All that and a bag of chips
China, the US, Mexico, Honduras, Sudan, and the Indian Ocean.
Hello,
Here are the five things you need to know today:
CHINA. UNITED STATES. Washington transfers its leverage to Beijing.
MEXICO. Circling in Venezuela, Trump revives old distractions.
HONDURAS. As results near, the ruling party cries ‘coup’.
SUDAN. Khartoum’s neighbours hint at a divide-and-rule approach.
INDIAN OCEAN. Rudderless great powers leave others to fill the void.
And don’t forget to connect with me on LinkedIn.
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CHINA. UNITED STATES. Tribute act
Washington transfers its leverage to Beijing.
Donald Trump said Nvidia could ship H200 chips to Chinese customers as the Justice Department announced the arrest of two men charged with smuggling the same via Hong Kong. China’s trade surplus topped $1 trillion for the first time.
INTELLIGENCE. Trump’s officials, still operating on Biden-era policies, seem to have been taken by surprise. Trump, who claimed Xi Jinping “responded positively” to the news, said Nvidia’s more advanced Blackwell and Rubin AI chips would be exempt but China, which is competing on diffusion and adoption, not cutting-edge models, won’t care. Also announcing a $12 billion farmer aid package, the US will hope it gets something in return, like more soybean sales.
FOR BUSINESS. The deal, as advocated by Nvidia and mirroring an earlier deal for H20 chips, would give Washington a 25% cut of sales, effectively imposing an export tariff (the H20s attract a 15%). Trump may see this as important to redressing the trade imbalance – the main thrust of the Indo-Pacific chapter of his National Security Strategy – but regional allies, like Japan, will be nervous. The White House continues to stay silent on China’s recent belligerence.
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MEXICO. Bridge into troubled waters
Circling in Venezuela, Trump revives old distractions.
Donald Trump said he would impose an extra 5% tariff on Mexican imports if it didn’t release more water from the Rio Grande. A proposal to raise Chinese auto and steel tariffs to up to 50% was due to be debated in the Mexican Congress.
INTELLIGENCE. A drought has slowed the release of water to Texas, agreed in April.