USA - Donald Trump will on Wednesday announce sweeping tariffs on America’s trading parties in what he billed “Liberation Day” for the US economy. The tariffs follow the taxes already slapped on goods from China, Mexico, Canada, cars and steel and aluminium imports to the US. Economists have sounded the alarm over the huge toll that is coming for business and consumers as the tariffs are predicted to drive-up the costs of goods. The bosses of America’s biggest companies are likely in for a day of pain. But while there will be some big corporate losers, there will be some political winners such as Mr Trump’s key trade adviser.

UK - Researchers at a UK university have analysed the possible effects of President Trump's increasing number of import tariffs he is slapping on other countries. President Donald Trump's swathe of new tariffs on imports into the United States could spark a negative fallout costing the global economy a staggering 1.4 trillion dollars, UK experts claim. Unlike other countries, the UK has decided to not yet set out plans to retaliate with tariffs of its own - while many furious nations have responded by slapping tariffs on US imports across their own borders. Now analysis by Aston University researchers estimates if there is a full global retaliation with reciprocal tariffs - sparking extensive global disruption and reduced trade flows there could be a $1.4 trillion global welfare loss.

UK - Sky News was interrupted this morning when Beth Rigby quizzed the Prime Minister about President Trump's global trade tariffs. Due to severe uncertainty around the timing and scale of the tariffs, officials are said to have worked up "dozens" of scenarios for what Trump's "liberation day" could mean for Britain. In the worst-case scenario, Trump announces immediate tariffs of 20 percent on all UK exports, with an even higher rate for products, which would mean Britons are "worse off." This would add £12 billion to the cost of the UK's £60 billion annual exports to America and would result in a huge hit to the economy, as well as Starmer. Beth Rigby asked the Prime Minister, "People are going to be worse off when Trump's tariffs come into effect, won't they?" To which he replied, "We are working on an economic deal. Nobody wants to see a trade war, but I must act in the national interest."

PANAMA - Earlier this month, BlackRock Inc secured control over key ports near the Panama Canal, stripping away Chinese-linked influence over one of the world’s most crucial shipping routes. The $23 billion deal, which includes $5 billion in debt, will effectively place the strategic ports under American control — a move long advocated by President Donald Trump and national security hawks concerned about China’s grip on global infrastructure. This historic acquisition grants control over 43 ports in 23 countries, including major sites in Mexico, the Netherlands, Egypt, Australia, Pakistan, and Panama’s critical ports of Balboa and Cristobal — the two primary gateways to the Panama Canal. President Donald Trump has vowed to “take back” the Panama Canal, arguing that Panama has violated its neutrality pledge and allowed China to gain control over the waterway. Now China is blocking the transfer of the critical ports to a Blackrock-owned group. This sets up a major confrontation with President Trump.

ISRAEL - Israel has launched a major expansion of its military operation in the Hamas-run Gaza Strip, saying that its army would seize “large areas” of the Palestinian territory. In a statement early on Wednesday morning, Israel Katz, the country’s defence minister, said that Israel would expand its presence in Gaza to “destroy and clear the area of terrorists and terrorist infrastructure”. The operation would “seize large areas that will be incorporated into Israeli security zones”, he said, without explaining how much territory Israel would take. The announcement comes after he warned last week that the military would soon “operate with full force” in additional parts of Gaza.

ICELAND - A volcano south of Iceland's capital, Reykjavik, erupted on Tuesday, prompting the evacuation of nearby areas. It marks the eighth eruption to hit the region since the end of 2023. The eruption, displaying dramatic scenes of lava and smoke, has forced the evacuation of residents and tourists in areas around Sundhnuksgigar, including the popular Blue Lagoon spa and the fishing town of Grindavik. A red alert has also been issued for the area, which is being battered by hundreds of small earthquakes.

USA - This week will see the opening salvoes in a global trade war that brings echoes of darker times. Donald Trump, hailing it as “liberation day”, proposes to impose tariffs across the board from April 2 and this will trigger retaliation. Despite the US president’s braggadocio, there are no winners from this approach, as we have seen in the past. The protectionist policies pursued by William McKinley in the late 19th century, raising import duties to 50 percent in some instances, caused high prices and a political backlash. The Smoot-Hawley Tariff Act of 1930 worsened the Great Depression. The arguments used in the past were the same: if foreign goods were more expensive then Americans would buy home-produced products, bolstering US manufacturing and fuelling economic expansion. But the impact of retaliation, especially in a more integrated global trading environment than before, cannot easily be calculated.

USA - The “Signalgate” scandal confirmed what Europeans already knew. The Trump administration’s disdain for Europe is deep and the transatlantic fracture is structural. While our leaders publicly play down the significance of the unravelling that is manifestly under way, few actually sound as convinced in private. Hopes persist that Europe can prevent the most extreme manifestation of the collapse in the relationship, be it an invasion of Greenland, the withdrawal of US forces from Europe’s Nato member states or an all-out trade war. Most urgently, European leaders are focused on ensuring that if (or perhaps when) the US throws Kyiv under the bus, it is Europe collectively that will somehow succeed in securing a free, independent and democratic Ukraine.

ISRAEL - The US military aid package is substantial, but not decisive. It accounts for less than 3% of Israel’s national budget. We can – and we should – replace it ourselves. Israel is stronger than ever – economically, militarily, and diplomatically. But in one critical area, we’re still acting like a nation that hasn’t found its footing. We’re still accepting billions in American aid, year after year, as if we can’t stand on our own. That’s no longer true. And it’s no longer right. We’re proud to be America’s closest ally. We’re grateful for the decades of support. But gratitude is not a strategy. And strength built on dependence is not real strength. If we want to act like a sovereign nation, we need to finance our own defense. It’s time for Israel to proactively and proudly phase out US military aid.

ISRAEL - Binyamin Netanyahu has said that the Israeli military would intensify its ­campaign in Gaza and “pound” Hamas into submission, promising to secure the release of hostages. Defying protesters, who took to the streets again on Saturday, the Israeli prime minister met his cabinet and ­released a video message vowing to ­increase the pressure on Hamas while continuing hostage negotiations. “We are negotiating under fire,” ­Netanyahu told his cabinet on Sunday, adding that there were “suddenly cracks” in Hamas’s leadership.