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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.

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.

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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Ukraine War Faces Diplomatic Crossroads as NATO Unity Falters

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As the Ukraine war drags into its fourth year, optimism and uncertainty surround the possibility of diplomatic breakthroughs under the incoming Trump administration. Ukrainian officials and NATO allies, while outwardly hopeful, face hard questions about the sustainability of support and the risks of a fractured alliance as new leadership takes charge in Washington.

Trump Administration’s Diplomatic Approach

President-elect Donald Trump’s team has hinted at a preference for a negotiated settlement to the conflict. Keith Kellogg, Trump’s Ukraine envoy, has proposed a peace plan involving a ceasefire, the establishment of a demilitarized zone, and conditional military aid tied to Ukraine’s participation in negotiations. However, the plan’s reliance on Russia’s willingness to adhere to terms devised by the United States raises doubts, particularly given Moscow’s history of undermining ceasefires and advancing military goals under the guise of peace.

On Sunday, Trump’s incoming national security adviser, Rep. Mike Waltz, emphasized the need for a diplomatic resolution, a statement swiftly echoed by Russian Foreign Minister Sergey Lavrov as evidence of the U.S. acknowledging “the reality on the ground.”

NATO’s Fragile Unity

While NATO allies remain publicly committed to Ukraine, internal divisions are beginning to surface. Some European defense officials are exploring the feasibility of deploying NATO troops to monitor a potential demilitarized zone. Ukrainian President Volodymyr Zelensky has reportedly discussed the possibility of “partner contingents” with French President Emmanuel Macron, fueling speculation about the formation of a NATO peacekeeping force.

However, Eastern European NATO members remain wary of any ceasefire deal that might embolden Moscow. Estonia’s Kaja Kallas, now serving as the EU’s High Representative for Foreign Affairs, warned that a flawed peace deal could lead to further aggression.

“Without credible security guarantees, any ceasefire agreement is likely to fail,” Kallas told CNN. “Russia will simply rearm and re-attack. We must learn from the past and ensure any future agreement is sustainable.”

Moscow’s Record of Deception

Russia’s track record of exploiting ceasefires raises alarms about the viability of any new agreements. From its 2014 annexation of Crimea to territorial advances during the Minsk peace talks in 2015, Moscow has consistently pursued military gains while ostensibly engaging in diplomacy.

As the conflict grinds on, Western officials estimate that Russia has suffered nearly 700,000 casualties, with daily losses of up to 1,500. Despite these staggering numbers, the Kremlin frames the war as an existential battle against NATO, complicating the prospects for meaningful concessions at the negotiating table.

Risks of NATO Involvement

While Kyiv advocates “peace through strength,” questions remain about the extent to which NATO is willing to intervene directly. The potential deployment of NATO troops in a demilitarized zone raises concerns about what level of provocation would warrant retaliation against a nuclear-armed adversary like Russia.

Trump’s historical reluctance to confront Moscow and his skepticism of NATO further cloud the alliance’s future cohesion. Analysts warn that any lapse in unified support for Ukraine could embolden the Kremlin, allowing Russian President Vladimir Putin to exploit the slow pace of diplomacy and incremental territorial gains.

As NATO’s backing for Ukraine shows signs of strain, the coming months could determine whether Kyiv’s allies can maintain their resolve or whether the war will slide into a drawn-out stalemate, with devastating consequences for European security.

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Former Australian Child Star Dies in California Wildfire

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Rory Callum Sykes, a former child star from Australia, tragically lost his life when the Los Angeles wildfires ravaged his family’s Malibu estate earlier this week. According to his mother, Shelley Sykes, Rory, 32, was at the family’s 17-acre Mount Malibu TV Studios property when it was engulfed by flames on January 8.

Shelley Sykes, heartbroken by the loss, shared the devastating news on social media on Thursday, describing her son as “beautiful” and “wonderful.” She recounted the harrowing moments leading up to his death, explaining that she had been trying to douse the wildfire cinders on the roof of their home with a hose. However, due to a lack of water pressure, she was unable to stop the fire. Sykes recalled her son urging her to leave the property, saying, “Mom, leave me.” She added that, despite her broken arm and the physical limitations, she could not leave him.

Rory Sykes was born blind with cerebral palsy on July 29, 1992, but became an inspiration to many for his courage in overcoming disabilities. He co-founded the Happy Charity, an organization dedicated to offering “Hope, Happiness & Health to those that are Hurting.” Through surgeries, therapies, and relentless determination, Rory regained his sight and learned to walk, all while continuing to travel and speak about overcoming adversity.

“He still enthused about traveling the world with me, from Africa to Antarctica,” Shelley Sykes shared. She described him as a gift born on both her and his grandmother’s birthday. Rory, who had lived in Australia, the UK, and the US, became well-known for his speeches on disability and perseverance.

Rory Sykes also worked as a professional speaker and consultant for organizations like the Tony Robbins Foundation and the Cerebral Palsy Alliance. In a 2003 appearance on Australian television show Mornings with Kerri-Anne, Rory spoke about his trip to the United States to speak at a Tony Robbins motivational conference. “It doesn’t matter what happens to you in life, it’s what you do about it that counts,” he told viewers.

The Australian Department of Foreign Affairs and Trade (DFAT) confirmed the death, stating that they were working closely with local authorities to assist the family. A spokesperson for the department expressed condolences, saying, “Our thoughts are with them during this difficult time.”

The loss of Rory Sykes, a beloved figure who inspired so many, has sent shockwaves through the community, leaving a legacy of hope, resilience, and determination in the face of adversity.

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Explosive Device Targets Venezuela’s Consulate in Lisbon, No Injuries Reported

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Venezuela’s consulate in Lisbon was the target of an explosive device on Saturday night, though no injuries were reported, according to local police. The incident occurred around 10 p.m. when an unidentified individual threw what authorities described as a “Molotov cocktail” against the building’s wall.

The Lisbon Metropolitan Public Security Police (PSP) responded swiftly, setting up a security perimeter to preserve evidence and calling in the fire brigade. No fire resulted from the device, but the attack caused some material damage to the consulate. A police source confirmed that “no one was hit,” adding that the act appeared to be more symbolic than violent.

The attack comes just days after the controversial inauguration of Venezuelan President Nicolás Maduro for a new six-year term. The opposition, led by figures such as María Corina Machado and Edmundo González, has repeatedly claimed that the elections held in July lacked transparency and evidence of Maduro’s victory, calling his inauguration a “coup d’état.”

Machado, who had been leading protests against Maduro’s continued rule, was briefly detained in Caracas on Thursday after attending a demonstration aimed at preventing his swearing-in.

The Venezuelan government swiftly condemned the attack on its consulate. Foreign Minister Yván Gil took to Instagram to denounce the incident, calling the Molotov cocktail attack an act of “fascism” aimed at disrupting the services provided to Venezuelan citizens abroad. He added that the attack would not deter Venezuela’s “Bolivarian revolution” and emphasized that such “irrational aggressions” would not reverse the country’s progress.

In response to the incident, the Portuguese Ministry of Foreign Affairs condemned the attack and promised to increase security around the consulate. The Portuguese authorities have referred the case to the Judicial Police, who are investigating the matter further.

The attack comes amid heightened tensions surrounding Maduro’s presidency, with former Latin American leaders, such as former Colombian presidents Álvaro Uribe and Iván Duque, publicly discussing the possibility of international intervention in Venezuela to end the Bolivarian regime. Maduro, in turn, has vowed to prepare for conflict, stating he is ready to “take up arms” if necessary to retain power, with the support of allies like Cuba, Nicaragua, China, Russia, and Iran.

Meanwhile, Venezuela’s increasing isolation on the global stage continues. In the days leading up to his inauguration, Maduro ordered the closure of Venezuela’s border with Colombia, and authorities announced plans to shut the border with Brazil on January 13.

This latest attack on the Venezuelan consulate in Lisbon underscores the growing international tensions surrounding Maduro’s rule and the ongoing political instability in Venezuela.

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