What you need to know

Electronics imported into the U.S. will be exempt from President Donald Trump’s reciprocal tariffs, according to a notice posted late Friday by U.S. Customs and Border Protection. Smartphones, computer monitors and various electronic components are among the products excluded. The exemption applies to items entering the U.S., or removed from bonded warehouses, as early as 5 April.

The decision follows the Trump administration’s announcement on Wednesday of a minimum 145% tariff on Chinese imports. The exemption does not, however, apply to the 20% tariff on Chinese goods imposed over the country’s alleged role in the fentanyl trade. The move is likely to affect major technology firms such as Apple, which assembles many of its products in China.

Commerce Secretary Howard Lutnick said on Sunday that the exemption should not be interpreted as absolute. “They are exempt from reciprocal tariffs,” he noted, “but they are included in the semiconductor tariffs which are coming in a month or two.” The remark has sparked confusion over whether these products are genuinely exempt or merely reclassified under a different tariff regime.

Since the middle of last week, the administration has floated several variations of its tariff policy:

Markets responded swiftly. Bitcoin sold off following Lutnick’s remarks, a sign of wavering risk appetite. Equity futures remained higher, albeit less so than expected prior to his comments.

U.S. Trade Representative Jamieson Greer stated that exemptions on electronics reflect a shift from “reciprocal tariffs” to “national security tariffs.” Meanwhile, the White House clarified that all Chinese electronics imports remain subject to the 20% fentanyl-related duty.

The policy remains in flux. The Customs and Border Protection (CBP) document specifies that the exemption pertains only to the elevated tariffs imposed in April (on 2 April, 8 April and 9 April). It does not affect the earlier fentanyl-linked tariffs introduced in February, nor any duties predating that month. Questions persist as to why such significant policy shifts are being announced by CBP rather than the Office of the U.S. Trade Representative.

China, meanwhile, has followed through on its threat to restrict exports of certain rare earth elements and magnets critical to the automotive, semiconductor and aerospace industries.

On the monetary front, China reported a purchase of 5 tonnes of gold in February (roughly 160,000 ounces, according to the People’s Bank of China). Goldman Sachs, however, claims the actual figure was closer to 50 tonnes. Goldman Sachs is also predicting that the Gold price will rise above $3,700. It is already at the historic level of $3,236.06.

Amid the cacophony of headline shifts, some administration officials reiterated a longer-term ambition: the imposition of sweeping “sectoral tariffs” on a wide range of so-called critical imports—including automobiles, steel and aluminum, copper, lumber, pharmaceuticals and semiconductors. Unlike country-specific duties used as leverage in trade talks, these sectoral tariffs are intended to be permanent. Most have yet to be implemented.

It’s now the U.S. vs China, everyone else needs to pick a side

While U.S. Special Envoy Steve Witkoff was meeting Russian President Vladimir Putin in Moscow, Russian missiles struck the center of the Ukrainian city of Sumy as residents gathered to celebrate Palm Sunday, killing at least 34 people. A further 117 people were injured, including 15 children, according to Ukraine’s emergency services.

In response, President Donald Trump called the attack “terrible” and said he had been told that the Russians “made a mistake.” He did not clarify whether he believed the strike had been deliberate.

The attack followed mutual accusations between Ukraine and Russia on Saturday over violations of a U.S.-brokered agreement to halt strikes on energy infrastructure. Both Ukrainian Foreign Minister Andrei Sybiha and Russian Foreign Minister Sergei Lavrov addressed separate panels at the Antalya Diplomacy Forum, using the occasion to trade blame.

Lavrov accused Ukraine of conducting near-daily attacks on Russian energy facilities. Sybiha countered that since the partial ceasefire was agreed, Russia had launched more than 70 missiles, 2,200 exploding drones and over 6,000 guided aerial bombs at targets across Ukraine.

On Sunday, Kremlin spokesperson Dmitry Peskov said that Russia’s contacts with the Trump administration were proceeding well, though it was “too early to expect instant results.” His comments followed talks in Moscow between Putin and Witkoff. Trump, however, expressed growing frustration with what he described as Russian “stalling tactics,” saying on Saturday, “there’s a point at which you just have to either put up or shut up.”

New Zealand’s Foreign Minister Winston Peters said on Sunday that he wants the U.S. to be an “active partner” in the Indo-Pacific. Wellington, along with Canberra, has grown increasingly concerned in recent months after the Chinese navy conducted live-fire exercises in the Tasman Sea between the two countries, with only a few hours’ notice. New Zealand was also unsettled by a comprehensive strategic agreement signed in February between the Cook Islands and Beijing. The islands maintain constitutional ties to New Zealand and typically consult Wellington on foreign policy matters.

Speaking in Hawaii during a week-long tour of Pacific Island nations with a delegation of New Zealand politicians, Peters called for greater U.S. engagement and a more constructive role in the region.

Some opposition politicians in New Zealand, however, have voiced concern that recent cuts to U.S. development assistance could leave certain Pacific states vulnerable to deeper economic ties with China. Peters also held meetings with Secretary of State Marco Rubio, National Security Adviser Mike Waltz, and Director of the U.S. Office of Foreign Assistance Peter Marocco.

Peters said that Wellington now finds itself in the most challenging “strategic environment in at least half a century.”

The rising Middle Powers: India, Türkiye, Vietnam, Indonesia, South Korea, Japan, the GCC nations

India has launched its largest-ever naval exercises with African nations, as it seeks to bolster its presence in the Indian Ocean and strengthen ties with the continent. The six-day drills, co-hosted by Tanzania, were inaugurated by officials including Deputy Defense Minister Sanjay Seth. Ten other countries are participating, among them Kenya, Madagascar, Mauritius and South Africa.

India is aiming to position itself as a strategic power in the Indian Ocean and has played a key role in regional counter-piracy efforts. However, New Delhi still lags far behind China in terms of influence and commercial engagement in Africa. In 2023–24, India’s two-way trade with African countries stood at $83 billion—less than one-third of China’s total, as Beijing remains the continent’s largest trading partner.

India is also vying for influence in the Indian Ocean with Russia, Türkiye and the United Arab Emirates. Meanwhile, New Delhi is increasingly concerned by Chinese efforts to deepen ties with its South Asian neighbors, including Sri Lanka and the Maldives, where a pro-Beijing president was elected in 2023.

Birth pangs in the birthplace of civilization

Iran and the U.S. held an initial round of indirect talks on Saturday in Oman over Tehran’s nuclear program. In a sign of tentative progress, Iran’s Foreign Minister, who led the Iranian delegation, described the discussions as “constructive” and conducted in a “calm and respectful environment.” A second round is scheduled for 19 April.

Donald Trump’s envoy, Steve Witkoff, led the U.S. team and also indicated that the talks had gone well. Iran has stipulated that it will only consider direct talks if the U.S. lifts its economic sanctions. Tehran is also concerned about whether Witkoff will demand a full halt to uranium enrichment and the dismantling of Iran’s civil nuclear program.

Following the discussions, Deputy Foreign Minister Abbas Araqchi said the two sides had nearly reached a framework for further negotiations. Witkoff reportedly offered a roadmap resembling the 2015 nuclear accord reached between Iran and world powers. In the lead-up to the current talks, Iranian officials had signaled their openness to a similar arrangement.

During his first term, Trump withdrew the U.S. from the 2015 agreement, significantly straining relations. During the Biden administration, Iran ramped up its enrichment of uranium, putting itself within a week or so of achieving weapons-grade. Ahead of Trump’s return to office this year, he warned of a renewed “maximum pressure” campaign on Tehran and has recently threatened military strikes should Iran refuse to negotiate.

Energy Secretary Chris Wright said in Riyadh on Sunday that the U.S. and Saudi Arabia are close to signing a preliminary agreement on cooperation over civil nuclear energy development. Wright, who met with Saudi Energy Minister Prince Abdulaziz bin Salman earlier that day, said the two countries were on a “pathway to reaching an agreement.”

Talks on such a deal had advanced during the administration of former President Joe Biden. Any agreement would likely be part of a broader package, potentially including Saudi recognition of Israel—a process derailed by the Hamas-led attack on Israel in October 2023 and the subsequent war.

One key sticking point is the transfer of sensitive nuclear technology. Under the U.S. Atomic Energy Act, Washington may only engage in civil nuclear cooperation if the partner country meets nine non-proliferation criteria to ensure it does not develop nuclear weapons or share technology with third parties.

Saudi Crown Prince Mohammed bin Salman has stated that if Iran were to acquire a nuclear weapon, Saudi Arabia would do the same.

The International Monetary Fund agreed on Friday to provide Argentina with a $20 billion loan to be disbursed over a 48-month period. The first $12 billion will be released on Tuesday, with another $2 billion available by June. As part of the agreement, Argentina has committed to loosening its strict currency controls—under mounting pressure on President Javier Milei to revive the economy.

The easing of controls means Argentinians will no longer face limits on dollar purchases, though some restrictions will remain for companies. Argentina will also be required to allow the peso’s official exchange rate to float partially, within a band of 1,000 to 1,400 pesos to the dollar. A previous policy had kept the peso artificially strong by devaluing it at a rate of just 1% per month, despite inflation running at much higher levels.

The World Bank and the Inter-American Development Bank also announced separate financing packages for Argentina, worth $12 billion and $10 billion respectively. This marks Argentina’s 23rd arrangement with the IMF—more than any other country. Milei, a former economist, has succeeded in curbing runaway inflation and eliminating the fiscal deficit and a recession. However, he has yet to rebuild the country’s central bank, which is vital to stabilizing the peso and meeting debt obligations.