The shifting geopolitics of Trump’s tariffs

This episode of the FT News Briefing explores the geopolitical fallout of President Donald Trump's tariff policies one year after their initial announcement, revealing a world in flux as U.S. allies reassess their relationships with America. While Trump's tariffs initially shocked allies like the EU, UK, Japan, and Canada, many have since responded by forging new trade networks among middle powers to reduce dependency on the U.S., effectively creating a 'taco trade' — a network of deals that bypass American influence. Meanwhile, China has emerged as an unexpected safe haven amid global turmoil, with its government bonds gaining traction due to deflationary pressures, energy diversification, and strategic reserves. The episode also covers Trump’s escalating rhetoric on Iran, where he threatens strikes on power infrastructure unless a deal is reached, raising oil prices and global anxiety. Despite these tensions, the shift in global economic alliances signals a fundamental reordering of international trade and security dynamics.