[News Breakthrough] The US Escalates to Second-tier Tariffs to Pressure Russia, Iran, and Venezuela

Welcome to the unveiling of the “News Insight” on Monday, March 31st. Today’s news decryption features senior political and economic commentator Wu Jialong as the guest, hosted by Zhang Dongxu.

Today’s focus: Trump’s tariffs are heavier than expected! Is the uncertainty a preparation for businesses? Will the obstruction lead to Li Ka-shing’s sale of ports? What is the mission of the U.S. Secretary of Defense’s visit to the Indo-Pacific? Is stalemate also a form of peace? Adjusting the U.S. grand strategy to engage in diplomacy with allied forces in the military!

April 2nd is approaching; how will history position this day? At the end of March, the U.S. stock market and Taiwan stock market saw a significant drop. The market is awaiting Trump’s announcement as four major tariffs are set to be implemented on April 2nd. What will be the specifics of this plan?

On April 2nd, the planned sale by Li Ka-Shing of port operations in 23 countries to U.S. companies has been “temporarily suspended” due to pressure from the Chinese Communist Party.

The U.S. Secretary of Defense is making rounds to several countries in Asia, with foreign media revealing a confidential memorandum from the Department of Defense outlining the Trump administration’s top priority: deterring Chinese Communist aggression towards Taiwan. This echoes Trump’s unveiling of the Indo-Pacific strategy before leaving the White House in 2021, explicitly stating the defense of key island chain nations, including Taiwan.

Amid reports of senior Chinese military officials being investigated and purged, U.S. Defense Secretary Hargiss, on his first visit to the Indo-Pacific region, openly emphasized combating Chinese Communist aggression alongside allies. His itinerary includes visiting key U.S. military bases in Guam, announcing joint military exercises in the Philippines near the southern tip of Taiwan’s Bashi Channel, and attending the 80th anniversary ceremony of WWII’s end on Iwo Jima. In Tokyo, he upgraded the U.S. military presence in Japan to a “command headquarters,” hinting at increased U.S. troop deployment to the Southwest Islands near Taiwan.

Simultaneously, U.S. media revealed a classified internal memorandum from the Department of Defense identifying a potential invasion of Taiwan as the “most pressing scenario” that needs to be considered, outweighing other potential dangers. This involved a restructuring of the extensive U.S. military framework beyond domestic defense purposes towards the Indo-Pacific region.

Moreover, please ask Mr. Wu Jialong how to interpret the signals released by the U.S. Secretary of Defense during this trip?

The significant drop in the U.S. stock market on the 30th impacted the Taiwan stock market. The market is awaiting Trump’s announcement of the tariffs he referred to as the “Liberation Day” for the U.S. The tariffs are expected to include at least four items on April 2nd. First, Trump stated that it will cover “reciprocal tariffs” with countries worldwide. Second, a 25% tariff on imported cars and components. Third, tariffs on Canada and Mexico, and fourth, secondary tariffs of 25% on countries directly or indirectly buying oil and natural gas from Venezuela. Additionally, on March 30, Trump warned that if Russia obstructs the ceasefire agreement with Ukraine, similar “secondary tariffs” may be imposed within a month. Iran will also face repercussions if they refuse to negotiate on the nuclear issue. Russia and Iran are major oil exporters; China is a significant buyer.

Please ask Mr. Wu Jialong to observe and assess the impact of Trump’s arrangements?

The Li Ka-shing-owned CK Hutchison Group was scheduled to sign a contract with U.S. company BlackRock on April 2nd to sell business operations at 43 ports, including in Panama. Under intense pressure from the Chinese Communist Party, CK Hutchison Group changed its stance to “temporarily suspending” the contract signing. This matter elicited a warning from former U.S. Assistant Secretary of State for East Asian and Pacific Affairs Kangda, advising the Chinese Communist Party to stay out of this private transaction.

How does Mr. Wu Jialong interpret Li Ka-shing’s retreat? What are the ramifications of this situation?

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