FT News Briefing The shifting geopolitics of Trump’s tariffs
23 snips
Apr 2, 2026 
William Sandlund, FT Asia markets correspondent covering China and global capital flows, joins Gideon Rachman, FT’s chief foreign affairs commentator. They get into why Chinese government bonds became a rare war haven, how tariffs jolted allies and rivals, why countries are rerouting trade around the US, and how pressure on the dollar-led order could reshape global power.
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Why Chinese Bonds Became A War Haven
- Chinese government bonds held up during the Iran war because China entered the shock with deflation, not stubborn post-pandemic inflation.
- William Sandlund says coal, renewables, EV use, strategic oil reserves, and discounted Russian energy cushioned China from rising oil and gas prices.
Chinese Bonds Offered Rare Uncorrelated Returns
- Chinese government bonds drew attention because they offered returns that moved differently from global bonds, stocks, and commodities during a risk-off shock.
- Capital controls keep most buyers domestic, but foreign investors willing to navigate access hurdles used them to damp portfolio volatility.
Trump Tariffs Recast Allies As Targets
- Donald Trump's tariff regime unsettled allies not just economically but politically, because they did not expect hostile treatment from the sponsor of the western alliance.
- Gideon Rachman says Britain got 10%, the EU accepted 15%, Japan made vast investment pledges, and China blunted pressure by threatening rare earth restrictions.