April 7th, 2025: Why The New Tariffs Are A Gut Punch To China & Russian Spy Gear Targets British Nuclear Subs
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We'll start things off today with a sharp escalation in the global trade war. China is now hitting back after President Trump's sweeping new tariffs, with a 34% tariff of their own on all American goods. But here's the twist. Experts say that the real damage might be on China's side. I'll explain why these tariffs could backfire on Beijing's relatively fragile economy.

Later in the show, a new report out of the UK. Russian spy sensors have been discovered tracking Britain's nuclear submarines, posing, of course, a serious national security threat. Now, it's hard to believe, I know, that the Russian military would be engaged in these sort of shenanigans. I mean, I thought that Putin was simply interested in peace.

Plus, political chaos continues in South Korea. The country's highest court has officially removed President Yun Suk-yeol from office just four months after he declared martial law. And in today's Back of the Brief, Yemen's Houthi rebels continue to show resilience, reportedly shooting down a third U.S. Reaper drone just since the beginning of March. But first, today's PDB Spotlight.

Nations around the world are still reacting to the sweeping tariffs that President Trump announced last week, and not surprisingly, one of America's biggest trade partners, that would be China, isn't taking it lightly. Instead, Beijing has chosen to hit back. This weekend, Chinese officials announced that they're slapping a 34% tariff on U.S. goods, matching the exact rate that Trump imposed on Chinese imports.

A spokesman for China's foreign ministry accused the U.S. of trying to, quote, subvert the existing global economic and trade order, saying that Washington is putting American interests above the, quote, common interests of the international community, end quote. Yes, that's the Communist Party saying that.

Because as we know, the Chinese Communist Party always acts in the common interest of the international community. In fact, it's the CCP's signature move. Before taking any action, the Chinese regime always asks, is this going to help the international community?

Now, look, I'm no economist, but here's what's clear. These tariffs could be a serious problem for China. For decades, China's economy has been powered by selling cheap goods, everything from T-shirts to tablets, to American consumers. Now, that steady cash flow has helped keep their economy running. But with a 34% tariff slapped on Chinese goods, it, well, it throws a wrench in the system.

Products from China suddenly get way more expensive here in the U.S., and that leaves Chinese manufacturers with two not particularly good choices. Either eat the costs themselves, which of course slashes their profits, or raise prices, which risks American buyers walking away.

Now, my good friend Gordon Cheng, one of the most knowledgeable China analysts out there, well, he thinks it's even worse. He says this terror fight exposes just how fragile the Chinese economy is. According to Gordon, they've been gaming the system for decades, stealing intellectual property, manipulating currency, and keeping prices low through a variety of tactics.

And there's evidence that tariffs work. When the Trump administration, the first Trump administration, hit China with tariffs, Chinese companies ended up eating 75 to 81% of the costs just to stay competitive in the U.S. market. Now with these new tariffs in force, China's once again scrambling. They're going to be forced to devalue their currency and double down on propping up key industries in order to keep the exports flowing.

But to be fair, the pain does go both ways. China's 34% tariff on U.S. goods will hurt American farmers and manufacturers that depend on access to Chinese buyers.

There's also one other element, which is that Beijing is also pumping stimulus money into their economy to soften the blow. But that might not be enough. China is already dealing with a mountain of internal problems: massive debt, a demographic crisis, and a slowing economy. Some analysts, including Gordon Chang, think these tariffs could be the tipping point. Now, I can't say whether they're right or wrong on that, but it does look like China's in a tougher spot than they're letting on.

While China lashes out, other U.S. trade partners, well, they're taking a very different approach. They're trying to de-escalate the situation. In Europe, the British government is reportedly ready to make major concessions to avoid long-term economic damage. Officials are optimistic that they can strike a deal with Washington to reduce or eliminate the 10% tariffs within weeks, and that's according to a report in the Washington Post.

France and the UK are coordinating their strategy, with President Macron speaking to British Prime Minister Starmer over the weekend. Macron said both countries would, quote, closely coordinate their approach to upcoming negotiations with the U.S. And in Italy, the economic minister says his country is working hard to lower the temperature with Washington. Meanwhile, Japan's prime minister says he plans to speak directly with President Trump in the coming days.

All right. Coming up after the break, a Russian spy threat to Britain's nuclear subs and political chaos continues in South Korea as its president is removed from office. I'll be right back.

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Echoes of the Cold War are surfacing in British waters, where Russian spy sensors have been discovered tracking the United Kingdom's nuclear submarines in what military officials deem a serious national security threat. In a report from the Sunday Times, Royal Navy operatives recovered Kremlin-linked sensors from the seabed surrounding the British Isles.

The devices are believed to be part of an increasingly aggressive Russian campaign to surveil and potentially sabotage critical UK undersea infrastructure. Among the assets reportedly targeted was the UK's fleet of Vanguard nuclear-class submarines, each armed with nuclear missiles. The discovery prompted a swift response from military officials who kept the findings hidden from the public but now warn of heightened Kremlin activity.

One senior military source told the outlet, quote, There should be no doubt there is a war raging in the Atlantic. The military is seeing phenomenal amounts of Russian activity, end quote. The UK Ministry of Defense suspects that these censors are part of Russian President Putin's broader, quote, gray zone warfare tactics. That term is used to characterize low visibility, plausibly deniable acts of aggression on vulnerable assets that fall just short of open conflict.

British defense analysts say several of the 60 internet cables connecting the UK to the global web, including a number that are deemed classified, are now under elevated threat. The pattern echoes suspected Russian sabotage operations elsewhere in Europe.

As our PDB listeners know, in the past 15 months, at least 11 undersea cables in the Baltic Sea have been damaged under suspicious circumstances, most often linked to Russian sabotage operations. Compounding those concerns are reports that the devices found off British coasts bear similarities to components linked with Russian unmanned vehicles and other gear that have washed up on European shores in recent months.

There's also rising suspicion that Russia's network of oligarch-owned yachts has served as a mobile staging platform for espionage missions. While no official accusations have been made, defense officials are investigating links between vessel routes and known cable sabotage sites. The UK's Vanguard-class submarines, meanwhile, remain unaffected. In a statement, the Ministry of Defense confirmed that its submarines, quote,

continue to patrol the world's oceans undetected as they have done for 56 years. However, concern regarding Moscow's current threat level is mounting behind the scenes. In response, the Navy has expedited efforts to harden its undersea infrastructure. A project codenamed Cabot aims to coordinate with energy and technology companies to protect core seabed infrastructure.

Some in the Royal Navy argue that deterrence must go further. Navy sources told the Sunday Times that the government should deploy sea mines, a Cold War-era measure not used in decades, to defend the UK's subsea territory. But for now, along with Project Cabot, the Ministry of Defense is prioritizing coordination with NATO and Joint Expeditionary Force allies.

The goal, of course, is to boost the security of critical offshore infrastructure by improving the ability to detect incursions by Russian vessels and aircraft near Europe's shores. All right, turning to South Korea. The Constitutional Court formally ousted President Yoon Suk-yol from office, capping a months-long political crisis that began with his shocking declaration of martial law back in December.

In an unanimous ruling on Friday, the court's eight justices described Yoon's actions, including sending armed troops to surround Parliament and ordering them to drag out lawmakers, as both unconstitutional and a, quote, grave betrayal of the people's trust.

As we've been tracking here on the PDB, the court's decision followed a night of chaos on the 3rd of December that stunned both the nation and the international community. In a surprise late-night address, Yoon declared martial law, claiming the country faced threats from, quote, anti-state forces aligned with North Korea.

Within hours, soldiers encircled the National Assembly as lawmakers scrambled to convene an emergency midnight session, forcing their way past military lines to annul the decree before dawn.

The court's acting head judge emphasized that there was no national emergency that night to warrant such a decree. While Yoon later insisted the declaration was intended merely as a symbolic warning, not an actual coup attempt, lawmakers swiftly impeached him.

Yoon's removal takes effect immediately, triggering a snap presidential election that must be held within 60 days, marking a dramatic fall for the former prosecutor-turned-president who had once built his career on prosecuting former leaders. Elected nearly three years ago, Yoon now becomes the second president in South Korean history to be ousted by the Constitutional Court and the shortest-serving elected leader of the country's democratic era.

His downfall comes at a time of heightened political tensions, with rising military posturing from China and North Korea placing new stress on Seoul's leadership. Acting President Han Deok-soo pledged to maintain national stability and oversee the coming election in accordance with the Constitution.

and legal troubles for Yoon may only be beginning. The now former president also faces ongoing criminal charges of insurrection, and that's a serious charge that, under South Korean law, carries a potential sentence of life imprisonment or even the death penalty, although South Korea has not carried out executions since the 1990s.

In a brief post-ruling statement, Nguyen offered a muted apology for failing to meet expectations and thanked his supporters, calling it an honor to have served. But reactions in the Capitol were, well, putting it diplomatically, polarized. Outside the courthouse, critics celebrated with chants and songs and banners. Meanwhile, a small crowd of conservative loyalists gathered near the presidential residence, many in stunned silence.

Attention now turns to the question of who might succeed Yun. Among the frontrunners is opposition leader Li Jieming, who narrowly lost the 2022 election to Yun and has remained a prominent critic throughout his presidency. All right, coming up next in the back of the brief, Yemen's Houthi rebels have reportedly shot down another U.S. Reaper drone. That would be the third in just the past two months, showing that the terror group may have more staying power than anticipated.

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In today's Back of the Brief, Yemen's Houthi rebels shot down yet another American MQ-9 Reaper drone, marking the third such incident in just two months, underscoring the terror group's resilience in the face of U.S. airstrikes. Now, despite near daily strikes over the past three weeks, the Trump administration has offered little in the way of clarity or commentary on its broader strategy in Yemen. The Pentagon has not held a formal press briefing in weeks.

The result? Concerns regarding transparency, direction, or clear endgame. For some background, the MQ-9 Reaper drone is an advanced unmanned aircraft valued at roughly $30 million, give or take a couple of bucks, capable of deploying up to eight Hellfire missiles, and it's become a preferred target for the Iran-backed Houthis. The drone is central to U.S. surveillance and strike operations across the region.

Since October of 2023, when the Houthis began attacking Israeli and commercial vessels in the Red Sea in the aftermath of Hamas's 7 October terror attacks in Israel, they claimed to have downed at least 13 rapers. Now, an American defense official told Fox News that the true tally may be closer to 17. Hmm, that's an embarrassing attrition rate for one of the Pentagon's most prized assets. Now, if that number is accurate...

And at $30 million apiece, well, I'm not that good at mathin', but I believe that would tally up to somewhere in the region of half a billion dollars. Washington, for its part, has turned to financial warfare in addition to the ongoing airstrikes. Last week, the State Department imposed sanctions on a series of individuals and entities linked to a shadowy global finance network accused of funneling money and weapons to the Houthis.

National Security Advisor Mike Waltz, speaking last month on CBS's Face the Nation, compared the Houthis to, quote, Al-Qaeda or ISIS with advanced cruise missiles. He warned that Iran continues to provide the group with increasingly sophisticated weaponry. Securing the Red Sea trade corridor, Waltz says, is a fundamental aspect of U.S. national security.

As Houthi rebels continue to demonstrate resilience in the face of regular U.S. airstrikes, and with a top official from the Iran-backed proxy declaring just last month that they are at war with America, well, U.S. assets, like the Reaper drone, have obviously become prime targets.

And that, my friends, is the President's Daily Brief for Monday, the 7th of April. Now, if you have any questions or comments, please reach out to me at pdbatthefirsttv.com. And I hope you had a chance to listen to this past weekend's episode of our PDB Situation Report. If not, you can find it and, of course, past episodes on our highly acclaimed but not yet award-winning YouTube channel, which you can find at President's Daily Brief. And as always,

You can find the PDB on all the podcast platforms, wherever you get your podcast stuff. I'm Mike Baker, and I'll be back later today with the PDB Afternoon Bulletin. Until then, stay informed, stay safe, stay cool.