It seems Liberation Day has sparked a War, a Trade War. [Read It And Eat 03-04-2025]

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Major Headlines

• Trump’s Tariffs Spark Global Trade War—And the EU Isn’t Having It

• President Trump just threw gasoline on the global trade war. His latest move? A sweeping 10% tariff on most imports to the U.S., with even steeper penalties—up to 24%—for some of America’s closest allies, including Japan and the EU. The goal, according to Trump, is to bring manufacturing jobs back home. But the fallout could be huge, with inflation risks rising and global markets already feeling the heat.

  Standing in the White House Rose Garden on Wednesday, Trump defended the tariffs as a necessary strike back at what he called unfair trade practices. "For decades, our country has been looted, pillaged, raped, and plundered by nations near and far, both friend and foe alike," he said.

  The EU isn’t taking it lightly. European Commission President Ursula von der Leyen called the tariffs a major blow to the global economy and warned that the bloc is ready to hit back if talks with Washington don’t lead to a resolution. “The consequences will be dire for millions of people around the globe,” she said.

  The new tariffs roll out in two phases: the base 10% tariff kicks in on April 5, while the higher reciprocal rates follow on April 9. However, some key goods—including copper, pharmaceuticals, semiconductors, lumber, gold, and certain minerals not found in the U.S.—are exempt.

  But that’s not all. Trump also signed an order shutting down a trade loophole that allowed low-value packages (under $800) from China to enter duty-free under the "de minimis" rule. The White House claims the move is aimed at stopping the flow of fentanyl into the U.S., as Mexican cartels often exploit this loophole to ship the drug’s raw materials. China, for its part, has denied any wrongdoing.

  And there’s more on the horizon. Trump is reportedly eyeing additional tariffs on semiconductors, pharmaceuticals, and critical minerals. Meanwhile, a separate set of auto import tariffs announced last week is set to take effect on Thursday.

  This isn’t Trump’s first tariff battle—he previously slapped a 25% duty on steel and aluminum, later extending it to nearly $150 billion worth of downstream products. But economists warn that this latest round could have serious consequences, slowing global growth and adding thousands of dollars to the average American family's cost of living.

  As tensions escalate, all eyes are now on how global leaders—and the markets—will react next.

• US Senate Investigates Meta’s Attempt to Enter China

• Meta is under the microscope again—this time over its efforts to break into the Chinese market. On Tuesday, a U.S. Senate investigative subcommittee launched a review into whether Meta, Facebook’s parent company, worked to develop censorship tools for the Chinese Communist Party as part of its bid to gain market access. The inquiry, led by Senators Ron Johnson, Richard Blumenthal, and Josh Hawley, requests extensive documentation from Meta, including all communications and meeting records with Chinese officials dating back to 2014. The push for answers follows allegations from Careless People, a recent book by former Facebook executive Sarah Wynn-Williams. The book claims that in 2014, Meta devised a “three-year plan” to enter the Chinese market under the internal project name “Project Aldrin.” The Senate letter suggests these claims are backed by internal company records reviewed by the subcommittee. Meta, however, isn’t having it. A company spokesperson dismissed the allegations, though no further details were provided. The Senate has given Meta until April 21 to hand over the requested records. With tensions high between the U.S. and China over tech and data security, this probe could add even more pressure on Meta as lawmakers dig deeper into Big Tech’s global ambitions.

• China Vows ‘Firm Countermeasures’ as Trump’s Tariffs Rock Asian Markets

• Asian markets took a hit Thursday morning after President Donald Trump unleashed a sweeping tariff hike, escalating tensions with the region’s biggest economies. His latest move? Raising the blanket tariff on Chinese imports from 20% to a staggering 54%, while also slapping hefty new duties on key trading partners, including Japan (24%), South Korea (25%), and Taiwan (32%)—a major player in the global semiconductor industry. The impact didn’t stop there. Several countries that had previously been encouraged to shift their supply chains away from China also found themselves in Trump’s crosshairs: Cambodia was hit with a 49% tariff, Vietnam with 46%, and Thailand with 36%.

  China didn’t hold back in its response. The country’s Ministry of Commerce slammed the tariffs as “typical bullying” and warned of “firm countermeasures,” though it stopped short of outlining specifics. “History has proved that raising tariffs cannot solve the United States’ own problems,” the ministry said in a statement.

  Meanwhile, the shockwaves are forcing America’s closest allies to rethink their strategies. Former Japanese trade negotiator Keisuke Hanyuda suggested that Japan, despite its longstanding concerns about China’s trade practices, might be pushed to deepen economic ties with Beijing as a fallback option. That, he warned, would create a “rather dangerous situation” as Japan tries to balance its relationships between the U.S. and China.

  In South Korea, the government wasted no time responding. Acting President Han Duck-Soo convened an emergency task force Thursday, instructing trade officials to negotiate with Washington and “minimize the damage” to key industries. “This is a very serious situation, as the global trade war has become a reality,” Han said, urging top economic officials to mobilize all available resources to handle the crisis.

  As tensions escalate, all eyes are on how the region—and the global economy—will react to Trump’s latest trade offensive.

• Tesla Sales Plunge as Musk Faces Growing Backlash

• Tesla just had its worst quarter in nearly three years. The EV giant’s sales dropped 13% in Q1, hit hard by rising competition, delays in new models, and growing pushback against CEO Elon Musk’s political involvement. Many customers are also holding off on purchases, waiting for a refresh of Tesla’s best-selling Model Y. The slump highlights deeper issues for the company. Years of delayed product launches, increasing global competition, and Musk’s increasingly vocal political stances—both in the U.S. and Europe—are taking a toll on the brand. Tesla shares initially dipped on Wednesday but rebounded after Politico reported that Musk was planning to step down from his role as an adviser to President Trump. The report suggested that White House insiders see him as a political liability. However, the White House quickly shut down the rumor, stating that Musk will stay on to oversee efforts to slash government spending and shrink the federal workforce. "Shareholders are hoping Musk will now have the time to focus on rebuilding the Tesla brand," said Dennis Dick, chief strategist at Stock Trader Network, who holds a position in Tesla.

  Meanwhile, Trump’s surprise tariff hikes against U.S. trading partners sent Tesla shares down more than 7% in after-hours trading. While Tesla may not be hit as hard as some rivals, the company does rely on imported parts, and Musk has acknowledged that tariffs will add costs.

  Beyond financial concerns, Musk’s political actions are sparking global backlash. His role in pushing federal budget cuts in the U.S. and his support for far-right parties in Germany and elsewhere have triggered protests outside Tesla showrooms. Vandalism against Tesla vehicles and charging stations has surged worldwide, and data suggests more Tesla owners are trading in their vehicles as they try to distance themselves from the controversy. With sales slipping and public sentiment shifting, the big question now is whether Musk can refocus and steer Tesla back on track.

Minor headlines 

• Starmer Breathes Sigh of Relief as Trump Hits UK Exports with 10% Tariff  financial times

• U.S. Establishes New Office to Oversee CHIPS Act and Accelerate Investments Reuter

• South Korean President Blocks Bill Aimed at Increasing Board Accountability to Shareholders Reuter

• Banks Lock Horns with Investors Over 'Pre-Hedging' Trading  Execsum

• Apple and Elon Musk at Odds Over Satellite Expansion Plans The Wall Street Journal

• Intel’s New CEO Urges Customers to Be 'Brutally Honest' Reuters

• Uber and DoorDash Push for Tax-Free Tips for Drivers Pitchbook

• Nintendo Switch 2 Introduces Social Features and High-End Games Morning brew

• Hedge Funds Offload Tech Stocks at Highest Rate in Five Years. Bloomberg

Gen Z Word of the Day

Snatched

To describe someone or something that looks incredibly stylish, put together, and amazing

Example: Her outfit to work today was so snatched, everyone is still talking about it.