Liberation theology

The US, Mexico, Canada, Israel, the UAE, and Somalia.

Colourised section of ‘At the Time of the Louisville Flood’, Margaret Bourke-White, photograph of a National Association of Manufacturers billboard, Life Magazine, 15 February 1937.

Hello,

Here are the five things you need to know today:

• UNITED STATES. New levies provide a test of faith.

• MEXICO. Trump extends a truce for 90 days.

• CANADA. Fentanyl is invoked in a 35% hit to exports.

• ISRAEL. UNITED ARAB EMIRATES. Israeli diplomats leave Abu Dhabi.

• SOMALIA. In halving a region, Mogadishu could double its troubles.

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UNITED STATES. Tax the zone

New levies provide a test of faith.

The White House listed "reciprocal" tariff rates for 69 countries, ranging from 10% to 41%, with others to face duties of 10%. Asian stocks fell slightly, extending losses. The highest rates were for Switzerland, Myanmar and Syria respectively.

INTELLIGENCE. The rates were as illogical as those announced on 2 April, but unlike Donald Trump’s first “liberation day”, markets were expecting such an outcome. Yet the short-term relief won’t mean a benign outcome in the long term. Trump continues to hint at “deals”, and even those who have agreements have suggested that nothing is final. The only likely outcome of the trade moves thus far will be the further erosion of US credibility and attractiveness.

FOR BUSINESS. The tariffs will test the faith of those anticipating a more obvious consequence in markets or inflation, but the true economic effects could take years to play out (Jerome Powell is, however, suggesting months). The political impact could come quicker, with more countries turning against the US, even if they are disunited in their approach (as was manifest in EU negotiations). Their best hope will be in how US courts view Trump’s trade authority.

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MEXICO. Hold the guac

Trump extends a truce for 90 days.

Claudia Sheinbaum said new US tariffs, expected at 30%, would be paused for another 90 days to enable a trade deal to be struck. Donald Trump said Mexico had agreed to "immediately terminate" its "many" non-tariff trade barriers.

INTELLIGENCE. The reprieve is a win for Sheinbaum, even if Trump’s current 25%