Good afternoon,

Today’s news: Globally, US vs. China on tariffs, and nuclear talks between Iran and the US. Locally, PSX rebounds after historic plunge, the government's non-response to US tariffs, and journalist Ahmed Noorani’s brothers still missing.

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Around The World

Better have my money. Donald Trump has threatened China with an extra 50% tariff on goods imported into the US if it does not withdraw its 34% counter-tariff, as global markets continue to fall. In a social media post on Monday, Trump gave China until Tuesday to scrap its countermeasures or face the 50% tax. If Trump acts on his threat, US companies could face a total rate of 104% on Chinese imports.

China's commerce ministry labelled the additional levy as a mistake on top of a mistake. Beijing’s defiance is part of what has appeared to be a carefully calibrated confidence from a Chinese government that’s decided to position itself as an oppositional force standing up to what it calls “unilateral bullying” from the US. 

Meanwhile, the EU has signalled its willingness to negotiate a tariff-free trade pact with the United States but is also prepared to retaliate if necessary. Despite the EU’s measured approach, its planned tariffs remain contentious. Trump has already threatened a 200% counter-tariff on EU alcoholic beverages if the bloc proceeds with a proposed 50% duty on US bourbon. The move has raised concerns in France and Italy, key exporters of wine and spirits.

Talk directly to me. Trump says that the US and Iran will hold direct talks over a possible nuclear deal on Saturday. He confirmed that discussions would be at a very high level and warned it would be a very bad day for Iran if no agreement was reached. Iran's foreign minister also confirmed the meeting, saying the talks would be "indirect" but could be as much an opportunity as a test. 

Trump previously pulled the US out of a deal with Iran during his first presidency. Last month, he also raised the prospect of military action against Iran after its supreme leader Ayatollah Ali Khamenei publicly rejected the offer of direct talks.

Pakistan

She really hit the floor. After yesterday’s historic plunge, the Pakistan Stock Exchange saw a strong rebound today, with the benchmark KSE-100 Index gaining over 1,300 points (up 1.16%) by 2:50 pm. This recovery followed the previous session’s dramatic 8,700-point intraday drop, the largest ever in terms of points, before partially recovering to close nearly 3,900 points lower. Investor sentiment appeared to shift, with renewed buying interest across key sectors such as automobile assemblers, cement, chemicals, commercial banks, and oil and gas. The rebound in Pakistan coincided with a broader global market recovery. U.S. stock futures rose on hopes that Washington might ease tariffs amid business leaders’ warnings of trade war fallout. 

The tariff does not strike back. Pakistan has yet to formulate a clear policy response to the United States' recent reciprocal tariffs, raising concern among key exporters and trade experts. The commerce ministry remains in the early stages of internal discussions and on Monday chaired a high-level meeting in Islamabad with textile exporters, the group most affected by the US tariffs. However, no concrete strategy was revealed.

Meanwhile, a report by the Policy Research and Advisory Council (PRAC) of the Karachi Chamber of Commerce has provided the first in-depth assessment of the tariff impact. With textiles accounting for 77% of Pakistan’s exports to the US — valued at $4.18 billion — the sector faces the greatest risk. PRAC stressed the urgency of devising a response, suggesting Pakistan offer zero-duty access to key US exports like soybean, machinery, and cotton to gain concessions for its textile goods.

Out of sight. The Islamabad High Court (IHC) expressed strong dissatisfaction on Monday over the lack of progress in locating the two brothers of journalist Ahmed Noorani, who have been missing from Islamabad since March 19. Justice Raja Inaam Ameen Minhas reprimanded the police for delays and summoned the Islamabad IG, questioning the effectiveness of Islamabad’s Safe City system, asking how such disappearances could go undetected. Advocate Imaan Mazari, representing the family, said the use of phones after a disappearance often points to intelligence agency involvement and criticized the lack of accountability. The Ministry of Defense denied custody of the brothers.

What else is happening?

🚀Pakistani fintech Haball raised $52 million to expand its shariah-compliant supply chain financing and payments services, with plans to enter the Middle East.

🫀Scientists have developed a tiny pacemaker that can be inserted noninvasively via a syringe and dissolves when no longer needed. That makes it particularly well-suited for newborns with heart defects, who often only need temporary pacing.

🧬Biotech startup Colossal announced that it had created three dire wolves, an animal that has been extinct for over 12,000 years. The animals were bred by studying the DNA from a 13,000-year-old tooth and a 72,000-year-old skull.