mining sector, BHP, Anglo American, Glencore and Rio Tinto were among those with downgraded target prices.



“The direct impact of the tariffs is not a huge headwind in our view with … price increases able to offset the profit impact,” Deutsche Bank’s team said in their note. “However, weaker global stock markets and the broader economic uncertainty will weigh on confidence and we see this further postponing a recovery in luxury demand.”



On mining, Deutsche Bank advised investors to “seek selective exposure” in the coming six to 12 months.



“The&nbsp;reciprocal tariffs announced last week have driven the sharpest sell-off in Mining since 2020,” its strategists said. “Our base case now assumes global growth verging on recession over the next two quarters … While there is still the risk of further downside in the near term, mining valuations are approaching trough levels, [and] debt levels are low.”



—&nbsp;Chloe Taylor

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Trump’s reciprocal tariffs plan kicks in, China to see net total tariffs of 104%

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3334" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/WSODY4AV2JNYNIDLTPZFGGWEU4.avif" alt="" class="wp-image-607487"/><figcaption class="wp-element-caption">Labour MP Bambos Charalambous speaks at the House of Commons in London, Britain, November 16, 2022. UK Parliament/Jessica Taylor/Handout via REUTERS/File Photo</figcaption></figure>



LONDON, April 9 (Reuters)&nbsp;&#8211;&nbsp;A British lawmaker has introduced a private member&#8217;s bill that would set new rules around debt restructurings in a push to speed up negotiations for poor countries struggling with unsustainable debt.



Bambos Charalambous, who introduced the bill late last year, said support from other members of parliament had grown since the UK and the United States slashed aid spending. He represents the ruling Labour party in parliament, but neither it nor the opposition conservatives have thrown their support behind the bill.



Charalambous said his party may be persuaded to back it and it was being studied by some in governmemt. His effort follows similar proposals in New York state, which supporters say would enable poor nations to emerge faster and stronger from debt distress, while opponents warn they could make future borrowing more expensive.



Lawyers and investors following the debate on both sides of the Atlantic expect debt campaigners to keep pushing until some iteration of the proposals becomes law.



Trillions of dollars in bonds &#8211; accounting for nearly all tradeable sovereign debt issued by developing governments and companies on international capital markets &#8211; are issued under the laws of either New York state or England.



English law governs a disproportionate share &#8211; estimated at up to 90% &#8211; of those bonds issued by the poorest nations, such as Ethiopia and Ghana.



&#8220;It would, number one, compel private creditors to negotiate in good faith, and quickly, with the debt-distressed countries,&#8221; Charalambous told Reuters regarding the bill.



&#8220;And it could be worth billions to (the countries), and that money could be reinvested into health and education projects.&#8221;



Charalambous&#8217;s bill would allow countries to seek debt payment freezes while restructuring negotiations are underway, and also enable a stay on legal proceedings during the process.



It would also cap the claims that private creditors can make via lawsuits after restructurings are concluded, aiming to prevent holdout creditors from blocking or slowing debt deals.



<h2 class="wp-block-heading" id="h-states-vulnerable">STATES VULNERABLE</h2>



Currently, if a country defaults on its bonds, creditors can go to court in the jurisdiction governing the contract to force repayment; some of Ethiopia&#8217;s bondholders have said they could undertake legal proceedings.



Such court cases typically spark lengthy legal proceedings that can delay or complicate a broader restructuring.



A wave of developing countries, from Ghana to Sri Lanka, have defaulted since 2020, weakened by the COVID-19 pandemic and a global interest rate hiking cycle.



The G20 created an initiative called the Common Framework to try to bring together diverse lenders &#8211; from China to New York investors &#8211; to speed up poor countries&#8217; debt reworks.



But it took Zambia more than three years to restructure its primary debts, and critics say the debt relief it and other nations have secured leaves them vulnerable to future crises.



No iteration of the New York bill has made it to the governor&#8217;s desk, but emerging market bond investors have begun to include clauses in bond deals that would allow them to switch jurisdictions to avoid potential curbs.



(Reporting by Libby GeorgeEditing by Alexandra Hudson)

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UK bill aims to speed debt restructuring for poor countries

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="4000" height="2667" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/4RI6JH2DCRIBTOTEG67K23A2OM.avif" alt="" class="wp-image-591756"/><figcaption class="wp-element-caption">An American flag and USAID flag fly outside the USAID building in Washington, D.C., U.S., February 1, 2025. REUTERS/Annabelle Gordon/File Photo</figcaption></figure>



WASHINGTON, April 8 (Reuters)&nbsp;&#8211;&nbsp;President Donald Trump&#8217;s administration on Tuesday moved to reinstate at least six recently canceled U.S. foreign aid programs for emergency food assistance, six sources familiar with the matter told Reuters.



The quick reversal of decisions made just days ago underscored the rapid-fire nature of Trump&#8217;s cuts to foreign aid. That has led to programs being cut, restored then cut again, disrupting international humanitarian operations.



USAID Acting Deputy Administrator Jeremy Lewin, who has previously been identified as a member of billionaire Elon Musk&#8217;s Department of Government Efficiency, asked staff in an internal email to reverse the terminations.



He asked to restore awards to the World Food Programme in Lebanon, Syria, Somalia, Jordan, Iraq and Ecuador, five sources familiar with the matter said.



The administration has also resumed four awards to the International Organization for Migration in the Pacific region, two sources familiar with the matter said.



&#8220;Sorry for all the back and forth on awards,&#8221; Lewin said on Tuesday in the internal email seen by Reuters. &#8220;There are a lot of stakeholders and we need to do better about balancing these competing interests — that’s my fault and I take responsibility,&#8221; he added.



Reuters reported on Monday that the Trump administration had ended life-saving aid programs for more than a dozen countries including Afghanistan, Yemen, Somalia and Syria, totaling over $1.3 billion.



According to Stand Up For Aid, an advocacy group of current and former U.S. officials, WFP contracts canceled on Lewin’s orders last weekend for Lebanon, Syria, Somalia and Jordan totaled more than $463 million.



Many of the terminated programs had been granted waivers by U.S. Secretary of State Marco Rubio following an initial round of cuts to foreign aid programs. The State Department said those did not reflect a final decision.



The State Department did not immediately respond to a request for comment about restoring the awards.



<h2 class="wp-block-heading" id="h-a-death-sentence">A &#8216;DEATH SENTENCE&#8217;</h2>



The decision to restore some aid followed pressure from inside the administration and from Congress, two sources said.



The World Food Programme said on Monday that the U.S. notified the organization it was eliminating emergency food assistance funding in 14 countries, warning: &#8220;If implemented, this could amount to a death sentence for millions of people facing extreme hunger and starvation.&#8221;



The U.S. did not restore aid to Taliban-ruled Afghanistan and to Yemen, most of which is controlled by Islamist militants of the Iran-backed Houthi movement. Washington has been the largest aid donor to both countries, which have suffered years of devastating war.



State Department spokesperson Tammy Bruce on Tuesday told reporters that the United States had concerns that WFP funding for Yemen and Afghanistan was benefiting the Houthis and the Taliban.



&#8220;There were a few programs that were cut in other countries that were not meant to be cut that have been rolled back and put into place,&#8221; Bruce said, adding that the administration remains committed to foreign aid.



Among the cuts over the weekend were $169.8 million for the WFP in Somalia, covering food assistance, nutrition for malnourished babies and children and humanitarian air support. In Syria, $111 million was cut from WFP food assistance.



The cuts have been the latest piece of the Trump administration&#8217;s&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N3QF0Q8&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">drive to dismantle</a>&nbsp;USAID, the main U.S. humanitarian aid agency.



The administration has canceled billions of dollars in foreign aid since the Republican president began his second term on January 20 in an overhaul that officials described as marked by&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL6N3OZ00X&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">chaos and confusion</a>.



Senate Foreign Relations Committee Democrats on Tuesday wrote a letter to Rubio regarding plans to restructure the State Department, including by folding in USAID, which they said was &#8220;unconstitutional, illegal, unjustified, damaging, and inefficient.&#8221;



(Reporting by Jonathan Landay, Daphne Psaledakis and Humeyra Pamuk; Additional reporting by Patricia Zengerle and Michelle Nichols; Editing by Don Durfee and Cynthia Osterman)

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Trump administration moves to restore some terminated foreign aid programs, sources say

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="4500" height="3000" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/S6AZUG3GPJNWBFZDG42JBIMG74.avif" alt="" class="wp-image-607180"/><figcaption class="wp-element-caption">Fikile Mbalula, the Secretary-General of the African National Congress addresses the media during a press conference at Chief Albert Luthuli House, the headquarters of the African National Congress in Johannesburg, South Africa, April 1, 2025. REUTERS/Ihsaan Haffejee/File Photo</figcaption></figure>



JOHANNESBURG, April 8 (Reuters)&nbsp;&#8211;&nbsp;The African National Congress&nbsp;remains&nbsp;committed to South Africa&#8217;s multiparty government, it said on Tuesday, after its main coalition partner, the Democratic Alliance, voted against the budget and went to court to try to block it.



The deepening schism between the ANC and DA &#8211; South Africa&#8217;s biggest and second-biggest parties &#8211; threatens to sink the country&#8217;s first attempt at coalition rule in its 30-year democratic era and has left investors rattled.



The ANC and DA held separate meetings of their top officials on Monday to discuss how to move on from last week&#8217;s fractious budget vote, which followed weeks of failed negotiations over the bill.



The DA had pushed for a bigger say in economic policymaking during the talks after not getting its way in earlier disagreements over health insurance and education laws.



The ANC, however, did not cede to the DA&#8217;s demands and instead secured the backing of a small party outside the coalition to pass the budget&#8217;s first piece of legislation.



ANC Secretary General Fikile Mbalula told a press conference that the DA had acted as an opposition force by seeking to block several high-profile legislative projects.



&#8220;This dishonesty undermines the very essence of collective governance,&#8221; he said.



But he stopped short of saying the ANC wanted to force the DA out of government&nbsp;and said the ANC&nbsp;would continue talks with the DA.



&#8220;We remain committed to the (coalition government) as a tactical element,&#8221; Mbalula said. &#8220;We remain committed, but its integrity cannot be compromised.&#8221;



Mbalula said that, in addition to the DA, the ANC would talk to its other coalition partners and parties outside the government to try to resolve any remaining disagreements over the budget, whose most contentious element is a plan to&nbsp;increase value-added tax.



DA leader John Steenhuisen said in a statement on Tuesday that his party wanted to discuss power-sharing with the ANC, which he called a natural consequence of the 2024 election&nbsp;in which&nbsp;no single party secured a majority.



&#8220;The electorate sent a clear message: single party rule is over, and no one party gets to dictate our policy direction,&#8221; he said.



The prospect that the pro-business DA could exit the coalition with the former liberation movement of Nelson Mandela and a host of other smaller parties&nbsp;has contributed&nbsp;to a steep fall in the rand&nbsp;ZAR=D3&nbsp;in recent days.



(Additional reporting by Bhargav Acharya and Sfundo Parakozov; Writing by Alexander Winning; Editing by Joe Bavier)

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South Africa’s ANC committed to coalition despite budget disagreements

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="574" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/PHOTO-2025-02-27-16-12-22-1-820x574.jpg" alt="" class="wp-image-607126" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/PHOTO-2025-02-27-16-12-22-1-820x574.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/PHOTO-2025-02-27-16-12-22-1-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/PHOTO-2025-02-27-16-12-22-1-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/PHOTO-2025-02-27-16-12-22-1-768x538.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/PHOTO-2025-02-27-16-12-22-1.jpg 1280w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



South Africa has asked Kenya to support its candidate, Swazi Tshabalala, for the Presidency of the African Development Bank (AfDB).



Kenya’s Cabinet Secretary for Foreign Affairs Musalia Mudavadi and senior ministry officials met Tshabalala at the weekend where a formal request for support was made, Mudavadi’s office said without revealing Kenya’s position.



Tshabalala, a former African Development Bank Senior Vice President is battling four other candidates for leadership of the only African financial institution rated triple A by all three of the world’s rating agencies. She is the only female candidate.



“Leadership is not about gender—it’s about vision, competence, and the courage to transform Africa’s financial future,” Tshabalala said in a statement after the meeting. “My three decades of experience and proven track record at the AfDB position me as a candidate and the right leader to steer this institution toward greater impact”.



Tshabalala served as AfDB Vice President from 2021 until last September when she resigned. Before that she held leadership roles at Old Mutual Employee Benefits, Standard Bank Group and Transnet, South Africa’s transport parastatal. From 2006 to 2014, she served as the CEO of the Industrial Development Corporation.



She says she ready to help transform Africa by prioritising infrastructure development and allowing a greater role for the continent’s private sector if she is elected president next May.



Tshabalala is taking on Zambia’s Samuel Maimbo, who says he has the support of the Southern African Development Community and the Common Market for Eastern and Southern Africa, Senegal’s Amadou Hott, a former special envoy for the bank’s Alliance for Green Infrastructure in Africa, Mauritania’s Sidi Ould Tah, ex-President of the Arab Bank for Economic Development in Africa and former Chad Finance Minister Abbas Mahamat Tolli.



African shareholders hold 60 percent of the bank, with the balance owned by non- African shareholders. To win the presidency, a candidate must win a majority of both sets of shareholders. The election will be held at the bank’s annual meetings in Abidjan, Cote d’Ivoire next month.

PHOTO-2025-02-27-16-12-22 (1)

South Africa Asks Kenya to support AfDB Presidential candidate

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127933-17440569022025-04-07t201357z_142193552_rc27tdaib6pb_rtrmadp_0_usa-trump-tariffs-israel-820x546.jpeg" alt="" class="wp-image-607109" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127933-17440569022025-04-07t201357z_142193552_rc27tdaib6pb_rtrmadp_0_usa-trump-tariffs-israel-820x546.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127933-17440569022025-04-07t201357z_142193552_rc27tdaib6pb_rtrmadp_0_usa-trump-tariffs-israel-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127933-17440569022025-04-07t201357z_142193552_rc27tdaib6pb_rtrmadp_0_usa-trump-tariffs-israel-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127933-17440569022025-04-07t201357z_142193552_rc27tdaib6pb_rtrmadp_0_usa-trump-tariffs-israel-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127933-17440569022025-04-07t201357z_142193552_rc27tdaib6pb_rtrmadp_0_usa-trump-tariffs-israel.jpeg 1520w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. President Donald Trump gestures during a meeting with Israeli Prime Minister Benjamin Netanyahu (not pictured) in the Oval Office at the White House in Washington, U.S., April 7, 2025.  Kevin Mohatt | Reuters</figcaption></figure>



The meaning of the word “reciprocity” is being strained by the Trump administration. Not only did the White House use a bizarre formula to determine the degree of its “reciprocal” tariffs on other countries, but it also refused to return the favor when Vietnam and the European Union offered to remove tariffs on U.S. imports.



White House trade advisor Peter Navarro said on CNBC’s “Squawk Box” that it’s Vietnam’s “nontariff cheating that matters,” citing examples such as how Chinese goods are often exported from Vietnam and intellectual property theft. This suggests that the Trump administration sees tariffs not just as a means to address U.S. trade imbalance (which, itself, is already not a good indicator of economic health), but also a way of fundamentally changing the way global trade and manufacturing are being conducted.



Business leaders, many of them steering companies that rely on — and have profited from — the current economic paradigm, are starting to voice their concerns and even vent their displeasure at Trump tariffs. Some are supporters and donors of the Republican Party. With the Trump administration’s idiosyncratic understanding of “reciprocity,” however, it seems unlikely it will repay their goodwill with its own.



<h2 class="wp-block-heading" id="h-what-you-need-to-know-today"><a></a>What you need to know today</h2>



Nasdaq rises and Asian shares rebound U.S. markets mostly fell Monday. The S&amp;P 500 lost 0.23% and was briefly in bear market territory — a 20% fall from its recent high — during the trading session. The Dow Jones Industrial Average dropped 0.91%, and swung 2,595 points from low to high, its largest intraday point swing ever recorded. But the Nasdaq Composite edged up 0.1% as investors bought some megacap tech stocks — but Apple was bludgeoned again. Asia-Pacific markets climbed Tuesday, rebounding from heavy losses the previous day. Japan’s Nikkei 225 jumped nearly 6% and Hong Kong’s Hang Seng Index added 0.3%.



China pledges to ‘fight to the end’ U.S. President Donald Trump on Monday threatened to slap additional 50% tariffs on China — which would bring total duties on Chinese imports to 104% — after Beijing retaliated with its own levies of 34% on all U.S. goods. On Tuesday, China’s Commerce Ministry said it “resolutely opposes” Trump’s additional tariffs and vowed to “fight to the end,” according to a statement translated by CNBC.



White House rejects 0% tariff deals That said, even if China had offered concessions to the United States, the Trump administration might not have budged. White House trade advisor Peter Navarro said Monday that an offer by Vietnam to eliminate tariffs on U.S. imports “means nothing to us because it’s the nontariff cheating that matters.” Trump also rejected the European Union’s offer of “zero-for-zero” tariffs with the U.S. for industrial goods.



Growing fears and dissatisfaction Business leaders are sounding the alarm over the potential fallout from Trump tariffs. BlackRock CEO Larry Fink said Monday that “Most CEOs I talk to would say we are probably in a recession right now.” JPMorgan Chase CEO Jamie Dimon, in his annual shareholder letter Monday, wrote that tariffs are likely to cause “inflationary outcomes” and “will slow down growth” of an “already weakening” economy. And Home Depot co-founder Ken Langone, a megadonor to the Republican Party, called the 46% import duties on Vietnam “bulls&#8212;.”



[PRO] Waiting for ‘sustained bottom’ DoubleLine Capital CEO Jeffrey Gundlach said on CNBC’s “Closing Bell” Monday that he’s concerned over the lack of bounce in the market, and would hold cash until the S&amp;P 500 hits a “sustained bottom.” Here’s where Gundlach thinks the S&amp;P 500 could end up before it starts to rise again.   



<h2 class="wp-block-heading" id="h-and-finally"><a></a>And finally&#8230;</h2>



European and Asian defense stocks have rallied this year. A lack of trust in the U.S. could be driving those gains



While stocks have generally sold off after U.S. President Donald Trump announced his plan for “reciprocal tariffs,” European and Asian arms manufacturers are still posting respectable gains on a year-to-date basis, with some rising over 100%.



Veteran investor and strategist at Quantum Strategy David Roche told CNBC the rise in defense stocks outside of the U.S is due to the reduction in trust of the U.S. as an ally.



After the Trump administration’s rattling of long-held global alliances, countries have poured money into their own defense budgets, sending defense stocks higher. In Germany, lawmakers passed a&nbsp;historic debt reform, paving the way for a huge splurge on defense. U.K. Prime Minister Keir Starmer has also&nbsp;pledged to hike Britain’s national spending on defense.

108127933-17440569022025-04-07t201357z_142193552_rc27tdaib6pb_rtrmadp_0_usa-trump-tariffs-israel

The Trump administration wants more than 0% tariffs

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108125360-17436290092025-04-02t210742z_1005580332_rc2rpdao7slw_rtrmadp_0_usa-trump-tariffs-820x462.png" alt="" class="wp-image-605140" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108125360-17436290092025-04-02t210742z_1005580332_rc2rpdao7slw_rtrmadp_0_usa-trump-tariffs-820x462.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108125360-17436290092025-04-02t210742z_1005580332_rc2rpdao7slw_rtrmadp_0_usa-trump-tariffs-300x169.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108125360-17436290092025-04-02t210742z_1005580332_rc2rpdao7slw_rtrmadp_0_usa-trump-tariffs-160x90.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108125360-17436290092025-04-02t210742z_1005580332_rc2rpdao7slw_rtrmadp_0_usa-trump-tariffs-768x432.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108125360-17436290092025-04-02t210742z_1005580332_rc2rpdao7slw_rtrmadp_0_usa-trump-tariffs.png 1480w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., on April 2, 2025.
Leah Millis | Reuters</figcaption></figure>



<h2 class="wp-block-heading">Richard Branson: Reverse ‘colossal mistake’ of tariffs or face ‘ruin’</h2>



Billionaire Richard Branson is warning that the U.S. “will face ruin for years to come” if the Trump administration does not immediately “change course” on its tariff policies.



“The US government can still turn things around, but it must act in the next few hours,” the Virgin Group co-founder wrote on X.



“This is the moment to own up to a colossal mistake and change course. Otherwise, America will face ruin for years to come,” he wrote.



—&nbsp;Kevin Breuninger



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading" id="h-fake-news-white-house-dismisses-report-of-trump-considering-90-day-pause">‘Fake news’: White House dismisses report of Trump considering 90-day pause</h2>



The White House dismissed a wire headline that said Trump is considering pausing new tariffs for 90 days.



“Fake news,” White House Press Secretary Karoline Leavitt told CNBC’s Eamon Javers after a headline that cited Kevin Hassett, the director of the National Economic Council.



Trump himself posted on social media a video of Fox Business host Maria Bartiromo saying, “Rates are plummeting, oil prices are plummeting, deregulation is happening.”



“President Trump is not going to bend,” Bartiromo said in the video.



&#8211; Dan Mangan



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading">Trump: ‘Not sustainable’ for U.S. to lose $1.9 trillion on trade</h2>



Trump writes that it’s “not sustainable” for the U.S. to “lose $1.9 trillion on trade” in a&nbsp;<a href="https://truthsocial.com/@realDonaldTrump/posts/114297055955956469" target="_blank" rel="noreferrer noopener">post</a>&nbsp;just now on Truth Social.



Trump’s post includes a video of him talking to reporters, in which he also says that the U.S. can’t lose money on trade “and also spend a lot of money on NATO in order to protect European nations.”



— Erin Doherty



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading" id="h-tesla-shares-are-down-20-since-lutnick-urged-buy-tesla">Tesla shares are down 20% since Lutnick urged ‘Buy Tesla’</h2>



Tesla shares are trading around 20% lower than they were when Lutnick urged people to “Buy Tesla” last month.



Lutnick touted Tesla, whose CEO is the Trump administration DOGE chief Elon Musk, in a March 19 interview on Fox News.



“It’s unbelievable that this guy’s stock is so cheap,” Lutnick said. “It’ll never be this cheap again.”



As it turns out, it would be.



— Dan Mangan



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading" id="h-canada-initiates-wto-dispute-over-auto-tariffs">Canada initiates WTO dispute over auto tariffs</h2>



Canada filed a dispute with the the World Trade Organization concerning Trump’s 25% tariffs on automobiles and automobile parts imported from Canada into the U.S.



Canada requested WTO dispute consultations with the U.S. concerning the new levies, the global trade organization said. The WTO says the request for consultations formally initiates a dispute in the organization.



Consultations will give the parties an opportunity to discuss the matter without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel, according to the WTO.



Canada claims the measures are inconsistent with the U.S.′ obligations under various provisions of the “General Agreement on Tariffs and Trade” of 1994.



— Michael Wayland

108125360-17436290092025-04-02t210742z_1005580332_rc2rpdao7slw_rtrmadp_0_usa-trump-tariffs

White House denies that Trump is considering 90-day tariff pause

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="540" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/NJHSA5REZNMEZIIYEUNK6IELT4-820x540.jpg" alt="" class="wp-image-606791" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/NJHSA5REZNMEZIIYEUNK6IELT4-820x540.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/NJHSA5REZNMEZIIYEUNK6IELT4-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/NJHSA5REZNMEZIIYEUNK6IELT4-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/NJHSA5REZNMEZIIYEUNK6IELT4-768x505.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/NJHSA5REZNMEZIIYEUNK6IELT4-1536x1011.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/NJHSA5REZNMEZIIYEUNK6IELT4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view shows shipping containers arranged from different shipping companies within the Kenya Ports Authority (KPA) container terminal at the port of Mombasa, Kenya January 9, 2025. REUTERS/Laban Walloga/File Photo</figcaption></figure>



NAIROBI, April 7 (Reuters)&nbsp;&#8211;&nbsp;Kenya is among those exporters hoping a smaller Trump tariff blow vis-a-vis competitors might help them emerge as winners in the nascent global trade war, but translating the disparity into an advantage will be an uphill struggle.



As governments around the world reeled from U.S. President Donald Trump&#8217;s new tariffs, Kenya voiced optimism about potential advantages over rival textile manufacturers in Asia.



Imports from the East African nation, which sent goods worth $737 million to the United States last year, will be charged the minimum 10% compared with 46% for Vietnam, 44% for Sri Lanka and 37% for Bangladesh.



&#8220;With other textile-exporting countries facing much higher tariffs, Kenya could position itself as an alternative sourcing hub for buyers,&#8221; Trade Minister Lee Kinyanjui said last week.



Economists said up-and-coming manufacturers in East Africa like Tanzania and Ethiopia could also benefit, as could Latin American countries like Brazil, which also received the baseline 10% tariff.



Any gains for Kenya, however, could be offset by the damage from tariffs to the global economy plus deep-seated weaknesses in its domestic business environment.



J.P. Morgan raised its odds of global recession by year-end to 60% from 40% on Friday after China retaliated against the U.S. tariffs, while Goldman Sachs has raised the odds of a U.S. recession in the next 12 months to 45% from 35%.



The chairman of Kenya&#8217;s biggest garments manufacturer said the tariffs would pile expenses on companies already facing costs roughly 20% higher than global competitors because of steep electricity prices and taxes, and questioned whether international brands would rush to shift operations.



&#8220;A temporary tariff disparity does not create real competitiveness,&#8221; said Pankaj Bedi, whose United Aryan Ltd. supplies U.S. retailers including Target, Walmart and Levi&#8217;s.



Stresses for manufacturers are compounded by the grim outlook for the African Growth and Opportunity Act (AGOA), a U.S. trade initiative passed in 2000 that allows duty-free exports for thousands of products from Africa.



Trade experts said the U.S. tariffs were likely to signal the end of AGOA, which expires in September and had been widely expected to be renewed in some form.



<h2 class="wp-block-heading" id="h-negotiations-with-washington">NEGOTIATIONS WITH WASHINGTON</h2>



The tariffs sent chills through the global economy, affecting nearly all of Kenya&#8217;s trading partners.



Most African countries have relatively small export balances with the U.S. but more significant trade relations with the European Union and China, J.P. Morgan said in a note on Monday.



Kenya exported $1.35 billion in goods to the EU and $228 million to China in 2023, according to U.N. data.



&#8220;While the direct impact with the U.S. might be limited, the indirect impact from potential growth slowdown in the EU and China, depending on the veracity of the impact from U.S. tariffs, could yet weigh on these economies,&#8221; J.P. Morgan said.



As well as his bullish initial assessment, Kenya&#8217;s trade minister Kinyanjui did also take sober note on Monday of the havoc on global markets.



&#8220;We anticipate there will be a serious impact across all sectors and I think the fears of recession become a very clear challenge, especially for third world countries,&#8221; he said.



Some manufacturers said Kenya would struggle to take advantage of any opening provided by the tariffs because their higher costs largely cancel out the edge from U.S. tariff rate differentials versus competitors.



&#8220;Kenya&#8217;s exports to the USA, previously duty-free under AGOA, will now be subject to additional costs, reducing their market competitiveness,&#8221; the Kenya Association of Manufacturers said in a statement.



Other manufacturers were nevertheless looking on the bright side. Jaswinder Bedi, whose company makes clothes for American wholesalers, said he planned to press ahead with a new factory that would triple his employees to more than 3,000.



&#8220;Our comparative advantage has actually increased,&#8221; he said. &#8220;Look at our competing countries &#8230; those tariffs are very high.&#8221;



Much will depend on the ability of Kenya &#8211; and its competitors &#8211; to secure better terms through direct negotiations with Washington.



U.S. Treasury Secretary Scott Bessent said on Sunday that more than 50 nations had started negotiations with the U.S. since Trump announced the tariffs last Wednesday.



It was not known if Kenya was among them. At least one textile manufacturing competitor was moving aggressively to try to roll back the tariffs, with Vietnam&#8217;s leader To Lam agreeing during a phone call on Friday with Trump to discuss a deal.



Kenya opened trade deal negotiations with the first Trump administration in 2020.



New talks were opened under President Joe Biden&#8217;s administration on a trade and investment partnership aimed at lifting non-tariff barriers to trade but were not completed before Trump returned to office.



(Reporting by Duncan Miriri; Editing by Aaron Ross and Andrew Cawthorne)

A general view shows shipping containers arranged from different shipping companies within the Kenya Ports Authority (KPA) container terminal at the port of Mombasa

Kenya thinks it can win from U.S. tariffs, but global recession risk looms

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1701923070-820x547.jpg" alt="" class="wp-image-474613" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1701923070-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1701923070-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1701923070-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1701923070-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1701923070-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1701923070-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Jamie Dimon, chief executive officer of JPMorgan Chase &amp; Co., during a Bloomberg Television interview on the sidelines of the JPMorgan Tech Stars Leadership Forum in London, UK, on Monday, Oct. 2, 2023. &#8220;Your children are going to live to 100 and not have cancer because of technology,&#8221; Dimon said. Photographer: Jason Alden/Bloomberg via Getty Images</figcaption></figure>



JPMorgan Chase CEO Jamie Dimon said Monday that tariffs announced by President Donald Trump last week will likely boost prices on both domestic and imported goods, weighing down a U.S. economy that had already been slowing.



Dimon, 69, addressed the tariff policy Trump announced on April 2 in his annual shareholder letter, which has become a closely read screed on the state of the economy, proposals for the issues facing the U.S. and his take on effective management.



“Whatever you think of the legitimate reasons for the newly announced tariffs – and, of course, there are some – or the long-term effect, good or bad, there are likely to be important short-term effects,” Dimon said. “We are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic products.”



“Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth,” he said.



Dimon is the first CEO of a major Wall Street bank to publicly address Trump’s sweeping tariff policy as global markets crash. Though the JPMorgan chairman has often used his platform to highlight geopolitical and financial risks he sees, this year’s letter comes at an unusually turbulent time. Stocks have been in freefall since Trump’s announcement shocked global markets, causing the worst week for U.S. equities since the outbreak of the Covid pandemic in 2020.



His remarks appear to backtrack earlier comments he made in January, when Dimon said that people should “get over” tariff concerns because they were good for national security. At the time, tariff levels being discussed were far lower than what was unveiled last week.



Trump’s tariff policy has created “many uncertainties,” including its impact on global capital flows and the dollar, the impact to corporate profits and the response from trading partners, Dimon said.



“The quicker this issue is resolved, the better because some of the negative effects increase cumulatively over time and would be hard to reverse,” he said. “In the short run, I see this as one large additional straw on the camel’s back.”



<h2 class="wp-block-heading" id="h-not-so-sure"><a></a>‘Not so sure’</h2>



While the U.S. economy has performed well for the past few years, helped by nearly $11 trillion in government borrowing and spending, it was “already weakening” in recent weeks, even before Trump’s tariff announcement, according to Dimon. Inflation is likely to be stickier than many anticipate, meaning that interest rates could remain elevated even as the economy slows, he added.



“The economy is facing considerable turbulence (including geopolitics), with the potential positives of tax reform and deregulation and the potential negatives of tariffs and ‘trade wars,’ ongoing sticky inflation, high fiscal deficits and still rather high asset prices and volatility,” Dimon said.



Dimon also struck a somewhat ominous note considering how much U.S. stocks have already fallen from their recent highs. According to the JPMorgan CEO, both stocks and credit spreads were still potentially too optimistic.



“Markets still seem to be pricing assets with the assumption that we will continue to have a fairly soft landing,” Dimon said. “I am not so sure.”



This story is developing. Please check back for updates.

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon Interview

JPMorgan CEO Jamie Dimon says Trump tariffs will boost inflation, slow an already weakening U.S. economy

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3276" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/2V3STLYNKBL7XMBFJ4ETGLPALQ.avif" alt="" class="wp-image-606741"/><figcaption class="wp-element-caption">An MTN logo is seen outside the company&#8217;s headquarters in Johannesburg, South Africa, March 13, 2023. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, April 7 (Reuters) &#8211; MTN Group, Africa&#8217;s biggest mobile operator, said on Monday it has entered into a strategic partnership with UK video software maker Synamedia to develop a new streaming platform tailored for mobile and fibre subscribers across Africa.



Launched in 1994, MTN Group has diversified from just providing voice calls and data, to being a technology media company that also provides fintech, digital and entertainment services as voice declines.



&#8220;We see a unique opportunity to transform video consumption in Africa with high-quality, accessible and relevant content,&#8221; said Selorm Adadevoh, Group Chief Commercial Officer at MTN Group.



MTN Group, which has 291 million customers across 16 markets in Africa, is hoping to capitalise on the rapid uptake of smartphones and improving telecommunications infrastructure on the continent, which have both driven demand for video streaming services.



The proposed service will leverage Synamedia&#8217;s cloud-based technologies to deliver both linear television and video-on-demand content, the companies said in a joint statement.



The platform will offer diverse monetization models, including subscriptions, ad-supported content and free streaming channels with targeted advertising, they said.



Each market will benefit from a curated content strategy, adapted to local cultures, languages, and viewing habits, they added.



The parties will enter a streaming market where not only MultiChoice&#8217;s Showmax has a strong foothold, but also global competitors Netflix, Disney, Amazon Prime and Apple TV.



(Reporting by Nqobile Dludla; Editing by Alexandra Hudson)

2V3STLYNKBL7XMBFJ4ETGLPALQ

MTN teams up with UK’s Synamedia to launch African streaming platform

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126913-17437914272025-04-04t165538z_1655625369_rc24rdaletk4_rtrmadp_0_usa-trump-tariffs-820x461.jpeg" alt="" class="wp-image-606703" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126913-17437914272025-04-04t165538z_1655625369_rc24rdaletk4_rtrmadp_0_usa-trump-tariffs-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126913-17437914272025-04-04t165538z_1655625369_rc24rdaletk4_rtrmadp_0_usa-trump-tariffs-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126913-17437914272025-04-04t165538z_1655625369_rc24rdaletk4_rtrmadp_0_usa-trump-tariffs-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126913-17437914272025-04-04t165538z_1655625369_rc24rdaletk4_rtrmadp_0_usa-trump-tariffs-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126913-17437914272025-04-04t165538z_1655625369_rc24rdaletk4_rtrmadp_0_usa-trump-tariffs-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126913-17437914272025-04-04t165538z_1655625369_rc24rdaletk4_rtrmadp_0_usa-trump-tariffs.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Dado Ruvic | Reuters</figcaption></figure>



U.S. President Donald Trump’s tariffs and subsequent actions by other nations have cast a shadow over investors’ portfolios. Markets largely fell all around the world following the announcements, and the sell-off has extended into Monday.  Trump and his administration has been defiant, with the U.S. president saying “it won’t be easy” and urging Americans to “hang tough” in a Truth Social post late Friday.  Over the weekend, the European Union was reported to also be readying tariffs, targeting up to $28 billion of U.S. imports, marking the latest escalation in this conflict. China and Canada had also announced retaliatory measures last week.  With such market losses, a predicted rise in consumer prices, and an increased risk of a recession from tariffs, it is admittedly hard to see what “victory” looks like for Trump who said in 2018 that “trade wars are good, and easy to win!”



— Lim Hui Jie



<h2 class="wp-block-heading" id="h-what-you-need-to-know-today"><a></a>What you need to know today</h2>



Markets set to extend losses U.S. stock futures dropped on Monday morning, portending a third day of losses after a two-day historic stock market rout. Dow Jones Industrial average futures fell 1,033 points, or 2.68%, pointing to another brutal session ahead on Monday. S&amp;P 500 futures shed 3.34%. Nasdaq-100 futures lost 4.26% as investors continued to shed their one-time tech winners to raise cash. Asia-Pacific markets extended their sell-off on Monday as fears over a global trade war fueled a risk-off mood. Hong Kong markets led losses in the region, with the Hang Seng Index declining 10.37%. Mainland China’s CSI 300 fell 6.31%.



Japanese yen and Swiss franc top hedges against tariffs U.S. President Donald Trump’s fresh of swathe reciprocal tariffs has pushed investors toward safe haven assets. The Japanese yen, Swiss franc, bonds, as well as a few other “exotic” assets, have emerged as some of their top hedges.



Crypto joins market rout Bitcoin fell below the $79,000 level Sunday as investors braced for more financial market volatility. The cryptocurrency is down 15% in 2025 and, absent a crypto-specific catalyst, is expected to continue moving in tandem with equities as global recession fears overshadow any regulatory tailwinds crypto was expected to benefit from this year.



‘Tariffs are coming’: Commerce Secretary Lutnick Commerce Secretary Howard Lutnick said the White House will not postpone the April 9 start date for reciprocal tariffs. Speaking to CBS’s “Face the Nation” Sunday, Lutnick said, “they are definitely going to stay in place for days and weeks,” adding “the president needs to reset global trade. Everybody has a trade surplus and we have a trade deficit.” 



Bessent dismisses recession fears  Treasury Secretary Scott Bessent on Sunday dismissed concerns Americans might be having about a potential impending recession and the status of their retirement plans, saying that President Donald Trump and his administration are “building the long-term economic fundamentals for prosperity.” Speaking to NBC News’ “Meet the Press,” Bessent called it a “false narrative” that Americans who are close to retiring may be reticent to do so after their retirement savings may have dropped this week due to the stock market downturn. “In fact, most Americans don’t have everything in the market,” Bessent added.



Berkshire Hathaway weathers market rout Warren Buffett’s Berkshire Hathaway fared better than the S&amp;P 500 in a brutal week as investors embraced the safety of a cash-rich conglomerate, seeing softer losses compared to the broad market index. Domestically-oriented Berkshire, which also owns large manufacturing, energy and retail businesses, is still up about 8% this year.



China says ‘market has spoken’ after Trump tariffs spark global stocks rout



China’s Foreign Ministry on Saturday said “the market has spoken” following the U.S. imposition of sweeping new tariffs and called for the White House to defuse the escalating trade war through “equal-footed consultation.“ This comes as U.S. markets fell sharply for a second consecutive day on Friday, with all three major indexes dropping by more than 5% as part of a global rout.



The market turmoil was exacerbated on Friday when China’s Finance Ministry announced it would impose a 34% tariff on all goods imported from the U.S. starting on April 10.

108126913-17437914272025-04-04t165538z_1655625369_rc24rdaletk4_rtrmadp_0_usa-trump-tariffs

Trump tariffs spark trade war, decimating stocks

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1955" height="1299" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/O7IN5SSY2ZJCJAUBLVKBRK4AYI.avif" alt="" class="wp-image-606683"/><figcaption class="wp-element-caption">South African President Cyril Ramaphosa delivers his 2025 State of the Nation Address in Cape Town, South Africa, February 6, 2025. REUTERS/Esa Alexander/File Photo</figcaption></figure>



April 6 (Reuters) &#8211; South Africa&#8217;s National Treasury is looking at alternative revenue-raising options to a value-added tax increase, but the chances of avoiding it are low, President Cyril Ramaphosa said on Sunday.



The second biggest party in the ruling coalition, the pro-business Democratic Alliance (DA), on Wednesday rejected a proposal in the budget to raise VAT by 1 percentage point spread over two years, arguing it would hit the poorest hard.



&#8220;We will look at all ways and means of seeing whether that is possible or not,&#8221; Ramaphosa said on X. &#8220;From current examination, Treasury has said — having looked at various areas where they can look, it doesn&#8217;t seem to be so.



&#8220;That process will be engaged in for the next 30 days, and it&#8217;s only thereafter that the report will be available and will be presented, that we will be able to take the matter forward.&#8221;



The DA filed a court case on Thursday challenging the legality of the budget process and sought to block the implementation of a VAT increase, widening a rift in the fragile coalition.



Market fears have grown that the DA may quit the multi-party government, which was formed last year after the ANC lost its parliamentary majority for the first time since the end of apartheid in 1994.



(Reporting by Disha Mishra in Bengaluru; Editing by Andrew Cawthorne)

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South Africa’s treasury looking at alternatives to VAT hike

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="553" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/OPWNXI3IXRL3ZANB4MPMT3BVHE-820x553.jpg" alt="" class="wp-image-605677" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/OPWNXI3IXRL3ZANB4MPMT3BVHE-820x553.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/OPWNXI3IXRL3ZANB4MPMT3BVHE-300x202.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/OPWNXI3IXRL3ZANB4MPMT3BVHE-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/OPWNXI3IXRL3ZANB4MPMT3BVHE-768x518.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/OPWNXI3IXRL3ZANB4MPMT3BVHE.jpg 1080w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A worker inspects cars at a port, in East London, in the Eastern Cape province, South Africa, July 7, 2022. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, April 4 (Reuters) &#8211; South Africa has no immediate plans to retaliate against the United States over tariffs announced by President Donald Trump this week and will instead seek to negotiate exemptions and quota agreements, senior government officials said on Friday.



Trump imposed a 31% tariff on U.S. imports from South Africa on Wednesday, when he announced a 10% baseline tariff on all imports and higher targeted duties on dozens of countries.



The United States is South Africa&#8217;s second-largest bilateral trading partner after China.



Africa&#8217;s most industrialised nation has said previously that it wants to agree a bilateral trade deal with Trump&#8217;s team. That looks to be a tall order, however, after the U.S. president&#8217;s repeated attacks on South Africa since his return to the White House in January.



&#8220;To say we will impose reciprocal tariffs without first understanding how the U.S. arrived at 31% &#8230; would be counterproductive,&#8221; trade minister Parks Tau told a press conference, saying South Africa&#8217;s average tariff on imports was 7.6%.



Foreign affairs minister Ronald Lamola, meanwhile, said Trump&#8217;s tariffs&nbsp;effectively nullified the benefits African countries&nbsp;had enjoyed&nbsp;under the African Growth and Opportunity Act.



The AGOA initiative, which grants qualifying African nations duty-free access to the U.S. market, is due to expire in September. And Trump&#8217;s&nbsp;far-reaching&nbsp;tariffs suggest that a renewal of the trade accord enacted in 2000 is now unlikely.



The actions by the United States underscored the need for South Africa to accelerate efforts to diversify its export markets, the ministers said, mentioning markets in Asia and the Middle East as potential opportunities.



In the meantime, they said the government would seek to support industries most affected by the tariffs, including car manufacturing, agriculture, processed&nbsp;foodsand&nbsp;metals.



The government will not remove benefits U.S. carmakers enjoy under its Automotive Production Development Programme, a production incentive scheme, Tau said.



South Africa&#8217;s National Treasury estimates that losing its AGOA status could reduce economic growth by less than 0.1 percentage points.



The central bank has modelled several scenarios related to South Africa&#8217;s access to U.S. markets, with the impacts ranging from under 0.1 percentage points to 0.7 percentage points depending on the severity of the trade barriers and how badly financial market sentiment is affected.



Trump&#8217;s latest tariffs are in addition to the 25% imposed on all vehicles and car parts imported into the U.S. That is a particular threat to South Africa, which exports over $2 billion a year in vehicles and auto parts to the U.S.



(Reporting by Nqobile Dludla and Bhargav Acharya; Additional reporting by Sfundo Parakozov and Olivia Kumwenda-Mtambo; Writing by Alexander Winning; Editing by Joe Bavier)

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South Africa not planning to retaliate over Trump’s tariffs

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="398" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/YP2JKATXUNPVDPCDRNJC273VUI.avif" alt="" class="wp-image-605654"/><figcaption class="wp-element-caption">Kenyan workers prepare clothes for export at the United Aryan Export Processing Zone (EPZ) factory, operating under the U.S. African Growth and Opportunity Act (AGOA), in Ruaraka district of Nairobi, Kenya October 26, 2023. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



JOHANNESBURG, April 4 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s&nbsp;government&nbsp;said on Friday that tariffs announced by President Donald Trump this week effectively nullified&nbsp;the benefits African countries enjoy under U.S. trade initiative the&nbsp;African Growth and Opportunity Act (AGOA).



AGOA, which grants qualifying African nations duty-free access to the U.S. market, is due to expire in September. And Trump&#8217;s far-reaching tariffs suggest that a renewal of the trade accord enacted in 2000 is now unlikely.



Addressing a press conference, South Africa&#8217;s foreign and trade ministers said the government may seek to secure additional exemptions and quota agreements with the U.S. as well as diversify its export markets.



&#8220;The sweeping tariff measures will affect several sectors of our economy, including automotive industry, agriculture, processed food and beverage, chemical, metals and other segments of manufacturing, with implications for jobs and growth,&#8221;&nbsp;the two ministers said in a joint statement.



&#8220;The government will invest strategically in industries impacted by the tariffs, supporting economic growth through modernization and targeted infrastructure development.&#8221;



(Reporting by Nqobile Dludla and Bhargav Acharya; Additional reporting by Sfundo Parakozov; Editing by Alexander Winning)

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South Africa says Trump’s tariffs cancel out AGOA trade initiative

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="480" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/OU5SML6ZAZO77GNGQ5F7MVEMUQ.avif" alt="" class="wp-image-605604"/><figcaption class="wp-element-caption">A general view of the skyline of Addis Ababa, Ethiopia November 3, 2021. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



LONDON, April 4 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia&#8217;s official creditors expect to finalise within months a draft debt restructuring that gives the government more time to pay but stops short of an outright haircut, the co-chair of the group told Reuters.



The East African nation, which defaulted in December 2023, announced a preliminary agreement with its Official Creditor Committee (OCC) in March to restructure $8.4 billion in debt &#8211; a key step for it to emerge from sovereign default.



Under the deal, Ethiopia will get around $2.5 billion in debt service relief over the course of its International Monetary Fund programme, which runs out in 2028.



&#8220;We reduce the stock of debt through an extension of maturities and also reducing specifically the payments during the IMF programme period,&#8221; said William Roos, co-chair of Ethiopia&#8217;s OCC.



Ethiopia, which is restructuring under the G20 Common Framework scheme that is meant to speed up poor countries&#8217; debt treatments, is in a standoff with holders of its sole $1 billion Eurobond. They say Ethiopia does not need debt &#8220;haircuts&#8221; but instead faces a liquidity, or short-term cash flow, issue.



Bondholders have firmly rejected the country&#8217;s proposed 18% haircut.



Under its current IMF programme, Ethiopia must reduce its debt service by $3.5 billion until 2028 in order to make its debt &#8220;sustainable&#8221;.



In February, bondholders said the IMF&#8217;s assessment contained flaws that &#8220;artificially&#8221; created a solvency issue, partially by undervaluing gold and coffee exports.



REDUCING DEBT STOCK



Roos, who also co-chairs the Paris Club of wealthy creditor nations, said that while the OCC is monitoring Ethiopia&#8217;s exports, the IMF&#8217;s assessment was valid.



&#8220;We should work with the scenario we have on the table and which is the basis of the current IMF programme,&#8221; Roos said. &#8220;The situation of Ethiopia is not only an issue about liquidity, there is also a need to reduce the stock of debt.&#8221;



Bondholders have also said there is a lack of transparency around the official creditor deal, but Roos said they have had direct talks with bondholders and were open to meeting them in the future.



The OCC agreement does not include any contingencies that would raise or lower payments in line with shifting economic conditions, Roos said, adding that official creditors had focused on reducing debt service over the IMF programme period.



Still, he said Ethiopia was better able to pay compared with Zambia or Ghana, which concluded their own Common Framework debt restructurings last year.



&#8220;There is a capacity to pay from Ethiopia during the (IMF) programme period which is on average larger than what was possible for Zambia and for Ghana,&#8221; said Roos.



Roos said work between the OCC co-chairs, France and China, had been productive.



&#8220;All the work with China has been very constructive and now we are used to working together&#8230; We have been able to find a consensus first between us and then to negotiate with Ethiopia.&#8221;



Three other official creditors &#8211; the United Arab Emirates, Kuwait and Poland &#8211; have chosen to renegotiate Ethiopia&#8217;s debt separately, Roos said.



(Reporting by Karin Strohecker and Libby George in London; Editing by Gareth Jones)

OU5SML6ZAZO77GNGQ5F7MVEMUQ

Official creditors grant Ethiopia more time to pay debt, no write-down

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="407" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/TA2USGDCXBOXJAPYDCXGGP66XA.jpg" alt="" class="wp-image-605598" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/TA2USGDCXBOXJAPYDCXGGP66XA.jpg 640w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/TA2USGDCXBOXJAPYDCXGGP66XA-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/TA2USGDCXBOXJAPYDCXGGP66XA-142x90.jpg 142w" sizes="auto, (max-width: 640px) 100vw, 640px" /><figcaption class="wp-element-caption">A general picture shows the skyline of Tanzania&#8217;s port city of Dar es Salaam, File. REUTERS/Andrew Emmanuel</figcaption></figure>



DAR ES SALAAM, April 4 (Reuters) &#8211; Tanzania&#8217;s central bank on Friday kept its key interest rate TZINTR=ECI unchanged at 6%, saying that while inflation was under control global trade tensions posed a risk.



It was the fourth monetary policy meeting in a row that the rate was maintained.



&#8220;Maintaining the central bank rate will help to minimise negative spillover effects of trade tariffs and geopolitical conflicts on the economy,&#8221; central bank deputy governor Yamungu Kayandabila told a press conference.



This week U.S. President Donald Trump unveiled far-reaching tariffs that have triggered a plunge in world financial markets and drew condemnation from other leaders reckoning with the end of a decades-long era of trade liberalisation.



The Bank of Tanzania targets inflation of 5%, and consumer inflation&nbsp;TZCPIY=ECI&nbsp;has hovered around 3% since it launched its policy rate in January 2024.



The East African country&#8217;s economy is projected to grow about 6% this year,&nbsp;from an estimated 5.4% in 2024, its finance minister and central bank governor said in November.



Kayandabila said the country&#8217;s foreign exchange reserves stood at around $5.6 billion, enough to cover imports for four-and-a-half to five months.



(Reporting by Nuzulack Dausen; Writing by George Obulutsa; Editing by Alexander Winning and Peter Graff)

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featured

China slaps retaliatory tariffs of 84% on U.S. goods in response to Trump

Trump’s reciprocal tariffs plan kicks in, China to see net total tariffs of 104%

UK bill aims to speed debt restructuring for poor countries

Trump administration moves to restore some terminated foreign aid programs, sources say

South Africa’s ANC committed to coalition despite budget disagreements

South Africa Asks Kenya to support AfDB Presidential candidate

The Trump administration wants more than 0% tariffs

White House denies that Trump is considering 90-day tariff pause

Kenya thinks it can win from U.S. tariffs, but global recession risk looms

JPMorgan CEO Jamie Dimon says Trump tariffs will boost inflation, slow an already weakening U.S. economy

MTN teams up with UK’s Synamedia to launch African streaming platform

Trump tariffs spark trade war, decimating stocks

South Africa’s treasury looking at alternatives to VAT hike

South Africa not planning to retaliate over Trump’s tariffs

South Africa says Trump’s tariffs cancel out AGOA trade initiative

Official creditors grant Ethiopia more time to pay debt, no write-down

Tanzania central bank keeps benchmark interest rate unchanged

News Tips

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