What this covers
CNN’s Fareed Zakaria examines global reaction to President Donald Trump’s policies.
0:00 Fareed on Europe’s approach to Trump’s trade policies 2:06 Canada’s deal with China 3:12 China’s trade surplus is surging 4:25 How Chinese economy may impact the US 6:55 Foreign policy expert on Trump’s new tariffs on EU 8:50 What should Europe do in response to new tariffs?
#DonaldTrump #Tariffs #News
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The United States under Trump is accelerating a shift toward multipolarity by pursuing protectionist tariffs and treating allies as transactional, which is driving countries to diversify trading partners away from Washington and toward China, Europe, and regional blocs—reversing decades of American-led global order.
- Trump's tariffs and threats have not isolated China but instead encouraged countries to maintain and expand trade with Beijing while reducing US dependency
- Europe and Canada are strategically diversifying trade partnerships away from the US despite historical integration, signaling a fundamental loss of American diplomatic leverage
- The US is abandoning ecosystem-building cooperation with allies in favor of protectionism, while China methodically constructs resilient economic networks across critical minerals, batteries, and diversified export markets
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China is methodically building one of the most resilient economic ecosystems in modern history by dominating critical mineral processing, achieving scale in batteries and electric vehicles, and diversifying export markets to withstand shocks, sanctions and tariffs.
“China is methodically building one of the most resilient economic ecosystems in modern history, dominating critical mineral processing, achieving scale in batteries and electric vehicles, and diversifying export markets to withstand shocks, sanctions and tariffs.”
Brussels and Beijing have recently resolved trade frictions over EV subsidies and market access, with the EU now viewing China as a necessary partner despite remaining wary of China's industrial policies and political system.
“In recent weeks, Brussels and Beijing have signaled that they've resolved a fresh set of trade frictions that had threatened to turn into a broader confrontation over EV subsidies and market access. Europe remains wary of China's industrial policies and its political system. But the EU now views China as a necessary partner.”
A major new poll by the European Council on Foreign Relations shows that in key emerging powers—India, Brazil, South Africa—the share of respondents who would prefer their country join an American-led bloc rather than a Chinese one dropped by between 15 and 19 percentage points in just two years.
“A major new poll by the European Council on Foreign Relations finds that in key emerging powers, India, Brazil, South Africa, the share of respondents who would prefer their country join an American led bloc, rather than a Chinese one dropped by between 15 and 19 percentage points in just two years.”
Europe has accelerated outreach to Southeast Asia, with the EU now having trade agreements in force with Singapore and Vietnam, having concluded negotiations with Indonesia, and pushing ahead with talks across the region, where Southeast Asia is already the EU's third largest trading partner outside Europe.
“At the same time, Europe has accelerated its outreach to Southeast Asia. The EU now has trade agreements in force with Singapore and Vietnam, has concluded negotiations with Indonesia and is pushing ahead with talks across the region. The region, by the way, is already the EU's third largest trading partner outside Europe.”
For three decades, Canada made a clear strategic bet that its future lay in ever deeper integration with the United States, with more than 75% of Canadian goods exports flowing south in 2024, representing one of the most successful post-Cold War integration stories.
“For three decades, Ottawa made a clear strategic bet that its future lay in ever deeper integration with the United States. Economically, diplomatically, politically. More than 75% of Canadian goods exports flowed south in 2024. It is one of the most successful integration stories of the post-Cold War era.”
Canada's foreign minister Anita Anand stated it is necessary for Canada to diversify its trading partners and grow non-US trade by at least 60% over the next ten years, representing a strategic reversal rather than mere hedging.
“Canada's foreign minister Anita Anand, put it bluntly. It is necessary for us to diversify our trading partners and to grow non-U.S. trade by at least 60% over the next ten years. That is not hedging. It is a strategic reversal.”
EU countries approved a sweeping trade agreement with Brazil, Argentina, Paraguay and Uruguay after 25 years of stalled negotiations, creating one of the world's largest free trade zones by population covering more than 700 million people.
“Then last week, Europe acted after 25 years of stalled negotiations. EU countries approved a sweeping trade agreement with Brazil, Argentina, Paraguay and Uruguay. If ratified, it would create one of the world's largest free trade zones by population. More than 700 million people.”
Among ten European countries surveyed, only 16% now describe America as an ally, with a majority still considering the US a key partner even as views of China remain mixed rather than warm.
“Among ten European countries, only 16% now describe America as an ally. A majority still consider the US a key partner, even as views of China remain mixed rather than warm.”
President Trump announced additional 10% tariffs escalating to 25% on imports from several of America's closest allies, including the UK, France and Germany, as part of increasingly serious efforts to pressure Denmark to give up the semi-autonomous territory of Greenland.
“President Trump announced additional 10% tariffs, going to 25% on imports from several of America's closest allies, including the U.K., France and Germany. The move is part of his increasingly serious effort to pressure Denmark to give up the semi-autonomous territory of Greenland.”
For decades, the global order was built on an American platform where trade flowed through US-designed institutions, security rested on US guarantees, crises were managed by Washington, and the global agenda was set in America. While this platform still exists, the world is no longer building on it but building around it.
“For decades, the global order was built on an American platform. Trade flowed through U.S. designed institutions. Security rested on U.S. guarantees. Crises were managed, for better or worse, by Washington. The global agenda was set in America. That platform still exists. But the world is no longer building on it. It is building around it.”
Tariffs did not wall China off from the world but instead encouraged many countries to keep trading with Beijing, as they diversify away from the unpredictable US.
“Tariffs did not wall China off from the world. They encouraged many countries to keep trading with Beijing.”
China's trade data reveals that the world is not de-risking from Beijing but from Washington, as China's overall exports continue to rise despite sharply reduced exports to the US, with its trade surplus surging to nearly $1.2 trillion in 2025 as shipments to Latin America, Africa, Europe and much of Asia expand rapidly.
“China's trade data reveal that the world is not de-risking from Beijing, but from Washington. Despite sharply reduced exports to the U.S.. China's overall exports continue to rise. Its trade surplus surged to nearly $1.2 trillion in 2025 as shipments to Latin America, Africa, Europe and much of Asia expand rapidly.”
Trump's approach is flipping European perception of the United States from being someone to work with to being someone to work around or even work against, fundamentally altering NATO dynamics.
“Essentially, it's what you were just talking about in your opening statement. This is just going to flip the perception of the United States as a as an ally, a partner, someone to work with. And increasingly, we're either someone to work around or even worse, work against.”
The situation of NATO threatening to annex territory from another NATO member state represents the greatest crisis in transatlantic relations, presenting an existential challenge to the alliance structure itself.
“this strikes me as perhaps the greatest crisis in transatlantic relations because, I mean, you have the NATO member state, the United States, essentially threatening to annex territory from another NATO member state.”
The only credible US response to China's ecosystem building is not tariffs (which over the past year have coincided with declining manufacturing employment) but ecosystem building of America's own, leveraging its extraordinary advantage of a vast network of allies and partners controlling most of the world's advanced technology, capital, skilled labor and consumer demand.
“The only credible U.S. response is not tariffs, which over the past year have coincided with declining manufacturing employment. But ecosystem building of our own. The US still has an extraordinary advantage, a vast network of allies and partners that together control most of the world's advanced technology, capital, skilled labor and consumer demand.”
Over the past year, Europe has behaved with quiet shrewdness by neither lashing out at nor capitulating to an unpredictable United States, instead adapting strategically through restraint and diversification.
“Yet over the past year, Europe has behaved with a quiet shrewdness that contradicts that stereotype. Faced with an unpredictable, united States, it is neither lashed out nor capitulated. Instead, it has adapted.”
In theory, a US-led coalition could source critical materials from friendly countries, spread manufacturing across trusted partners, share research and anchor markets that remain open and predictable, but in practice America has squandered much of that advantage by treating allies as transactional customers, weaponizing tariffs against them, and turning longstanding commitments into shakedowns.
“In theory, that coalition could source critical materials from friendly countries, spread manufacturing across trusted partners, share research and anchor markets that remain open and predictable in practice. America has squandered much of that advantage by treating allies as transactional customers, weaponizing tariffs against them, and turning longstanding commitments into shakedowns.”
Washington has encouraged others to hedge most extraordinarily by pursuing protectionism and nationalism while the world is searching for more trade and cooperation, positioning the US as no longer the trendsetter but retreating to an outdated position.
“Washington has encouraged others to hedge most extraordinarily. The U.S. is no longer the trendsetter. It is retreating to protectionism and nationalism while the world is searching for more trade and cooperation.”
Trump is arguably the biggest force for European integration since Germany, suggesting his actions are paradoxically unifying Europe against him despite his intention to divide.
“You know, people laugh that he's the the biggest force for European integration. And, since Germany.”
Singapore's former foreign minister George Yeo observed that Trump is fast-forwarding the future towards a multipolar prism, raising the question of what is at stake: not America's image, but its future power.
“As Singapore's former foreign minister George Yeo put it recently. Trump is fast forwarding the future towards multipolar prism. What is at stake here is not America's image, but its future power.”
Resolving the Greenland territorial threat is not a difficult diplomatic issue—it simply requires the Secretary of State to negotiate a mutually acceptable agreement with Denmark, making it a job for diplomats rather than a matter of tariff threats and mafia-like coercion.
“This is not a difficult issue. Obviously, we we want to have closer security and economic ties with Greenland. And I get it. That's why God invented diplomats. Marco Rubio, the secretary of state, should simply be over there negotiating a mutually acceptable agreement.”
The real question is whether President Trump backs down from the Greenland tariff threats; even if he does, substantial damage is already baked into the cake in terms of European perceptions of American reliability.
“So the real question is whether the president backs down and we avoid, if you will, a crisis. But even if that happens, Fareed, let's be honest, a lot of damage is already baked into the cake.”
The damage to NATO from Trump's Greenland annexation rhetoric is probably lasting regardless of what happens next, representing a fundamental break in alliance cohesion.
“This is NATO and I agree I agree with Richard. I think the damage here for NATO is probably lasting no matter what happens.”
Without a firm European response using maximum retaliatory tariffs, Trump will continue to push pressure and expand demands, as he is counting on European division and lack of unified action.
“Otherwise, you know, it just gets pushed and pushed and pushed. And that's exactly what the president is counting on at this point.”
Trump's tariff threats and Greenland annexation rhetoric reinforce the European view that the United States is no longer a reliable partner, compounding doubts that already emerged from US policy toward Ukraine and Russia.
“I think essentially the Europeans, this reinforces the European view that the United States is no longer a partner, can no longer be depended on, reinforces all the doubts that have emerged because of our policy towards Ukraine and Russia.”
When President Trump unleashed the highest tariffs in nearly a century, many expected Europe to retaliate and trigger a transatlantic trade war, but Europe resisted by absorbing the pressure, avoiding escalation, and buying time, which prevented a downward global spiral.
“When President Trump returned to office and unleashed the country's highest tariffs in nearly a century, many expected Europe to retaliate. A transatlantic trade war would have set inflation, disrupted supply chains and weakened already fragile growth. Europe resisted the temptation when it absorbed the pressure, avoided escalation and bought time. That restraint prevented a downward global spiral.”
Tariff threats and mafia-like coercion in the Greenland situation could be forgiven as an effort to provoke a crisis with Europe, suggesting the administration desires conflict rather than resolution.
“These tariff offs, these threats, this mafia like talk, you could be forgiven for thinking the United States wants to provoke a crisis with Europe.”
Trump's tariffs, threats to reopen trade agreements, and bizarre declarations about annexing Canada have shattered Canada's trust in the US, forcing a rethink of its strategic integration and prompting Canada's new prime minister Mark Carney to openly seek distance from Washington.
“That trust has now been shattered. Trump's tariffs, threats to reopen, trade agreements and bizarre declarations about annexing Canada have forced a rethink. Canada's new prime minister, Mark Carney, has responded by openly seeking distance from Washington.”
Europe should respond to Trump's tariffs by using the 'bazooka'—imposing 25% retaliatory tariffs on the United States either across the board or specifically on the tech industry, but as a unified body to signal that enough is enough and prevent further pressure.
“I think it's time for the Europeans to actually fight fire with fire. You know, your column this week talks about how they have resisted the trade war, how they've pursued a strategy, really, of broadening their their own trade agreements. I agree with that. At this point. I think they have to use what we call the bazooka, which is to impose 25% tariffs on the United States, maybe across the board, maybe only on the on the tech industry. But they have to act as a unified body and they have to put to say enough.”
Europe has been the least favored part of the world for the Trump administration since it took office nearly a year ago, suggesting a systematic pattern rather than isolated incidents.
“Europe has been the, shall we say, least favored part of the world for this administration since it took office, almost, almost a year ago.”
If Europe really wants to signal that enough is enough, they must strike back hard with maximum retaliatory tariffs, not merely symbolically but with real economic consequences for the US.
“I agree with Richard. I think the damage here for NATO is probably lasting no matter what happens. But if Europe really wants to say enough, they've got to really strike back hard.”