10 April 2025 Current Affairs

Trade war Escalates - USA vs China

Introduction:

The trade conflict between the United States and China has dramatically intensified after President Donald Trump announced a new wave of steep tariffs. In retaliation, China responded with significant counter-tariffs, escalating fears of a prolonged global trade war. These developments have shaken markets worldwide and prompted reactions from multiple global stakeholders.

Key Updates and Developments (as of April 9, 2025):

1. US Action:

• President Trump imposed a 104% cumulative tariff on Chinese imports, claiming it would boost domestic manufacturing.
• New duties target sectors like pharmaceuticals and low-value Chinese goods.
• Trump touted the tariffs as generating “almost $2 billion a day” for the US economy.

2. China’s Retaliation:

• China raised tariffs on all US imports to 84% starting April 10.
• Added 12 US entities to its export control list and 6 to the ‘unreliable entity’ list.
• Weakened the yuan for five consecutive days, hitting a record low.

3. Market Impact:

• Global stock markets plunged:

- Hong Kong: down over 3%

- Japan’s Nikkei: fell 2.7%

- European indices (Paris, Frankfurt, London): dropped ~3%

• Oil prices slid below $60/barrel, lowest since April 2021.

4. International Reactions:

• European Union: Urged restraint, warned against escalation. France’s President Macron warned of a potential EU response.
• Canada: Announced retaliatory tariffs on US auto imports.
• Russia: Criticized US for violating WTO trade norms.
• China’s White Paper: Condemned the US for “unilateralism and protectionism,” accused the US of imposing over $500 billion in tariffs since 2018.

5. Domestic Impact in the US:

• Consumers are already tightening spending, anticipating higher prices.
• Republican lawmakers voiced concern over economic repercussions, especially for manufacturers and farmers.
• Trump urged US companies to relocate manufacturing to avoid tariffs, promising fast-track permits and zero environmental delays.

6. China’s Economic Stance:

• Premier Li Qiang assured the EU that China has the tools to handle economic pressure.
• China's foreign ministry pledged to take “firm and forceful” countermeasures.

Brief on Trade War & Impact on Globalization:

1. What is a Trade War?

• A trade war involves countries imposing tariffs or trade barriers on each other to protect domestic industries or force policy changes. It typically begins when one country imposes tariffs, prompting retaliatory measures.

2. Ongoing Trade War Context:

• Initially sparked in 2018 between the US and China under Trump’s earlier term.
• The conflict resurfaced after Trump’s re-election, leading to unprecedented tariff levels in 2025.

3. Global Impact on Trade and Economy:

• Supply chains disrupted globally, leading to uncertainty and production delays.
• Prices increase for raw materials, electronics, and consumer goods.
• Multilateralism weakened as countries resort to bilateral or retaliatory measures.
• World Trade Organization's role as a mediator is undermined.
• Risk of global economic slowdown or recession increases due to restricted international trade.
• Encourages regional trade blocs and shifts in sourcing/manufacturing strategies.

Trump Announces Direct Nuke Talks With Iran

Introduction:

US President Donald Trump, during a meeting with Israeli Prime Minister Benjamin Netanyahu, announced the start of direct nuclear talks with Iran. However, Iran denied any such direct engagement, stating that only indirect negotiations, mediated by Oman, were underway. Both leaders reiterated their stance that Iran must not obtain nuclear weapons.

Systematic Representation of Key Points:

1. US-Iran Nuclear Talks:

• Trump declared direct nuclear talks with Iran had begun; a high-level meeting is scheduled for Saturday.
• Iran denied direct talks; confirmed only indirect negotiations through Oman.
• Iranian Foreign Minister Abbas Araghchi said talks are a “test” for the US; the ball is in Washington’s court.
• Iranian media accused Trump of a “psychological operation” to influence opinion.

2. Reactions from Leaders:

• Trump: Warned of “a very bad day for Iran” if talks fail; expressed preference for diplomacy over military action.
• Netanyahu: Cautiously supportive, said diplomacy is good if it fully dismantles Iran’s nuclear program.
• Trump insisted any new deal would be “different and stronger” than the 2015 JCPOA agreement.

3. Military Movement:

• The US deployed B-2 stealth bombers and an additional aircraft carrier near Iran and Yemen.
• Trump hinted at possible military action if diplomacy fails.

4. Israel-Gaza Hostage Deal and War:

• Netanyahu announced efforts for a new hostage release and ceasefire deal.
• Egypt reportedly proposed a plan: release of 8 living + 8 dead hostages for 40–70 day truce and prisoner exchange.
• Trump said war in Gaza “will stop in the not-too-distant future” and praised Netanyahu’s efforts.

5. Trump's Gaza Vision:

• Advocated for US-led peacekeeping force in Gaza.
• Blamed the 2005 Israeli withdrawal for turning Gaza into a “dangerous death trap”.
• Mentioned discussions with countries willing to accept Gazan refugees.

6. Past Ceasefire Efforts:

• A November 2023 ceasefire led to the release of 100+ hostages.
• A January 2025 truce resulted in additional hostage exchanges.
• Talks on further phases collapsed due to lack of Israeli engagement and Hamas's refusal to extend the truce.

Brief: Iran Nuclear Programme

• Iran's nuclear program began in the 1950s with US support (Atoms for Peace).
• After the 1979 revolution, the program shifted to a more secretive nature, raising global concerns.
• 2015 JCPOA (Iran Nuclear Deal):

- Signed between Iran and P5+1 (US, UK, France, China, Russia + Germany).

- Limited uranium enrichment and reduced stockpile in exchange for sanctions relief.

• US Withdrawal in 2018 (under Trump):

- Reimposed sanctions under “maximum pressure” policy.

- Iran gradually scaled up uranium enrichment (currently at 60%, close to weapons-grade).

• Iran denies seeking nuclear weapons, but has restricted UN inspections, intensifying concerns.
• Current US administration seeks to renegotiate terms, aiming for a tougher, more comprehensive deal.

NATO Secretary-General Mark Rutte  Visit To Japan

Introduction:

NATO Secretary-General Mark Rutte, during his visit to Japan on April 8, 2025, called China’s military expansion “staggering” and emphasized the need for stronger NATO-Japan cooperation. His visit underlines NATO’s growing strategic focus on the Indo-Pacific amid rising tensions involving China, North Korea, and Russia.

Systematic Representation of Key Points:

1. Rutte’s Remarks on China:

• Described China’s military build-up and defence investments as “staggering”.
• Warned against being “naive” about China's intentions and capabilities.
• Highlighted growing military coordination between China, North Korea, and Russia, posing global threats.

2. Purpose of Japan Visit:

• Aimed at projecting NATO power in the Indo-Pacific.
• Included visits to the Yokosuka naval base and Japanese defence contractors.
• Rutte met Japanese Defence Minister Gen Nakatani and will meet Prime Minister Shigeru Ishiba.

3. NATO-Japan Cooperation:

• Both sides emphasized shared democratic values and common threats.
• Rutte called for stronger NATO-Japan cooperation in light of global instability.
• Japan is undergoing a multi-year military expansion to double its defence spending.

4. US Influence and Strategic Interests:

• President Trump is pressuring NATO members to raise military spending.
• Simultaneously, the US wants Asia-Pacific allies to strengthen defences against China and North Korea.
• Rutte clarified NATO’s role in the Indo-Pacific is not under Article 5, but about projecting power and mutual support.

5. IP4 and NATO:

• NATO is deepening ties with Japan, South Korea, Australia, and New Zealand — collectively known as the IP4.
• Leaders of these nations have been attending NATO summits.
• NATO plans to advance from symbolic gestures to practical cooperation, focusing on information-sharing and defence-industry collaboration.

6. Japan-EU Cooperation:

• In November 2024, Japan and the European Union announced a new security and defence partnership.

Brief: NATO and Its Formation

• Full Name: North Atlantic Treaty Organization (NATO)
• Founded: April 4, 1949, by 12 original countries including the US, Canada, UK, and France.
• Headquarters: Brussels, Belgium
• Purpose: To ensure collective security where an attack on one is considered an attack on all (Article 5 of the NATO Charter).
• Formed during the Cold War to counter the Soviet Union’s influence and protect Western democracies.
• Today, NATO has 31 member countries and has expanded its role to include global peacekeeping, counter-terrorism, and partnerships with non-member nations.

Cabinet Committee on Security Approves $7-Billion Rafale Marine Deal

• Approval Authority: Cabinet Committee on Security (CCS), Government of India
• Deal Value: Over $7 billion
• Type of Deal: Government-to-Government (India-France)
• Purpose: Procurement of 26 Rafale Marine fighter jets for the Indian Navy

Jet Specifications:

• 22 Single-Seater Rafale Marine Jets: Designed for aircraft carrier operations
• 4 Twin-Seater Trainer Jets: Not carrier-compatible, for training purposes only

Next Step:

• Formal agreement expected to be signed during the French Defence Minister’s visit to India, likely later this month

Additional Pending Deal:

• Proposal for 3 more Scorpene-class conventional submarines with France
• Awaiting CCS approval before finalization

Soyuz MS-27 launch

Introduction

On April 8, 2025, Russia launched the Soyuz MS-27 spacecraft from Baikonur Cosmodrome, Kazakhstan.
The mission transported two Russian cosmonauts and one NASA astronaut to the International Space Station (ISS).
This mission reflects continued US-Russia cooperation in space, despite geopolitical strains.

Key Highlights

1. Crew Members:

• Sergei Ryzhikov (Russia)
• Alexei Zubritsky (Russia)
• Jonathan Kim (USA, NASA)

2. Launch Details:

• Date: April 8, 2025
• Location: Baikonur Cosmodrome, Kazakhstan
• Spacecraft: Soyuz MS-27
• Destination: International Space Station (ISS)

3. Symbolic Additions:

• Spacecraft was decorated to commemorate the 80th anniversary of WWII’s end.

4. Technical Prep:

• Transported from Korolev (Russia) to Baikonur in Dec 2024.
• Underwent final testing and processing from January 2025.

5. Docking:

• Successfully docked with ISS, continuing space cooperation despite global political tensions.

6. Historical Context:

• Echoes the 1975 Apollo-Soyuz mission, the first joint US-Soviet spaceflight.
• Reinforces US-Russia legacy in joint space missions.

7. Future Outlook:

• Russia plans to launch a new independent space station by 2027.
• Strengthening space ties with China alongside existing partnerships.

Brief on the Soyuz Programme

• Initiated in the 1960s by the Soviet Union as part of its lunar ambitions.
• Has become a backbone of human spaceflight for Russia and international missions.
• Soyuz spacecraft are known for their reliability and have played a key role in ferrying astronauts to the ISS since the early 2000s.

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