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Graphic Truth: G7 vs BRICS, who has more economic clout?
The G7 countries – the US, UK, Canada, Germany, France, Italy and Japan – will convene this weekend in Kananaskis, a rural town in the mountains of Alberta, Canada. High on the meeting’s agenda are tariffs, artificial intelligence, and international security, with special focus on Russian sanctions and Israel’s recent attacks on Iran.
While the G7 was originally formed as an informal grouping of the world’s wealthiest democracies, the BRICS – composed of Brazil, Russia, India, China, South Africa – have sought to challenge their dominance of the global agenda.
Here’s a look at how the share of the global economy held by G7 and BRICS nations has evolved over time.
US President Donald Trump is joined by Secretary of Commerce Howard Lutnick and Vice President JD Vance while announcing a trade agreement with the United Kingdom in the Oval Office on May 8, 2025.
Analyzing the US trade court’s ruling against Trump’s tariffs
On Wednesday evening, the US Court of International Trade came down with a seismic ruling: President Donald Trump could not impose his “reciprocal” tariffs, which include his 10% across-the-board levy and the extra duties he announced on “Liberation Day.”
What does that mean for the president’s trade agenda? For politics in Washington? And for businesses? We asked several of the best minds in the world from Eurasia group, and here’s what they had to say.
So, let’s start with the major questions for Trump: What is the impact of the ruling? What tariffs will remain in place? Will he fight back?
The ruling blocks Trump from using the International Emergency Economic Powers Act to implement blanket tariffs, a reminder that the US political system still impose some restraints on the president, according to Eurasia Group’s Head of Research Jon Lieber.
- “Even though Trump continues to shatter Washington norms and is moving so fast the courts can barely keep up, there are still meaningful checks on his power that will be brought by the courts.”
The ruling does leave in place Trump’s other tariffs on specific sectors, like the ones on aluminum, auto parts, and steel, as well as the upcoming duties on pharmaceuticals. These sectoral tariffs are more complicated to implement, though, says Eurasia Group US analyst Noah Daponte-Smith.
- “Sectorals focus on specific sectors and require a full investigation beforehand. You can’t just declare them out of the blue.”
Trump will fight the court’s ruling – White House Deputy Chief of Staff Stephen Miller has already decried it as “judicial coup.” A federal appeals court temporarily reinstated the tariffs on Thursday, pending the administration’s appeal. A big reason for Trump’s response is that there are many benefits to the president from introducing new tariffs via IEEPA, per Robert Kahn, Eurasia Group’s managing director of Global Macro.
- “He’s turned to it often because of the flexibility, the leverage it gives, [and the] ability to basically use it in a wide variety of circumstances.”
Even if the ruling is upheld, though, Lieber predicts that Trump “will likely find other, narrower and more administratively burdensome ways to implement tariffs.” All to say, Trump’s trade war isn’t done yet.
How will this ruling affect bilateral trade negotiations involving the US?
Several countries have tried negotiating a trade deal with the United States since Trump announced his “reciprocal” tariffs on April 2. The United Kingdom nabbed one earlier this month.
But the court’s ruling could cut Trump’s leverage.
An interesting case in point is Japan, which has held regular talks with the US over a trade deal in recent weeks. Tokyo’s extra leverage means it will be more cautious about what it offers to Washington, according to David Boling, Eurasia Group’s director for Japan and Asian trade.
- “Japan will be more careful about making any big concessions, until the legality of IEEPA is decided. Likewise, US negotiators are likely to move cautiously, waiting for the legal clouds to clear.”
South Korea is also negotiating with the United States over a trade deal, but the talks may become less urgent, per Eurasia Group regional expert Jeremy Chan.
- “I think it will marginally decrease the pressure on South Korea to get a deal, and the urgency over a July 8 timeline is also gone, … so we can expect somewhat slower deliberations but still continued interest on both sides to agree to something (likely after Japan).”
What does the court ruling mean for businesses?
Markets edged up in response to the court ruling, on expectations that it would reduce the chances of an economically disruptive trade war. Kahn, though, remains skeptical of the long-term benefits to businesses and markets, saying the ruling “adds an additional layer of uncertainty to [investment].”
- “I don’t think there’s a clear consensus yet on what happens [next]. I do think it’s important to emphasize that the president remains committed to his tariff agenda, and we have to assume that he will fall back on the other tools in his arsenal.”
Detainees stand behind a fence at the Bluebonnet Detention Facility, where Venezuelans at the center of a Supreme Court ruling on deportation are held, in Anson, Texas, U.S. April 22, 2025.
Hard Numbers: SCOTUS removes protections for Venezuelans, France to build overseas prison, Rice prices soak Japan’s PM, US borrowing costs rise
350,000: The US Supreme Court ruled on Monday that the Trump administration can end temporary deportation protections for nearly 350,000 Venezuelans, making them vulnerable to mass deportation.
45 million: After a series of attacks on prison workers, France plans to build a new high-security prison in French Guiana, an overseas department of France which borders Brazil. The $45 million facility, meant to hold drug traffickers and radical Islamists, could open as soon as 2028, and will be located deep in the Amazon jungle.
27.4: With upper house elections approaching, Japan’s current government is facing its lowest approval ratings yet, as support for Prime Minister Shigeru Ishiba’s cabinet has fallen to 27.4%. Shigeru is blamed in part for soaring rice prices, which have doubled over the last year.
5.03: On Monday, US long-term borrowing costs edged up to 5.03%, the highest level since late 2023. The increase reflects the loss of the country’s triple-A credit rating, and concerns that Donald Trump’s major tax and budget bill will plunge the US government into even further debt.
Containers on a cargo ship are seen at an industrial port in Tokyo, Japan April 3, 2025.
Beijing tries to woo an uninterested Tokyo over joint tariff fight
Chinese Premiere Li Qiang sent Japanese Prime Minister Shigeru Ishiba a letter asking that they “fight protectionism together,” according to local reports Tuesday, as both countries face potentially disastrous US tariffs.
“I don’t know what the equivalent in Japanese for ‘chutzpah’* is, but I think the Japanese bureaucrats will snicker a bit to themselves,” says David Boling, Eurasia Group’s director for Japan and Asian trade. “China has a tendency when relations with the US are not going well to suddenly become much more positive in their approach to Japan.”
China is Japan’s largest trading partner but a highly distrusted neighbor from a national security perspective. Japan launched trade talks with the United States last week, and Boling says Tokyo is determined to strike a deal.
“The United States is just too important as an ally and trading partner, and even if talks break down, they’re not going to look to China first,” he says.
What’s more, Ishiba faces a crucial election in the upper house of the Diet, Japan's legislature, in July, right around when the US tariff pause is due to expire. With his political life on the line, we’re watching for an agreement in principle to be sealed with the US soon.
*Chutzpah is 厚かましさ (astukamashi-sa), if you were curious.
Burkina Faso’s junta leader Captain Ibrahim Traore attends the first ordinary summit of heads of state and governments of the Alliance of Sahel States (AES) in Niamey, Niger, on July 6, 2024.
Hard Numbers: Burkina Faso foils coup effort, Trump dents democracy rating, Spain to hit defense-spending target, Musk to reduce his DOGE hours, Migrants arrested while fleeing US, Japan rids foreign debt, Tourists killed in Kashmir
40%: Burkina Faso’s ruling military recently foiled an attempted coup aimed at removing junta leader Cap. Ibrahim Traoré, the country’s security minister said on Monday. The Sahel nation has had to deal with widespread insurgency in recent years, with rebel jihadist groups reportedly controlling around 40% of the country’s land mass.
55: US President Donald Trump made a dent in American democracy almost as soon as he won the 2024 election, according to a survey of 520 political experts. The Bright Line Watch benchmark gave US democracy a rating of 55 in February, down 12 points from where it was on the day of Trump’s election victory and 14 points from where it was in October 2024. It’s the country’s fastest drop since the survey began in 2017.
2%: Our globally minded readers will immediately recognize this figure as the proportion of gross domestic product that NATO member nations are encouraged to spend on defense. Under pressure from the Trump administration and its European allies to expand its military, Spain said Tuesday that it will finally hit that figure again this year, after falling short for over 30 years.
130: Elon Musk is DOGE-ing himself. The Tesla CEO says he will cut back his role in the government after his electric vehicle company reported a massive profit drop. Musk says he will spend just one to two days each week on DOGE following accusations that he has let his focus on Tesla slip. Regardless, temporary government employees like Musk are normally limited to working 130 days a year, which would expire at the end of May.
8: So much for the Great Escape: From January through April, US authorities arrested eight undocumented Dominican migrants in Puerto Rico who were trying to return to their home country. The arrests raise questions over the Trump administration’s stated goal of encouraging undocumented migrants to leave of their own accord.
$20 billion: Trump’s tariffs have Tokyo in a selling mood. Japanese investors said sayonara to more than $20 billion of foreign debt early this month. The selloff shows how Wall Street jitters can ripple across the Pacific. It’s not clear which foreign debt Japanese investors unloaded, though they are the largest holders of US Treasuries of any country worldwide, so their investment choices are observed hawkishly.
26: Outrage is rising after gunmen killed 26 tourists in Indian-administered Kashmir’s Pahalgam on Tuesday. Several other victims remain critically injured. The Resistance Front – believed to be an offshoot of Pakistan-based terrorist group Lashkar-e-Taiba – has claimed responsibility.
Chinese President Xi Jinping meets with Cambodia's Prime Minister Hun Manet (not pictured) at the Peace Palace in Phnom Penh, Cambodia, April 17, 2025.
China warns world against harmful US trade deals
Chinese President Xi Jinping launched a tour of Southeast Asia this month, visiting key trade partners and calling for an “open and cooperative international environment” that rejects “tariff abuse.” But given the reliance of countries like Vietnam and Cambodia on US markets, Beijing may need more than words.
What comes next: Major players are kicking off talks with the US, with Japan starting last week and South Korea meant to commence within days, and Vice President JD Vancemeeting with Indian Prime Minister Narendra Modi in New Delhi on Monday.
Keep your eye on smaller players: Kenyan President William Ruto arrives in Beijing Tuesday, as his burgeoning economy faces strain from US aid clawbacks. For economies in the developing world like his, taking Beijing’s side might be the best hedge available.Economic Revitalization Minister Ryosei Akazawa heads to the United States for negotiations from Tokyo's Haneda airport on April 16, 2025.
Two “Guinea pigs” come to Washington
As much of the world scrambles to figure out how to avoid Donald Trump’s expansive “reciprocal tariffs,” two big players are in Washington this week to try their hands at negotiating with the self-styled Deal Artist™ himself.
First, Japan. For decades, the world’s fourth-largest economy has run a big trade surplus with the US while also benefiting from American military protection. Trump has been upset about this arrangement for 40 years, and Japan’s import restrictions on US cars and agricultural goods are a particular focus for him. His 25% global tariff on car and steel imports will hit Japan hard, as will the overall 24% “reciprocal” levy against Tokyo that is slated to go into effect in July.
But Japan is also a top foreign investor in the US economy and a key East Asian ally amid Trump’s deepening confrontation with China. Japan’s Economic Revitalization Minister Ryosei Akazawa is looking to reduce tariffs to zero. Observers have already called his case a “guinea pig” for how countries with long-standing ties to the US can work deals with the America First president.
Late on Wednesday, Trump hailed “big progress” in the talks, which he attended personally, but neither he nor Akazawa gave further details. The two sides will meet again later this month.
Second, Italy. Prime Minister Giorgia Meloni, who visits the White House on Thursday, is a pragmatic right-winger whom the US president has described as a “fantastic woman.” She shares Trump’s hardline views on immigration and social issues, and even defended US Vice President JD Vance’s recent blistering attack on the EU’s approach to free speech.
But Meloni also leads a highly export-dependent economy that runs a $40bn surplus with the US. Trump’s “reciprocal tariffs” of 20% on the EU could therefore be a 🤌catastrophe🤌 for Italy.
The EU is warily watching. Can Meloni parlay her good graces with Trump into a deal that avoids a wider transatlantic trade war? Or will her solo visit enable the US president to weaken the overall unity of the bloc?
What if Japan & South Korea sided with China on US tariffs?
Ian Bremmer shares his insights on global politics this week on World In :60.
If China, Japan, and South Korea formed a united front, what kind of leverage would they have in negotiating against US tariffs?
Oh, if that were to happen, they'd have incredible leverage because China's the second-largest economy in the world, Japan's the third. This would be a really, really big deal. Except for the fact that it's not going to happen. Their trade ministers did just meet, and they've had some interesting coordinated statements. They do a lot of trade together, and they want to continue that. But the fact that the security of South Korea and Japan is overwhelmingly oriented towards the US, and they would not want to undermine that, means that they will certainly not see China as a confederate to coordinate with against the United States, not least on trade. The American response would be belligerent. So no, that's not going to happen.
Will Syria's newly formed transitional government be enough for Arab and Western leaders to lift sanctions and restore diplomatic ties?
I think they are heading in that trajectory. The question is, will it be enough to keep Syria stable and away from descending into civil war? And there, there's a huge question because this is a completely untested government, completely inexperienced, no governance background, very little background in terms of military stability, especially with all of the new members, militias that have been integrated from across a very diverse country. And a lot of internal opponents that are sitting back and waiting to fight. So I'm more worried about that than I am about international support. I think largely the international support they need is going to be there.
Why does Trump want to take Greenland?
I have no idea. Maybe somebody showed him a globe from the top and he saw how big it was, and he's like, "Oh, that'd be kind of cool to have." It's not like there's anything he needs that he can't get directly from negotiating with Denmark. Plenty of willingness to allow the US to have expanded bases, troops on the ground. Plenty of willingness from other countries in the region to do more in terms of patrolling, build more icebreakers to deal with. The Finnish President, Alex Stubb, who just went to see him golfing with him, spent seven hours over the weekend moving in that direction. But you saw from Vice President Vance, he's like, "Well, the President wants it. So of course I got to respond to that." Yeah, but they don't have any reason. And I do think that it is sufficiently blowing up in their faces on the ground in Denmark and in Greenland, that the Danes understand not to make a big deal out of this and it will eventually blow over. It is annoying to them symbolically, but it doesn't matter all that much. In that regard, we can spend a little bit less time on it. Okay, that's it for me. I'll talk to you all real soon.