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Economy
Listen: Small businesses are more than just corner shops and local services. They’re a driving force of economic growth, making up 90% of all businesses globally. As the global middle class rapidly expands, new opportunities are emerging for entrepreneurs to launch and grow small businesses.
In the first episode of “Local to global: The power of small business”, host JJ Ramberg sits down with Shamina Singh, Founder and President of the Mastercard Center for Inclusive Growth, and Homi Kharas, Senior Fellow at Brookings Institution and Co-Founder of the World Data Lab. Together, they explore how the spending power of the global middle class is fueling small business growth from Taipei to Toronto and beyond.
The discussion also highlights how digital inclusion, access to finance, and cybersecurity are essential for small business success.
“Local to global: The power of small business” is a new podcast series from GZERO Media's Blue Circle Studios and Mastercard, where we'll look behind the curtain to explore the world of small businesses and why they’re positioned to play an even bigger role in the future of the global economy.
The US-Canada relationship has hit new lows since US President Donald Trump took office in January. In the early weeks of his presidency, he not only threatened to annex Canada, but Trump also imposed hefty tariffs on key Canadian exports, including auto parts and metals, triggering a trade war across one of the most commercially integrated borders in the world. As a result, Canada’s exports to the US have plummeted by nearly 20% since Trump took office.
Here’s a look at how Canada’s southbound exports have evolved over the past decade.
A rising number of US college graduates are having trouble securing jobs. The Class of 2025 is up against the toughest labor market in four years, with the unemployment rate for recent graduates sitting nearly two percentage points above than the national average of 4%. Trade tensions are also raising fears of a global recession.
On top of these short-term economic factors is a major long-term one: experts say that many entry-level positions – particularly in the tech sector – are being displaced by artificial intelligence. Here’s a look at the majors least likely to lead to a job after college.
Maybe majoring in history was not such a bad idea after all.
U.S. President Donald Trump arrives to attend the G7 Leaders' Summit at the Rocky Mountain resort town of Kananaskis, Alberta, Canada, June 15, 2025.
The G7 is no longer setting the table; it’s struggling to hold the cutlery. Once a pillar of the post-war world order, the group today is split between the US and the rest, casting about for common ground. Before this week’s summit even kicked off in Kananaskis, Canada, host Prime Minister Mark Carney warned there would be no final joint communique. So what’s up for discussion - and what could be achieved?
The official agenda: Trade, defense, and AI
Trade trumps climate change. With US President Donald Trump back on the scene, tariffs are huge, while climate action takes a backseat. Leaders will try to defend existing net-zero goals, update plans to tackle wildfires, and boost clean tech cooperation. But the meetings’ first focus is on trade, and striking deals. Countries will seek to defend themselves against Trump’s protectionist policies by both expanding trade with each other and getting Trump to lift tariffs on their countries.
Defense and Industry. While the Iran-Israel war now overshadows existing conflicts in Gaza and Ukraine, support for Kyiv is still on the menu. The tone is shifting, however, to talk of pan-European defense against Russian aggression. Carney, French president Emmanuel Macron, and German Chancellor Friedrich Merz are expected to push for a “defense-industrial pact,” a long-term commitment to arms production and supply chains to “Re-Arm Europe”.
Artificial Intelligence and Misinformation Leaders are looking at baseline safeguards around algorithmic transparency and deepfake detection, given the worldwide rise in election interference, cybercrime and cyberwarfare. While global AI regulation is unlikely, the G7 may commit to coordinating digital watchdogs and fighting cross-border disinformation campaigns.
The backstory: America alone
All these items are dominated by a larger issue: the widening gap between the US and its allies. Trump’s view of the world order diverges starkly from that of the other members of the group. His thin skin and volatility could also compromise the outcome of the talks, especially if he storms out like he did at the infamous 2018 Charlevoix summit. Carney’s main tasks include preventing Trump from feeling disrespected, and navigating the divide between G6 goals and US ambitions such as Trump’s takedown of China.
What can this meeting achieve, then?
Expect no joint statement, but lots of bilateral action, with both Trump and other world leaders. On Sunday, for example, Carney and UK Prime Minister Keir Starmer announced a strengthened partnership on a range of issues including trade and defense. Carney has also invited a slew of non-G7 leaders, including Indian Prime Minister Narendra Modi, arguing that they are key to solving major questions such as energy security and AI. Ukrainian President Volodymyr Zelensky will also be present, as will the leaders of Australia, Brazil, Indonesia, Mexico, South Korea and South Africa. In the end, the biggest achievement may simply be keeping the group alive to meet another day.The G7 countries – the US, UK, Canada, Germany, France, Italy and Japan – will convene this weekend in Kananaskis, a rural town in the mountains of Alberta, Canada. High on the meeting’s agenda are tariffs, artificial intelligence, and international security, with special focus on Russian sanctions and Israel’s recent attacks on Iran.
While the G7 was originally formed as an informal grouping of the world’s wealthiest democracies, the BRICS – composed of Brazil, Russia, India, China, South Africa – have sought to challenge their dominance of the global agenda.
Here’s a look at how the share of the global economy held by G7 and BRICS nations has evolved over time.
Israeli Prime Minister Benjamin Netanyahu attends a discussion on the subject of hostages kidnapped during the deadly October 7, 2023 attack, in Israel's parliament, the Knesset, in Jerusalem, November 18, 2024.
Will Israel’s government be dissolved?
The warning signs are flashing for Prime Minister Benjamin Netanyahu as the Knesset prepares to vote later today on whether to dissolve his government. The crisis was triggered when a pair of ultra-Orthodox parties in Bibi’s coalition signaled last week they would ditch the coalition over plans to end certain military exemptions. For more on what the collapse of Netanyahu’s government could mean, see here.
US and China reach tariff ceasefire
The United States and China reportedly agreed to a trade truce Wednesday, with US President Donald Trump saying Chinese imports will now face a 55% tariff while Beijing keeps a 10% levy on US products. Importantly, China has restarted its exports of high-tech magnets and rare earth minerals, and the White House reaffirmed Chinese students’ access to US colleges. Still, details of any larger deal covering broader issues of market access and technological competition are far from being ironed out.
Musk v Trump: Is it too late now to say sorry?
Elon Musk appears to be tapping out in his highly-public feud with US President Donald Trump, posting on X (early) this morning that he “regrets” the insults he’s hurled at the president.We’ll be watching to see if the detente holds between these two famously volatile figures. With midterms on the horizon, it matters: Musk’s financial firepower is significant, as we saw here.
For more: Ian Bremmer sat down with Semafor Co-Founder and Editor-in-Chief Ben Smith to discuss the Musk-Trump beef and what it tells us about political power in America today.
An American flag flutters over a ship and shipping containers at the Port of Los Angeles, in San Pedro California, U.S., May 13, 2025.
Donald Trump’s supporters like to tout his 1987 book, The Art of the Deal, when they discuss his trade gamesmanship, but, a month after “Liberation Day,” it is getting harder for them to convince skeptical Americans that he is winning more than they are losing.
On Monday, the White House announced a breakthrough in trade talks with China, but experts note that American negotiators appear to have won few concessions after a month of damaging uncertainty for US business. The on-again-off-again tariffs have rattled small business owners and stoked fears of a recession.
The announcement of a partial reprieve — there is still a 30% tariff on most imports from China — was greeted as good news by shippers, who had shifted cargo vessels to other routes, but uncertainty around the future of the relationship remains high, which discourages investment.
The editorialists at the Wall Street Journal think Trump may have learned that his capacity to play chicken with China is not as strong as he thought it was, which may weaken the internal faction of China hawks led by Peter Navarro, senior counselor for trade and manufacturing.
The remaining tariffs still give Trump leverage over other leaders, since many countries want to keep selling into the American market, but opinion polling shows that voters are skeptical and fear Trump’s tariff policy will stoke inflation. Since the Chinese Communist Party doesn’t have to worry about midterm elections, and the US president does, they seem to have decided they can outwait him, which may limit how far he can push his luck.