Good morning, happy Friday and welcome to Firstft Asia. In today’s newsletter:
Trump gets tariff deferral
Former Goldman banker has been declared the role of 1MDB
Instagram Prince in India
The U.S. federal court of appeals gave Donald Trump’s global tariff plan a temporary reprieve yesterday, suspending a ruling that found his “liberation date” taxation was illegal. The decision marks a small legal victory over the president’s tariffs, but leaves a long-term fate in balance.
What happened: In yesterday’s ruling, the U.S. Court of Appeals for the Federal Circuit granted a “temporary stay” “until further notice” that allowed the US to continue collecting tariffs. The stay came after a judicial decision Wednesday night, which said Trump could not use emergency economic forces to charge cleaning fees on trading partners. The surprising rule sparked a backlash from the White House, accusing the judge of “judicial overstay.”
Wall Street analysts suggested that the court’s ruling would slow down on Wednesday, but the White House plans will not go off track. “The administration is likely to successfully appeal the ruling or use other powers… to keep tariff charges high and earnings significantly,” City analyst wrote in a memo yesterday. “For now, this ruling is complicated and could delay trade negotiations.”
What’s next? The White House vowed to go to the Supreme Court to overturn the ruling that Trump’s tariffs were illegal. If they fail, Trump’s top trade and economic advisers argued that there are other ways the president could pursue his trade war, but legal experts said his options were limited. In the meantime, trade negotiators from the EU and the US will meet as planned next week on the sidelines of the OECD Ministerial Conference in Paris. EU diplomats close to trade debates said the ruling bought bloc time. “I don’t think there’s a need to hurry,” the diplomat said.
For a detailed analysis of Trump’s tariffs, if you’re a premium subscriber, and if you’re upgrading your subscription here, sign up for Alan Beattie’s Trade Secret Newsletter.
Here are other things that keep tabs today and weekends:
Economic Data: India reports fourth quarter GDP, while Australia is issuing retail sales for April.
Shangri-La Dialogue: Starts in Singapore.
Polish Election: The neck and neck presidential election, which became the latest battlefield for global populist rights, peaks with Sunday’s leaked votes.
How well did you get with this news this week? Take the quiz.
Five more top stories
1. Tim Raisner, an embarrassing former Goldman Sachs banker at the heart of a multi-billion-dollar 1MDB scandal, has been sentenced to two years in prison. Laissner’s ruling concluded one of the most infamous cases in Wall Street history, with prosecutors saying Goldman’s bankers helped corrupt Malaysian officials misappropriate about $4.5 billion from the sovereign wealth fund.
2. China has pledged to open its markets to more products from Pacific Island countries and increase its economic support as the US retreats from largely poor but strategically contested regions. Chinese Foreign Minister Wang Yi, who hosts foreign ministers from 11 countries on Xiamen’s Pacific Island, has pledged $2 million to combat climate change in the region.
3. At the first meeting of the president’s second term, Trump told Federal Reserve Chairman Jay Powell that he was making a “mistake” by not slacking off US monetary policy. The talks follow pressure from the Fed Chairman’s president to lower interest rates in order to blunt the impact of the administration’s trade policy.
4. Klaus Schwab, founder of the World Economic Forum, has launched criminal charges against whistleblowers whose accusations led to his banishment, in order to set up a campaign to clear his allegedly fraudulent name in the organization he has led for over half a century. Mercedes-Ruel reports from Geneva.
5. The German government has planned a 10% tax on global internet giants such as Meta and Google. The move could fuel more transatlantic trade tensions when Trump accused the EU of unfairly treating American companies and wanted to impose tariffs as a response.
Detailed news
Chinese Prime Minister Li Qiang said there is a “long-term strategic opportunity” for his representative ©Vincent Thian/AFP/Getty Images
China’s Prime Minister Li Qiang, who dealt with leaders in Southeast Asia and the Middle East this week, had a clear message. This message was particularly resonant with many of the heads of state whose countries rely on exports.
We’re reading too. . .
Within the Bitcoin Party in Vegas: Trump’s two eldest sons have sought a new financial order.
How Paris embraced football: The city once had too many sns for football, Simon Cooper wrote. That’s no longer the case as local club PSG prepares for Saturday’s Champions League final.
Indian Business Disorders: Billionaire Industrialist Jamshid Godrej has big plans for Mumbai.
The chart of the day
Last month, seven bank sales of the final loan slug against Musk’s $44 billion Twitter acquisition showed an extraordinary turnaround for debts that once seemed toxic. Read more about how lenders’ decision to hold their debt ultimately paid off.
Take a break from the news
. . . We meet Maharajasawaipadmanabsin, a 26-year-old prince of Jaipur. Maharaja has opened hotels and restaurants, played polos and posed in his elaborate palace for his Instagram followers, even as he tries to maintain the ancient traditions of his family.
Maharajasai Padmanabsin, Jaipur © Nishant Shukrafeet
