The Trump administration is preparing reciprocal US tariffs to respond to other countries' tariffs on US imports, heightening fears of a global trade war. Trump announced tariffs on all steel and aluminum imports from March 12, sparking criticism from Mexico, Canada and the EU. Japan and Australia are seeking exemptions. In addition, Trump imposed a 10% tariff on Chinese goods and postponed tariffs on Mexican and Canadian goods until March 4 to allow for negotiations on border security. Details of the planned reciprocal tariffs are still unclear and experts warn of implementation challenges.
Egypt has announced a reconstruction plan for the Gaza Strip to ensure that Palestinians can remain in their homeland. In a meeting with US President Donald Trump, Jordan's King Abdullah II reiterated that the resettlement of Palestinians is not necessary. Foreign Minister Annalena Baerbock is relying on Arab partners to achieve a lasting ceasefire and a peace solution in the Middle East. Israel's ambassador expressed confidence that the hostage handover would continue, despite the delays caused by Hamas.
Israel has threatened Hamas with a resumption of fighting if no further hostages are released by Saturday. The Israeli army is preparing for possible scenarios by mobilizing reservists and reinforcing troops. US President Trump reiterated his ultimatum and threatened massive consequences if Hamas does not meet the deadline. At the same time, Jordan's King Abdullah II expressed his willingness to take in 2,000 children from the Gaza Strip. The ceasefire stipulates that 33 hostages will be released, but Hamas has suspended the release of the last group of hostages.
Donald Trump has instructed US authorities to work with Elon Musk to develop a plan to reduce government staff in order to cut costs and streamline government functions. Musk, who is acting as an advisor, has far-reaching powers to identify and reduce inefficient administrative areas. One regulation stipulates that only one new employee is hired for every four who leave. Exceptions apply to national security, public safety, law enforcement and immigration. Trump and Musk's approach has been criticized for a lack of transparency and potential conflicts of interest, as Musk's companies hold government contracts.
The merger of Nissan and Honda, worth 60 billion dollars, failed because Nissan insisted on equal treatment, despite its financial weakness. Nissan rejected deeper job cuts and plant closures, while Honda demanded that Nissan become a subsidiary. Frustration at Nissan's slow decision-making and hurt pride led to the negotiations being broken off.
The U.S. Consumer Financial Protection Bureau (CFPB) laid off some probationary employees after acting chief Russell Vought halted oversight activities and canceled funding for the next quarter. The layoffs are part of a larger strategy by the Trump administration to weaken the agency. Critics accuse the CFPB of acting in a politically biased manner.
Donald Trump urged Jordan's King Abdullah to take in Palestinians from Gaza, who are to be permanently resettled under Trump's plan. However, King Abdullah firmly rejected this and emphasized that Jordan is against the expulsion of Palestinians. Trump plans to take over the Gaza Strip and develop it into an economically prosperous area, which has met with international criticism.
China is building a space network in Africa, strengthening surveillance and military capabilities and investing 50 billion dollars in space programs in 23 countries. The US warns of security risks but offers no evidence and is losing influence as China's investments are more attractive.
Elon Musk's offer to buy OpenAI for $97.4 billion has not yet been formally received by the company's board, although Musk's lawyer has sent the detailed offer to OpenAI's outside advisors. Sam Altman, CEO of OpenAI, rejected the offer and stated that the non-profit company is not for sale. Musk's consortium is seeking the purchase, while there is tension over OpenAI's potential transition to a for-profit organization. Delaware's attorney general is scrutinizing OpenAI's plans to ensure the company's charitable mission is preserved. Musk's offer raises questions about the valuation of OpenAI's assets
On February 12, 2025, Russian missiles struck Kiev, killing one person and injuring several. President Zelensky suggested in an interview to consider territory swaps with Russia if Trump can mediate negotiations. US representatives such as Finance Minister Bessent and Defense Minister Hegseth are involved in talks on Western support. Ukraine will also be discussed at the Munich Security Conference, where possible plans for an end to the war will be discussed. Trump is aiming to end the war within six months.
On February 12, 2025, there was a deadly rocket attack on Kiev in which at least one person was killed. Fires were also reported in several parts of the city. In view of a shortage of soldiers, Ukraine wants to recruit young volunteers aged 18 to 24 with high bonuses (up to 23,200 euros). Following the release of a US citizen imprisoned in Russia, US President Trump emphasized that this was a “sign of goodwill” that could pave the way for an end to the war in Ukraine. The defense ministers of the Ukraine Contact Group are meeting in Brussels to further discuss support.
The White House has barred two AP reporters from events after the agency refused to rename the “Gulf of Mexico” to the “Gulf of America”. AP criticized this as an attack on independent journalism. The Correspondents' Association supported AP and demanded a correction. Trump had ordered the name change by executive order.
Historian Manfred Berg sees signs of an “administrative coup” in the USA under Trump. He criticizes the creation of the DOGE agency, which is not legally covered and is intended to brutally reshape the government apparatus. Berg warns that Trump could jeopardize the separation of powers by ignoring court rulings and speaks of a possible constitutional crisis. He also recognizes kleptocratic tendencies and an attempt at oligarchy. Trump is striving for dictatorial powers, which would lead the USA into a serious constitutional crisis.
The EU Commission under Ursula von der Leyen is focusing on strengthening Europe's competitiveness by reducing bureaucracy, promoting future technologies and improving the Capital Markets Union. She is planning investments in clean industry and AI, while defense spending is to increase, but the financing is still unclear. Von der Leyen has a central decision-making role in this.
The navy is investigating sabotage on several warships, including the corvette “Emden”. Unknown persons tipped metal shavings into the corvette's propulsion system, which was discovered during an inspection. These could cause considerable damage to the ship and delay delivery. The incident is part of a growing threat, with increasing drone overflights and acts of sabotage seen as possible Russian espionage activities. NATO and German security authorities warn of hybrid attacks, especially in the Baltic Sea region. The navy has taken measures since 2022 to better secure itself.
An appeals court in Boston has blocked US President Donald Trump's attempt to freeze government spending. The court rejected Trump's appeal against the ruling of a federal judge in Rhode Island. Trump had imposed the spending freeze in 2025 after his inauguration in order to reduce the size of the state apparatus, but this met with resistance. Around 20 Democratic-led states filed a lawsuit against it. The frozen funds must now be released again until a final decision is made.
According to reports in the Turkish newspaper Türkiye, a secret plan was developed by Iran to overthrow Syrian President Ahmad al-Sharaa. The meeting at which this plan was discussed took place in the Iraqi city of Najaf and included high-ranking Iranian military officials, including Major General Hossein Akbari and Major General Amir Ali Hajizadeh. There was talk of assassinating al-Sharaa in order to regain control in Syria. The plan is part of Iran's efforts to strengthen its influence in the region.
AI summit: EU wants to invest €20 billion in AI. At the Paris AI Summit, Ursula von der Leyen announced plans to invest an additional €20 billion in AI projects. The money is to flow primarily into gigafactories where AI models are trained. In comparison: the USA wants to invest ~10x as much. (DW)
JD Vance: Strongly criticizes European tech regulation. US Vice President JD Vance has criticized European AI regulation in Paris - and praised the US approach to AI companies (kind of his job). He also refused to sign a joint AI framework with the EU (the UK too). (FT)
- DAX: Jumps +22,000 points for the first time (MM)
- German exports: Poland now more important than China (NTV)
- Real estate experts: Expect only ~23k new apartments in 2025 (TGS)
- Verdi: Threatens to extend strike to airports (TGS)
- TradeRepublic: Being sued by consumer advice center - for alleged “non-transparent business practices” (MM)
- World US markets: Hardly any movement, close mixed (TAG)
- ETFs: Risk-taking retail investors drive AUM of leveraged ETFs to $95bn (BBG)
- AI Safety Summit: US and UK refuse to sign (FT)
- Kering: Gucci owner reports lower sales (WSJ)
- Meta: Starts laying off up to 4K employees (FRB)
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