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Economy
Three Numbers, One Story: Trump ups India's tariffs
The US imposed steep 50% tariffs on Indian goods Wednesday, doubling an earlier 25% levy after New Delhi increased purchases of Russian oil. The move threatens $48.2 billion in exports, hitting labor-intensive sectors like textiles, jewelry, leather, food, and autos hardest, though pharmaceuticals and electronics are spared. Indian exporters warn of job losses and unviable businesses, while Prime Minister Narendra Modi has vowed not to yield to US pressure on agriculture and dairy access. With trade talks stalled, India is preparing reforms to boost domestic demand and diversify exports toward Europe, Africa, and Southeast Asia.
What We’re Watching: Powell signals rate cuts, Sri Lanka’s anti-corruption push, Gaza starvation confirmed
Federal Reserve Chairman Jerome Powell attends the Federal Reserve Bank of Kansas City's 2025 Jackson Hole economic symposium, "Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy" in Jackson Hole, Wyoming, U.S., August 21, 2025.
Powell opens door to rate cuts
Federal Reserve Chair Jerome Powell signaled the central bank could cut rates as soon as next month during his annual Jackson Hole address, pointing to a slowing labor market and the risk that tariffs could push prices higher. While jobs remain stable, Powell noted that both hiring and labor demand are weakening. Markets jumped on the signal of easing, a win for President Donald Trump, who has been pressing the Fed to cut rates. But as Powell spoke, Trump renewed threats to fire Fed board member Lisa Cook, potentially allowing him to appoint a more sympathetic replacement — though he would face legal hurdles to do so.
Sri Lanka’s anti-corruption push nabs former president
Sri Lanka’s former president Ranil Wickremesinghe, who led the country from 2022 to 2024, was arrested Friday on corruption charges tied to oversees trips while in office. Wickremesinghe came to power following mass protests over the island’s worst-ever economic crisis, and was credited with stabilizing the economy and securing an IMF bailout. That bailout came with harsh austerity, however, fueling public anger and paving the way for his defeat last year to leftist reformer Anura Kumara Dissanayake, who campaigned on rooting out corruption. Wickremesinghe’s arrest is the most high-profile yet in a post-crisis anti-graft drive that has already ensnared 63 Sri Lankan officials and politicians.
Parts of Gaza suffering from starvation, food insecurity group finds
Half a million people in Gaza City and its surrounding areas are suffering from famine, the Integrated Food Security Phase Classification (IPC) concluded. Most other parts of Gaza are experiencing severe hunger, said the food monitor. Whether Gazans have been suffering from starvation has been the subject of much debate – the IPC last year refuted a USAID report that had argued there was famine. Recent images from Gaza, as well the IPC’s reversal, tell their own story. Israeli Prime Minister Benjamin Netanyahu denies that there is starvation, and is pressing forward with plans to conquer Gaza City.What We’re Watching: Haiti turns to foreign fighters, China’s economy slumps, protests flare-up in Serbia
Erik Prince, founder of Blackwater, attends a police and military presentation, in Guayaquil, Ecuador April 5, 2025.
Haiti turns to foreign guns as gangs tighten grip
Blackwater founder Erik Prince is ramping up his private security firm’s presence in Haiti, deploying hundreds of fighters from the US, Europe, and El Salvador to battle gangs controlling much of the country. Prince’s Vectus Global, active there since March, says it’s working under a 10-year deal with Haiti’s government, including a role in tax collection. The move — involving snipers, helicopters, and drones — comes after gangs toppled the government in February, causing ongoing chaos in Port-au-Prince.
The stakes of China’s economic slowdown
China’s economy stumbled in July, with factory output hitting an eight-month low, though still 5.7% higher year-over-year than the previous July. The relative slowdown reflects weakening domestic demand, property sector woes, extreme weather, and fierce market competition — compounded by uncertainty over Donald Trump’s trade policy. Beyond the economic hit, analysts note that prolonged weakness could limit Beijing’s ability to come into impending trade talks on strong footing.
Tension in Serbia flare
Tensions in Serbia escalated this week after supporters of President Aleksandar Vučić and his ruling Serbian Progressive Party (SNS) hurled flares at anti-government protestors late Wednesday. The violence follows nine months of demonstrations sparked by the deadly collapse of a train canopy in Novi Sad that killed 16 last year – an incident which protestors have blamed on state corruption and mismanagement. With Serbian Prime Minister Miloš Vučević having already resigned earlier this year, we’ll be watching to see if Vučić can outlast this growing political crisis.
US President Donald Trump’s upcoming summit with Putin has cast a spotlight on oil exports, a key source of revenue for Russia’s war in Ukraine. The White House has been threatening Russia with so-called “secondary sanctions”, while punishing buyers — slapping a 50% tariff on India, the largest buyer of Russian crude in 2025 (more on that here). Here’s a look at the biggest buyers of Russian oil via boat in 2025.
U.S. President Donald Trump and China's President Xi Jinping arrive for a state dinner at the Great Hall of the People in Beijing, China, November 9, 2017.
90: President Donald Trump on Monday delayed the US’s tariff deadline with China by another 90 days – hours before a previous agreement was set to expire. Beijing responded Tuesday by suspending additional retaliatory tariffs on US goods. The move follows bilateral talks last month in Stockholm, where both sides had signaled a likely extension of the status quo amid fears of a wider trade war.
5: In a first for any NATO country, Finland brought charges against the captain and crew of a Russian-linked oil tanker for suspected subsea cable sabotage, after the vessel cut five cables by dragging its anchor along the Baltic Sea floor in late 2024. While subsea cables are vital for internet connectivity and electricity infrastructure, prosecuting foreign interference is notoriously difficult, as deliberate damage is often indistinguishable from accidents.
40: On Monday, 40 people were killed in the western Sudanese region of Darfur, after rebels from the Rapid Support Forces attacked Abu Shouk, a famine-hit displacement camp which houses at least 200,000 people. Darfur has witnessed some of the worst violence in Sudan’s two-year-long civil war, which has claimed an estimated 150,000 lives and displaced at least 12 million.
850: A Chinese man pleaded guilty on Monday of attempting to illegally smuggle 850 protected turtles to Hong Kong from the United States. The turtles – worth around $1.4 million – were reportedly wrapped in socks and labeled in boxes as “plastic animal toys.”
What We’re Watching: US envoy in Moscow, Tariffs rock South Africa’s government, Hezbollah dismisses disarmament
Russian President Vladimir Putin shakes hands with US special envoy Steve Witkoff ahead of Ukraine war talks.
US envoy meets with Putin ahead of sanctions deadline
US special envoy Steve Witkoff met with Russian President Vladimir Putin at the Kremlin on Wednesday ahead of US President Donald Trump’s Friday deadline for the Kremlin to end the war or face new US sanctions. Neither side has revealed details about the talks yet, but Putin is reportedly unmoved by Trump’s threats, seeing his own war aims as being worth the price of further economic pain. The Witkoff-Putin talks came a day after Trump and Ukrainian President Volodymyr Zelensky discussed Russia sanctions and increased defense cooperation.
US tariffs cause political trouble in Africa’s largest economy
South African President Cyril Ramaphosa is facing a backlash from his coalition partners over his failure to deftly handle tariff negotiations with Trump. In May, Ramaphosa made a trip to the White House where he sought to allay the US president’s trade concerns and push back against largely fabricated stories about a “genocide” of South African white farmers. None of it worked — Africa’s largest and most industrialized economy is under a 30% tariff, the highest rate on the continent.
Lebanon’s Hezbollah rejects calls to disarm
Hezbollah on Wednesday said it would be a “grave sin” for the Lebanese government to try to take away its weapons. The defiant statement comes after Lebanon's cabinet, acting under US pressure, ordered the army this week to draft a plan by year’s end to place Hezbollah’s weapons under state control. Iran-backed Hezbollah faces its weakest moment in years: Israeli strikes have decimated its weapons and leadership, and it no longer has an ally in Syria. Click here for more on what it would take to disarm the group, and here for the most famous recent example of a paramilitary disarmament that actually worked.
As countries around the world scramble to respond to the Trump administration’s tariffs and renegotiate trade agreements, does China stand to benefit from so much global uncertainty? CNN’s Fareed Zakaria joins Ian Bremmer on GZERO World to discuss the shifting power dynamic as America retreats from its global leadership role. China, he notes, is hitting its stride in international relations. The Chinese have a stranglehold on critical mineral supply and renewable energy technology, and are pitching themselves as a stable, reliable trading partner to the world.
President Xi Jinping has also softened his tone from the aggressive “wolf warrior” diplomacy of years past. Beijing is strengthening alliances with Russia, Africa, and across the Global South. Zakaria warns that China sees opportunity as the United States walks away from the global trade system, and will try to drive a wedge between the Western alliance.
“We cannot have dependence on the Chinese, but that doesn’t mean we need to make everything here. This is the mistake I think we're making.” Zakaria says, “We have these deep connections with Canada, with Mexico, Britain, and Europe. Why don’t we use them?”
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New digital episodes of GZERO World are released every Monday on YouTube. Don't miss an episode: subscribe to GZERO's YouTube channel and turn on notifications (🔔). GZERO World with Ian Bremmer airs on US public television weekly - check local listings.