CHINA DENIES TARIFF NEGOTIATIONS WITH THE U.S. (24.04.2025)
Beijing has denied having engaged in any dialogue with Washington regarding the 145% tariffs imposed by the United States, calling Trump’s statements “fake news.”
Chinese spokesperson Guo Jiakun reiterated that the trade war was initiated by the US. China maintains its stance in favor of “equitable and respectful” dialogue, although it demands reciprocity from the United States. While it has exempted certain products from tariffs—a gesture interpreted as a sign of de-escalation—trade tensions persist despite the 90-day truce on the imposition of new tariffs announced by Trump.
For his part, Treasury Secretary Scott Bessent urged Beijing to take the initiative to de-escalate the trade war, citing imbalances in bilateral trade. Bessent suggested that China could face an “embargo” if it doesn’t budge. The US prioritizes agreements with 15-17 other countries, including India, before attempting to resume talks with China.
Uncertainty continues to affect global markets, while other countries, such as Germany and South Korea, accelerate their bilateral negotiations to avoid the application of future tariffs.
WTO WARNS OF GLOBAL TRADE CONTRACTION IN 2025 DUE TO GEOPOLITICAL TENSIONS (24.04.2025)
The World Trade Organization (WTO) has forecast a 0.2% drop in global merchandise trade by 2025, with a pessimistic scenario that could reach -1.5% if tensions escalate, such as the reactivation of reciprocal customs tariffs by the US. North American exports would suffer the greatest impact (-12.6%), while growth in services trade was revised downwards (4.0%).
Director-General Ngozi Okonjo-Iweala emphasized that uncertainty is particularly damaging to vulnerable and export-dependent economies. The report coincides with key meetings of the IMF and the World Bank, where bilateral negotiations on tariffs have displaced traditional topics such as climate reforms. Countries such as Japan and South Korea are seeking exemptions from US measures, while the EU is exploring agreements to avoid energy trade disputes.
The WTO urged avoiding protectionist policies that deepen global economic fragmentation.
THE UNITED KINGDOM AND THE EU STRENGTHEN THEIR STRATEGIC ALLIANCE IN THE FACE OF TRUMP’S ISOLATIONIST SHIFT (24.04.2025)
The United Kingdom and the European Union are finalizing the details of a new strategic alliance aimed at strengthening their cooperation in trade, security, and foreign policy, at a time of growing uncertainty in transatlantic relations. This initiative responds to the isolationist shift of the Trump administration, whose stances on European defense, tariffs, and support for Ukraine have raised alarm in the continent’s major capitals.
According to diplomatic sources, the joint declaration will be officially presented at the UK-EU summit scheduled for May 19. The agreement includes more robust coordination mechanisms in trade and defense policy, as well as a renewed commitment to multilateralism and respect for the rules-based international order.
Both London and Brussels emphasize the need to assume greater leadership in the face of the decline in the US commitment to its traditional alliances. The new strategic framework also aims to offer a common response to challenges such as the energy transition, industrial resilience, and hybrid threats, strengthening European autonomy without renouncing global cooperation. The alliance symbolizes a significant evolution in post-Brexit relations and reflects a mutual interest in preserving economic and geopolitical stability in a volatile international context.
CHINA ASKS THE WTO TO INVESTIGATE EU TARIFFS ON ELECTRIC VEHICLES (24.04.2025)
At a meeting of the WTO’s Dispute Settlement Body (DSB) on March 24, members considered China’s request to establish a panel to examine countervailing duties imposed by the European Union on new battery electric vehicles imported from China. China maintains that these measures violate WTO rules and negatively affect fair trade. The European Union, for its part, justifies the tariffs as a response to market-distorting subsidies. Although the panel has not yet been established, the request was recorded for possible approval at future sessions. The case reflects the growing trade tensions between the two economies and could have significant repercussions for the global automotive sector.
THE U.S. FEDERAL RESERVE (FED) NOTES THAT TRADE DISPUTES POSE THE GREATEST RISK TO CURRENT FINANCIAL STABILITY (25.04.2025)
A Fed report, issued before the temporary suspension of tariffs on April 2, highlighted tariffs and political uncertainty as the main threats to financial stability. Seventy-three percent of respondents cited global trade as a key concern, up from 35% in November 2024. Markets reacted with volatility following Trump’s announcements in April. The Federal Reserve warned that a broad trade war would have serious impacts: although some sectors are resisting tariffs, foreign disinvestment in Treasury bonds is a concern. The report also mentioned risks to government debt and market liquidity. The Fed urges monitoring of these risks to avoid systemic crises.
Analysts also warn that Trump’s policies, such as tariffs and attacks on the Fed, are weakening the dollar’s status as a reserve currency. Foreign investors are reducing their exposure to US assets, increasing volatility. The US fiscal and trade deficits are exacerbating concerns about its financing capacity. Banks such as UBS and Deutsche Bank are pointing to the risks of a “regime change” in the markets. The euro and other currencies are gaining ground, although they are not replacing the dollar. Larry Summers compared the US to “a troubled emerging market.” The Fed is facing political pressures that undermine its independence. This scenario could raise borrowing costs for the US in the long term.
https://www.jornada.com.mx/noticia/2025/04/25/economia/disputa-comercial-y-dudas-politicas-mayores-riesgos-para-estabilida-d-financiera-fed
MASSIVE BLACKOUT IN SPAIN AND PORTUGAL SETS OFF ALERTS ABOUT EUROPEAN ENERGY INFRASTRUCTURE (28.04.2025)
A massive power outage affected both countries, causing chaos for essential services and rekindling debates about the vulnerability of European grids. Authorities are working to restore power, while analysts link the incident to excess demand and a lack of investment in renewable energy. The incident could accelerate EU plans to modernize critical infrastructure.
https://www.bbc.com/mundo/articles/clyq8r3yz2jo
BIRLING CAPITAL WARNS THAT THE FIRST 100 DAYS OF TRUMP 2.0 WILL GENERATE “GLOBAL INSTABILITY” (28.04.2025)
A report by the consulting firm Birling Capital highlights that Trump’s policies have eroded consumer confidence (a 29.45% drop) and wiped out $7.15 trillion in stock market value. US public debt rose to 128.4% of GDP, while inflation showed slight improvements. The report criticizes the lack of transparency in fiscal policies and their impact on trading partners.
APPLE TO MOVE 60 MILLION IPHONE PRODUCTION TO INDIA BY 2026 (29.04.2025)
Apple will accelerate the transfer of its supply chain from China to India, with plans to assemble the majority of iPhones sold in the US there. The move aims to reduce dependence on China amid geopolitical tensions and take advantage of Indian tax incentives. Analysts say this move could reshape the global technology manufacturing landscape.
U.S. REACHES AGREEMENT TO REDUCE AUTO TARIFFS (24.04.2025)
U.S. Commerce Secretary Howard Lutnick confirmed an agreement with automakers to ease tariffs, avoiding additional 25% levies on imports. The measure seeks to provide relief to the industry, which has been plagued by high costs and disrupted supply chains. Asian automakers such as Toyota and Hyundai reacted with rising stock prices. The agreement would include retroactive refunds to offset previous payments. Trump was expected to officially announce the change during a visit to Michigan. The industry argued that the tariffs would raise prices for consumers and hurt jobs. This move reflects a pause in Trump’s aggressive tariff policy. However, experts warn that the measures could be reversed.
U.S. INVESTORS MIGRATE TO SWISS ALPINE VILLAGES TO PROTECT THEIR ASSETS (29.04.2025)
The Swiss town of Andermatt is experiencing a boom in real estate purchases by Americans seeking to escape political and fiscal volatility in the U.S. The Andermatt Swiss Alps project, featuring apartments and golf courses, attracts buyers due to its legal stability and exemption from regulations for foreigners. Transactions from American clients are expected to double by 2025, with interest in diversifying assets into Swiss francs. Experts warn that, although Switzerland offers security, U.S. taxes persist for expatriates. The trend reflects a global search for safe havens amid economic uncertainty.
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In Madrid, 30 April 2025
International Trade and Sanctions Department
