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Graphic Truth: Trump increases tariff threats on top trade partners
US President Donald Trump is threatening to impose 30% tariffs against the United States’ top two trading partners, the European Union and Mexico, demanding that Europe open its markets more to US products and that Mexico combats local drug cartels. Without new trade deals, the levies would come into effect on Aug. 1, and are higher than the previous duties that Trump had threatened. The announcement has put both Mexico and the European trading bloc on their heels: they have each now scrapped earlier plans to retaliate, favoring negotiations to smooth things over in the next two weeks. However, as Trump continues to drive an extremely hard bargain with even the US’s closest trading partners, he increases the risk that they will look elsewhere for alliances – for some, this process has already begun.
Riot police officers fire tear gas canisters to disperse demonstrators during anti-government protests dubbed “Saba Saba People’s March,” in the Rift Valley town of Nakuru, Kenya, on July 7, 2025.
What We’re Watching: Kenya’s president cracks down further, UK and France open an atomic umbrella, Trump meddles in Brazil
Ruto orders police to shoot looters as Kenya protest escalate
Amid ongoing anti-government protests, Kenyan President William Ruto has ordered police to shoot looters in the legs. The order is meant to stop attacks on businesses, but could lead to more casualties after 31 people were killed on Monday alone. The youth-led protesters want Ruto to resign over high taxes, corruption allegations, and police brutality. According to Mercy Kaburu, a professor of international relations at United States International University in Nairobi, Ruto’s government “is not at risk of collapse before the next general election” which is set for 2027. But, she cautions, he “could be threatened if nothing changes.”
United Kingdom and France to open their nuclear umbrella
UK Prime Minister Keir Starmer and French President Emmanuel Macron signed a landmark deal aimed Thursday at restricting the flow of migrants across the English Channel. But the cross-channel agreement that may draw more attention globally is a pledge from Europe’s only two nuclear-armed nations to extend their nuclear umbrellas to allies on the continent who face an “extreme threat.” This is a big step toward “common European defense” at a time when Russia’s ongoing invasion of Ukraine and uncertainty about the US long-term commitment to NATO have prompted more urgent action in Europe.
Trump uses tariffs to meddle in Brazil
US President Donald Trump announced Wednesday that the US will slap 50% on Brazil starting on August 1. The reason? Trump blasted Brazil for its “unfair” treatment of former President Jair Bolsonaro, a rightwing firebrand and close Trump ally who is currently on trial for allegedly plotting to overturn the 2022 Brazilian election. Trump also cited an “unsustainable” US trade deficit with Brazil, though official data show the US actually runs a small trade surplus with Latin America’s largest economy. Brazil’s leftwing President Luiz Inácio Lula da Silva, reportedly blindsided by the announcement, has vowed to respond with reciprocal measures.
See below for Ian Bremmer’s Quick Take on what Trump’s move really means.
US-Brazil relations in crisis
In this episode of Ian Bremmer’s Quick Take, Ian breaks down the growing crisis between the US and Brazil, sparked by Donald Trump’s surprise announcement of 50% tariffs on all imports from Brazil.
Ian argues Trump’s tariffs are not driven not by trade but by politics.“This is clearly an abuse of executive authority,” Ian says, adding the tariffs have “nothing to do with a national security emergency.” He notes the move targets Brazil over efforts to prosecute former President Jair Bolsonaro and for legislation moving against social media companies.
Ian warns that Trump’s move could backfire badly. “Lula is going to lean into this fight,” he explains, noting it may hurt Bolsonaro’s political chances. Trump’s goal? “Purely a political vendetta… it doesn’t advance the American national interest,” says Ian. He predicts this unprecedented intervention could ultimately “blow up in Trump’s face.”
China and Japan under pressure from Trump's tariff threats
In this episode of Ian Bremmer’s World in :60, Ian breaks down the latest on US trade tensions, Iran’s nuclear program, and Trump’s meeting with Netanyahu.
On US tariffs, Ian says Japan and China face “radically different” situations.
As Iran cuts ties with nuclear inspectors, Ian says they’re “taking their program dark.”
On Trump’s recent meeting with Netanyahu, Ian says a Gaza ceasefire remains uncertain. Though Netanyahu nominated Trump for a Nobel Peace Prize, Ian points out, “That’s nice for Trump, but not a Gaza ceasefire.”
Graphic Truth: The BRICS+ in a "G-Zero" world
The BRICS, a loose grouping of ten “emerging market” economies led by Brazil, Russia, India and China, held their 17th annual summit in Rio de Janeiro, Brazil, this weekend. While the official readout from the summit emphasized their commitment to multilateralism, the guestlist begged to differ. Five of the 10 leaders were no-shows, including Chinese President Xi Jinping and Russian President Vladimir Putin.
While the group’s declaration took aim at tariffs increases and recent attacks against Iran, it stopped short of mentioning the US or naming President Donald Trump directly. For more, here’s GZERO writer Willis Sparks’ explainer on why the BRICS are a bad bet.Graphic Truth: Mexico and Brazil seek to boost trade ties
Mexico and Brazil are exploring ways to boost their trade ties, and there’s certainly room for improvement: bilateral commerce between Latin America’s two largest economies amounted to just $13.6 billion last year. That’s less than 10% of Brazil’s trade with China, and not even 2% of Mexico’s trade with the US. While the two countries have historically competed for dominance, the Trump administration’s latest tariffs and the election of left-wing leadership in both Brazil and Mexico have motivated closer cooperation.
Here’s a look at where trade between Brazil and Mexico currently stands.
US President Donald Trump speaks to reporters aboard Air Force One after departing early from the the G7 summit in Canada to return to Washington, D.C., on June 17, 2025.
Why hasn’t US inflation boomed?
When US President Donald Trump announced a swath of tariffs on virtually every US trading partner on April 2 – which he dubbed “Liberation Day” – most economists had the same warning: prices will rise. What’s more, Trump’s plan to deport millions of undocumented migrants and his adviser’s idea to weaken the US dollar would add to the buoyant pressure on prices.
Exactly three months on, those inflation distress calls appear to have been misplaced: the inflation rate was 2.4% in May, within touching distance of the Federal Reserve’s 2% target, and far below the rates seen in 2022 under former President Joe Biden – even with the dollar having its worst start to a year in over 50 years.
So why haven’t prices skyrocketed, as some economists warned?
First of all, not all the tariffs have even been imposed. When US treasury markets began to suffer following the announcement of “retaliatory tariffs,” Trump pulled back, pausing these extra taxes until July 9. What’s left of his new tariff policies are a 10% across-the-board levy – even these were briefly invalidated – a 55% rate on Chinese imports (down from 145%), and sectoral duties on goods like steel, aluminum, and auto parts. The US president has also allowed for a smattering of exemptions, most notably on smartphones and computers – those must have been a rotten Apple.
Secondly, businesses have made choices that have put a cap on price hikes.
Part of this is simply due to firms waiting for Trump to finalize his tariffs plans before they start passing on the higher costs to consumers, per University of Missouri economics professor Joseph Haslag.
“During the heyday of the negotiations, I don’t think anyone wanted to start raising prices until they knew what the final deal was going to look like,” he said.
Some of it is also thanks to forward planning. When Trump initially announced the tariffs, some firms stocked up on inputs before the duties came into effect. This has allowed them to hold prices as they continue to sell inventory that was purchased at pre-Liberation Day prices.
Finally, there are some economic factors that are putting downward pressure on prices, per Haslag. The economy is slowing, reducing demand and lowering inflation rates. What’s more, artificial intelligence may have already started helping firms to lower prices: it boosts worker and business productivity, allowing them to produce more in less time and at less cost.
Trump feels validated. The president will see the misguided warnings of high inflation as the latest example of the media and the “deep state” trying, and failing, to take him down – he lauded the low inflation rates during a May speech in Saudi Arabia. As such, he will feel that he has the green light to continue advancing other elements of his agenda, safe in the belief that any cautions from the “establishment” can be shot down as “fake news.”
Aren’t those “reciprocal tariffs” coming back though? Affirmative – they return just one week from now, and Trump’s plans are still up in the air. He has only negotiated one trade deal – with the United Kingdom – despite saying soon after “Liberation Day” that he had made 200. Treasury Secretary Scott Bessent hinted that there might be some flexibility on the timing, which would be in line with the president’s past actions.
“July 9 is not a drop-dead date on which tariffs are going to be implemented across the board,” said Haslag. “We’ve had other sorts of deadlines that have come and passed over the past few months with regards to tariffs.”
The chickens always come home to roost. For any political gains Trump may have made thanks to lower-than-expected inflation rates, this upcoming deadline for the reciprocals creates a major dilemma for Trump: either he “chickens out” again, as one columnist jokingly suggested, or he actually imposes these hefty duties. The Fourth of July celebrations this weekend may not be as expensive as once feared – will Americans be able to say the same for Labor Day, Thanksgiving, or even Christmas?Graphic Truth: The Trump effect on Canada’s US-bound exports
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.