In a series of fast-moving developments, the Trump administration's trade and immigration policies have come under increased scrutiny. A planned meeting between President Trump and El Salvador's President Nayib Bukele at the White House has drawn attention to the US administration’s deportation practices, particularly the transfer of Venezuelan immigrants to a high-security prison in El Salvador.

Since March, over 200 Venezuelan immigrants, accused by US officials of gang activity without substantial evidence, have been deported to El Salvador and placed in the Terrorism Confinement Center (Cecot). This move has solidified an alliance between Trump and Bukele, praised by figures like Marco Rubio as “an example for security and prosperity in our hemisphere.” Trump has lauded Bukele's efforts, particularly his handling of detainees, citing cost savings for the US.

However, this alliance has faced criticism, especially concerning human rights issues within Cecot. Despite allegations of human rights abuses, Trump has dismissed these concerns. The deportation of Kilmar Abrego García, a Salvadoran migrant with a US work permit, has further fueled controversy. Despite a Supreme Court ruling to facilitate his return after an erroneous deportation, the Trump administration has resisted assisting in his extraction from El Salvador, claiming their obligation is merely to remove domestic obstacles to his return.

Adding to the administration's legal challenges, the case of Mahmoud Khalil, a Palestinian activist and Columbia University graduate, highlights concerns over the suppression of dissent. Khalil, a legal US resident, faces deportation for his participation in protests against Israel, with an immigration judge ruling his presence posed “potentially serious foreign policy consequences.” His lawyers are challenging the legality of his detention, arguing it violates his First Amendment rights.

In economic news, Ray Dalio, a billionaire investor, has warned of potential economic downturns resulting from Trump’s trade policies, suggesting the US may face “something worse than a recession” if trade issues are not handled carefully. Dalio's concerns stem from rising tariffs, debt, and challenges to the existing world order, drawing parallels to the 1930s. He urged for fiscal responsibility, advocating for a reduction of the budget deficit to 3% of GDP.

On the trade front, there have been some signs of easing tensions. The Trump administration has temporarily exempted smartphones and computers from tariffs on imports from China, leading to a surge in European shares, particularly in technology stocks. Companies like Infineon, ASML, and BE Semiconductor saw gains following the announcement. However, uncertainty remains, with tariffs on semiconductors still under consideration.

Meanwhile, Chinese President Xi Jinping is in Vietnam to bolster regional economic ties, amidst ongoing trade tensions with the US. Xi has called for more regional cooperation, emphasizing that “a trade war and tariff war will produce no winner, and protectionism will lead nowhere.”

Other significant shifts include the departure of Pete Marocco, a key figure in the dismantling of USAID, from the State Department. Marocco's role involved reviewing foreign assistance spending, reportedly exposing abuses of taxpayer dollars. In other global economic news, Sony announced it would hike the price of its PlayStation 5 console in markets in Europe, Britain, Australia and New Zealand, citing high inflation and fluctuating exchange rates.

As the European Central Bank prepares for its policy meeting, markets are anticipating a potential rate cut, closely monitoring the economic impact of ongoing tariff disputes.