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Trump’s Economic Policies Expected to Drive Inflation, Affect Global Markets

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With former President Donald Trump’s historic reelection victory, financial experts warn that inflation is likely to rise in the United States and globally if Trump implements his campaign pledges, which include aggressive tax cuts, strict immigration policies, and high tariffs on imported goods. CNN projected Trump’s victory on Wednesday, securing him a second term in office alongside a Republican majority in the Senate, positioning him to enact a potentially transformative economic agenda.

U.S. stock markets surged following Trump’s win, and the dollar strengthened against major currencies as traders braced for increased inflation and fewer interest rate cuts from the Federal Reserve. Matthew Ryan, head of market strategy at Ebury, noted that a stronger dollar reflects investor expectations that Trump’s policies—particularly on tariffs and immigration—will boost inflation and potentially lead to elevated interest rates.

“Investors are bracing for tariffs… which will push up the price of imported goods for American shoppers,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown. Trump’s promise of mass deportations could also raise wage costs for U.S. companies by limiting the labor pool, she added.

Higher Tariffs on Imports

During his campaign, Trump proposed raising tariffs to 10-20% on all imported goods, a drastic increase from the current 2% average, with a 60% tariff specifically on Chinese imports. He has also suggested tariffs as high as 200% on cars manufactured in Mexico or by U.S. companies that relocate production there. According to analysts, these tariffs would act as a tax on imports, increasing costs for consumers and businesses reliant on imported materials.

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Economists warn that higher tariffs could disrupt the Federal Reserve’s interest rate strategy. Nomura analysts indicated that due to anticipated inflation from tariffs, they now expect only one rate cut in 2025, with policy likely remaining on hold until inflation subsides.

Impact on Global Markets and Trade

The effects of Trump’s tariffs could reverberate beyond U.S. borders. If trading partners impose retaliatory tariffs on American exports, global inflation could rise, potentially stunting world trade and economic growth. “A material increase in global inflation would follow, while the ensuing hit to world trade would negatively impact growth,” noted Investec chief economist Philip Shaw and economist Ellie Henderson.

A stronger dollar could also impact global inflation, particularly for countries that rely on commodities priced in U.S. dollars. As the dollar gains strength, these countries may face higher costs for essential goods, which companies would either have to absorb or pass on to consumers. This effect could force adjustments in international markets, with some countries like China potentially offloading excess goods to other nations with lower tariffs, possibly dampening inflation in those areas.

Risks for Key Trading Partners

Economies heavily reliant on U.S. exports, such as Canada and Mexico, may feel the direct impact of Trump’s tariffs. BMI, a market research firm under Fitch Solutions, warned that Mexico, Canada, and other nations with trade surpluses, including China, Japan, Germany, and South Korea, could face pressure to increase imports of U.S. goods. A 60% tariff on Chinese goods alone could cut China’s economic growth by up to 0.8 percentage points over the next two years, according to BMI.

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German exporters could also experience significant setbacks if Trump enacts a 20% tariff on all trading partners. The Ifo Institute for Economic Research in Munich warned that German exports to the U.S.—its largest market outside the EU—could drop by around 15%, potentially posing a severe economic challenge for both Germany and the EU.

As Trump prepares to implement his economic agenda, economists expect a turbulent period for global markets, marked by inflationary pressures, potential trade conflicts, and shifting alliances.

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Germany Trails Europe as Smart Meter Rollout Lags Behind Renewable Energy Push

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Germany is falling well behind most European countries in the installation of smart electricity meters, raising concerns as the continent accelerates its transition toward renewable energy and more flexible power systems.

Smart meters have become increasingly important as Europe relies more heavily on electricity generated from wind and solar energy. Unlike traditional power sources such as coal, gas and nuclear plants, renewable energy production depends on weather conditions, making it more difficult for grid operators to balance electricity supply with demand.

The devices automatically transmit electricity usage data to energy suppliers, eliminating the need for manual meter readings while allowing consumers to monitor their energy consumption more closely. They also enable households to access time-of-use tariffs, which offer lower electricity prices during periods of lower demand or higher renewable energy generation.

Energy experts say smart meters can help reduce pressure on electricity grids by encouraging consumers to run energy-intensive appliances, charge electric vehicles or operate heat pumps when renewable power is abundant. This improves grid efficiency and reduces the need to curtail renewable energy production when electricity supply exceeds demand.

The International Renewable Energy Agency has also highlighted the growing importance of battery storage in supporting renewable energy, estimating that Europe will need to expand battery capacity tenfold to meet its 2030 climate and energy targets.

Despite these benefits, progress across Europe has been uneven. The European Union’s 2009 Third Energy Package called on member states with positive cost-benefit assessments to install smart meters in at least 80 percent of households by 2020. Six years after that target, overall deployment across the bloc stands at roughly 60 percent.

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The European Commission has since proposed new targets calling for at least half of all consumers to have smart meters by 2030 and 65 percent by 2033.

Several European countries have already achieved near-universal coverage. Denmark has reached full deployment, while Estonia, Finland, Latvia, Luxembourg, Norway, Portugal and Spain each report coverage of around 99 percent. Italy, one of the earliest adopters, completed widespread installation more than a decade ago. France has reached 94 percent, the Netherlands 90 percent and Ireland 84 percent. Great Britain has installed smart meters in around 70 percent of households.

Germany remains the clear outlier. According to data from the EU Agency for the Cooperation of Energy Regulators, only about 2 percent of German households had advanced smart meters installed by 2024, the lowest rate among Europe’s major economies. Although the country introduced mandatory installation requirements for certain consumers in 2025, rollout has continued at a slow pace.

Analysts say wider adoption of smart meters could deliver significant savings for consumers while helping electricity networks manage growing demand from electric vehicles, home batteries and heat pumps. The technology is also expected to play a central role in supporting community energy projects and reducing the overall cost of integrating renewable energy into Europe’s power system as the transition to cleaner electricity gathers pace.

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Mariano Rajoy Faces Backlash Over Remarks About France’s World Cup Team

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Former Spanish Prime Minister Mariano Rajoy has come under fire after writing that France’s national football team plays “without Frenchmen,” a remark that has drawn accusations of racism and xenophobia ahead of the World Cup semifinal between Spain and France.

Rajoy made the comments in his regular World Cup column for Spanish newspaper El Debate following Spain’s 2-1 quarterfinal victory over Belgium. Looking ahead to Tuesday’s semifinal against Didier Deschamps’ side in Dallas, the former Spanish leader acknowledged France’s success on the international stage, describing the squad as top-class before adding that it was “without Frenchmen.”

The statement was widely interpreted as a reference to the ethnic and immigrant backgrounds of several French players, despite the majority of the squad being born in France.

Of the 26 players selected by Deschamps for the tournament, only three were born outside the country. Michael Olise was born in London to a British-Nigerian father and a French-Algerian mother, Marcus Thuram was born in Parma, Italy, while his father, former France international Lilian Thuram, was playing there, and goalkeeper Brice Samba was born in the Democratic Republic of the Congo before moving to France as a child.

Rajoy’s remarks quickly prompted criticism from politicians in both Spain and France.

Spanish Socialist Party MEP José Cepeda described the comments as “racist and xenophobic” during a television interview, saying it was shameful for a former prime minister to make such statements.

In France, Equality Minister Aurore Bergé condemned what she described as repeated racist remarks, writing on X that sport should remain a place where people are judged by their talent rather than any other characteristic.

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French Communist Party national secretary Fabien Roussel also criticized Rajoy, urging that his comments be condemned. He compared the controversy to recent remarks made by a Paraguayan politician about French striker Kylian Mbappé, which prompted prosecutors in Paris to open an investigation after a complaint alleging aggravated public insult.

The Élysée Palace did not immediately comment on the controversy.

The debate over France’s national football team and its multicultural identity has existed for decades. Following France’s 1998 World Cup triumph, players including Zinedine Zidane, Lilian Thuram, Marcel Desailly and Patrick Vieira became symbols of a diverse French society.

At the time, however, far-right politician Jean-Marie Le Pen argued that the team did not truly represent France because of its multicultural makeup. Those views were widely condemned and have resurfaced periodically during broader national debates over immigration and identity.

The latest controversy comes as Spain and France prepare to meet in the World Cup semifinals on Tuesday. The match coincides with Spanish Prime Minister Pedro Sánchez’s planned visit to Paris for France’s Bastille Day celebrations, placing additional attention on relations between the neighboring countries both on and off the football field.

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Qatar Mourns Former Emir Sheikh Hamad bin Khalifa Al Thani After His Death at 74

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Qatar has entered a four-day period of national mourning following the death of former Emir Sheikh Hamad bin Khalifa Al Thani, a leader widely credited with transforming the country into a major regional and global force in diplomacy, investment and economic development.

The Amiri Diwan announced on Sunday morning that Sheikh Hamad had passed away at the age of 74.

In a statement, the official administrative office said it mourned “the passing of the nation’s great leader,” adding, “May God have mercy on him, His Highness the Father Emir, Sheikh Hamad bin Khalifa Al Thani, who passed away this morning.”

Sheikh Hamad served as Qatar’s emir from 1995 until 2013, when he voluntarily handed power to his son, the current Emir Sheikh Tamim bin Hamad Al Thani. The transition marked one of the few peaceful transfers of power by a ruling monarch in the Gulf region.

Born in Doha in 1952, Sheikh Hamad received military training at the Royal Military College Sandhurst in the United Kingdom before returning to Qatar to serve in the armed forces. He later became defence minister and was named heir apparent in the late 1970s, laying the foundation for his future leadership.

During his 18-year reign, Qatar underwent sweeping economic, social and cultural changes. Supported by the country’s vast natural gas resources, the nation invested heavily in infrastructure, education, healthcare and international business, rapidly expanding its influence beyond the Gulf.

Sheikh Hamad also played a central role in raising Qatar’s international profile. His government supported the growth of the Al Jazeera television network, strengthened diplomatic engagement across the Middle East and increased the country’s global investment portfolio. Under his leadership, Qatar successfully secured the right to host the 2022 FIFA World Cup, becoming the first Arab nation to stage the tournament.

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His administration also oversaw several major international events, including the 2006 Asian Games and the 2012 United Nations Climate Change Conference in Doha, reinforcing Qatar’s reputation as a venue for global diplomacy and international cooperation.

Following the announcement of his death, the Amiri Diwan declared four days of national mourning beginning Sunday. Flags will be flown at half-mast across the country throughout the mourning period.

Government ministries, agencies and public institutions will suspend operations from Monday, with employees scheduled to return to work on Sunday, July 19.

Tributes are expected from leaders across the region and around the world, reflecting Sheikh Hamad’s influence on Qatar’s rise as a significant political, economic and diplomatic player. His legacy is closely tied to the country’s transformation from a small Gulf state into one of the world’s wealthiest nations and an increasingly active participant in international affairs.

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