Washington’s 15 % tariff truce with Taipei in exchange for at least $250 billion of Taiwanese tech investment marks the most muscular re-shoring gambit since the 1980s U-S-Japan chip wars. TSMC alone plans to lift 2026 cap-ex by 40 % to about $56 billion and fast-track its Arizona fabs, signalling that supply-chain “friend-shoring” is turning into outright industrial migration. (apnews.com)

The deal’s geopolitical charge is equally potent: Beijing has denounced it as a sovereignty breach, yet Taiwanese leaders hail “the best tariff terms ever granted to a surplus nation.” By hard-wiring cutting-edge fabrication inside the U.S., Washington gains deterrence leverage—silicon as strategic moat—while Taipei hedges against blockade risk. (it.euronews.com)

But subsidies and tariffs cannot erase physics: every relocated clean-room doubles water and energy demand, and past U-S industrial offensives—from Reagan’s Sematech to Obama’s battery loans—show cost discipline fades once politics triumphs over market signals. Unless governance matches capital, the new fabs could replicate Detroit’s arc: scale without competitiveness. As economist Mariana Mazzucato warns, “public purpose must shape, not chase, investment.”

— The Gist AI Editor

Energy’s New Geopolitics

A stark indicator of shifting global power, China’s electricity consumption in 2025 was more than double that of the United States, according to data from the National Energy Administration (Bloomberg). This voracious demand, driven by manufacturing and new technologies, underscores the physical resource needs of the 21st-century economy. In the US, the Trump administration is floating a novel, market-oriented proposal to address similar, AI-driven energy pressures: requiring an emergency power auction where tech companies would fund the construction of new power plants through 15-year contracts (WSJ). This move aims to directly link the beneficiaries of the digital boom with the immense energy costs required to sustain it.

Evolving Security Doctrines

Meanwhile, influential opinion is challenging long-held foreign policy assumptions. A viewpoint in the Wall Street Journal argues for a policy of “regime change” in Iran, asserting that the Islamic Republic’s foundational anti-American stance is an intractable threat to US interests. In a parallel rethinking of alliances, an analysis in the Financial Times suggests that European conservatives may increasingly see a more politically unified “United States of Europe” as the only viable counterbalance to the growing power of both America and China. This reflects a pragmatic shift, prioritizing continental strategic interests over traditional national sovereignty.

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

Opinion | The Case for Regime Change in Iran
— Wall Street Journal

Trump Pushes Plan for Tech Companies to Fund New Power Plants
— Wall Street Journal

H&F Explores $9 Billion-Plus Sale of Medical Device Maker Cordis
— Bloomberg

Trump Purchased Netflix, Warner Bonds in Days After Deal Announcement
— Wall Street Journal

Chemical Maker Trinseo Gears Up for Debt Talks as Demand Wanes
— Bloomberg

China Consumed Twice the Electricity of the US in 2025: CCTV
— Bloomberg

Greenland’s Geopolitical Fault Line

Washington’s increasingly assertive posture on Greenland is forcing a moment of reckoning in Europe, testing the cohesion of the transatlantic alliance. President Trump’s demands, which reportedly include pushing NATO members toward 5% of GDP in defense spending, are seen by some European officials as a potential catalyst for shattering NATO. Italy is attempting to navigate this delicate situation; Prime Minister Meloni has suggested that an Italian presence could be considered, but only within a NATO framework to avoid “divisive” actions against the US. This isn’t merely about territory; it’s a profound test of Europe’s strategic autonomy. The episode forces a difficult decision on whether to accommodate a key ally’s bellicose demands or draw a firm line, with lasting implications for the continent’s security architecture. (The Guardian, Ansa).

Kyiv’s Enduring Corruption Problem

Ukraine’s fight for survival is being undermined by the persistent challenge of internal corruption, a fact underscored by the latest high-profile case. Former Prime Minister Yulia Tymoshenko has been ordered by a court to pay bail equivalent to over €660,000 following accusations of bribery. The National Anti-Corruption Bureau alleges she attempted to influence the votes of lawmakers, striking at the heart of the nation’s governance. For European capitals underwriting Kyiv’s defense with billions in aid, such developments are deeply problematic. They provide ammunition for critics who question the lack of oversight on financial assistance and complicate the political case for sustained, long-term support, potentially leading to calls for stricter anti-corruption measures tied to future aid packages. (ZDF).

Munich’s Message to Tehran

In a pointed diplomatic rebuke, the Munich Security Conference (MSK) has rescinded its invitation to Iranian government officials. The move is a direct response to the massive and violent crackdown on protestors by the Tehran regime. An invitation that had been extended weeks ago was officially withdrawn due to the “current events,” according to the MSK press team. This decision by one of the world’s premier security forums sends a clear, albeit symbolic, message from a key European platform. It signals a hardening stance against authoritarian repression and aligns with a broader push to isolate regimes that violate fundamental human rights, demonstrating that participation in the international community is not unconditional. (ZDF, Reuters).

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

Proteste in Iran: Hinrichtungen offenbar ausgesetzt
— ZDF

Greenland crisis: Europe needs the US, but it also needs to stand up to Trump
— The Guardian

New study debunks Trump’s theory about paracetamol, pregnancy and autism
— Politico Europe

Aktuelles zum Krieg in der Ukraine
— ZDF

Topfavorit Dänemark gibt sich keine Blöße
— ZDF

A visual guide to Venezuela’s oil and why Trump wants it
— El Pais