Marc Ross Daily | April 3
Marc Ross Daily is geopolitical business news + intelligence for senior executives + comms pros.
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Happy Thursday.
Here’s today’s Marc Ross Daily:
*** The Flash Five ***
Today in geopolitical news and how pros should think and talk about it....
1. Trump launches global tariff offensive: President Trump has unveiled sweeping new tariffs representing a fundamental shift in US trade policy. The plan includes a baseline 10% tariff on all imports effective April 5, with significantly higher rates for specific countries: 54% for China (combining previous and new tariffs), 20% for the EU, 24% for Japan, and 46% for Vietnam. While Canada and Mexico are temporarily exempted from reciprocal tariffs, the administration immediately imposes a 25% tariff on all foreign-made automobiles. Markets have reacted negatively, with tech giants like Apple facing pressure due to potential supply chain disruptions. The US Chamber of Commerce has criticized these tariffs as "a tax increase that will raise prices for American consumers and hurt the economy." This represents a dramatic escalation in global trade tensions that will likely trigger retaliatory measures from affected nations.
2. Musk's political influence wanes rapidly: Elon Musk appears to be stepping back from his government role amid mounting political setbacks. Reports indicate Trump has privately expressed doubts about Musk's political utility following a significant election defeat in Wisconsin, where Musk's chosen candidate for the state Supreme Court lost decisively. With approval ratings at just 38%, Musk is pivoting his public communications toward his business interests in space, AI, and electric vehicles. The White House has officially denied reports of tension, stating Musk will depart from public service "when his incredible work at DOGE is complete." Meanwhile, Tesla stock has rebounded 11% in a single trading session, suggesting investors may prefer that Musk focus on his corporate responsibilities rather than political activities.
3. Trump pursues Greenland acquisition strategy: The Trump administration continuously pushes to acquire Greenland from Denmark, sending senior officials Usha Vance and Mike Waltz to visit the autonomous territory. This follows Trump's previous interest in purchasing the island during his first term. Reports suggest the US may offer "a lot higher" financial incentives than Greenland receives from Denmark. Danish Prime Minister Mette Frederiksen has responded by traveling to Greenland amid these overtures. The administration's interest likely stems from Greenland's strategic Arctic location and abundant natural resources, aligning with Trump's broader efforts to reduce import dependency and revive American mining. This development represents a significant geopolitical maneuver that could reshape Arctic politics and resource control.
4. TikTok facing multiple acquisition scenarios: As the Saturday deadline for TikTok to change its ownership structure approaches, multiple scenarios are emerging. Amazon has reportedly bid to acquire TikTok's US operations, joining ApploVin as a potential buyer. Simultaneously, the Trump administration is considering alternative arrangements allowing TikTok's Chinese owner, ByteDance, to maintain ownership of the algorithm while leasing it to a US-based spinoff. This approach would likely face resistance from China hawks in Trump's party. The outcome will significantly affect US-China technology relations, social media competition, and digital sovereignty. Despite increasing regulatory scrutiny, Amazon's interest suggests that major tech platforms are willing to expand their social media footprint.
5. The AI industry undergoes rapid transformation: The artificial intelligence sector continues to show remarkable growth and disruption. Scale AI expects more than double sales to $2 billion in 2025 from $870 million last year. Meanwhile, traditional infrastructure is being repurposed to support AI development, exemplified by a coal plant being demolished to make way for an AI data center. The industry faces increasing scrutiny over training data practices, with OpenAI accused of using copyrighted books without permission. Regulatory pressure is also building, with Democratic lawmakers calling for the return of a bipartisan AI task force and new regulations for "AI companions" that interact with teenagers. Despite these challenges, major players like Anthropic are pushing for AI adoption in education sectors as they compete with OpenAI and Google for market dominance.
*** Globalization + Geopolitics ***
WSJ: Trump promises to ‘Make America Wealthy Again’ with new tariffs
AFP: Trump unveils sweeping 'Liberation Day' tariffs
Le Monde: Trump announces reciprocal tariffs 'throughout the world': 'One of the most important days... in American history'
FT: Trump escalates global trade war with sweeping new tariffs
Fortune: Donald Trump announces sweeping reciprocal tariffs against ‘friend and foe’ with a 10% minimum
Trump unveils sweeping tariffs on all imports: NYT reports a 10 percent tariff will apply to all countries, but key trading partners like China, Japan, and Europe will face rates two and three times as high.
Trump announces 10 percent tariffs on all imports, additional taxes for some 60 countries: WP reports the nation could see average import taxes reach 1930s levels.
Trump tariffs and Canada: The US slaps blanket tariffs on global allies, including 25 percent on foreign-made automobiles. Toronto Star reports that Trump followed through on his threat to implement 25 percent auto tariffs on non-US-made vehicles, starting at midnight.
G+M: Canadian goods compliant with USMCA won’t be tariffed by US, but other items face levies up to 25%
+ “We’re not taking it anymore," the president said, announcing the US' tariffs would amount to half of trading partners'.
+ Trump said he is imposing tariffs of 25% on all foreign-made automobiles that will take effect at midnight.
+ The US will impose a 10% tariff on all imports, and even higher rates on nations the White House considers bad actors on trade
+ *20% ON EU...*34% ON CHINA...*46% ON VIETNAM...*24% ON JAPAN...
+ The baseline 10% tariffs take effect April 5... The higher reciprocal rates will take effect April 9
+ Canada, Mexico not subject to reciprocal tariffs for now
+ The US Chamber of Commerce criticized the Trump administration’s tariff push. “These broad tariffs are a tax increase that will raise prices for American consumers and hurt the economy,” said Neil Bradley, the business group’s chief policy officer.
+ CNBC anchor: "The market reaction after hours, I've never seen anything like, this is worse that the worst case scenario in terms of what the market expected"
+ Apple Shares Slide After Tariffs Threaten to Hit Production Hubs
+ Nike Falls as Trump’s Reciprocal Tariff Plan Sinks Retailers
+ Gold Advances as Trump’s Tariff Announcement Boosts Haven Demand
+ @EamonJavers: One big point amid all the headlines: I was texting with press secretary Karoline Leavitt during the event and she confirms that the 34 percent tariff on China is ON TOP of the previous 20 percent. So that means the rate on China will be *54* percent when these tariffs take effect.
Can the world’s free-traders withstand Trump’s attack? Much will depend on the courage of Europe. Economist
Why exactly is Trump so obsessed with tariffs? Matt Lewis
Analysis: Mystery deepens over disappearances of Xi's 'trusted' generals: The Chinese Communist Party's latest leadership meeting provides some clues. Nikkei
NHK: Over 3,000 dead in Myanmar earthquake disaster
Greece to spend €25 billion to overhaul defense: Le Monde reports: 'The plan involves the most drastic transformation of the armed forces in the country's modern history,' Prime Minister Kyriakos Mitsotakis told parliament on Wednesday.
After Le Pen's conviction, Macron defends the 'independent' judiciary: Le Monde reports reacting to outcry after far-right leader Marine Le Pen was convicted of embezzlement, President Emmanuel Macron added that 'judges must be protected.' Meanwhile, Le Pen's party has planned a rally to support her on Sunday.
Le Pen fights back in the hope of saving her 2027 presidential bid: Le Monde reports disrupting years of rehabilitation efforts by the RN, the far-right leader has launched a media guerrilla campaign that also has the effect of diverting attention from her conviction.
Why does Trump want Greenland, anyway? As Usha Vance and Mike Waltz prepare to visit the autonomous territory of Denmark, we explore the logic behind Trump’s fixation. FC
How Trump is planning to woo Greenland with an offer it cannot refuse: Money offered by America could be ‘a lot higher’ than figure the autonomous territory currently gets from Denmark. Telegraph
+ Denmark’s prime minister, Mette Frederiksen, arrived in Greenland amid Donald Trump’s growing calls for America to take over the island.
*** US Politics + Elections ***
Waltz’s team set up at least 20 Signal group chats for crises across the world: Politico reports it’s a more extensive use of the app than previously reported and sheds new light on how commonly the Trump administration’s national security team relies on Signal.
Trump’s $1.6 trillion corporate pledge parade: What’s real, what’s not: Business leaders have pledged at least $1.6 trillion in US spending since Trump was elected to a second term as president. If history is any guide, not all of it will materialize. Bloomberg
Donald Trump digs deep to revive American mining: Reducing dependency on imports will be hard. Economist
Nearly 400 books at US Naval Academy removed in DEI purge: FC reports the move is part of Trump's efforts to eliminate content that promotes diversity, equity, and inclusion from federal agencies.
Trump tells inner circle that Musk will leave soon: Politico reports the president is pleased with Elon Musk, but the decision comes as the tech mogul increasingly looks like a political liability.
Daily Mail: Elon Musk dramatically steps down from DOGE in shock move after Trump expressed private doubts
Trump and GOP confront Elon Musk quandary after Wisconsin defeat: WSJ reports the Midwest state’s voters rejected an all-out blitz by the billionaire to get a conservative on its supreme court.
Musk setback in Wisconsin raises questions about his future role: WP reports Elon Musk’s chosen candidate lost decisively in the state’s Supreme Court election, delivering by far the biggest rebuke to a billionaire who has hovered over American politics since last July.
+ @TheStalwart: $TSLA is up 11% from where it was right after the market opened.
+ @PeterHamby: Elon suddenly tweeting a lot more today about cars and AI and outer space
+ A new Marquette University Law School poll finds Elon Musk with an upside down 38% to 60% approval rating.
+ @PressSec: This “scoop” is garbage. Elon Musk and President Trump have both *publicly* stated that Elon will depart from public service as a special government employee when his incredible work at DOGE is complete.
Elon Musk’s X asks Supreme Court to shield users from US government: FT reports the billionaire backs case brought by Coinbase client whose data was surrendered to authorities.
The MAGA backlash arrives: Republicans hold two Florida House seats despite a sharp swing to the Democrats, but Democrats easily keep their Wisconsin Supreme Court majority. WSJ - Editorial
In a new book, top Biden aide describes ‘out of it’ president before Trump debate: Ron Klain tells author Chris Whipple then president could not focus and obsessed about foreign leaders ahead of debate that ended his campaign. Guardian
Key Democrat calls for return of bipartisan AI task force: Politico reports Rep. Bera (D-CA-06) argues that the House should reinstate the bipartisan group and work more closely with the health care sector.
Kids are talking to ‘AI companions.’ Lawmakers want to regulate that. WP reports after a California state senator read alarming news reports in November about “AI companion” bots’ interactions with teens, his legislative director tried talking to one herself.
+ “It was, ‘Hello,’ and ‘how are you?’, and then the [chatbot’s] first response was, ‘I’m sad,’” state Sen. Steve Padilla (D-San Diego) recalled. When the staffer asked the bot why it was sad, it responded, “Because girls won’t talk to me.'”
Amazon said to make a bid to buy TikTok in the US: NYT reports the e-commerce giant put in a last-minute offer for the popular video app, according to three people familiar with the talks. TikTok faces a Saturday deadline to change its ownership structure.
Applovin is also a potential buyer for TikTok.
Trump team has weighed deal to save TikTok that would leave algorithm in Chinese ownership: WP reports the White House has examined a menu of options to avert a TikTok ban deadline set for Saturday. One proposal — letting TikTok’s Chinese owner lease the algorithm to a TikTok spinoff in the US — would probably face resistance from China hawks in Trump’s party.
Zuckerberg lobbies Trump to avoid Meta antitrust trial: WSJ reports Meta’s chief executive was at the White House on Wednesday, his third visit during Trump’s presidency, according to people familiar with the matter.
MI-SEN: Michigan State Senator Mallory McMorrow (D) announced her candidacy for the US Senate seat, which was vacated by retiring Democrat Gary Peters.
A US Senate blockbuster looms in Texas, as Paxton prepares to challenge Cornyn: In an interview, the Texas attorney general attacked Senator John Cornyn as out of touch, and said he had talked to people close to President Trump about an endorsement. NYT
New York Mayor Eric Adams’s corruption case dismissed by federal judge: NYT reports the judge’s decision, which ends the case as Adams seeks reelection, also discredited the rationale of a top Justice Department official for pursuing the dismissal.
*** Distribution + Innovation ***
Amazon set to launch first Kuiper internet satellites this month: Bloomberg reports Amazon says it will launch the first batch of satellites to power its internet-from-space initiative as soon as April 9. The company’s Project Kuiper aims to put more than 3,000 satellites in low-Earth orbit, delivering internet connectivity to companies, governments and consumers, a business that today is dominated by SpaceX’s Starlink.
Ben & Jerry’s co-founder calls on Unilever to ‘set us free’: WSJ reports Ben Cohen has launched a long-shot bid to buy back the ice cream brand he created with Jerry Greenfield in 1978.
A big coal plant was just imploded to make way for an AI data center: WSJ reports the country’s largest natural-gas power plant is planned east of Pittsburgh.
An AI watchdog accused OpenAI of using copyrighted books without permission: FC reports a new paper from the AI Disclosures Project claims OpenAI trained GPT-4o on paywalled content from O’Reilly Media—raising fresh concerns about transparency and copyright in AI training data.
'Titanic 2'? YouTube is cracking down on AI-assisted fake movie trailers that fetch millions of views: FC reports that after an investigation from Deadline, YouTube demonetized two major channels using AI to make fake trailers for real movies.
OpenAI’s o3 model might be costlier to run than originally estimated.
Fortune: President of $61.5 billion Anthropic makes a case for AI in college classrooms as it seeks to challenge OpenAI and Google
Scale AI expects to more than double sales to $2 billion in 2025: Bloomberg reports the startup generated revenue of about $870 million last year.
Bloomberg: Tinder unveils playful AI chatbots in bid to boost engagement
Fortune: No one can clearly define an AI agent. LinkedIn’s engineering boss says that’s okay
Bloomberg: Neuralink recruits globally for research on brain implants
*** Culture ***
RIP: Val Kilmer
Geri Horner: ‘Christian and me? We’re quite silly’: After a few bumps in the road, Geri Horner — now a bestselling author of fantasy fiction — is reading Tolstoy, enjoying nights in with her ‘old school’ husband and dropping hints about a Spice Girls reunion. The Times
Wes Anderson's childhood memories explored in Paris exhibition: The Cinémathèque Française hosts a dynamic exhibition showcasing the playful universe of the American director. Le Monde
*** Sport ***
NFL weighs bids from Serena Williams, Ice Cube for women’s flag football league: Bloomberg reports The NFL is reviewing plans to launch a women’s pro flag football league as early as next year with potential partners including Alexis Ohanian’s and Serena Williams’ 776 investment firm, according to people familiar with the matter.
After Mikaela Shiffrin’s brutal crash, her trauma was only starting: Shiffrin has been on the World Cup circuit full time nearly half her life, but she hasn’t had a season quite like this one. Barry Svrluga
Enjoy the ride + plan accordingly.
-Marc
Marc A. Ross | Chief Communications Strategist @ Caracal
Marc Ross Daily | April 3
