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The Cost of Protection: How Trump’s Trade War Hits Home First

Trump’s 2025 tariffs spark inflation, market drops, and backlash across energy, tech, manufacturing sectors

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Trump’s 2025 tariffs spark inflation, market drops, and backlash across energy, tech, manufacturing sectors

With President Donald Trump settling into the early months of his second term in 2025, trade protectionism is once again taking center stage in Washington. His administration’s latest move—dubbed the “Liberation Day” tariffs—includes sweeping new duties on imports from strategic rivals and key manufacturing sectors. While branded as a boost to American industry, early data and expert analysis show that the economic pain is being felt most acutely at home.

Wall Street Reacts: A Slide into Uncertainty

Immediately following the tariff announcement, U.S. financial markets were rattled. The S&P 500 plunged by 4.8%, its sharpest daily drop since the pandemic era. The Russell 2000, representing smaller, domestically focused firms, fell more than 20% from its recent high, entering bear market territory. Analysts attributed the downturn to growing fears of a policy-driven slowdown and higher inflation.

Markets are pricing in the risk that prolonged trade barriers could squeeze corporate profits, limit consumer spending, and force the Federal Reserve into a difficult position on interest rates.

Inflation Surge & Growth Headwinds

Federal Reserve Chair Jerome Powell recently acknowledged that tariffs are “likely to push up inflation and slow economic growth”. The costs of key goods—especially those relying on imported components—are expected to rise sharply, pressuring household budgets already strained by lingering inflation from earlier global shocks.

New economic modeling from Australia’s Centre of Policy Studies predicts that the U.S. will bear the greatest GDP losses globally due to Trump’s 2025 tariff hikes, estimating a 0.7% contraction in national output.

Clean Energy and Tech: Progress in Peril

Tariffs on clean energy inputs—like solar panels, wind turbines, and lithium batteries—are drawing fierce criticism from environmental advocates and business groups. These components are overwhelmingly imported, and tariff-driven cost increases are expected to slow the rollout of renewable energy infrastructure, undermining climate goals and delaying the transition to a green economy.

Increased costs will likely be passed on to consumers and local governments, forcing project delays or cancellations, particularly in solar installations and EV battery production.

Manufacturing Rebound? It’s Complicated

President Trump insists that the tariffs will rebuild American industry by making foreign goods less competitive. However, research shows mixed results. While domestic steel and aluminum producers might benefit temporarily, industries dependent on global supply chains—such as automotive, semiconductors, and heavy machinery—face higher input costs and reduced competitiveness.

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Moreover, it has been pointed out that multinationals are adapting by shifting sourcing and operations outside the U.S. rather than reshoring them—dampening the job creation narrative tied to protectionism, according to Emerald Insight.

Jobs and Wages: The Myth of “Reindustrialization”

The promise of mass job creation has proven elusive. According to the Tax Foundation, tariffs tend to reduce employment by raising production costs and consumer prices, eroding demand and profitability. Downstream industries—those that buy raw materials or parts—are especially vulnerable to job losses, potentially negating employment gains in protected sectors.

Past analyses also suggest that small manufacturers, without the flexibility to diversify suppliers or raise prices, are particularly at risk of layoffs or closures.

The Macro View: GDP and National Productivity

From a macroeconomic perspective, tariffs act as a drag on national efficiency. By insulating certain sectors from competition, they reduce incentives for innovation and productivity gains. Historical studies confirm that long-term use of tariffs correlates with lower GDP growth and diminished economic dynamism.

Despite short-term boosts to certain industries, the broader economic toll—from higher consumer prices to reduced capital investment—suggests that tariffs are an expensive way to pursue industrial policy.

A Final Note: A High-Stakes Economic Experiment

With President Trump now firmly steering U.S. economic policy toward protectionism, the consequences are playing out in real time. So far, the evidence indicates that while tariffs may appeal politically, they risk undermining core economic strengths—competitive markets, innovation, and global supply chain integration. Whether the strategy pays off in the long term remains to be seen. But in the short term, the data paints a clear picture: tariffs are a tax on American consumers, workers, and businesses.

The Cost of Protection: How Trump's Trade War Hits Home First
Trumps 2025 tariffs spark inflation market drops and backlash across energy tech manufacturing sectors

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Britain’s Strategic Recalibration: The UK-EU Reset and What It Means for Washington

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UK resets EU ties with new summit, boosting defense, trade, and US deal prospects

As of July 2025, the United Kingdom is entering a new era of pragmatic diplomacy with its European neighbors. On May 19, Prime Minister Keir Starmer hosted the first formal UK-European Union summit since Brexit, marking a decisive step away from the combative tone of recent years. While rejoining the EU remains off the table, the summit produced a series of significant agreements that reflect a broader strategic reset.

Rather than reversing Brexit, Starmer’s government is pursuing targeted re-engagement—focusing on shared interests in defense, trade, youth mobility, and climate coordination. The aim is clear: to restore Britain’s economic competitiveness and geopolitical relevance while respecting the boundaries set by the 2016 referendum.

This approach reflects both necessity and opportunity. On one hand, the UK continues to grapple with economic headwinds, including trade frictions and a shrinking labor pool. On the other, global challenges such as the war in Ukraine, climate volatility, and energy insecurity demand closer cooperation with European allies. Starmer’s vision is not to rewind Brexit—but to reshape its legacy into something more functional, stable, and globally connected.

The agreements from the summit speak volumes. The UK will now participate in EU-led defense programs and gain access to the €150 billion SAFE fund, supporting joint military research, procurement, and intelligence-sharing. This marks the most significant security convergence between Britain and the EU since Brexit.

On trade, a new veterinary agreement will streamline sanitary checks on food and agriculture, easing export headaches for UK businesses. And a 12-year fisheries deal, allowing limited EU access to UK waters, underscores the spirit of compromise at the heart of this new chapter.

Meanwhile, a youth mobility scheme will allow 18- to 30-year-olds to live and work in each other’s territories—an initiative welcomed by educators and employers alike. Negotiations are also underway to align emissions trading systems, boosting climate cooperation and price stability.

These moves are not about rejoining EU institutions, but about rebuilding influence and trust. By choosing functional integration over ideological isolation, Starmer is positioning Britain as a European stakeholder without forfeiting sovereignty.

But what does this mean for the United States? London’s stalled efforts to secure a comprehensive trade deal with Washington have long been hindered by regulatory divergence from the EU. If the UK selectively aligns with European standards—particularly in key sectors like digital trade, electric vehicles, and pharmaceuticals—it could become a more attractive, stable partner for U.S. investors and exporters.

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This convergence might also create opportunities for youth exchanges, tech cooperation, and mutual recognition agreements between the UK and the U.S. Rather than limiting transatlantic ambitions, the EU reset may unlock new paths for engagement with Washington.

Critics at home are less convinced. Hardline Brexiteers warn that sectoral alignment erodes sovereignty. But for many in business, education, and defense, the benefits of stability and access outweigh the symbolism of separation.

The summit closed with a pledge for annual UK-EU meetings—a quiet but powerful signal that long-term partnership is back on the agenda. This isn’t Britain going backward. It’s Britain going forward—on its own terms, but not alone.

If managed well, this re-engagement could set the stage for a new type of transatlantic diplomacy. One not built on nostalgia, but on pragmatism and shared strategic interests.

Britain’s relationship with Europe is evolving. Its relationship with America could be next.

UK resets EU ties with new summit, boosting defense, trade, and US deal prospects
UK resets EU ties with new summit boosting defense trade and US deal prospects
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Nigeria Pays Off IMF Debt, Faces Scrutiny Over Missing Funds

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Nigeria fully repays $3.4B IMF loan, but transparency concerns over fund usage persist

Nigeria has officially cleared its $3.4 billion emergency loan from the International Monetary Fund (IMF), marking a significant milestone in its economic recovery and fiscal responsibility. The IMF confirmed that the final repayment was completed on April 30, 2025, concluding a five-year loan cycle initiated during the COVID-19 pandemic.

In April 2020, amidst a global health crisis and plummeting oil prices that severely impacted Nigeria’s economy, the IMF extended a $3.4 billion loan under its Rapid Financing Instrument. This facility was designed to provide urgent financial assistance to countries facing balance of payments challenges without the need for a full-fledged program. The loan carried a low interest rate of 1% and was to be repaid over five years.

The repayment journey began earnestly in late 2023, with Nigeria disbursing \$401.73 million in the fourth quarter, followed by $409.35 million in the first quarter of 2024, and $404.24 million in the second quarter. By June 2024, the country’s debt to the IMF had reduced from $3.26 billion to $1.16 billion. The final installment was paid by April 30, 2025, effectively settling the debt.

Despite the completion of the principal repayments, Nigeria will continue to make annual payments of approximately $30 million in Special Drawing Rights (SDR) charges, as per IMF protocols. The successful repayment has been lauded by various stakeholders. The Tinubu Media Volunteers (TMV) commended President Bola Ahmed Tinubu’s administration for its commitment to meeting international obligations, highlighting the financial re-engineering that facilitated the timely repayments.

However, the journey was not without controversy. In early 2024, the Socio-Economic Rights and Accountability Project (SERAP) filed a lawsuit against President Tinubu over allegations that the $3.4 billion loan was missing, diverted, or unaccounted for. These allegations were based on the 2020 annual audited report by the Auditor-General of the Federation, which suggested a lack of documentation on the movement and spending of the IMF loan.l

SERAP urged the government to investigate these claims, prosecute those responsible, and recover any missing funds. The organization emphasized that servicing IMF loans allegedly missing or unaccounted for constitutes a double jeopardy for Nigerians, potentially exacerbating the country’s debt burden.

In response to the loan approval in 2020, the Nigerian government had assured the IMF of its commitment to transparency and accountability. Measures included publishing procurement plans and notices for all emergency-response activities, as well as undertaking an independent audit of crisis-mitigation spending. As Nigeria turns a new page in its economic narrative, the successful repayment of the IMF loan stands as a testament to its resilience and commitment to fiscal responsibility. However, the lingering allegations of mismanagement underscore the need for continued vigilance and transparency in public financial management.

Nigeria fully repays .4B IMF loan, but transparency concerns over fund usage persist
Nigeria fully repays $34B IMF loan but transparency concerns over fund usage persist
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Scoop of Dissent: Ben & Jerry’s Co-Founder Disrupts Senate Over Gaza

Ben & Jerry’s co-founder Ben Cohen arrested protesting U.S. bomb funding for Gaza conflict

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Ben & Jerry’s co-founder Ben Cohen arrested protesting U.S. bomb funding for Gaza conflict

On May 14, 2025, Ben Cohen, co-founder of Ben & Jerry’s, was arrested during a U.S. Senate Health, Education, Labor and Pensions Committee hearing. The session, which featured Health and Human Services Secretary Robert F. Kennedy Jr., was disrupted by Cohen and several other protesters who voiced opposition to U.S. involvement in the Gaza conflict.

As Kennedy Jr. was testifying, Cohen stood up and shouted, “Congress pays for bombs to kill children in Gaza,” accusing lawmakers of prioritizing military spending over domestic welfare programs like Medicaid. The Capitol Police swiftly intervened, removing Cohen and six other demonstrators from the room. Cohen was charged with a misdemeanor under a Washington, D.C. statute that prohibits “crowding, obstructing or incommoding,” which is commonly applied in cases of nonviolent protests. If convicted, he faces a potential sentence of up to 90 days in jail, a $500 fine, or both.

In an interview following his release, Cohen expressed his frustration with U.S. foreign policy, stating, “It got to a point where we had to do something.”

He criticized the approval of $20 billion worth of bombs for Israel, arguing that such expenditures come at the expense of domestic programs that support American children.

Cohen’s protest aligns with Ben & Jerry’s longstanding tradition of political activism. In 2021, the company halted sales in Israeli-occupied Palestinian territories, citing its commitment to social justice. Additionally, in March 2024, Ben & Jerry’s filed a lawsuit alleging that its parent company, Unilever, had removed its CEO, David Stever, in retaliation for the brand’s progressive stances, including its support for Palestinian rights.

The incident has sparked widespread attention and debate over the U.S. government’s role in the Gaza conflict and the allocation of federal resources. Cohen’s arrest underscores the ongoing tensions between political activism and governmental policies, highlighting the challenges faced by individuals and organizations advocating for change in the current political climate.

Ben Jerrys co founder Ben Cohen arrested protesting US bomb funding for Gaza conflict
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