

Europe’s game plan for handling Trump at G7
65 snips Jun 12, 2025
The Pentagon is reviewing the Aukus submarine deal amid rising U.S.-China tensions. Trump claims the U.S.-China trade war truce is complete, as inflation sits at a lower-than-expected 2.4%. European leaders are bracing for high-stakes G7 negotiations, focusing on defense, economy, and security. They are strategizing on how to handle Trump's threats regarding Ukraine, NATO contributions, and trade tariffs, aiming for diplomatic solutions to avoid conflict.
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Risks of Reviewing AUKUS Deal
- The 2021 AUKUS submarine deal aims to boost Australia's defense against China with nuclear-powered submarines.
- Reviewing or scrapping this deal could severely damage US relations with the UK and Australia.
US-China Trade Deal Dynamics
- The US-China trade deal reduces tariffs but had an initial breakdown due to mutual accusations of reneging.
- China agreed to loosen rare earth metal export controls, crucial for global manufacturing supply chains.
Rare Earth Metals in Trade Talks
- China's rare earth metal monopoly has affected supply chains worldwide, forcing talks to ease export restrictions.
- The US may have made concessions on high-end chip export controls, but details remain unclear.