Good morning. We're covering the worsening U.S. trade war with China and the upcoming Iran nuclear talks. Plus, the biggest luxury deal of the year.
Alarming signs as the trade war worsenedU.S. stocks tumbled yesterday as Treasury bonds began to sell off again, oil prices dropped and the stocks of Big Tech companies like Apple and Nvidia fell. Together, the signs pointed to a souring mood as investors assessed the worsening trade war with China. President Trump clarified that he had raised tariffs on Chinese goods by a total of 145 percent as tensions between Beijing and Washington showed no signs of easing. E.U. officials announced that they would delay plans for retaliatory tariffs after Trump's decision to hit pause on some of his new import taxes. The markets on Wednesday had cheered Trump's decision to postpone many of his tariff plans for three months. "The president seems to have offset any relief it might have offered for the U.S. economy by simultaneously jacking up tariffs on China to 145 percent," my colleague Ana Swanson, who covers trade, said. "I've seen some estimates saying that the impact of the most recent tariff structure is actually worse for consumers because most of the world's cellphones, laptops, toys, video games, blankets and party decorations come from China," she said. Many economists cautioned that the full repercussions from the trade war would not be felt for weeks. Here's a quick guide to how the tariffs between China and the U.S. have ramped up in the last two months.
What to watch in the Iran nuclear talksThe U.S. and Iran are sending envoys to Oman for high-stakes talks tomorrow on a nuclear deal. In some ways, Iran will arrive at the table in a weaker position: Israel has destroyed part of Tehran's air defenses, although Iran claims it has rebuilt them, and greatly diminished its proxy forces, Hamas and Hezbollah. But Iran is also far closer now to being able to produce a nuclear weapon than it was when the last accord was negotiated in 2015. Trump pulled out of that deal in 2018. To learn more about what's at stake, I reached out to my colleague Farnaz Fassihi, our U.N. bureau chief who also reports on Iran. What will you be watching for? Farnaz: We are not expecting a major breakthrough on Saturday, but that the talks are even happening is significant. We are expecting them to define a framework for negotiations in this round and clarify what issues are on the table, and to see if they will announce a second round of talks. We are also watching to see if Iran's foreign minister, Abbas Araghchi, and Steve Witkoff, the U.S. envoy, will meet in person, which would be a very good sign. What do the U.S. and Iran each hope to gain? For Iran, the threat of war has never been more serious. It needs sanctions relief to improve the dire state of its economy. For the U.S., Iran's rapid escalation of nuclear enrichment and ability to produce bombs, if they choose to do so, is not acceptable. Would Iran agree to dismantle its nuclear sites? This will be a deal breaker from the get-go. It's also not entirely clear if this is Trump's goal. He has said his goal is for Iran not to have a nuclear weapon, and from Iran's perspective, that can be achieved with strict monitoring mechanisms and a reduction of uranium enrichment levels.
The U.S. tried to strike a hostage deal with HamasTrump administration officials met three times last month with senior Hamas officials in Qatar. The talks defied a longstanding U.S. policy against engaging with the armed group, which the U.S. considers a terrorist organization. But Trump's aides were eager to free Edan Alexander, the last living American Israeli hostage in Gaza. However, in the face of Israel's opposition, Hamas's hesitation and the Trump administration's shifting position, an agreement to free Alexander never came together. Six people familiar with the closed-door meetings told The Times what happened. In Israel, hundreds of Air Force reservists urged the government to agree to a deal with Hamas to return hostages, even at the price of stopping the war in Gaza.
Sports
The White House has a formal plan to acquire Greenland. The approach? Persuasion, not invasion. In the face of Denmark's fierce resistance, the Trump administration intends to court Greenlanders directly — in part by appealing to the heritage they share with the Indigenous people of Alaska. Lives lived: John Nelson, an American conductor who made France love the composer Hector Berlioz, died last month at 83.
An Italian fashion powerhouseIn the biggest luxury deal of the year, Prada announced yesterday that it was buying Versace for 1.25 billion euros. The deal is a sign of faith in the continued value of Made in Italy as the financial markets are in chaos. The two brands are a study in contrasts, our chief fashion critic Vanessa Friedman writes. Versace made its name on flash, fantasy and the tightrope between bad taste and elegance. Prada embraced a contrarian exploration of gender politics and the strange allure of ugly chic. But Prada is betting that their creative drives are aligned. Read Vanessa's story.
Cook: Make this lemony chicken and artichoke tagine for Passover, or just because. Read: These books can help you be a better friend. Wear: It's wet and windy — and you need an anorak. Here are our favorites. Travel: Put these architectural treasures on your Milan wish list. Crunch: Breakfast cereal can be a healthy option, if you know where to look. Play: Spelling Bee, the Mini Crossword, Wordle and Sudoku. Find all our games here. That's it for today. Have a great weekend. — Emmett We welcome your feedback. Send us your suggestions at briefing@nytimes.com.
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