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Analysis: If Trump really is running the world, where will he take it?

Analysis: If Trump really is running the world, where will he take it?

CNN29-04-2025

Donald Trump thinks he's running the world.
His ambition is boundless. But it also reeks of dangerous hubris and raises a grave question: Where will the planet end up under the leadership of this chaotic and vengeful president?
Trump revealed his plan for global dominance in a new interview with 'The Atlantic.' He said he had rid himself of the 'crooked guys' and investigations that limited his first term. 'The second time, I run the country and the world,' he added.
The president is attempting a massive, simultaneous transformation of life in the United States and the American-led global political and economic systems that have cemented Washington's primacy since World War II.
He's indisputably the most ubiquitous world figure, 100 tumultuous days since reclaiming the Oval Office. No one knows what he'll do next – not the US' allies nor its enemies. And in this upside-down era of MAGA foreign policy, it's sometimes hard to know which is which. From Moscow to New Delhi and Gaza to Rome, Trump has a finger in every geopolitical pie.
Many foreigners might be revolted by the president. But they can't ignore him. That must be especially sweet for a commander-in-chief whose entire life has been a quest for notoriety.
The reality of America's global role means that the person who has the top job has immense authority, said Majda Ruge, a senior policy fellow at the United States program at the European Council on Foreign Relations.
'Take Ukraine, which is on the borders of the European Union – it's practically a European issue, but the fact is that without American intelligence, military support and American nuclear deterrence, Europeans are not able to continue supporting Ukraine to the extent that is needed for Ukraine to actually advance on the battlefield,' said Ruge, who was speaking from Brussels.
'Going back to the quote, 'I run the world,' there is truth to that because of America's huge impact on world politics and foreign policy,' Ruge said.
'But the question is, is he actually running it in the direction that is constructive, rather than disruptive and a little bit all over the place? And secondly, is he even running it in a strategic manner to ultimately arrive at the place he wants to go?'
Trump's supporters argue that the traditional American approaches to foreign policy brought nothing but humiliation. They remember two lost wars in Afghanistan and Iraq and think Europe built bloated welfare states under America's generous military umbrella.
The president's bombast puts a lot of people off. But he often asks pertinent questions. For instance – did two decades of US economic engagement with China buy nothing more than a 21st-century superpower rival while destroying American manufacturing? And 80 years after the defeat of Nazism and three and a half decades after the fall of the Soviet Union, shouldn't Europeans now be taking care of their own defense?
The problem is that Trump's approach to addressing these questions risks undermining the security and the stability of the world he professes to lead.
Signs for Trump's foreign policy priorities don't currently look promising, especially after he launched trade wars that have rocked global markets and that have no easy way out.
But perhaps his unorthodox approach can find a way to end the Ukraine war that a more traditional US president might miss. He's surely due something for his frequent genuflecting to Russian President Vladimir Putin. And after trashing the last Iran nuclear deal in his first term, he's seeking another one to forestall the horrible prospect of US military strikes.
But Trump's ultra-personalized and volatile approach to the world seems as likely to backfire.
The president made his name as a builder. But he's better at tearing things down. And barging into the center of global events and tunneling into the psyches of hundreds of millions of people with social media eruptions is hardly statesmanlike. Nor is making up huge tariff rates off the top of his head.
Far from enhancing US power, Trump risks buckling it.
His bullying is forcing foreign nations to hurriedly reevaluate their relationship with the United States. They face the same choice as university presidents, CEOs and media bosses in the US, only with greater stakes: Do they resist America's new king or flatter him?
British Prime Minister Keir Starmer came to Washington with an offer of a state visit with King Charles to try to play on Trump's love for British royals.
But Ukrainian President Volodymyr Zelensky tried standing up to Trump – and got kicked out of the White House after a televised dressing down in the Oval Office.
And Canada, one of America's closest friends, just held an entire election dominated by the need to break with Washington over Trump's tariffs and his demands it become the 51st state.
'The president and those around him feel they have greater freedom of action today,' said Ian Lesser, distinguished fellow and adviser to the president of the German Marshall Fund of the United States. 'That includes not having to take into account the views of traditional allies … It can produce successes. But it also brings with it systemic risks.'
One of those risks is the fracturing of alliances that have bolstered US power and goodwill for decades because Trump views traditional American friends as freeloaders.
He's made no secret that he'd rather sit down with tyrants such as Putin and Chinese President Xi Jinping – who he regards as strongmen in his own image – than leaders of allied nations that have shed blood with the United States to protect freedom and democracy.
While Trump's foreign policy actions often seem sudden and ill-thought-out, there's a clearer ideological basis to his second-term ambitions. It's just a not very palatable one for nations that have long relied on the United States.
In a new article in the journal Internationale Politik Quarterly, two German foreign policy experts argue that Trump's behavior is not that of an erratic or 'short-tempered hothead' but rather exhibits a coherent worldview.
'Trump knows neither friends nor enemies, he knows only strength or weakness,' wrote former German Foreign Minister Sigmar Gabriel and Thomas Kleine-Brockhoff, a former adviser to the German presidency who now heads the German Council on Foreign Relations. Trump, they argue, 'thrives in a world of social Darwinism.'
If this is the case, one of the pillars of US power has been lost.
The country that was a bastion of stability and led the West to face down Nazism and communism is now the most unpredictable force in global politics.
Trump is hardly the grand master of geopolitical chess he imagines himself to be. His tariff clash with China underestimated Beijing's pride and unwillingness to fold. (China's leaders want to run the world, too.)
And, paradoxically, Trump's aggressive attempts to use US power could result in his frittering away of important areas of US leverage.
One possible outcome of the US trade war with China is a decoupling of the two deeply entwined economies. That could be a painful process for consumers in both nations. But it could also remove one of the factors that might deter Beijing from invading Taiwan: the possibility that a US trade cutoff during a time of war could destroy the Chinese economy.
A similar loss of power could be in store for the US in Europe.
If US allies follow through on vows to rearm amid fears about future US support, their independence might also weaken the Atlantic alliance that has multiplied American power for generations.
Trump's approach is also shattering the trust allies placed in Washington, draining US non-military power and influence by the day.
Not only is the president apparently willing to recognize Putin's illegal land grabs in Ukraine, he's mulling one himself in Greenland.
And he's reversed President John Kennedy's maxim that the US does not lead by the example of its power but the power of its example. His disdain for human rights and the rule of law; his elevation of despots over democrats; and his eradication of foreign aid that kept millions of Africans alive may irrevocably tarnish America's reputation.
Many US friends are now wondering whether they even share the same values as Americans who twice elected a president whose beliefs they reject.
Some US allies in Asia are starting to reexamine their assumptions about US support in a region increasingly dominated by China.
In Europe, Trump's return to office has supercharged fears that the US has other strategic priorities and its allies must learn to fend for themselves.
'I think that Trump's election victory has, in a sense, given history a shove, and that a concern that had been in some sense theoretical or a long-term anxiety has suddenly turned into a near-term priority to address,' said Lesser, who was speaking from Ankara.
Trump may think he is running the world now, but he is almost certainly making it more difficult for future presidents to do so.

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LIKEWISE, WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!). WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT! THANK YOU FOR YOUR ATTENTION TO THIS MATTER!" A variety of market observers quickly weighed in hours after Tuesday evening's unveiling to suggest that the deal may not have a lot of meat on the bones — but at least relations are no longer moving in the wrong direction. The talks perhaps underscored how unlikely a comprehensive trade deal is anytime soon, noted AGF Investments Greg Valliere, "but at least relations may not worsen as talks continue throughout the summer." Both sides promised additional talks in the weeks or months ahead, but none have yet been scheduled. Veronique de Rugy, a professor at the Mercatus Center at George Mason University, suggested the talks continued to show China's leverage. "China is hurting, yes—but they still hold the upper hand on critical resources, and they know how to use them." Any lessening of tensions — and freer flow — of these mineral resources in China would be a significant boost to the global economy with China holding outsized leverage in both the reserves and processing capacity of these key building blocks for everything from computers to electric vehicle batteries to medical devices. Likewise, the US offering concessions on export controls would be a significant move after years where successive US administrations have wielded these controls — especially around the design and manufacture of semiconductors — by saying they need to be tight on China for national security reasons. Read more here. May's Consumer Price Index (CPI) report will be released on Wednesday and its expected to show that prices rose a bit faster than in April. Yahoo Finance's Allie Canal breaks down what to look out for and how President Trump's tariffs are impacting what consumers are now paying for goods and services. Read more here. Now that the US-China trade truce is back on track, both sides are keen to ensure it stays that way. China's Vice Premier He Lifeng said both sides need to now 'show the spirit of good faith in abiding by their commitments and jointly safeguard the hard-won results of the dialogue.' Bloomberg News reports: Read more here. Reuters reports: Read more here. Despite the US-China trade truce resuming the pain from President Trump's tariffs remains in China, especially among small exporters. Reuters reports: Read more here. Japan warned Wednesday that tariffs threaten its economic growth, the government said in a monthly report. Reuters reports: Read more here. Reuters reports: Read more here. Reuters reports: Read more here. A federal appeals could said on Tuesday that President Trump's sweeping tariffs can continue for now. This is a significant win for Trump, who introduced tariffs back in March and declared "Liberation Day," as he saw them as a way to free the US from what he called unfair trade practices. Bloomberg News reports: Read more here. Early summer sales for Inditex, the owner of fashion retailer Zara, came in weaker, as the company missed expectations for first quarter sales on Wednesday. President Trump's tariffs have impacted consumer demand in the US and other major markets. Reuters reports: Read more here. After weeks of back and forth, the US and China have agreed on a framework to implement the Geneva consensus that helped ease tariffs. The breakthrough came after two days of talks in London, including a marathon session on Tuesday. US Commerce Secretary Howard Lutnick said both sides had to "get the negativity out" before making progress. 'Now we can go forward to try to do positive trade, growing trade,' he said. As part of the deal, Beijing has promised to speed up shipments of rare earth metals, a crucial component for global auto and defense industries. Washington will ease export controls. This marks the first sign of movement on key issues. The proposal will now be presented to President Trump and China's Xi. Still, the discussions also did little to resolve a long-standing issue: China's trade surplus with the US. 'Markets will likely welcome the shift from confrontation to coordination,' said Charu Chanana, chief investment strategist at Saxo Markets. 'We're not out of the woods yet — it's up to Trump and Xi to approve and enforce the deal.' The meeting was set up after a phone call between the two leaders, following weeks of each side accusing the other of breaking the Geneva commitments. Both countries had used chips, rare earths, student visas and ethane as bargaining tools. Josef Gregory Mahoney, a professor at East China Normal University, said trust, not money, has been the biggest casualty of the trade war. 'We've heard a lot about frameworks,' he said. 'But the fundamental issue remains: Chips versus rare earths. Everything else is a peacock dance.' Bloomberg reports: Read more here. Treasury Secretary Scott Bessent told House lawmakers on Wednesday that the Trump administration may extend the 90-day tariff pause on some countries in order to continue trade negotiations. When asked if Americans should prepare for another "Liberation Day" on July 9, when the tariff pause ends for most countries, Bessent said that the administration may choose to move the deadline on 18 of the most important trading partners, so long as they make an effort to come to the negotiating table. "We are working toward deals on those, and it is highly likely that [for] those countries — or trading blocs, in the case of the EU — who are negotiating in good faith, we will roll the day forward to continue good faith negotiations," Bessent said (see video below). "If someone is not negotiating, then we will not." A recent report on the drastic decline of US ocean imports serves as an example of how President Trump's increased tariffs on China affected supply chains and several industries as ttalks continue. Reuters reports: Read more here. The Treasury Department says that the US government is successfully using tariffs to decrease the budget deficit by more than $30 billion, largely due to increased customs receipts. Reuters reports: Read more here. China will ease curbs on exports of rare earth minerals for six months as part of a new trade understanding with the US, according to The Wall Street Journal. The move could add more uncertainty for American manufacturers, particularly the auto industry, which has been pushing for easier access. The Journal notes that the move gives China leverage down the line if tensions ratchet back up. From the report: In celebrating the agreement early Wednesday, President Trump noted "any necessary rare earths will be supplied, up front, by China." He did not mention any time limit on loosening those restrictions. Treasury Secretary Scott Bessent, in testimony before Congress on Wednesday, painted Wednesday's agreement as an incremental step on the longer road to a more comprehensive trade deal. "A trade deal today or last night was for a specific goal, and it will be a much longer process," he told a House committee. When asked if current US tariff levels on Chinese imports would not change again, Commerce Secretary Howard Lutnick told CNBC, "You can definitely say that." "We're in a great place with China," Lutnick said Wednesday. While the US-China truce framework is awaiting final word from US President Trump and Chinese President Xi Jinping, Lutnick added, "Both sides are really positive." The agreement is largely viewed as reestablishing the "handshake" that US and Chinese officials reached in Geneva last month, as details on a larger trade pact remain scant. Trump posted on social media this morning that the US has imposed 55% tariffs on China, a number that does not include any new tariffs but instead comprises some preexisting tariffs, Trump's fentanyl tariffs, and 10% "Liberation Day" tariffs. Lutnick touted that, as a result of the two-day talks, the US will gain access to rare earths and magnets, while the Chinese delegation sought to remove the US's export controls. He added that the trade deficit remains an ongoing issue, stating, "We're going to examine how China can do more business with us." May's Consumer Price Index (CPI) report showed inflation pressures eased on a monthly basis despite investor concerns that President Trump's tariffs would accelerate the pace of price increases. The Consumer Price Index (CPI) increased 0.1% on a monthly basis in May and 2.4% on an annual basis, a slight uptick from April's 2.3% gain. Yahoo Finance's Allie Canal reports: Read more here. I would keep an eye on consumer names off the news of a trade deal with China floated by President Trump this morning (see our prior post below). Seeing upticks premarket in heavily China-exposed retailers such as Nike (NKE), Walmart (WMT), Target (TGT), and Abercrombie & Fitch (ANF). The premarket gains here aren't mind-blowing in part because tariffs appear to still be in place. Trump posted on Truth Social: OUR DEAL WITH CHINA IS DONE, SUBJECT TO FINAL APPROVAL WITH PRESIDENT XI AND ME. FULL MAGNETS, AND ANY NECESSARY RARE EARTHS, WILL BE SUPPLIED, UP FRONT, BY CHINA. LIKEWISE, WE WILL PROVIDE TO CHINA WHAT WAS AGREED TO, INCLUDING CHINESE STUDENTS USING OUR COLLEGES AND UNIVERSITIES (WHICH HAS ALWAYS BEEN GOOD WITH ME!). WE ARE GETTING A TOTAL OF 55% TARIFFS, CHINA IS GETTING 10%. RELATIONSHIP IS EXCELLENT! THANK YOU FOR YOUR ATTENTION TO THIS MATTER!" A variety of market observers quickly weighed in hours after Tuesday evening's unveiling to suggest that the deal may not have a lot of meat on the bones — but at least relations are no longer moving in the wrong direction. The talks perhaps underscored how unlikely a comprehensive trade deal is anytime soon, noted AGF Investments Greg Valliere, "but at least relations may not worsen as talks continue throughout the summer." Both sides promised additional talks in the weeks or months ahead, but none have yet been scheduled. Veronique de Rugy, a professor at the Mercatus Center at George Mason University, suggested the talks continued to show China's leverage. "China is hurting, yes—but they still hold the upper hand on critical resources, and they know how to use them." Any lessening of tensions — and freer flow — of these mineral resources in China would be a significant boost to the global economy with China holding outsized leverage in both the reserves and processing capacity of these key building blocks for everything from computers to electric vehicle batteries to medical devices. Likewise, the US offering concessions on export controls would be a significant move after years where successive US administrations have wielded these controls — especially around the design and manufacture of semiconductors — by saying they need to be tight on China for national security reasons. Read more here. May's Consumer Price Index (CPI) report will be released on Wednesday and its expected to show that prices rose a bit faster than in April. Yahoo Finance's Allie Canal breaks down what to look out for and how President Trump's tariffs are impacting what consumers are now paying for goods and services. Read more here. Now that the US-China trade truce is back on track, both sides are keen to ensure it stays that way. China's Vice Premier He Lifeng said both sides need to now 'show the spirit of good faith in abiding by their commitments and jointly safeguard the hard-won results of the dialogue.' Bloomberg News reports: Read more here. Reuters reports: Read more here. Despite the US-China trade truce resuming the pain from President Trump's tariffs remains in China, especially among small exporters. Reuters reports: Read more here. Japan warned Wednesday that tariffs threaten its economic growth, the government said in a monthly report. Reuters reports: Read more here. Reuters reports: Read more here. Reuters reports: Read more here. A federal appeals could said on Tuesday that President Trump's sweeping tariffs can continue for now. This is a significant win for Trump, who introduced tariffs back in March and declared "Liberation Day," as he saw them as a way to free the US from what he called unfair trade practices. Bloomberg News reports: Read more here. Early summer sales for Inditex, the owner of fashion retailer Zara, came in weaker, as the company missed expectations for first quarter sales on Wednesday. President Trump's tariffs have impacted consumer demand in the US and other major markets. Reuters reports: Read more here. After weeks of back and forth, the US and China have agreed on a framework to implement the Geneva consensus that helped ease tariffs. The breakthrough came after two days of talks in London, including a marathon session on Tuesday. US Commerce Secretary Howard Lutnick said both sides had to "get the negativity out" before making progress. 'Now we can go forward to try to do positive trade, growing trade,' he said. As part of the deal, Beijing has promised to speed up shipments of rare earth metals, a crucial component for global auto and defense industries. Washington will ease export controls. This marks the first sign of movement on key issues. The proposal will now be presented to President Trump and China's Xi. Still, the discussions also did little to resolve a long-standing issue: China's trade surplus with the US. 'Markets will likely welcome the shift from confrontation to coordination,' said Charu Chanana, chief investment strategist at Saxo Markets. 'We're not out of the woods yet — it's up to Trump and Xi to approve and enforce the deal.' The meeting was set up after a phone call between the two leaders, following weeks of each side accusing the other of breaking the Geneva commitments. Both countries had used chips, rare earths, student visas and ethane as bargaining tools. Josef Gregory Mahoney, a professor at East China Normal University, said trust, not money, has been the biggest casualty of the trade war. 'We've heard a lot about frameworks,' he said. 'But the fundamental issue remains: Chips versus rare earths. Everything else is a peacock dance.' Bloomberg reports: Read more here. Sign in to access your portfolio

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