Syria Pressured to Curb Influence of Iran, Turkey

A woman walks past destroyed buildings in the government-controlled part of Homs, Syria, September 18, 2018. REUTERS/Marko Djurica
A woman walks past destroyed buildings in the government-controlled part of Homs, Syria, September 18, 2018. REUTERS/Marko Djurica
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Syria Pressured to Curb Influence of Iran, Turkey

A woman walks past destroyed buildings in the government-controlled part of Homs, Syria, September 18, 2018. REUTERS/Marko Djurica
A woman walks past destroyed buildings in the government-controlled part of Homs, Syria, September 18, 2018. REUTERS/Marko Djurica

Regional and international players have been recently active in discussions on economic sanctions and the normalization of relations with Syria.

Fears over the outbreak of the coronavirus epidemic in the worn-torn country have pushed Arab and Western states to take unprecedented steps.

Arab officials and former Western diplomats intensified contacts with Damascus, in the wake of a deterioration in the country’s economic and health conditions.

A telephone conversation has taken place between Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al Nahyan and Syrian President Bashar Al-Assad, the first of its kind since 2011.

“I discussed by phone with Syrian President Bashar Al-Assad the repercussions of the spread of the coronavirus, and expressed to him the UAE’s support and assistance to the brotherly Syrian people in these exceptional circumstances,” Sheikh Mohammed said in a tweet.

“Human solidarity in times of adversity comes above all other considerations, and brotherly Arab Syria will not remain alone in these critical circumstances,” he added.

The UAE reopened its embassy in Damascus in 2018, after seven years of severed diplomatic ties between the two countries. Other Arab states have also reactivated diplomatic contacts and exchanged security visits, in addition to putting forward ideas to provide humanitarian and medical aid to Damascus as part of the fight against the coronavirus.

Western figures have contacted officials in Damascus to follow up on a call by US President Donald Trump at a press conference for the release of American journalist Austin Tice, who disappeared in Syria in 2012.

Secretary of State Mike Pompeo repeated Trump’s request last Tuesday. Proposals were made through closed channels regarding the cost of Tice’s release, including Washington’s easing of some of its sanctions.

On the other hand, major countries have intensified pressure on Damascus. The US has maintained its military presence in the east of the Euphrates and Al-Tanf base, while Israel launched raids on Iranian sites. Moreover, Turkey has consolidated its military bases in the northwest of the country.

In a report submitted to UN Secretary General Antonio Guterres, international investigators accused the Syrian government of deliberately targeting hospitals and medical and educational facilities in northwestern Syria last year. The Organization for the Prohibition of Chemical Weapons also accused the government of carrying out the Sarin gas attacks in Khan Sheikhoun and Douma in 2017 and 2018.

In view of the latest developments, closed meetings that took place through video calls over the past days reflected two viewpoints on Syria.

Some countries underlined the necessity to adhere to the policy of pressure on Damascus to push the government to curb the Turkish and Iranian influence on its territories.

Those advocating the pressure campaign have argued that the existing sanctions do not hinder the delivery of medical equipment, food and humanitarian aid.

But other countries advocate “some exemptions” and flexibility to allow Damascus to combat the spread of the epidemic.



Trump's Week of Tariff Turmoil Rings Recession Alarm

An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura  REFILE - QUALITY REPEAT
An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura REFILE - QUALITY REPEAT
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Trump's Week of Tariff Turmoil Rings Recession Alarm

An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura  REFILE - QUALITY REPEAT
An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura REFILE - QUALITY REPEAT

A week of turbulence unleashed by US President Donald Trump's tariffs showed little sign of easing on Friday, with financial markets again whipsawing and foreign leaders grappling with how to respond to a dismantling of the world trade order.

A brief reprieve for battered stocks seen after Trump decided to pause duties for dozens of countries for 90 days quickly dissipated, as attention returned to his escalating trade war with China that has fueled global recession fears.

US Treasury Secretary Scott Bessent tried to assuage sceptics by telling a cabinet meeting on Thursday that more than 75 countries wanted to start trade negotiations. Trump himself expressed hope of a deal with China, the world's No.2 economy.

But the uncertainty in the meantime extended some of the most volatile trading since the early days of the COVID-19 pandemic.

The S&P 500 index ended 3.5% lower on Thursday and is now down about 15% from its all-time peak in February.

Asian indices mostly followed Wall Street lower on Friday with Japan's Nikkei down 4%, though markets in Taiwan and Hong Kong turned positive and European stocks were set to open slightly firmer.

A sell-off in government bonds - which caught Trump's attention before Wednesday's pause - picked up pace on Friday with US long-term borrowing costs set for their biggest weekly increase since 1982. Gold, a safe haven for investors in times of crisis, scaled a record high.

"Recession risk is much, much higher now than it was a couple weeks ago," said Adam Hetts, global head of multi-asset at investment fund Janus Henderson.

Bessent on Thursday shrugged off the renewed market turmoil and said striking deals with other countries would bring certainty.

The US and Vietnam have agreed to begin formal trade talks, the White House said. The Southeast Asian manufacturing hub is prepared to crack down on Chinese goods being shipped to the United States via its territory in the hope of avoiding tariffs, Reuters exclusively reported on Friday.

Japanese Prime Minister Shigeru Ishiba, meanwhile, has set up a trade task force that hopes to visit Washington next week. Taiwan said it also expects to be included in the first batch of trading partners to hold talks with Washington.

CHINA DEAL?

As Trump suddenly paused his 'reciprocal' tariffs on other countries hours after they came into effect earlier this week, he ratcheted up duties on Chinese imports as punishment for Beijing's initial move to retaliate.

Trump has now imposed new tariffs on Chinese goods of 145% since taking office, a White House official said.

Chinese officials have been canvassing other trading partners about how to deal with the US tariffs, most recently talking to counterparts in Spain, Saudi Arabia and South Africa.

Trump told reporters at the White House he thought the United States could make a deal with China, but he reiterated his argument that Beijing had "really taken advantage" of the US for a long time.

"I'm sure that we'll be able to get along very well," Trump said, adding that he respected Chinese President Xi Jinping. "In a true sense he's been a friend of mine for a long period of time, and I think that we'll end up working out something that's very good for both countries."

China, which has rejected what it called threats and blackmail from Washington, restricted imports of Hollywood films, targeting one of the most high-profile American exports.

The US tariff pause also does not apply to duties paid by Canada and Mexico, whose goods are still subject to 25% fentanyl-related tariffs unless they comply with the US-Mexico-Canada trade agreement's rules of origin.

With trade hostilities persisting among the top three US trade partners, Goldman Sachs estimates the probability of a recession at 45%.

Even with the rollback, the overall average import duty rate imposed by the US is the highest in more than a century, according to Yale University researchers.

The pause also did little to soothe business leaders' worries about the fallout from Trump's trade war and its chaotic implementation: soaring costs, falling orders and snarled supply chains.

One reprieve came, however, when the European Union said on Thursday it would pause its first counter-tariffs.

The EU had been due to launch counter-tariffs on about 21 billion euros ($23 billion) of US imports next Tuesday in response to Trump's 25% tariffs on steel and aluminium. It is still assessing how to respond to US car tariffs and the broader 10% levies that remain in place.

Finance ministers from the 27-country bloc will brainstorm on Friday how to use the pause to get a trade deal with Washington and how to coordinate their efforts to handle tariffs if they do not.

European authorities estimate the impact of the US tariffs its economy would total 0.5% to 1.0% of GDP. Given the EU economy as a whole is forecast to grow 0.9% this year, according to the European Central Bank, the US tariffs could tip the EU into recession.