Overview

• President Trump has raised tariffs on Chinese imports up to 245%, prompting severe Chinese retaliatory measures, including rare earth export blocks and a suspension of Boeing purchases.
• The US is leveraging its trade policies to pressure the European Union into forming an anti-China alliance, emphasizing cooperation with India and other allies.
• Washington is demanding Europe increase imports of US liquefied natural gas (LNG) to offset lost Chinese purchases, with Spain now sourcing 32% of its gas from the US.
• The Trump administration is urging European nations to prioritize American artificial intelligence technologies and abolish digital taxes on US tech companies.
• Global economic forecasts have been downgraded, with international organizations warning of recession risks as trade tensions disrupt markets and growth projections.