Harvard University on April 17, 2025, in Cambridge, Massachusetts.
Sophie Park | Getty Images News | Getty Images
U.S. President Donald Trump’s “America First” ideology, which, generally speaking, prioritizes the domestic over the international, rests on the assumption that the world needs America more than it needs the world.
This may be true for the status quo. The U.S. is the world’s largest importer and among the biggest exporters, according to the World Integrated Trade Solution, a database provided by the World Trade Organization. And its policies are already being felt: Factories in China are struggling to fill their order books because of increased export costs to the U.S.
But change is afoot. Countries are finding ways to respond to Trump’s nationalistic gestures.
Southeast Asian nations, which suffered the brunt of Trump tariffs, are banding together to increase intra-regional trade and diversify their export destinations. China, after assessing the severity of Trump’s threats, seems to be ready to strengthen its fiscal stimulus, and is likewise expanding to other overseas markets.
It’s not like the U.S. has a monopoly over all aspects of international affairs, either. China controls much of the supply chain of rare earth elements as well as critical minerals like nickel and copper. Trump’s green light to deep-sea mining of those elements is a sign the U.S. is playing catch-up with China.
An “America First” policy may backfire as it drives other countries to take measures that could leave the U.S. behind.
What you need to know today
Asia markets tick up
Major U.S. indexes climbed Friday, concluding the week in the green. The S&P 500 rose 0.74% Friday to mark its first four-day winning streak since January. The Nasdaq Composite advanced 1.26% and the Dow Jones Industrial Average inched up 0.05%. However, stock futures edged lower Sunday evening local time. Asia-Pacific markets ticked up Monday. Japan’s Nikkei 225 added around 0.4%. Shares of Tokyo-listed Toyota Motor rose roughly 3.7% on reports the company is exploring a potentially 6 trillion yen ($42 billion) deal to acquire Toyota Industries.
China calls for more economic support
China plans to help struggling businesses with “multiple measures” and called for “timely reductions” of interest rates in the face of “increased external shocks,” according to a readout of a Politburo meeting chaired Friday by President Xi Jinping, translated by CNBC. The meeting of the Politburo, the second most powerful political body in China, comes as the trade war between the U.S. and China heats up.
Factories in China halting work
Chinese manufacturers are pausing production and sending workers home as the impact of U.S. tariffs sets in, according to companies and analysts. This phenomenon is largely occurring in the export hubs of Yiwu and Dongguan for now, said Cameron Johnson, Shanghai-based senior partner at consulting firm Tidalwave Solutions. But Chinese companies are already turning to customers in Europe and Latin America to make up for a slowdown in exports to America.
Trump signs order to boost deep-sea mining
U.S. President Donald Trump signed on Thursday a sweeping executive order to jump-start the controversial practice of deep-sea mining, which uses heavy machinery to remove minerals and metals from the seabed. The move attempts to shore up America’s access to strategically important minerals such as nickel, copper and rare earth elements, offsetting China’s dominant position in critical mineral supply chains.
Southeast Asian countries turn to each other
Export-oriented Asian countries were hit hard by Trump’s “reciprocal” tariffs and the ensuing U.S.-China trade war. China is among the biggest trade partners for those countries, while the U.S. serves as their strategic partner in areas like defense and development. Instead of picking a side, however, the region’s nations are developing their own economies and strengthening trade ties with each other.
[PRO] Eyes on earnings and data
More than 180 companies in the S&P 500 report their results this week, making it the busiest period of the first-quarter earnings season, notes CNBC’s Sarah Min. Companies to look out for include Meta Platforms, Microsoft, Amazon and Apple. Investors should also watch the personal consumption expenditures price index, out Wednesday, and nonfarm payrolls, out Friday.
And finally…
Indigo is one of a handful of airlines that are rerouting and canceling flights to avoid Pakistan’s airspace.
Nicolas Economo |NurPhoto | Getty Images
Indian airlines can’t fly over Pakistan. Here’s how that is affecting flights
Pakistan’s closure of its airspace to Indian airlines Thursday is forcing carriers to alter some routes that link India to Europe, North America, Central Asia and the Middle East.
The airspace closure comes amid tit-for-tat reactions from the nuclear-armed neighbors, following the killing of 26 tourists in the scenic town of Pahalgam in the northwestern India-administered state of Jammu and Kashmir.
Indian carriers — including Air India, IndiGo, Akasa Air and SpiceJet — must now fly longer, and thus costlier, flights on some westbound routes. The detour could push some flights to add a refueling stop or cancel certain routes altogether.
Indian carriers will pay a price, but passengers may not see airfares go up by much because of Pakistan’s airspace closure, said John Grant, chief analyst at the aviation intelligence company OAG.
