1. Trump hit back at China’s 34% retaliatory tariff on U.S goods. He threatened them with an additional 50% tariff, which would go live today unless they removed the new measure. China responded by saying they would fight to the end. 

2. European markets rebounded after yesterday’s tariff wipeout. The Stoxx 600 clawed back 1.2% after its worst 4-day plunge since COVID. $1.7 trillion vanished in the rout, and while insurance and industrials led gains, investors are still eyeing the exits.

3. Trump is considering drone strikes on Mexican cartels that would include direct hits on operatives, vehicles, and supply hubs, according to 6 intel and military sources. The plan could involve coordination with Mexico - or not. Unilateral covert strikes remain a live option, officials said. 

4. Iran and the U.S are set to meet in Oman on Saturday to try and negotiate a nuclear deal. Foreign Minister Abbas Araghchi will lead Iran’s delegation, while U.S Special Envoy Steve Witkoff will head the American side.