President Trump’s threat of a 100 % blanket tariff on every Canadian import—retaliation for Ottawa’s tentative EV-for-agro pact with Beijing—signals a deliberate weaponisation of North America’s US$ 795 bn annual goods trade. Canada sells 74 % of its exports southward; a tariff of this scale would erase an estimated 1.5 % of Canadian GDP within months while jolting integrated U.S. supply chains for autos, energy and food. (wsj.com)

I read the move less as economic statecraft than as electoral spectacle. By casting Prime Minister Mark Carney as a “China conduit,” Trump revives the zero-sum framing last employed with Mexico in 2018—even though U.S.–Canada bilateral deficits have shrunk 23 % since then. History cautions: the 1930 Smoot-Hawley tariffs cut global trade one-third and deepened the Depression; Ottawa’s swift retaliation then, as now, hurt both sides. (aljazeera.com)

The deeper pattern is the collapse of trust in long-standing rules—USMCA arbitration, WTO panels—replaced by personalist ultimata. Middle-power hedging toward China is a rational response to that volatility. Unless cooler heads restore predictability, the continent risks a tariff spiral that could overshadow even AI-driven productivity gains discussed at Davos this week. “Trade wars are class wars,” economist Dani Rodrik reminds us; escalation here would tax workers on both borders first.

— The Gist AI Editor

Global Trade Tensions Spike

President Trump is escalating his protectionist trade strategy, threatening tariffs of “up to 200 percent” on French wine (Bloomberg) and “100% tariffs” on Canadian goods should Ottawa deepen ties with China (WSJ). From a free-market perspective, these are direct taxes on American consumers and businesses that will shrink choice and raise prices. Such measures treat international trade not as a mutually beneficial exchange but as a political weapon, punishing domestic importers and distributors while inviting retaliatory actions that harm global economic stability.

Beijing’s Power Purge

In China, Xi Jinping is tightening his grip on power with the investigation of Gen. Zhang Youxia, the nation’s top general (WSJ). The move represents the most significant purge of an active military leader since the aftermath of the 1989 Tiananmen Square protests. This consolidation of authority within the Chinese Communist Party underscores the inherent instability of authoritarian regimes. Centralizing military control under a single leader, rather than state institutions, raises the stakes for regional and global security, creating a less predictable geopolitical environment.

Western Democracies Face Internal Pressures

Political currents are shifting within key Western nations. In the UK, Greater Manchester Mayor Andy Burnham signaled a potential challenge to Labour Prime Minister Keir Starmer by announcing his intent to run in a by-election (Bloomberg). Meanwhile, in the US, federal agents were reported using tear gas against protesters in Minneapolis (Bloomberg), a stark reminder of ongoing friction between state authority and civil liberties. These events highlight the internal political re-alignments and social fractures occurring within established democracies.

Stay tuned for the next Gist—your edge in a shifting world.

Starmer Rival Burnham Announces Intent to Stand in By-Election
— Bloomberg

Why European Wine Could Get Pricier Under New US Tariffs
— Bloomberg

This Autonomous Aquatic Robot Is Smaller Than a Grain of Salt
— Wired

Four Years Ago, He Fled Ukraine for Japan. Now He’s a Sumo Superstar.
— Wall Street Journal

Watch Party: The Best TAG in Years, a ’60s Sensation, and Omega Goes All White
— Wired

Federal Agents Spraying Tear Gas at Protesters
— Bloomberg

Germany’s Digital Red Line

Berlin is shifting its cyber doctrine from defense to offense. Citing a staggering “5,000 hacker attacks per minute on the Bundesbank alone,” Interior Minister Dobrindt has declared Germany will now “strike back” against foreign attackers, actively disrupting their infrastructure (ZDF). This marks a significant pivot; Berlin is enabling its security authorities to dismantle the digital infrastructure of attackers, even if located abroad. For years, Germany has been hesitant to project power digitally; this move suggests a new, more muscular approach to national security. However, it raises immediate questions about the oversight mechanisms governing these new offensive operations by intelligence services, which could escalate state-on-state cyber conflict.

Google’s AI Health Hazard

A German study reveals a concerning trend in public health information: Google’s AI Overviews, seen by 2 billion people monthly, cite YouTube more than any medical website for health questions (The Guardian). The study, which analyzed over 50,000 health-related searches in Germany, found YouTube was the most cited source in AI-generated summaries. While innovation in information delivery is welcome, this development is alarming. A single, commercially-driven algorithm is now a primary health advisor for a vast global population, often prioritizing engaging content over peer-reviewed medical advice. This isn’t an argument for state control, but a critical observation of informational monopoly. The danger is a silent, systemic erosion of expert medical consensus, replaced by the confident authority of a black-box AI.

Catch the next Gist for the continent’s moving pieces.

Dobrindt: Werden bei Cyberangriffen zurückschlagen
— ZDF

Amazon Ads: sei trend per la pubblicità 2026, tra insight e intelligenza artificiale
— Il Sole 24 Ore

Google AI Overviews cite YouTube more than any medical site for health queries, study suggests
— The Guardian

Ukraine-Gespräche: “Wir sind näher dran als jemals zuvor”
— ZDF

Mercosur: Was der Deal für die EU-Wirtschaft bringt
— ZDF

Ukraine war briefing: energy crisis worsens amid more Russia airstrikes
— The Guardian