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"We've lost enormous credibility around the world" because of tariffs - Summers
On GZERO World with Ian Bremmer, economist Larry Summers slams the Trump administration’s trade war as “the worst, most consequential, self-inflicted wound in US economic policy since the Second World War.” He says there’s still time to limit the damage—if the tariffs are walked back quickly—but warns that the global fallout is already underway. “Even in the best imaginable place, we have lost enormous credibility in the world,” Summers says, adding that the unpredictability rattles everything from debt markets to US alliances.
When Bremmer asks what the Trump administration is actually trying to accomplish, Summers is at a loss. "I don't see this as a rational way of either pursuing the objective of strengthening US manufacturing or the objective of reducing other countries' trade barriers." And the damage, Summers adds, will be extensive and long-lasting.
"We have lost enormous credibility in the world. We've created a large uncertainty premium about what we're going to do next, and we're going to be seen as a less reliable country...this kind of truculence does not go unnoticed, and it is not immediately forgotten."
Watch full episode: Larry Summers: Trump's trade war the "worst self-inflicted wound since WWII"
GZERO World with Ian Bremmer, the award-winning weekly global affairs series, airs nationwide on US public television stations (check local listings).
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.
A group of migrants sit as they wait to be transported for processing on the day the U.S. 5th Circuit Court of Appeals hears oral arguments on Texas' motion to lift a block on its SB4 immigration law that would allow state officials to arrest migrants suspected of being in the country illegally, in El Paso, Texas, U.S. March 20, 2024 .
Supreme Court hands Trump a win, with caveats, and ACLU files new suit
In a 5-4 ruling, the US Supreme Court ruled that the Trump administration could continue deporting suspected Venezuelan gang members to a Salvadoran prison using the 18th-century Alien Enemies Act, overturning a lower-court judge’s decision to temporarily halt the flights.
“A GREAT DAY FOR JUSTICE IN AMERICA!” US President Donald Trumpposted on Truth Social, celebrating the decision on Monday.
Not so fast. As part of the ruling, the Supreme Court stated that detainees are entitled to receive notice of their deportations and can challenge any decisions before a judge ahead of any removals, a privilege that the first set of deportees weren’t afforded. It comes after the White House started removing these alleged gang members, many of whom have no criminal record, last month. The executive branch even appeared to defy a judge’s order to turn around one of the planes. The American Civil Liberties Union duly asked a New York judge on Tuesday to halt the removals of two migrants who are being detained in the Empire State.
“The critical point is that the Supreme Court said individuals must be given due process to challenge their removal under the Alien Enemies Act. That is a huge victory,”
ACLU attorney Lee Gelerntsaid of the ruling.Out of left field. From requesting more funds for border patrol to invoking old laws, Trump has explored several avenues to secure the border and remove migrants. That’s unlikely to stop anytime soon, as he now explores a $998 daily charge for migrants who shun deportation orders.
US President Donald Trump attends a bilateral meeting with China's President Xi Jinping during the G20 leaders summit in Osaka, Japan, June 29, 2019.
China vows retaliation as US tariffs take effect
With the Trump administration’s reciprocal tariffs taking effect on Wednesday, the US’s largest trading partner, China, has signaled that it is not backing down from a trade war. Beijing has promised to “fight to the end” after Donald Trump imposed 104% levies on China. Sure enough, the Mainland Kingdom announced on Wednesday that it would impose an additional 50% tariff on US imports, matching Trump’s latest hike.
According to Eurasia Group China expert Lauren Gouldeman, unofficial government-linked sources have indicated that Beijing is prepared to implement six other measures in retaliation, including:
- Halting collaboration on fentanyl-related efforts
- Limiting agricultural exports from the US
- Imposing restrictions on US poultry imports
- Blocking the sale of American services in China, such as design, consulting, financial, and legal services
- Banning US films (Sorry, “A Minecraft Movie”)
- Launching investigations into the intellectual property practices of American companies
These steps aren’t just reactionary — they reflect a strategic shift. “Beijing has been preparing for decoupling for years,” says Gouldeman. “So it will continue to follow its playbook of stepping up support to safeguard the domestic economy and finding alternative markets for trade and investment.”
The EU, meanwhile, has said it is open to working with China to stabilize the global economy, a sign that trade alliances could be realigning to circumvent the US. However, the bloc is also concerned about Chinese products flooding their markets.
Speaking of markets, stocks slid back down the slippery slope on Wednesday. Japan’s Nikkei closed nearly 4% down, Europe’s Stoxx 600 dropped 3% Wednesday morning, and futures on US indices also headed backward. Tuesday’s brief respite seems like a fever dream.
There is still room to maneuver: Beijing has reiterated its openness to negotiations, provided the US first removes its unilateral tariffs. But the Trump administration has signaled that it will stay the course to reshore supply chains. Going even further, the US president announced yesterday that he will soon announce “major” tariffs on pharmaceutical imports, which had been exempt from the “reciprocal” rates announced on “liberation day.”
We’ll be watching to see whether bilateral trade survives, but in the meantime, China has a well-stocked arsenal of memes going viral, making fun of the American dream of re-industrialization.Who benefits from Trump's tariff wall?
Ian Bremmer's Quick Take: A Quick Take to kick off your week and what a week it is going to be. An extraordinary downturn in US and global markets. The reaction to 'Liberation Day' where American citizens will be liberated from the highest performing economy in the world. Now, globalization, of course, is what is being undone here by the United States. The US benefited massively from globalization, from cheaper goods and services and capital and people moving more easily across borders all over the world. But the fact that the United States economy as a whole benefited did not mean that the average American benefited. They did not. And indeed, while the top 10% did much, much better in the US over the last 40 years, the top 1% even better, the top 0.001%, not only extraordinarily well, world leading well, but also had the money to capture the US political system and ensure that the policies were exactly what they wanted.
And that has led to a massive backlash in the United States where most voters no longer support free trade. Most voters no longer support collective security. Most voters no longer support US leadership on the global stage. They voted in Trump, and Trump is giving them what they voted for, which is a "tariff wall" around the United States that at least for the first few days, he is not backing down. And the implications of that are going to be significant destruction of wealth in the United States and in markets all over the world. And you saw it this morning, Hong Kong, Hang Seng down 13%. Other markets across Asia down 6%, 7& to 10%. The Europeans now following suit, though not quite as dramatic and same in the United States with the opening for the Dow and the Nasdaq. Now, look, I'm not a market watcher. I'm a political scientist.
As a political scientist, what I find very interesting here is this fight between "Deep MAGA" and "Dark MAGA." And Deep MAGA being the people that really do believe that the US has not represented them for a very long time. And what they want is a fair shake from people that are more representative. They want the ability for working and middle class to have better lives and not be taken advantage of. They want non-predatory policy domestically. Dark MAGA, globalism, free trade, and capturing the policies of a smaller state that do their bidding. And this last weekend has been a repudiation, at least tactically of Dark maga by Deep MAGA. This was the fight you saw between Elon Musk and who runs DOGE, and this happens to be the richest man in the world and the second most powerful heretofore in the Trump administration. And Peter Navarro, who is trade and manufacturing counselor for the White House and nowhere near as powerful as Elon, and yet told Elon to stay in his lane, said, "You're interested in selling cars, and what we are doing is making America great again."
Navarro's not in a fight with Elon to be clear. Navarro is supporting a policy that he knows Trump wants. And so Trump has decided that on this one, which is the most impactful policy he's put in place globally in this or in his previous administration, that he is decisively going against the globalists and he's going in favor of using American power to have manufacturing and capital in the US. Now, nevermind the fact that this is going to take a long time. That if it were to work, and if it were to work, you'd want it to be consistent. You'd want to build up American reputational capital. You'd want rule of law to be strong. You'd want people to think that they could come to US universities and prosper, that the US would be the most attractive place to send their kids to have jobs, and Trump isn't doing any of those things, so that's a problem, right?
The fact that the US is making itself less attractive as a destination and less predictable as a destination really undermines US putting massive tariffs on highest you've seen in over a hundred years to make other countries pay. But politically, what Trump could benefit from doing here is actually leaning in against the globalists. In other words, if he were to say, "Yes, this hit to the markets is a feature, it's not a bug. Portfolios, they're going to get hit. And the rich people that have benefited on the backs of the average Americans, I don't care if they don't make a lot of money. Just like the foreign governments that have been taking advantage of American free trade policy," which is overstated. But nonetheless, the politically smart thing for Trump to do domestically would be to then say, "I'm going to snap back the tax breaks that I gave to the highest bracket.
You guys are going to start paying again, and I'm going to take the money from the tariffs. Take these effectively a sales tax, all the money that the US government will be collecting from these higher goods, and I'm going to redistribute it to the average American. I'm going to give that money to the workers so that they can deal with the fact that their pensions have just blown up by 10%, by 20% or more over the coming weeks. I'm going to give them an opportunity because they're going to have to pay higher prices in a more inflationary environment where you can't actually substitute away from imports because all goods are so interconnected, whether it's automotive or it's a plane ticket or it's just a cup of coffee at your local Starbucks."
All of those things, Trump has the opportunity to lean in to the Republican base, which is also a lot of the former progressive base among Democrats who they have lost, in part because they have moved away from policies that have very popular under Trump in firming up the border against illegal immigrants, and also in opposing overly progressive woke policies that are very unpopular across the United States. Having said that, I don't think that's what he's going to do. And the reason for it is because I think that ultimately Trump is more interested in kleptocracy than he is in taking power for himself. I think he's much more transactional. He's much easier to buy off as an individual. If you give him money, he will give you the policies he wants. He's not going to throw Elon away.
Elon's already given over $250 million to the campaign, and we'll give a lot more and we'll find ways to benefit Trump and his family. A lot of people like that, that want lower taxes for the rich. A lot of people like that, that want lower regulations that allow their companies to benefit more, that ultimately screw the average person in the United States. And I think Trump is more interested in that. If you really wanted to ensure that you could benefit the poor people, you wouldn't be taking away so many of the capacities of the IRS for example. You'd want audits on wealthy people instead of wealthy people being able to avoid taxes because the IRS doesn't even have the capacity to do the most complicated audits out there.
You would have a group of policies that would be much more focused towards ensuring that the wealthy actually pay their fair share, that legal and tax policies are not buyable by special interests, and ultimately that the swamp could be drained. And that just, even though I think that's where JD Vance is more oriented, and I think that's where increasingly house Republicans are more oriented. Lord knows that's the Republican base, which today are less educated men, working class and middle class. The Democrats have lost almost all those voters, but that's not where Trump is. And I think as a consequence, the political opportunity that he has will be constrained.
That ultimately also means that there'll be more of a balance and probably more of a snap back eventually in reducing these tariffs and finding deals earlier than you would otherwise expect. So maybe the market hit long-term is not as bad as it could be in a full-on anti-globalist push by the Trump administration. But ultimately, one thing we've learned by Trump, who again used to be a Democrat before he was Republican, he's fundamentally not ideological. He's fundamentally about Trump. And here navigating that probably means less pain as opposed to more. Even though in the near term today, this week, there's going to be plenty of carnage in the United States and around the world. That's it for me, and I'll talk to you all real soon.
Will the Trump-Musk relationship last?
How long will President Donald Trump’s relationship with Elon Musk last? The alliance has so far defied predictions from the left (and parts of the right) that a relationship between two famously impulsive and mercurial billionaires would eventually lead to conflict. Instead, Musk is everywhere in the Trump administration—attending cabinet meetings, shaking hands with world leaders, smiling in the Oval Office. Musk’s Department of Government Efficiency, or DOGE, has embedded itself across nearly every federal agency. In many ways, the relationship is mutually beneficial: Musk has an almost limitless checkbook to bankroll Trump’s political operations, and DOGE is helping him deliver on a campaign pledge to “shatter” the deep state. Meanwhile, Musk has become the most powerful person in Washington, not named Trump. But the president also has a history of discarding allies when they are no longer valuable and many of his close advisors have become his harshest critics. So, can the Trump-Musk alliance survive for the long haul, or is it destined to go up in flames?
Watch the upcoming episode of GZERO World with Ian Bremmer on US public television this weekend (check local listings) and at gzeromedia.com/gzeroworld.
South Korean flag.
HARD NUMBERS: Korean exportation of children, Auto tariffs announced, US soldiers killed in training accident, Trump cuts billions from state health care funds, Survival kits for Europeans, Azov fighters get lengthy sentences
170,000: A report released Wednesday by the independent Truth and Reconciliation Commission in South Korea pointed blame at Seoul for human rights violations related to a decades-long adoption program. Lack of oversight, according to the report, led to the “mass exportation of children” — to the tune of at least 170,000 kids — by private firms that were driven by profit. South Korea has been the global leader in sending children abroad for adoption since the 1950s but has worked to tighten its adoption processes.
25: On Wednesday, Donald Trump announced that a 25% tariff would be placed on all automobiles and automobile parts imported into the United States. The new tariff, set to take effect on April 2, will apply to both finished cars and trucks, including American brands manufactured abroad. This policy could lead to significant price increases for consumers as nearly half of the vehicles sold in the US are imported. Shares in Toyota, Honda, and Nissan fell about 2% in Asia on Thursday. Japan, South Korea, and the EU will all be heavily impacted, and Germany – the bloc’s automobile powerhouse – is urging countries to “respond firmly” with “far larger” tariffs.
4: Four US soldiers have died in a training accident in Lithuania. According to the US Army Europe and Africa public affairs office in Germany, the soldiers were involved in scheduled tactical training, and Lithuania’s public broadcaster LRT said the four had been reported missing on Tuesday in Pabradė, a town located less than six miles from the Belarusian border.
12 billion: The Trump administration this week cut billions in funding for state-run health services. Health and Human Services started informing state health departments on Monday that more than $12 billion in federal grants to states was being cut with immediate effect. Layoff preparations began as early as Tuesday in some areas. The funds had been used for tracking infectious diseases, mental health services, addiction treatment and other urgent health issues, and the cuts are expected to further hamper struggling state health care facilities.
72: In some older European homes, you can still find bomb shelters-turned-wine cellars — reminders of the horrors of war. Those shelters may soon be lined with survival kits, after the EU announced Wednesday that it wants all of its member states to create 72-hour survival kits for their citizens. The idea behind the Preparedness Union Strategy? To be ready for any future disasters, whether they’re natural or man-made.
12: They led the fight for Mariupol at the beginning of the Russian invasion, and now 12 members of Ukraine’s Azov regiment – who were captured when Russia won the siege of the city – are facing long prison sentences in Russia. A military court on Wednesday handed them sentences ranging from 13 to 23 years for alleged terrorist activity and violently seizing or retaining power.Leaked Signal chat shows Trump team's mindset
Ian Bremmer's Quick Take: A Quick Take on the back of the full transcript of these Signal chat that's going on about the bombing of the Houthis. A few things here. First of all, are we surprised that a journalist is actually publishing what is clearly classified data? And there's no question, it's classified data. I mean, you're talking about the targets, the exact timing in advance of US military strikes, incredibly sensitive information, against people that are described as terrorists in the chat. And clearly, if that information had gotten out in advance when Jeffrey Goldberg had received it in real time, it would have put the operation at risk. It would have prevented it from going on. It would have been denounced as leaking classified information, and he would be facing some legal charges from the administration. So I don't think it's credible to say that this is not classified.
But since Trump and members of administration have now said that it isn't classified, there was nothing classified in it, I guess that provides legal cover since it is ultimately in the charge of the president to be able to determine, as president, whether or not something is classified. That there's nothing illegal in Goldberg and the Atlantic Magazine now taking all of that information and putting it out to the public. So is that embarrassing for the US with its allies in terms of how they're handling such a chat? The answer is of course, yes. And I expect that we're going to see a significant amount of continued focus on this topic. A lot of people are going to be asking questions about how it was that this conversation could have been had on Signal and also how it was that Goldberg could have been brought on board. But say that as it may. I mean if you are the Trump administration here, it is age-old tactic, full denial responsibility is actually of your political adversaries so blame Goldberg. Imply that maybe he tried to get on the call through nefarious ways.
It's all his fault. It's overstated. He's a fake news, no news journalist. No one should pay attention to him. He's a bad guy. I mean all of that stuff. And I was particularly bemused by Elon Musk sharing a post from the Babylon Bee saying that, "If you wanted to ensure that nobody ever saw information you'd put it on page 2 of the Atlantic." And of course, that is true for Elon, and it's true for Trump supporters. And this is why the strategy works, is because the Atlantic and the people that read the Atlantic and support the Atlantic are all considered disinformation by those that are loyal to Trump. And vice versa. Fox, and Newsmax and all of the right-wing podcasts. Those are considered fake news by people that don't support, that dislike Trump. And that allows a strategy of full denial, not engaging with the facts and blaming those that are coming after you to be successful. Now, I still think that there are interesting pieces of information here.
Perhaps the most important is that the actual policy conversation, not the details of the war fighting itself, but rather whether or not it was a good idea to be attacking the Houthis, in a big way that was potentially going to increase energy prices. And that was much less of a fight of the Americans than it would be of those in the region that are engaged in the direct proxy war with Iran or the Europeans who have a lot more directly at stake, in terms of their trade in transit. And that was a very reasonable question, and it was strongly, in other words, Vice President Vance opposed these strikes and he's the most important person. He's the most senior ranking person in this chat. Trump isn't on the chat. And he's not saying the president is wrong. He's saying, "I don't believe the president is fully informed and this clearly is not in his interest, in his policy interest."
Now, the reason this is important is because in Trump's first term, I think you would have had a very similar conversation from people like Mike Pence and Mike Pompeo and others that would have been on this chat, but then they would have brought it to the president. And many, many instances in the first term of policy disagreements that then came up and said, "Mr. President. Respectfully, we think we've got additional information and we can better carry out your will by doing X, Y, and Z." And there were checks. There were internal checks on executive authority. What we see this time around is we see JD Vance, who's obviously a very smart guy saying, "I think this is a really bad idea. We shouldn't be doing it, but I'm prepared not to raise it to the president unless I have everybody around me supporting me because I can't do this by myself. I'm just going to get my head chopped off." And there's a little bit of back and forth.
And Stephen Miller, the deputy chief of staff for policy in the White House and a full-on Trump loyalist, says, "Nope, the president wants this. I'm ending the conversation." And that's the end of the conversation, and it never gets to Trump. And then they go ahead and they bomb. So whatever you think about whether this was a good or a bad decision, the challenge here is that we have a big cabinet, some of whom are very capable, some of whom are absolutely not capable. But first and foremost is not getting the best information to the president because he's extremely confident. He believes that his policies are always the right ones, and he is absolutely punishing anything that feels like disloyalty, inside or outside of his team. That's why Pompeo, for example, John Bolton, have had their security details stripped away. Even though the Iranian government has been trying to assassinate them, right? Why? Because they were disloyal to Trump. That's not why they're trying to assassinate him. That's why Trump took away their security detail and that is a very strong message to everybody that is on this chat.
And I do worry, I worry that the three most powerful men in power today around the world, all in their 70s, Trump, Putin, and Xi Jinping, are also men that are incredibly confident about the rightness of their views. That loyalty is the key to the most important currency of power that exists inside those systems. And increasingly, they're not getting good information from their own advisers. That's a dangerous place for the world to be. It's a dangerous place for the world to be heading, and that's frankly the most important thing that I took out of this chat. So that's it for me. I'll talk to you all real soon, thanks.
U.S. President Donald Trump meets with Indian Prime Minister Narendra Modi at the White House in Washington, D.C., U.S., February 13, 2025.
Hard Numbers: India halves US tariffs, Columbia student sues Trump administration, FIFA president acquitted again, World’s longest-serving death row inmate acquitted
4: A federal judge on Tuesday temporarily blocked the deportation of Yunseo Chung, a 21-year-old Columbia student who took part in pro-Palestine protests earlier this month. Chung, a legal permanent resident who has lived in the US since she was seven years old, is suing the Trump administration over its attempts to deport her for allegedly obstructing the US government’s foreign policy against antisemitism. Her lawsuit also seeks to stop the “pattern and practice of targeting individuals associated with protests for Palestinian rights for immigration enforcement,” arguing it violates the First Amendment. So far, three other Columbia students have been targeted by ICE officials since Mahmoud Khalil was taken into custody in early March.
2 million: A Swiss court on Tuesday cleared Sepp Blatter, former FIFA president, and Michel Platini, ex-UEFA chief, of fraud and mismanagement charges related to $2 million in FIFA funds. This marks the second time the two have been acquitted of offenses that prosecutors allege took place in 2011.
$1.45 million: Iwao Hakamata, 89, spent almost five decades on death row – a world record – before being acquitted of murder during a retrial last year. Now, thanks to a court decision on Tuesday, he is set to receive $1.45 million in compensation, which his lawyers say is the largest payout ever awarded in a criminal case in Japan.