Washington has slammed the brakes on an already-fragile global trading system. In the last 24 hours the White House confirmed tariffs of 35 % on Canadian goods, 50 % on Brazilian exports, 25 % on India and 39 % on Switzerland—lifting the average U.S. tariff rate to a Smoot-Hawley-era 18 % from 2.3 % a year ago. (reuters.com, reuters.com)

Markets sniffed the danger: the S&P 500 slid 1 %, and Canada’s dollar hit a 14-month low as Ottawa pleaded for relief even while Washington floated “dividends” to voters from the new revenue. (reuters.com, ft.com) The administration swears the rates are “largely fixed,” yet history suggests tariffs rarely stay contained; the 1930 spiral erased a fifth of world trade.

What’s missed in the noise is the deeper pivot—from rules-based multilateralism to raw transactional power. By monetising trade friction, the U.S. is effectively taxing allies to fund domestic politics, a playbook more often associated with petro-states than liberal democracies. As political economist Branko Milanović warns, “Globalisation can die not with a bang but with many small, self-interested cuts.” The stakes are systemic.

The Gist AI Editor

Tokyo Braces for Tariff Shock

Japan’s government is preparing to roll out a significant fiscal stimulus package to counter the economic impact of U.S. tariffs. Prime Minister Shigeru Ishiba confirmed on Monday that an extra budget is on the table, with analysts projecting a potential size of around $87.1 billion (Strait Times). This move signals Tokyo’s growing concern over trade frictions and its readiness to deploy substantial public funds to shield its domestic economy. Such a large expenditure would, however, place additional strain on Japan’s already heavily indebted national finances, underscoring the difficult trade-offs governments face between short-term stability and long-term fiscal health.

Israel’s Diplomatic Isolation Deepens

Israel is facing a notable erosion of support from some of its most steadfast international partners. In a significant policy shift, key allies including Britain, France, and Canada have declared their intention to formally recognize a Palestinian state this coming fall (Politico.eu). This coordinated diplomatic pivot reflects growing international impatience with the current Israeli government’s policies. Critics, including former Israeli Prime Minister Ehud Olmert, attribute this increasing isolation directly to the strategies of Prime Minister Benjamin Netanyahu’s administration, suggesting a direct link between domestic policy and diminishing global standing.

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

Japan ready to compile extra budget to cushion US tariff blow, PM Ishiba says
— Strait Times

Malaysia’s singing goreng pisang seller draws crowds at Penang market
— Strait Times

On mental health, pilots call for support not suspicion
— Financial Times

Ukrainian drone attack sparks fire at railway station in Volgograd region, Russia says
— Strait Times

As Israel loses allies, Netanyahu only has himself to blame
— Politico.Eu

Les préfets Shiva, ou la victoire obtenue de haute lutte par le ministère de l’Intérieur
— Politico.Eu

Europe’s Hospitality Rebellion

A significant challenge to Big Tech’s market power is brewing in Europe’s tourism sector. More than 10,000 hotels have launched a class-action lawsuit against Booking.com, seeking damages over its “price parity” clauses (ZDF). These terms effectively ban hotels from offering cheaper rates on their own websites, stifling direct competition. This isn’t just a legal squabble; it is a fundamental push for market freedom. A victory for the plaintiffs could dismantle a key pillar of the online travel agent (OTA) model, potentially restoring pricing autonomy to thousands of businesses and signaling a broader reckoning for digital platforms that exert quasi-monopolistic control over markets.

Trump’s Transatlantic Squeeze Play

President Trump is wielding economic leverage with renewed vigor, dispatching special envoy Steve Witkoff to Moscow this week with a stark ultimatum: secure a Ukraine ceasefire by Friday or face fresh sanctions. This hardball diplomacy coincides with a notable domestic pitch: Trump has floated using revenues from tariffs, potentially “hundreds of billions of dollars,” for a “dividend” to lower-income Americans, not just for debt reduction (ANSA). This dual strategy—threatening adversaries with economic pain while promising direct financial rewards to citizens at home—marks a highly transactional approach to statecraft. For Europe, the message is clear: US policy will be driven by tangible, and often unpredictable, economic incentives and penalties.

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

UK: Social media people smugglers to face jail
— Dw

Catherine Ashton on the UK’s role in a changing world – podcast
— Theguardian

Aktuelles zum Krieg in der Ukraine
— Zdf

Mehr als 10.000 Hotels verklagen Booking.com
— Zdf

So sahen die ersten heute-Nachrichten aus
— Zdf

Trump, dai dazi possibile dividendo per i meno abbienti
— Ansa