In Focus
The shock 39 % U.S. tariff aimed at Switzerland is more than a bilateral spat—it is the clearest sign yet that President Trump’s trade strategy has pivoted from headline-grabbing skirmishes to systemic realignment. Switzerland sells $48 bn in goods to the U.S. and could see up to a 1 % GDP hit, economists warn, if duties bite and the Swiss National Bank is forced back below zero rates. (reuters.com)
Trump’s logic is deficit arithmetic, yet it ignores the services surplus Washington enjoys and the fact that Bern already abolished industrial tariffs in 2024. By weaponising copper, pharma and now luxury watches, the White House is signalling that no ally is exempt when domestic manufacturing narratives need feeding. Markets listened: copper futures spiked 10 %, and Nomura now bakes an SNB rate cut into its September forecasts. (reuters.com, ft.com)
What looks like improvisation is in fact path dependency: every successful tariff since 2018 has encouraged another, eroding norms that underpinned post-war commerce. As ETH economist Hans Gersbach cautions, “prolonged disruptions could shrink Swiss GDP by more than one percent.” (reuters.com)
—The Gist AI Editor
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The Global Overview
Art, Power & Geopolitics
Qatar is set to host Art Basel in Doha, marking a significant move by the Gulf state to wield cultural influence as a form of soft power (Politico.eu). This partnership places Qatar’s capital alongside established art hubs, blending high-value art with significant financial and political interests. The move underscores a global trend where cultural events are increasingly intertwined with national branding and geopolitical strategy, raising questions about the intersection of art, commerce, and state influence. For observers of international relations, it’s a clear example of how non-military assets are leveraged to build global standing.
China’s Digital Iron Curtain
Beijing is tightening its control over public employees by restricting their ability to travel abroad, with some ordered to surrender their passports (Strait Times). These measures, framed as a push for “political discipline,” represent a significant escalation in the state’s control over the private lives of its citizens. The restrictions extend beyond simple travel to include limitations on opportunities for study abroad, effectively curbing personal development and international exposure for a key segment of the population. This policy reflects a broader trend of prioritizing ideological loyalty over individual liberty and open exchange.
Trade Tensions & Economic Realities
The Trump administration continues its assertive trade policy, with a new 35% tariff on Canadian goods not covered by the US-Mexico-Canada Agreement, prompting likely talks between President Trump and Canadian Prime Minister Mark Carney (Strait Times). While the White House touts tariff revenue, analysts warn the average US tariff rate could exceed 18%, potentially slowing economic growth and increasing costs for American consumers (Strait Times). This approach, supported by trade officials who see it as a legitimate tool of foreign policy, highlights a fundamental clash between protectionist impulses and the principles of free trade, with consumers likely bearing the ultimate cost (Politico.com).
Corruption Crackdown in Kyiv
In a significant development for its reform agenda, Ukraine’s anti-corruption agencies have uncovered a major corruption scheme within military procurement (Politico.eu). The disclosure, coming just days after the independence of these anti-corruption bodies was restored following pressure from Brussels, signals a renewed commitment to tackling graft. President Volodymyr Zelenskyy condemned the scheme as “absolutely immoral.” This move is a critical test of Ukraine’s institutional strength and its ability to build trust with Western partners, upon whose financial and military support it heavily relies.
Stay tuned for the next Gist—your edge in a shifting world.
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The European Perspective
Germany’s Olympic Ambitions
A spirited debate is unfolding in Germany as the country considers a bid for the Olympic and Paralympic Games, with potential candidacies from Berlin, Hamburg, Munich, and the Rhine-Ruhr region for the 2036 or 2044 events. This push, described as a necessity by Saxony’s Minister of the Interior, Armin Schuster, is currently being showcased by the national multi-sport event, “The Finals 2025,” in Dresden. Public sentiment appears favorable, with a recent poll showing 68% of Germans support a bid. However, opinions are divided, particularly in Berlin, where a recent survey showed 46% in favor and 43% opposed to hosting the games a century after the controversial 1936 Nazi-era Olympics. Proponents are framing a potential 2036 bid as an opportunity for democratic renewal, while opponents voice concerns over the historical context and potential costs.
Italian Cinema Confronts Maternity Taboos
The upcoming 82nd Venice International Film Festival will feature the premiere of “Amata,” a new film by Italian director Elisa Amoruso. The movie delves into the complexities of maternity, portraying two intertwined stories: one of a young student, Nunzia, facing an unwanted pregnancy, and the other of a woman, Maddalena, struggling with infertility. Amoruso has described the film as a “necessary” work that centers on the female perspective, exploring the nuances of desired, denied, and imposed motherhood. Starring Miriam Leone, Stefano Accorsi, and Tecla Insolia, “Amata” is set to be a poignant exploration of love, freedom, and the diverse forms of motherhood, and will be released in cinemas on October 16th.
Air Travel’s Liquid Rule Shake-up Creates Confusion
A recent decision by the European Civil Aviation Conference (ECAC) to allow liquids in containers larger than 100 ml in carry-on luggage is causing confusion for travelers. The new rule, which permits up to two liters, only applies to airports equipped with new-generation 3D scanners. While major hubs like Rome, Milan, and several German airports have the technology, the rollout is not universal. This inconsistency has led to situations where passengers may be forced to discard items or pay for last-minute checked baggage, with potential extra costs reaching up to €130 (Assoutenti). The Italian consumer association, Assoutenti, has criticized the measure, arguing that what was intended to simplify travel has become a source of uncertainty and unexpected expenses for passengers.
Catch the next Gist for the continent’s moving pieces.
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The Data Point
Amidst an escalating trade war, the U.S. has imposed a 35% tariff on Canada.
Experts warn the average American tariff rate may soon surpass 18%, increasing costs for consumers on nearly all goods.
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The Editor’s Listenings
Perfume Genius – No Front Teeth (2025)
From his acclaimed 2025 album, this experimental and deep track is immediately engaging.
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