| Tech Diplomacy News: Trump tariffs cause geopolitical tensions |
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| News Roundup Global U.S. President Donald Trump’s “sweeping” tariffs announced earlier this month were met with shock, trepidation, and ire, sparking threats of retaliation and urgent calls for negotiations. The tariffs have united unlikely nations and turned allies away, prompting fears of an escalating trade war that is already posing great implications for the global economy and diplomacy. Important note: The situation with U.S. tariffs continues to evolve. The coverage included below is summarized with information available at the time of the article’s publication. For a recent update, read this coverage from the BBC on Trump’s flip-flopping stance on including Chinese smartphones in the tariffs – reflective of the whiplash decisions being made across a variety of sectors by the administration. A new report from the International Energy Agency warns a global rush to adopt AI will drive data center electricity consumption way up by 2030, with projections showing a quadrupling of use – but the impact on climate might be mitigated by AI-facilitated efficiency gains in other sectors, the authors argue. AI has been a double-edged sword in elections across the globe, ranging from political deepfake memes to full-blown AI-facilitated disinformation campaigns, a Rest of World analysis finds: “when it comes to AI and elections [in 2024], I’d literally seen the phrase, ‘It’s the dog that didn’t bark,’ but I actually think that is a significant overstatement,” Aspen Digital director Vivian Schiller told article author Khadija Alam. Check out the Stanford Institute for Human-Centered AI’s 2025 AI Index Report, “one of the most comprehensive, data-driven views of artificial intelligence” that “equips policymakers, business leaders, and the public with rigorous, objective insights into AI’s technical progress, economic influence, and societal impact.” North America The Trump administration directed federal agencies to increase their use of AI, an indication of their interest in expanding its use across the government, rescinding Biden-era safeguards on the tech in the process. The calls for a “forward-leaning” approach to maximizing AI in government operations while eliminating “unnecessary bureaucratic restrictions” on innovation, David Shepardson reports for Reuters. The directive also stated federal AI must be developed “free from ideological bias or engineered social agendas,” potentially indicating the administration’s feelings on safeguards pertaining to human rights, privacy, transparency, gender bias, and so on. As Canada’s federal elections draw near, over 150 tech executives issued an open letter urging political leaders to engage in substantive discussions on the nation’s economic future, Randy Thanthong-Knight reports for Bloomberg. Represented by the Council of Canadian Innovators, the execs are advocating for policies that bolster domestic innovation and economic sovereignty, with recommendations encompassing the modernization of the Scientific Research and Experimental Development tax credit, a ‘Buy Canadian Tech’ procurement strategy, and more investments in critical sectors like AI and cybersecurity. Several Republican U.S. senators urged the Commerce Department to scrap a Biden-era rule that would restrict global access to advanced AI chips, arguing in a letter published on April 14 that the export curb may undermine American leadership on tech innovation. CEO of Krach Institute Michelle Giuda spoke on Bloomberg TV earlier this month about “strategically positioning the United States on a long-term footing as a trusted tech, economic, and manufacturing powerhouse in the 21st century.” The Trump administration is seeking to establish a strategic reserve of critical minerals, including those sourced from deep-sea mining in the Pacific Ocean. This initiative reflects a desire to reduce U.S. dependence on Chinese resources, particularly for those essential to defense and other tech advancement. Reporting from Karen McVeigh for The Guardian late last month revealed a Canadian firm was in talks with the administration to “bypass a UN treaty and potentially gain authorisation from the US to mine in international waters.” Mark Zuckerberg took the stand in a major antitrust trial to defend Meta against accusations the company built a social media monopoly by acquiring Instagram and WhatsApp to stifle competition. The Federal Trade Commission cited internal emails and statements from Zuckerberg as evidence for their claims, but Meta claims the acquisitions simply helped enhance the “user experience” and that there’s robust enough competition from platforms like TikTok and YouTube. The trial, expected to run through July, is one stop along a tough road in forcing a Meta monopoly breakup. Europe The European Commission moved to ease compliance burdens on startups and small businesses under the landmark AI Act, with a draft of an “AI Continent Action Plan” circulated April 8 proposing adjustments to the AI Act following complaints from companies of too much “red tape.” Commission President Ursula von der Leyen signaled the EU would retaliate by targeting U.S. tech giants if talks to smooth tariff tensions fail, calling the Trump administration’s move a “turning point.” Meta revealed plans to harness public content and interactions from adult European Facebook and Instagram users to improve its AI models, following a regulatory hiatus driven by the EU’s strict data privacy rules. The European Innovation Council has led in catalyzing over 2.6 billion euros into deep-tech advancement, nurturing a pipeline of transformative tech. Bojan Lazarevski argues that banning TikTok isn’t an effective way to improve tech regulation efforts in the region for Modern Diplomacy. China is not happy with the U.K. over the treatment of British Steel’s Chinese owner received after the latter nation’s authorities seized control of the struggling steel producer. China’s government told Britain to play fair with Jingye Group or risk scaring off investors in an unusually blunt diplomatic move, Danica Kirka reports for AP News. Trump’s renewed demand for the EU to drastically increase imports of U.S. energy as a quick fix for the trade deficit has been met with resistance from EU officials, who remain firm that any expansion must align with environmental standards and climate goals. Regulatory barriers and a reluctance to become overly reliant on a single supplier further complicate Trump’s proposal, Robert Hodgson writes for EuroNews. Africa Trump’s tariffs are putting the African Growth and Opportunity Act in jeopardy, the U.S.-Africa trade deal that’s been giving African duty-free access to the U.S. market set to expire this year – now, nations are bracing for economic impact on sectors like automobiles and minerals. Lesotho has granted Elon Musk’s Starlink a license to operate its satellite internet service in the country, paving the way for low-orbit broadband across the small nation. Google is rebuffing the South African Competition Commission’s call to compensate local media outlets for their content, arguing the recommendations would hinder innovation and unfairly burden them as a single platform. The tech giant contends the Commission’s findings overlook the evolving nature of news consumption and might limit access to more diverse information sources, Paula Gilbert writes for Connecting Africa, Chiamaka Enendu writes for the BBC. In a strategic power shuffle, the U.S. is courting the Democratic Republic of Congo with a critical minerals pact that may shift the balance away from China’s dominance in a region with lucrative resources. Though details remain unknown, a burgeoning deal promises investment and diplomacy in this geopolitical chess move. A new report out of Tanzania is warning digital freedoms could be at risk as the country heads into this year’s elections, illustrating internet governance challenges, progress, and emerging online threats: “this report is not the end, it is a call to action. It is a tool for advocacy, policy dialogue, and community engagement,” said Senior Programmes, Policy, and Advocacy Coordinator at Restless Development – Dodoma, Badru Rajab. Asia Beijing’s response to the Trump administration’s tariffs? New export controls on critical minerals to target U.S. tech and defense advancements, a move described as a “weaponization” of China’s dominance in the sector. China is dramatically expanding its carbon trading market to address big polluting industries like steel, cement, and aluminum – this move will boost the nation’s emissions trading scheme to cover around 60% of its CO2 output, reflective of a recent statement made by President Xi Jinping that China must “aim for the commanding heights of future science, technology and industrial development” in “new energy” and additional tech “frontiers.” Despite U.S. chip sanctions, China’s AI sector is booming thanks to the breakthrough model DeepSeek, which is rapidly accelerating AI adoption across the nation, Kinling Lo and Tiffany Ap report for Rest of World. DeepSeek’s success, which is fueled by state funding and open-source collaboration, has Chinese startups racing to develop practical AI applications on its foundation. Osaka’s Expo 2025 unveiled a sustainable tech utopia featuring flying cars, AI-powered robots, and lab-grown hearts, but the event’s futuristic vision stands in contrast with growing geopolitical tensions, highlighting ongoing challenges in achieving global unity through innovation. A research briefing from Oxford Economics finds South Korea and Japan’s auto industries will be hit the hardest by Trump’s tariffs. South Korea has responded by introducing efforts to safeguard the country’s carmakers. China’s commercial space innovators are rapidly developing reusable launch technologies and satellite networks in an effort to rival SpaceX’s global leadership in the sector. However, bridging technological and operational gaps with Elon Musk’s company remains a formidable challenge for Chinese ventures. India is transforming into a global nerve center for corporate operations, as multinational firms increasingly seek to tap the nation’s vast talent pool of high-skilled workers and take advantage of cost benefits. “By leveraging its strong Digital Public Infrastructure, India can use AI to transform government services, boost public welfare, and tackle societal challenges. But to do this, India must build its own AI capabilities, seamlessly integrate these systems with its digital framework, and champion self-reliance in AI,” Shivam Goyal argues in this piece for The Economic Times. Latin America Geopolitical tensions are affecting Latin America tech investment, most recently illustrated by the struggles of two Chinese carmakers to expand in the region as Beijing hesitates to approve the projects while the U.S. tariff clash rages on. Brazil’s telecom regulator authorized SpaceX to launch thousands of additional Starlink satellites to service the country, the agency announced on April 8reuters.com. The approval expands Musk’s satellite internet constellation over the country, aiming to improve broadband access in rural and remote Brazilian communities. It reflects Latin American nations’ growing interest in leveraging low-earth-orbit satellites to bridge the digital divide, even as questions persist about space traffic and spectrum management. New research shows Chile’s Atacama Desert has 28% more lithium resources than previously thought, and plans are in motion to partner with foreign firms in developing these rich deposits. Brazilian banks are poised to significantly increase their tech investments this year, primarily driven by projects concerning AI, big data, and cloud computing, reflecting a strategic shift towards digital transformation and interest in improving operational efficiency. This write-up from UNDP Guyana asks, will Latin America and the Caribbean take its shot at reshaping productivity? Chinese electronic vehicle giant BYD’s plans to revive a plant in Brazil have been stunted by a labor abuse scandal. Authorities raided the construction site in Bahia, where they found over 100 Chinese workers in “slavery-like” conditions, prompting the company to cut ties with the contractor and put production on hold. Oceania Australia faced a coordinated cyber-heist on several major pension funds, with hackers siphoning off roughly 500k AUD from retirement accounts, spurring Prime Minister Anthony Albanese and cyber leaders to craft a cross-government response. Prime Minister Albanese introduced an unprecedented ban on social media access for children under 16, shifting the burden of enforcement onto tech giants and imposing multimillion-dollar penalties for noncompliance. Framed as a response to a growing youth mental health crisis, and fueled by tragic stories of children who have died by suicide, the policy aims to safeguard Australian children from addictive digital ecosystems. While criticism is mounting that the law is overreaching or potentially unenforceable, bipartisan support and growing international interest suggest Australia may be charting a new course in global tech regulation, Charlie Campbell reports in a detailed write-up for Time. Japan and Fiji are teaming up to launch a multi-million dollar pacific disaster risk project, with the former nation pledging “development assistance” and “support for over 6,500 people-to-people exchanges and human resource development efforts over the next three years,” Nabilah S. writes for Tech In Pacific. Cook Islands’ tourism authority brought together several relevant businesses to guide them on strategies for utilizing AI in their business operations and services, a progressive step towards AI adoption in the island nation. |
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Tech Diplomacy Newsletter 4-25
