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US trade war escalates with new tariffs and secondary duties

US President Donald Trump announced that new automobile tariffs are imminent, though not all levies set for 2 April will be implemented immediately.

The move comes as Washington seeks to balance its aggressive trade policies with potential exemptions for certain nations. While the administration has indicated some flexibility, officials maintain that strong reciprocal tariffs will remain a key priority.

Wall Street responded positively to the prospect of a more selective approach, with US stocks climbing on optimism that the measures may be less severe than initially expected.

New tariffs will target key industries, including autos, pharmaceuticals, and semiconductors, with duties expected to reach 25%. Trump defended the tariffs, stating they are essential for national security and economic independence.

Meanwhile, the White House announced a 25% secondary tariff on any country purchasing oil or gas from Venezuela, a move that sent oil prices rising.

Countries with large trade surpluses and non-tariff barriers are expected to face the most scrutiny, with Washington focusing on a list of high-priority nations dubbed the ‘Dirty 15.’

Despite international concerns, Trump remains steadfast in his efforts to shrink the United States trade deficit, which he claims is fuelled by unfair foreign practices.

While some nations, including the United Kingdom and India, have pushed for exemptions, officials suggest that avoiding tariffs entirely will be difficult.

The administration has also signalled further investigations into other sectors, raising the likelihood of additional trade restrictions in the near future. Experts believe that while some measures may be delayed, the overall direction of US trade policy remains aggressive and unpredictable.

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DNA-testing firm 23andMe faces financial collapse

23andMe has filed for bankruptcy in the US after struggling with declining demand for its ancestry kits and a major data breach in 2023.

The firm, once valued at nearly $6 billion, has seen its market worth plummet, with shares dropping 50% to just 88 cents after co-founder Anne Wojcicki resigned as CEO. The company will continue operating during the sale process, securing $35 million in financing over the weekend.

Concerns have been raised about the fate of genetic data collected from customers, particularly as 23andMe has made multiple deals with pharmaceutical and biotech firms.

While the company insists the bankruptcy will not affect how data is managed, California’s attorney general has urged users to delete their information amid privacy concerns. Experts warn that while accounts can be deleted, some data may still exist in anonymised form.

The firm’s decline has been worsened by its inability to retain customers, as most users only purchase a kit once. The 2023 data breach, exposing the personal details of nearly 7 million users, further damaged its reputation, leading to a $30 million legal settlement.

Wojcicki, who had made several failed buyout attempts, has signalled her intention to bid again, but 23andMe has not disclosed any other potential buyers.

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US-India trade negotiations intensify over tariff disputes

India is prepared to lower tariffs on over half of US imports worth $23 billion in a bid to ease trade tensions and prevent harsh reciprocal tariffs from Washington.

With US President Donald Trump set to impose new worldwide tariffs from 2 April, Indian officials fear the move could impact 87% of the country’s exports to the United States, prompting urgent negotiations between the two nations.

Trade talks are scheduled to begin this week, led by US Assistant Trade Representative Brendan Lynch.

While India is willing to make significant tariff cuts on a wide range of goods, government sources indicate that the concessions will depend on securing relief from US duties.

Sensitive items such as meat, wheat, maize, and dairy products remain off the table, but reductions may be possible for almonds, pistachios, and certain grains. India is also pushing for a phased reduction of its automobile tariffs, which currently exceed 100%.

Despite efforts by Prime Minister Narendra Modi to strengthen ties with Washington, Trump has repeatedly criticised India’s tariff policies, labelling the country a ‘tariff abuser.’

The Modi administration is weighing broader tariff reforms but faces domestic political challenges in implementing sweeping reductions. Experts suggest that while external pressure from the US might drive some changes, major across-the-board cuts remain unlikely in the short term.

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US retailers resist price hikes amid tariff pressures

US retailers Walmart and Target are engaged in tense negotiations with suppliers over proposed price increases on a wide range of products.

Manufacturers argue that rising costs, driven by tariffs imposed under former President Donald Trump, are making it difficult to maintain prices. Retailers, however, are pushing back to avoid losing market share and discouraging cost-conscious shoppers.

United States businesses such as Nordic Ware and Bogg Bag have seen production costs surge due to tariffs on aluminium and Chinese imports.

While some suppliers are attempting to raise prices, major retailers require a lengthy review process before accepting any increases.

Smaller manufacturers face the risk of having their products replaced with cheaper alternatives if they insist on higher prices.

Toymaker MGA Entertainment is among the firms negotiating price hikes with Walmart and Target, but retailers are resisting, citing concerns over strained consumers.

Some companies are absorbing losses to maintain shelf space, while others are seeking alternative production locations to reduce costs. The outcome of these pricing battles will determine how much shoppers ultimately pay for everyday goods.

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South Korean court reinstates Han Duck-soo as acting president

Prime Minister Han Duck-soo has been reinstated as South Korea’s acting president after the Constitutional Court struck down his impeachment in a seven-to-one ruling.

Han, who briefly held the position before being suspended in December, pledged to stabilise the country and prioritise national interests amid rising tensions over US trade policies.

The court’s decision returns Han to power during a time of heightened political instability, sparked by President Yoon Suk Yeol’s controversial declaration of martial law last year.

Yoon’s actions led to mass protests and a wave of impeachments, resignations, and criminal charges across the political spectrum.

While Yoon awaits a separate ruling and trial over charges of leading an insurrection, Han expressed gratitude to the court and vowed to put an end to ‘extreme confrontation in politics.’

As one of South Korea’s most experienced officials, Han’s return is seen as a move towards continuity in governance. He has served under five presidents from both major parties and is regarded as a figure capable of bridging political divides.

Despite opposition criticism that he failed to prevent Yoon’s martial law move, Han denied any wrongdoing and has committed to guiding South Korea through external economic challenges, especially those posed by the United States.

The court’s pending decision on President Yoon’s fate remains a focal point of national attention. Lee Jae-myung, leader of the opposition Democratic Party and a potential successor, has urged the court to act swiftly to end the uncertainty.

With rallies continuing across the country both in favour of and against Yoon, the outcome could trigger a snap election within 60 days if the president is removed.

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US judiciary faces pressure as Trump challenges court rulings

Donald Trump has called on the Supreme Court to restrict the power of federal judges to issue nationwide injunctions that block his administration’s policies.

The appeal follows legal challenges to several of his initiatives, including efforts to limit automatic birthright citizenship. In a social media post, Trump warned that if the court did not act, the United States would face serious consequences.

The Justice Department has asked the Supreme Court to narrow three nationwide injunctions that have halted Trump’s birthright citizenship order.

Chief Justice John Roberts recently criticised Trump for calling for the impeachment of a federal judge who ruled against a policy involving deportation flights to Venezuela. Roberts stressed that judicial decisions should be challenged through appeals rather than political intervention.

Nationwide injunctions have historically been used against both Republican and Democratic administrations, with courts previously blocking major policies under President Joe Biden.

The legal battle highlights growing tensions between the White House and the judiciary, as Trump’s sweeping executive actions continue to face significant legal obstacles.

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Apple accused of misleading AI advertising

Apple is facing a class-action lawsuit in the United States over delays in delivering its much-promoted Apple Intelligence features.

The legal action, filed in a US based San Jose federal court, claims the company misled customers by advertising advanced AI tools that have yet to materialise on supported devices.

The complaint argues that buyers of new iPhones and other Apple products were promised ‘transformative’ AI capabilities at launch, only to find these features were either severely limited or completely absent.

According to the plaintiffs, Apple’s marketing created a “reasonable consumer expectation” that was ultimately not met.

This legal challenge adds to mounting pressure on the company, which has struggled to roll out its next-generation AI tools.

A recent Bloomberg report suggested internal tensions, revealing that CEO Tim Cook has reportedly lost confidence in AI chief John Giannandrea’s ability to deliver on the company’s ambitions.

The case reflects growing scrutiny of tech firms’ promises around AI, especially as consumer trust becomes more closely tied to the reality behind flashy announcements.

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MIT advances scalable quantum computing networks

MIT researchers have developed a breakthrough quantum interconnect device that could significantly advance quantum computing by enabling direct communication between multiple quantum processors.

Unlike point-to-point architectures, which suffer from compounded error rates, their new ‘all-to-all’ communication system allows superconducting quantum processors to exchange quantum information efficiently using microwave photons.

By successfully demonstrating remote entanglement between two quantum processors, the researchers have taken a crucial step toward building large-scale quantum computing networks.

Their method involves using superconducting wires to shuttle photons, allowing quantum processors to remain entangled even when physically separate. However, this advancement paves the way for scalable quantum computing with higher flexibility and reduced error rates.

To maximise efficiency, the team employed reinforcement learning algorithms to optimise photon absorption, achieving over 60% absorption efficiency—enough to confirm successful entanglement.

Future improvements may involve refining photon pathways and integrating modules in 3D to further enhance performance. The research, supported by multiple US agencies and AWS, brings quantum computing closer to practical, large-scale implementation.

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AI firm Cognite targets India as global tech hub

Cognite, the Saudi Aramco-backed industrial software company, has launched an AI services centre in Bengaluru as part of its global expansion strategy.

The firm, which specialises in optimising industrial operations, is seeking contracts with major Indian conglomerates and has already secured deals with a leading cement manufacturer and a major automotive firm.

While declining to name the companies, Cognite’s executives confirmed significant investments in the Indian market, with plans for further expansion.

Chief Executive Girish Rishi described India as a key growth destination, highlighting its appeal as an alternative to China for global tech firms.

Cognite’s parent company, Aker ASA, and major shareholders like Saudi Aramco have been supporting its global push, as AI-driven solutions increasingly play a role in industrial automation, safety, and efficiency.

The company, which recently relocated its headquarters to the US, counts AkerBP, Japanese refiner Cosmo Energy Holdings, and US-based Koch Chemical among its major clients.

India’s rapidly expanding technology sector has drawn interest from several global giants, including Apple, Tesla, and Jabil, following the Indian government’s incentives to attract international firms.

With AI transforming industries worldwide, Cognite’s move signals growing confidence in India’s capabilities as a major player in the global tech ecosystem.

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Data centre surge exposes vulnerabilities in the US grid

A recent incident in Data Center Alley, a region outside Washington DC housing over 200 data centres, exposed a new vulnerability in the US power grid.

Last summer, 60 data centres unexpectedly disconnected from the grid and switched to on-site generators, causing a surge in excess electricity. However, this triggered the need for grid operators to scale back power output to avoid cascading outages.

The disconnection event, caused by a failed surge protector, forced regulators to address the growing risk of power imbalances due to the rapid expansion of data centres, especially those involved in AI and crypto mining.

As these centres consume increasing amounts of energy, grid operators face new challenges in maintaining stability.

Federal regulators like the North American Electric Reliability Corporation (NERC) are now studying the impact of such events and the risks posed by unannounced data centre disconnections.

The power consumption of data centres has tripled over the last decade and is projected to continue rising, prompting calls for updated reliability standards.

Industry stakeholders, including major tech companies, have expressed concerns about the potential costs and risks of requiring data centres to remain connected during voltage fluctuations.

With the growing presence of large data users, grid operators face a tough balancing act to ensure power stability while accommodating the demands of the data centre industry.

For more information on these topics, visit diplomacy.edu.