The U.S. and China are on the brink of a ‘monumental’ divide

The rapid escalation of tariffs has disrupted the long-standing trade relationship between the U.S. and China, putting two superpowers at risk and potentially impacting the global economy. Economists warned that the complete consequences would only be seen weeks from now.

President Trump confirmed that he increased tariffs on Chinese products by a total of 145%, with tensions between Beijing and Washington showing no signs of easing. Here’s a quick overview of how tariffs between the two countries have escalated over the past two months.

The S&P 500 plunged 3.5 percent yesterday, indicating growing investor concerns about the intensifying trade war and the destabilizing effects of President Trump’s tariff policies. Treasury bonds began to sell-off, oil prices fell, and Big Tech companies like Apple and Nvidia saw stock declines.

“I’ve seen estimates suggesting that the latest tariff structure’s impact is actually worse for consumers,” said Ana Swanson, my colleague who covers trade. She pointed out that most of the world’s cellphones, laptops, toys, video games, blankets, and party decorations are made in China.

Quotable: “We are nearing a monumental train wreck breakup,” said Orville Schell, Director of the Center on U.S.-China Relations at the Asia Society in New York.

Key developments in Iran nuclear negotiations

The U.S. and Iran are set to send envoys to Oman for high-stakes negotiations on a nuclear deal tomorrow. In some ways, Iran arrives at the table weakened: Israel has destroyed nearly all air defenses protecting Iran’s nuclear facilities and diminished its proxy forces, Hamas and Hezbollah. However, Iran is now closer to developing a nuclear weapon than when a previous agreement was reached in 2015. (The Trump administration withdrew from that deal in 2018.) We touched base with Farnaz Fassihi, our U.N. bureau chief who is also an expert on Iran, for insight into the talks.

But Iran is also much closer now to producing a nuclear weapon than it was when the last accord was negotiated in 2015. To learn more about the stakes, we reached out to our UN bureau chief, Farnaz Fassihi, who also covers Iran. What do the U.S. and Iran each hope to achieve?

What are the chances that Iran will agree to dismantle its nuclear sites?

This will be a dealbreaker from the outset. It’s unclear whether this is Trump’s goal too. He has stated that he wants Iran not to have a nuclear weapon, and from Iran’s perspective, that can be ensured with strict monitoring mechanisms and a reduction of uranium enrichment levels.

Negotiations with Hamas regarding hostage release

In a departure from long-standing U.S. policy, Trump administration officials held three meetings with senior Hamas officials in Qatar last month, aiming to negotiate the release of Edan Alexander, the last surviving American Israeli hostage in Gaza, according to insiders.

Despite the efforts by the Trump administration and Hamas’s hesitance, a deal to free Alexander failed to materialize. Six people familiar with the closed-door meetings shared the details with The Times.

formal plan at the White House to buy Greenland. The approach is persuasion, not force.

Despite Denmark’s strong opposition, the Trump administration plans to directly engage Greenlanders — in part by drawing on the shared heritage with the indigenous people of Alaska.

Obituary: John Nelson, an American conductor credited with making France appreciate composer Hector Berlioz, died last month at the age of 83.

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Prada acquires Versace in a significant luxury deal

In the biggest luxury deal of the year, Prada announced the acquisition of Versace for 1.25 billion euros. This deal signals a strong belief in “Made in Italy,” even as financial markets are in turmoil.

The two brands present a study in contrasts. Versace built its brand on boldness, fantasy, and restoring balance between questionable taste and elegance. Prada, on the other hand, explored unconventional approaches to gender and the peculiar allure of what might be considered “ugly chic.” Will these creative forces align??