2025 Year in Review: U.S. Hard Line Reshapes Trade, Wars Persist, AI Spending Soars

Overview

• President Donald Trump’s second term drove sweeping protectionism, including April tariffs on more than 180 countries, record executive orders, a shutdown of USAID, and tougher migration enforcement as Europe and China pursued partial trade truces.
• A United Nations commission determined that acts of genocide occurred in Gaza, with brief ceasefires, limited troop pullbacks, and continued cross-border strikes keeping the conflict volatile.
• Global investment in artificial intelligence reached about $1.5 trillion, lifting market leaders like Nvidia and triggering fresh regulatory moves after safety concerns linked to chatbot use.
• Climate shocks escalated as Southern California suffered its most destructive wildfires on record, burning over 15,000 hectares and causing losses above $30 billion.
• Domestic politics in key countries convulsed, including house arrest for Argentina’s former president Cristina Fernández de Kirchner in the Vialidad case and Spain’s stronger growth near 3% alongside persistent governance and budget setbacks.