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Good morning, I’m back to Firstft Asia. In today’s newsletter:
Trump escalates his trade war
Nintendo’s Expensive Switch 2
Jardine Matheson declares strategic change
US President Donald Trump has announced sudden tariffs on the country’s major trading partners. Here’s what you need to know.
“Mutual Tariff”: The US imposes a so-called mutual tariff of 34% on China and attacks the EU with 20% collection. Trump has also announced a universal 10% tariff in all countries.
“For decades, our country has been plundered, plundered and raped,” Trump told the White House audience, including cabinet members and parking. “It’s not going to happen anymore.”
Vietnam, Taiwan, Japan and Cambodia were among the other countries facing sudden tariffs, Trump said.
American officials said Mexico and Canada will now avoid mutual US tariffs and instead continue to continue to apply to products rather than border security and fentanyl issues. Tariff-free trade is enforced on all goods complying with the terms of the 2020 USMCA Trade Agreement.
Market response: Apple and Nvidia stocks fell about 5% and 2% respectively in after-hours trading as Trump announced tariffs on China and 32% collection in Taiwan. The companies, along with other large US high-tech groups, rely heavily on Taiwanese semiconductor manufacturers, which produce most of the world’s most advanced semiconductors.
US stock futures quickly reversed early profits after tariffs were announced. Contracts tracking the Wall Street S&P 500 fell by 1.7%, while contracts tracking the high-tech Nasdaq 100 fell by more than 2%.
Follow our live blog as the world is responding to Trump’s escalating trade war.
For a detailed analysis, if you are a premium subscriber or want to upgrade your subscription, sign up for Strest Secrets Newsletter. Here is the other thing we keep tabs today:
Economic Data: Australia reports employment vacancies for February. S&P Global Services PMI is for Japan, China and Australia.
NATO: Foreign Ministers will meet in Brussels for a two-day meeting.
EU Central Asia Summit: The first kind of meeting between the EU and five Central Asia countries will be held in Samarkand, Uzbekistan.
Five more top stories
1. The White House is fighting over the contract for US investors to buy Tiktok’s American business, fighting over the management of popular video apps from Chinese owners. The plan precedes the April 5 US law deadline that bans US apps unless the Beijing-based parent ordinance sells it to non-Chinese entities. Potential trading investors include:
2. The net interest margins for China’s biggest lenders have fallen to the lowest level on record, according to Financial Times analysis. The recent decline in key profitability indicators comes as a slower economy and an official push to increase the weight of the country’s banking sector.
3. Elon Musk’s prominent role in the Trump administration was put in fresh danger yesterday after winning key national Supreme Court competition after billionaire unpopularity was seized by Democrats. Politics reports have told confidants that the president could soon end masking status as the so-called government efficiency director.
Tesla’s Brutal Quarter: EV maker delivery marks its worst quarter since 2022, falling over the first three months of the year. But Musk was shared in a report that he could leave the Trump administration.
4. Nintendo’s long-awaited Switch 2 console will be on sale in the US on June 5th at a starting price of $449.99. Costs are close to the top edge of analyst expectations, reflecting the fear that the supply chain could impact Trump’s drastic taxation. Here’s how gaming experts responded to the launch of Switch 2:
5. Danish ship owner Ap Møller-Maersk has acquired the railway connecting the ports at both ends of the Panama Canal. The deal loosens US control of train links in the same way that Trump seeks to assert Washington’s influence in the Central American country.
Big reading
Rather than fighting Donald Trump’s crackdown, law firm Paul Weiss has decided to cut contracts with the White House that sent shockwaves through US legal facilities. The move highlights cultural clashes at many large law firms, especially many with links to Wall Street. Here’s how Trump is exploiting the growing identity crisis of great laws:
We’re reading too. . .
Earthquakes in Myanmar: The military junta’s response to the disaster shows its vulnerability four years after seizing power in a coup.
DNA and inequality: If society is shot with genetic influences, Anjana Ahuja writes. How should social inequality be addressed?
War in Ukraine: Residents who fled the Russian occupied regions fear that they will never return as the US accepts demands for Moscow land in peace talks.
The chart of the day
Jardine Matheson is retreating from his daily business after the famous Anglo-Asian conglomerate declared he was an “engaged long-term investor” rather than an asset owner. This shift raises the question of how Hong Kong-based Jardines maintains the unique culture shaped by the influence of the Keswick family over the years.
Take a break from the news. . .
Minecraft is the best selling video game of all time, with a very long way to go. Since its launch in 2011, it has sold 300 million copies and has players in all countries, including Antarctica and Vatican City. In the film set to be released this week, Tom Faber depicts the rise of this simple but compelling game.
