Trump’s tariffs and the illusion of de-globalization – Asia Times

Some analysts have interpreted Trump’s interventionist position, and the United States ‘ imposition of tariffs, as financially foolish.

If the democratic motto was again that” under completely business everyone wins”, it is now logical to think that, under protectionism, people will lose. It would also suggest the close of globalization, which had come at a great financial cost for the US.

In just the past few weeks, the US-Canada tax crisis has escalated significantly. The Ontario government responded to Trump’s threats with a 25 % tariff on electricity serving the states of Minnesota, New York and Michigan, prompting Trump to announce that he would raise tariffs on Canadian steel and aluminium to 50 %.

Soon after, Ontario authorities suspended the energy level climb, and Trump has now also walked up his hostile price hike.

Similar activities are taking place on the other side of the Atlantic as also, as the European Commission has responded to US tax risks on steel imports with its own package of actions targeting a range of American products.

Trump’s tale tilt has caused tumult, and seems to work contrary to US company objectives. But, a critical look at the benefits of free business – and the US ‘ unique position in relation to it – may help us understand the rise of protectionist conversation, and the US ‘ trade war with China.

Free business serves US objectives

Economic history shows that, when the US ‘ technological development outstripped its competitors, it was able to change completely trade into an instrument that protected its personal interests. At this point it, along with its allies, began to promote free trade as vital to the development of less advanced economies.

This resulted in globalization, which was what made it possible to manufacture goods in China at lower costs, thus keeping US wages and inflation in check and increasing the profits of US companies. As long as this remained the case, free trade with China served the interests of US companies and was therefore justifiable.

However, in recent years, China has shifted its economic strategy toward producing and exporting high-tech, value-added products ( as South Korea and Taiwan have also done ). Chinese-produced mobile phones, electric cars and artificial intelligence ( AI ) have subsequently conquered the US market.

The longer this shift goes on, the more useful and legitimate tariffs and protectionism become as a way to shield the economic interests of US businesses.

How far will the US go?

Protectionist rhetoric and trade wars were already trumpeted by the first Trump administration.

However, the KOF globalisation index– which measures the global connectivity, integration and interdependence of countries – showed the same value in 2021 as it did in 2017.

While the growth experienced since 1970 ground to a halt, the index’s indicators disprove any claim that globalization receded during Trump’s first term in office.

This second term may well be different because, according to some experts, the president has learned to bypass political counterweights, to surround himself with like-minded people, and to free himself from partisan ties in order to implement his own agenda.

Others, however, question the very existence of his own agenda beyond the interests of big business, because it is precisely this alignment of interests that allows him to:

  • Impose tariffs on developed countries, and on products competing for the same markets.
  • Make political use of tariffs to threaten other countries and secure access to vital resources for the technology race ( mainly due to the US ‘ position of being the world’s largest buyer and military power ).
  • Launch a new arms race that will boost the profits of US industry.
  • Use a nationalist and anti-globalization narrative to justify the growing precariousness of the US working class. He aims to unite US citizens behind the flag, dilute their class consciousness, and offer up new scapegoats in the form of immigrants.

In reality, Trump’s agenda is unlikely to be compatible with any meaningful de-globalization process. Reversing globalization would be contrary to the interests of US capital, which needs to expand – into both new territories and sectors – to ensure its own survival.

In light of all this, why would US multinationals want to stop making huge profits in other countries? What could lead them to give up producing in territories with lower production costs, cheaper labor and a guaranteed supply of raw materials?

The dollar’s ‘ exorbitant privilege ‘

According to IMF data, in the third quarter of 2024 the US dollar still accounted for more than 57 % of total international reserves, and more than 80 % of international trade financing.

When a country’s domestic currency acts as a reserve asset or is the currency in which most international payments are made, the financing of persistent current account deficits does not carry major risks of either devaluation or currency crisis. Every year since 1982, with the sole exception of 1991, the US current account balance has been negative.

These conditions for financing its debt – which Valéry Giscardd’Estaing, Charles de Gaulle’s Minister of Economy, defined in 1964 as an “exorbitant privilege” – improve even in times of crisis. The dollar’s status as a safe haven asset ( much like gold ) means that international demand for it actually increases in times of uncertainty.

So why would the US be in favour of shifting its trade balance, thereby renouncing the privilege of issuing the international reserve currency?

The great trilemma

In his 2012 book The Globalisation Paradox, Turkish economist Dani Rodrik puts forward his theory of the” trilemma”. This theory states that democracy and national sovereignty are fundamentally incompatible with globalization.

Only those who accept the existence of this trilemma, and understand the tensions that arise from it, can then begin to pick apart one of its components. This is where Trump seems to have the upper hand.

He is playing a game of illusions, one where he publicly pretends to dynamite globalization while, behind the scenes, he stealthily dismantles the pillars of democracy.

Juan Carlos Palacios Cívico is profesor Agregado en el área de Política Económica y Desarrollo, Universitat de Barcelona

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Pakistan may hit Afghanistan for Jaffar Express terror attack – Asia Times

Pakistan is reeling after this week ‘s&nbsp, hijacking&nbsp, of the Jaffar Express by the terrorist-designated Balochistan Liberation Army ( BLA ). It’s hard to individually confirm the details given strict condition censorship, but around 400 people were taken prisoner, including soldiers traveling home on leave.

The BLA&nbsp, demanded&nbsp, the discharge of what they described as democratic prisoners, but the military staged a brave function to stop the day-long suffering otherwise. At least two dozen people were killed.

The Baloch conflict&nbsp, owes its origins&nbsp, to Balochistan ‘s&nbsp, contentious incorporation&nbsp, into Pakistan but has evolved in recent years to take on shades of “resource nationalism”.

What’s meant by this is that some citizens believe that their resource-rich place, the largest in Pakistan at almost half the government’s size, isn’t receiving its fair share of success.

The BLA and its backers also accuse Pakistan of selling the place out to China, which has invested in the Gwadar interface and a large neglected airport. Pakistan denies these claims and has always blamed&nbsp, Afghanistan&nbsp, and India for the conflict.

It, therefore, wasn’t surprising when the Foreign Office’s spokesman&nbsp, said&nbsp, on Thursday that” India has been involved in terrorism in Pakistan. In the particular attack on Jaffar Express, the terrorists had been in contact with their handlers and ring leaders in Afghanistan”. It also said the “mastermind” of the attack is in Afghanistan, without elaborating.

On Thursday, the Taliban denied any involvement in the terror attack, with foreign ministry spokesman Abdul Qahar Balkhi saying Pakistan’s claims were “baseless allegations” and that it should concentrate on its own security and domestic issues rather than making” such irresponsible remarks”.

” No members of the Baloch opposition have a presence in Afghanistan nor have they ever had, nor have, any links with Islamic Emirate”, he wrote on X, referring to the Taliban government.

Also on Thursday, the Observer Research Foundation, an influential New Delhi-based think tank, assessed,” The Taliban appear to be giving space to the Baloch as it gives them a certain leverage over Pakistan”. It suggested the Pakistan army may” carry out a scorched earth steamroller operation in Balochistan” in response to the train attack.

While the Afghan dimension is likely true owing to the Taliban sheltering the BLA and its&nbsp, new de facto TTP allies, which the group considers to be a means of&nbsp, asymmetrically restoring the balance of power&nbsp, with Pakistan, the Indian angle is questionable.

Pakistan’s accusation against India is premised on their history of proxy warfare against one another over the decades, which makes it reasonable to suspect India of backing Baloch militants against Pakistan as response to Pakistan backing Kashmiri ones against India, among others.

There’s also Pakistan’s capture of&nbsp, Kulbhushan Jadhav&nbsp, in 2016, who Islamabad accused of being an Indian spy tasked with organizing terrorist attacks in Balochistan, while India has always insisted that he’s innocent of these charges.

Taken together, they form the cornerstone upon which Pakistan’s Foreign Office put forth its latest accusation, but it’s bereft of proof and instead comes off as a deflection from the conflict’s indigenous causes.

After all, the BLA is known to receive sanctuary in Afghanistan. Even if the Taliban pleads ignorance and claims that it can’t control all of its borders, which some would argue isn’t true, then that’s also a problem for the fracturing regime.

Whichever way one looks at it, the Indian angle is therefore questionable, but Pakistan pushing it is meant to accomplish three goals.

First, it’s intended to rally Pakistanis behind the government by blaming their historical rival for this latest terrorist attack. Second, Pakistan also hopes to rally the international community – or at least some of its SCO partners like China – against India. And finally, Pakistan might&nbsp, authorize kinetic action&nbsp, in Afghanistan, but on what it will likely present as an anti-Indian rather than anti-Taliban basis.

Building upon the last point, this could resemble Russia ‘s&nbsp, special&nbsp, operation&nbsp, in the sense of how Moscow militarily intervened in Ukraine on an anti-NATO basis after accusing the bloc of exploiting Kyiv as a proxy, which Russia claimed could become a launching pad for more aggression if it wasn’t stopped.

Likewise, Pakistan might carry out comparatively smaller-scale strikes and/or incursions in Afghanistan that only target terrorist groups, but it could justify them on similar grounds.

The benefit of presenting things this way is that Pakistan can continue to claim that it has no problem with Afghanistan per se, just with how its historical Indian rival is allegedly exploiting that country as a proxy, which could become a launching pad for more aggression if it isn’t stopped.

The problem though is that this motive is much more questionable than Russia’s vis-à-vis NATO in its own special operation in Ukraine so Afghans as a whole might regard any larger-scale Pakistani kinetic action as a hostile act.

Even if Pakistan eschews such a response to this latest terrorist attack, officially tying India to what happened suggests that it has no interest in addressing the Balochistan conflict’s indigenous causes.

That’ll only lead to an even wider rift emerging between ethnic Baloches and the rest of the country, which in turn could result in more BLA sympathizers or recruits, thus intensifying the already self-sustaining cycle of instability there.

The larger the BLA’s pool of sympathizers and recruits becomes, the greater the unconventional threat Pakistan faces in Balochistan, which could embolden the&nbsp, military regime&nbsp, into doubling down on its controversial “preemptive” anti-terrorist policies like “forced disappearances“.

A more effective way to reduce the aforesaid pool is to empower responsible locals through meaningful economic and political partnerships with the state that show they have more to gain through unity than resistance.

For example, Baloch veterans could be appointed to lead new projects in their home region that would be obligated to reinvest a percentage of their proceeds into local initiatives.

These same figures and other similarly trusted ones could also be supported by the state as alternative community leaders for counteracting the influence of separatist-inclined tribal leaders. That’s easier said than done, but without it, the BLA’s pool of sympathizers and recruits will keep growing.

The combination of political radicalism and state failure is most responsible for perpetuating the Baloch conflict, not foreign forces, though the Taliban’s allowing BLA sanctuary in Afghanistan has definitely played a role.

Without adequately addressing these indigenous causes, which requires completely new thinking by the Pakistani government, outsiders will always be able to exploit the conflict. And while Pakistan may see cross-border kinetic action in Afghanistan as helpful, it won’t bring a lasting solution to the problem.

This article was first published on Andrew Korybko’s Substack and is republished with kind permission. Become an Andrew Korybko Newsletter subscriber&nbsp, here.

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New research on crypto shows an insider group influences its value – Asia Times

United States President Donald Trump just announced the US would create a proper bitcoin supply of Bitcoin, Ether, Ripple, Solana and Cardano. This walk, he said, may render the US” the blockchain capital of the world”.

When a vocal crypto-skeptic, Trump then frames his aid as an embrace of technologies that hero independence and creativity.

But, the problem with Trump’s view is that it assumes bitcoin may lead to the reduction of financial intermediaries. By replacing faith with transparency, crypto promises to place individuals in charge of their financial transactions.

Our analysis demonstrates that this is only a limited view. In fact, bitcoin is reliant on social methods behind the technology.

Crypto-believers generally blame selfish lenders as the cause of the Great Recession in 2008. But we argue that bitcoin is not immune to these same challenges.

A U. S. Crypto Reserve may raise this critical business after years of dishonest attacks by the Biden Administration, which is why my Executive Order on Digital Assets directed the National Working Group to walk ahead on a Crypto Strategic Reserve that includes XRP, SOL, and ADA. I will make sure the U. S. is the Crypto Capital of the World. We are MAKING AMERICA GREAT AGAIN!

And, certainly, BTC and ETH, as other important Bitcoin, will be the center of the Reserve. I even love Bitcoin and Ethereum!

@RealDonald president on wisdom cultural protest 2, 2025

Replacing faith with clarity

Cryptocurrencies are a type of online income that deals on a blockchain. A cryptocurrency is a distributed ledger technology that allows users to trade pseudo-anonymously.

Public bitcoin operate on a distributed peer-to-peer system. This system provides each person a full record of transactions that is updated in real time. People can send electronic money between themselves without relying on a consolidated power.

Since each user has a full record of transactions, the system promises full transparency. But our research demonstrates that public blockchains, and the cryptocurrencies that run on them, do not actually replace trust with transparency.

Speculation, manipulation and market crashes remain very real dangers, regardless of whether the financial system is centralized or decentralized.

Image: Wikimedia Commons

Cryptocurrencies rely on people

We studied the communications between the founder of Bitcoin, Satoshi Nakamoto, and the early Bitcoin community. We found the development and implementation of cryptocurrencies relies on negotiations between individuals. Who has a final say on which line of code will prevail depends on a social hierarchy dominated by insiders.

Centralization of power in the hands of insiders is still a major issue in the cryptocurrency space. This is particularly an issue for emerging cryptocurrencies like memecoins. Memecoins are a type of cryptocurrency named after internet memes or similar jokes. They draw their value entirely from speculation.

The Trump Organization recently launched memecoins$ TRUMP and$ MELANIA. The US Securities and Exchange Commission has concluded that memecoins do not qualify as securities, and therefore are outside its regulatory purview. Not only are memecoins risky, but they come with a significant risk of insider trading.

A recent case study on the memecoin$ LIBRA shows how influencers, anonymous developers and centralized exchanges facilitate market distortions, often at the expense of retail investors.

When cryptocurrencies are outside the scope of regulation, individuals behind the technology can profit from insider information. This is less of a risk with widely traded cryptocurrencies like Ether and Bitcoin, but investors should be aware that any technology is reliant on the people who design the code and regulate its changes.

Personal views towards privacy, for instance, can impact governance decisions. These beliefs can have important implications for the value and usability of any technology, cryptocurrencies included.

Talking crypto into reality

Our research suggests cryptocurrency insiders can artificially inflate the value of their coins by talking them up, effectively creating value out of nothing.

By using economic and accounting language to describe Bitcoin, the early Bitcoin community effectively turned a string of zeroes and ones into something that could be measured, valued and recognized.

Economists argue that even fiat currency is backed by a type of belief — trust in institutions. Bitcoin, too, relies on belief, but a different kind. Its value is based users ‘ collective confidence in the technology and security of the network, a phenomenon known as the network effect. As more people adopt Bitcoin, its perceived value rises, creating a self-sustaining cycle of belief and value based on market demand.

Following the announcement of the strategic crypto reserve, American stockbroker and anti-crypto advocate Peter Schiff accused Trump of manipulating the cryptocurrency market. Schiff has called for a congressional investigation into Trump and his team to determine who may have profited from the announcement, which triggered a massive increase in crypto prices.

Given the volatility of cryptocurrencies, their values are highly susceptible to herd behaviour, and public sentiment has a significant effect on cryptocurrency returns.

Where does this leave investors?

Our research and other studies like it have shown that cryptocurrency is subject to important value changes based on announcements by a small group of influential individuals.

We caution anyone interested in investing in crypto to do the homework by examining the underlying economics of a coin, getting to know the team behind it and evaluating their risk tolerance before moving forward.

With thousands of cryptocurrencies in circulation, distinguishing between a promising investment, a speculative gamble or even scams is crucial.

Despite the uncertain and unpredictable nature of digital assets, one thing is certain: the conversation around crypto is far from over.

Erica Pimentel is an assistant professor in the Smith School of Business, Queen’s University, Ontario, and Mélissa Fortin is an assistant professor at Université du Québec à Montréal ( UQAM ).

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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What Ukrainians say about readiness for ceasefire and concessions – Asia Times

A US-Ukraine authority on a peace plan has put the notion of a negotiated close to the three-year battle on the plan, and in the arms of Russian President Vladimir Putin.

But even before Moscow answers, it’s very clear where the events stand. Breaking a previous stigma against negotiations involving regional concessions, the US has suggested Ukraine must lose land in any lasting deal, whereas President Volodymyr Zelensky has stated repeatedly that he will never produce sovereignty over Ukraine’s territory.

Nevertheless, Russia has demanded that Ukraine abandon its aspiration to visit NATO and take restrictions on its defense. But at present, Kyiv looks unlikely to gain the safety guarantees it seeks from the US before contemplating for words.

What is talked about less is what the Ukrainian people are willing to embrace for peace. And while any armistice will likely be dictated by guns, regional gains and tremendous power geopolitics, it will be in big part down to common Ukrainians to form what happens afterwards. An unpleasant peace perhaps be accepted by a war-weary people. But if it has small native legitimacy and understanding, peace is likely to be untenable in the long run.

We have tracked people view in Ukraine from before the battle and during the course of the issue.

It is an inadequate exercise, most poll in military Ukraine is by cellular phone and depends upon those with services who are willing to attend. Some people, especially in the government’s south and east, do not want to answer sensitive issues out of problem for themselves and family, some in held lands and Russia.

Those who do answer may provide guarded responses. Some are wary of military repression, while others are nationalistic or wish to present themselves as such to the person calling them. However, many other Ukrainian are overseas and excluded. Also, those in Russian-occupied provinces are left out of research.

However, the actions also give insight into how ideas in Ukraine have evolved since the Russian war of February 2022. These are five important findings from comparatively recent public opinion polls that are related to any upcoming peace negotiations.

1. Almost all Russians are stressed and tired of battle

Unsurprisingly, three years of a terrible battle of brutality have created great tension among a people increasingly weary of battle.

A December 2024 surveys from the respected Kyiv International Institute of Sociology, or KIIS found that nearly 9 in 10 Ukrainian experienced at least one demanding situation in the previous year. Large shares reported stressful experiences related to bombing and shelling ( 39 % ), separation from family members ( 30 % ), surviving the death of loves ones ( 26 % ) and the illness of loved ones ( 23 % ). Only 10 % said they’d experienced no stressful situations.

In a related vein, research we conducted showed that by summertime 2024, 84 % of the population had experienced violence in some form – be that physical damage at the hands of Russian forces, movement, loss of family member and companions, or witnessing problems.

And consistent with a growing number of news reports, we found that Ukrainians were deeply worried about war weariness among their fellow Ukrainians – just 10 % reported that they did not worry about war fatigue at all.

2. More Ukrainians want negotiations, but there are red lines

As the war has gone on, several polls show that Ukrainians increasingly support negotiations. The share of the population in favor of negotiations varies depending on how the question is posed.

When given the choice between two options, a Gallup Poll from late 2024 showed that 52 % preferred that “Ukraine should seek to negotiate an ending to the war as soon as possible”, whereas 38 % preferred that “Ukraine should continue fighting until it wins the war”.

Our earlier surveys from 2022 and 2024 similarly show a growing preference for negotiations, though at a lower level – from 11 % in 2022 to 31 % in 2024. In contrast to the binary Gallup question, our surveys presented respondents with different territorial compromises for a ceasefire. While about one-third wanted an immediate ceasefire, half wanted to continue fighting until all territories, including the predominately Russian-speaking Donbas region and Crimea, are brought back under Kyiv’s control.

But survey responses make clear that the country’s political independence is a red line for the public – even if defending it comes at a very high cost.

3. Ukrainians are more open to territorial concessions

In tandem with growing support for negotiations, our surveys – in line with KIIS’s own polls – show growing willingness to cede territory. And among those most worried about war fatigue and more pessimistic about continued Western support, the willingness to cede territory is higher.

That said, most Ukrainians still want Ukraine to continue fighting until the country’s territorial integrity is restored and under Kyiv’s control, including Crimea. But that majority has diminished since the beginning of the war – from 71 % in 2022 to 51 % in 2024.

When we asked in July 2024 whether people agreed with the statement:” Russia should be allowed to control the territory it has occupied since 2022″, 90 % disagreed. As such, there is very little evidence that Russia’s territorial annexations– or an agreement recognizing these, which is what Russia wants – would have any legitimacy among Ukraine’s population.

4. Ukrainians see Russia’s war goals in existential terms

Putin inspires the trust of neither Zelensky nor most Ukrainians– hence there’s a strong preference for any agreement being accompanied by security guarantees from NATO states.

Poll findings in the past month from KIIS reveal that 66 % of Ukrainians interpret Russia’s war aims as an existential threat, comprising genocide against Ukrainians and destruction of its independent statehood. And 87 % believe Russia will not stop at the territories it already occupies. Negotiating with an enemy bent on Ukraine’s destruction appears delusional to many Ukrainians.

5. Zelensky remains popular, his endorsement matters

As a defiant wartime leader, President Zelenskyy’s popularity was very high in the immediate months after the invasion. Indeed, KIIS polls from May 2022 show that 90 % of the population expressed trust in him.

This has declined as the war has endured, but it has always remained above 50 %. Recent polling measuring his approval puts it at 63 %, an increase from 2024. Indeed, the very latest KIIS polls, from February through March of this year, show a 10-point jump in his trust rating to 67 %, a finding widely viewed as rallying in the face of U. S. criticism.

Thus Zelenskyy’s endorsement of any ceasefire and settlement will matter, though ceding territory is likely to be hazardous for him politically.

Conditions for a lasting peace

While the US-Ukraine accord on a ceasefire has put the ball in Russia’s court, it is unclear whether it will be enough to bring Putin to the table. And even if it does, given past precedent it is difficult to see him arriving as a compromiser rather than a conqueror.

What does appear clear is that whatever “peace” emerges looks set to hang more on Ukraine making concessions and accepting losses.

Such a peace can be negotiated behind closed doors. But without public support in Ukraine, whether it endures on the ground is another matter.

Gerard Toal is a professor of government and international affairs at Virginia Tech, JohnO’Loughlin is a professor of geography at the University of Colorado Boulder, and Kristin M Bakke is a professor of political science and international relations at UCL.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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What to do in case Trump foreign policy is driven by simple spite – Asia Times

New shifts in US international policy – especially regarding taxes and the conflict in Ukraine – have sparked controversy over what is driving the Trump administration’s choices. Some of those selections have appeared so strange that media critics and some Western leaders have wondered out loud if the US government may now even get serving Russian objectives.

It’s more likely that US steps just reflect an aggressive quest of what the Trump administration views to be America’s objectives. Such guidelines may help repair US manufacturing and reposition its defense for potential tensions with China.

Yet past Trump national Anthony Scaramucci, then co-host of the well-known” The Rest is Elections” US radio and a bitter opposition of his former manager, has a different take. He argues the US senator isn’t – as is sometimes claimed – playing “four-dimensional games” but, instead, is acting on “whims” and “eating the game items”.

This raises the possibility that some of Trump’s plans are merely cruel rather than proper. My guide Spite, published in 2020, examines spite’s mental origins and its development and social effects in people, leaders and policy makers. It offers insights into what may now be unfolding on the world stage.

Spite describes a situation in which we act to harm another person – even at a cost to ourselves. While spiteful actions can be strategic, helping your long-term self-interest, they are often damaging to everyone in both the short and long terms. Understanding whether spite is involved in US policy decisions is crucial for the world’s ability to respond effectively.

Cooperation — working together for mutual benefit — is humanity’s superpower. We cooperate with people outside our families in a way that other species do not. After the second world war, cooperative alliances, trade agreements and global institutions fostered some degree of shared prosperity.

Yet cooperation ( I win, you win ) is just one of four basic behaviors, alongside altruism ( I lose, you win ), selfishness ( I win, you lose ) and spite ( I lose, you lose ). Trump often frames US cooperation as altruism, claiming America gives and gets nothing in return, making it unfairly exploited.

His” America first” policy embraces selfishness, treating international relations as a zero-sum game in which there can only be one winner. However, by recasting cooperation as unfair, Trump’s resulting anger may be driving him beyond selfishness into counterproductive spite.

When the US has imposed tariffs on countries, they have generally retaliated in kind with their own tariffs. The result? Everyone suffered. In Trump’s first term, US consumers bore most of the costs of tariffs, while retaliatory tariffs also reduced real incomes abroad.

Former US Labor Secretary Robert Reich, an economist, argues that Trump’s tariffs are meant” to show the world that he’s willing to harm smaller economies even at the cost of harming the United States’ very large one”. This is textbook spite.

Similarly, after tensions between Trump and the Ukrainian president, Volodymyr Zelensky, US actions seemed more focused on punishing Ukraine than advancing US interests. Some argue this hurt US national security as well as Ukrainian security.

The costs and benefits of spite

International relations scholars offer different views on spite. Realists see spite as a rational tool for maintaining power. They emphasise that as long as the US loses less than its rival, it makes a relative gain.

Liberals prioritize absolute gains— arguing that cooperation leads to mutual benefits, even if some gain more than others. They see spite as damaging trade and alliances that ultimately strengthen the US.

Constructivists, who argue that state actions depend on context and perceptions, emphasise that spite’s impact will vary. Spite directed against a major rival may be useful. Yet, spite against smaller allies can undermine trust and long-term cooperation.

Spiteful US tariffs may force weaker allies such as Canada into making concessions. But scholars warn that China, which has far greater economic depth, has both the will and resources to “play a dangerous game of mutual pain and destruction with the United States”.

Ultimately, constant trade wars suggest a desire to dominate and punish rather than pursue strategic self-interest, escalating conflicts instead of solving them. Research on human cooperation shows that winners don’t punish, and that losers “punish and perish”.

The psychology of spite

Spite may be be shaping US policy because Trump’s perceptions, environment and personality are encouraging spitefulness. Spite often results from feeling treated unfairly. The US president has manufactured a sense of unfairness and repeatedly asserts that allies are treating the US “very, very unfairly“.

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As China grows, the world is becoming more competitive. Research suggests that increased competition encourages spite. And, in an era of strongman politics, leaders may seek dominance. Spite is one way to dominate others.

Possessing the dark triad of personality traits — psychopathy, narcissism and Machiavellianism — increases your risk of being spiteful. Researchers have argued that Trump scores highly on such traits ( although, if true, this is not necessarily bad as narcissism has been linked to some elements of presidential success ).

Spitefulness is more common in people who struggle to control their emotions. Trump has been accused of temper tantrums. Even one of his own attorneys is said to have deemed Trump “incapable of testifying because he could not control himself, his emotions”.

Spite isn’t always bad. It can force fairness, boost competitive performance and is linked to creativity. But when spite destroys cooperation – humanity’s superpower – it becomes human kryptonite.

How to prevent spite from shaping policy

To stop spite influencing foreign policy, it’s necessary to address its triggers. This means challenging perceptions of unfairness. Leaders must emphasize the mutual benefits of cooperation. The trust on which cooperation is based must also be rebuilt.

There is also a need to resist dominance-seeking. In hunter-gatherer societies, those who seek dominance are often restrained by the group. International institutions, as well as checks and balances in the US system, need to prevent reckless dominance-seeking from escalating. Reactions to spite must be firm but measured, rather than risking a race to the bottom.

Overall, America’s apparent use of spite to unnecessarily reduce the living standards of its adversaries as well as some allies and even its own citizens is deeply troubling. Yet, were the US to refuse to wield spite against its adversaries it would risk allowing a new global power – one potentially hostile to liberal democracy and human rights – to shape the world order.

Aristotle argued that the virtuous person gets angry for the right reasons, at the right time, in the right way. America must learn to do the same.

Simon McCarthy-Jones is an associate professor in clinical psychology and neuropsychology at Trinity College Dublin.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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The end of capitalism – or the end of civilization? – Asia Times

Beware of exponential articles. But in this case, I’m frightened, as Ulrike Herrmann’s highly readable book The End of Socialism makes clear, the choice between neoliberalism and culture really does seem to be either/or – and the end will likely come a lot sooner than we thought.

Anyone who isn’t alarmed about the rapid and well-documented decline in the global environment, upon which we and our atypically comfortable lifestyles depend, really hasn’t been paying attention. You may not enjoy reading a book like this, but you really should read it – if only for your children’s sake.

The End of Capitalism appeared in Germany a couple of years ago, but it has lost none of its relevance or urgency. On the contrary, with Donald Trump in the White House promising to “drill, baby drill“, it could hardly be more timely.

The majority of potential readers are likely to disagree with Herrmann’s central claim that” climate protection will only be possible if we abolish capitalism”.

This is unsurprising. We have known nothing other than capitalism in the West for several hundred years. Attempts to do things differently in other parts of the world, such as the Soviet Union, generally did not go well socially or, more importantly, environmentally.

One of the reasons it’s easier to imagine the end of the world than the end of capitalism, as philosopher Fredric Jameson famously claimed, is that people everywhere like the abundance of stuff that capitalism has been instrumental in producing.

Living standards, especially in the West, but also in China, India and elsewhere, have risen unimaginably in a remarkably short space of time. It is not surprising that the beneficiaries have generally been pleased about this unprecedented change in their material circumstances.

Ulrike Herrmann argues that’ climate protection will only be possible if we abolish capitalism’. Scribe Publishing

True, contemporary capitalism is characterised by a growing gulf between the richest and the poorest, both within and between countries. This is an awkward problem for” communist” China, but one that Australians and especially Americans seem relatively unconcerned about. Herrmann, too, is surprisingly relaxed about it. She argues that” capitalism made democracy possible – and it can be democratically controlled”.

This idea is currently being subjected to a searching real-time examination, as the Trump administration systematically eviscerates and transforms America’s system of governance to a point where sober and serious analysts consider it to be headed toward authoritarianism.

Herrmann does not consider such a possibility, but she does provide a clear explanation of the rise of capitalism and the social and technological forces that have made it the most transformative force in human history.

More hyperbole? Lots of people have given up on organised religion, but not many have renounced consumerism. Unlikely as such a renunciation might seem, Herrmann argues that endless consumption is something we will have to give up if the environment is to remain habitable.

The argument is simple and has been around since the Club of Rome published The Limits to Growth, half a century ago: a system that is predicated on ever expanding growth is incompatible with a world of finite resources, especially if one of those resources is a functioning natural environment.

Lots of people have spent the intervening 50 years pointing out why the authors of that book were wrong. It is likely they will be queuing up to tell Herrmann she is wrong, too – especially when she argues that” ‘ green growth’ does not exist”.

The unpalatable options

We have been repeatedly assured that technology will come to the rescue. But Herrmann contends that” we no longer have the time to wait for possible technological breakthroughs. We must act immediately if we are to avert climate collapse”.

The seemingly irreconcilable problems, she argues, are highlighted in the cost of removing carbon from the atmosphere and storing it somewhere. Despite all the hype, such technology has yet to be viably demonstrated at scale. This means “humanity will be forced to move away from fossil fuels and towards green energy”.

Unfortunately for the likes of Peter Dutton, Herrmann is scathing about the prospects for nuclear power. There is some debate about precise figures, but the German experience, which is central to the book’s main arguments, suggests that even when Germany had 19 commercially run reactors, they could only provide around 13 % of total energy consumed.

Herrmann points out that” the nuclear energy sector is the only branch of industry in which costs consistently rise”. Reactors are, consequently, not viable without government subsidies.

Before admirers of green energy and especially “green growth” start feeling smug, it is important to note that Herrmann is equally sceptical about wind and solar. She claims that, between them, they provide less than 10 % of Germany’s energy needs and won’t be of much use in periods of dunkelflaute: the “dark doldrums” when the sun doesn’t shine ( much ) and the wind doesn’t blow.

In 2024, however, after the publication of the German edition of Herrmann’s book, Germany generated 59 % of its electricity from renewables, including 31.9 % from wind and 14.7 % from solar.

Nevertheless, energy storage is expensive and difficult, and the transition to green solutions is fraught. One example: it takes 35 kilograms of scarce minerals to make a traditional petrol driven car and 210 kilograms to make an electric one. Manufacturing the batteries for them generates a further 15–20 tonnes of carbon dioxide.

As a result, “our planet is being ransacked ]… ] Around one-third of all raw material consumption since 1900 took place in the short time between 2002 and 2015”.

The manufacture of electric vehicles requires large amounts of scarce minerals. Photo: Es sarawuth / Shutterstock

This is why Herrmann argues that simply moving to green energy sources will not be sufficient, either to guarantee current needs or to adequately reduce our collective impact on the environment.

It is not only the automotive sector that will have to shrink. One of the industries that will be difficult to reform, much less shrink, is aviation. Over a single year, 90 % of the world’s population will not fly at all and 1 % will account for half of the global aviation emissions.

This mirrors the grotesque levels of inequality in global wealth distribution. It means the rich will have to join the poor in” saying goodbye to flying”.

Other examples of politically unpalatable sacrifices are given throughout the book. And the message is clear:

The challenges will grow, and the funds ]to address them ] will shrink. Consumption must fall, which immediately begs the question of who should cut back and by how much. Distribution conflicts will be inevitable.

Given that “technology will not enable us to produce enough green energy sufficiently cheaply to fuel ‘ green growth ‘ ] … ] the only remaining option is green shrinkage: fewer new buildings, fewer cars, fewer chemical products”.

This is a message that no policymaker anywhere in the world, democrat or autocrat, will want to hear. It is not just the rich industrialised countries that are wedded to the idea of economic expansion.

Many developing countries would like nothing better than to join their wealthy counterparts. So would the people of the Global South, which is why so many of them risk their lives to flee hopeless poverty.

In any given year, 1 % of people are responsible for half of global aviation emissions. Photo: Muratart / Shutterstock via The Conversation

Improbable precedents

Unlikely as the necessary reforms are to be realized, Herrmann suggests that wartime Britain offers a model of what can be achieved if the dangers are sufficiently immediate and existential.

She points out that “rationing was so popular in Britain because everyone had exactly the same entitlement”– though no doubt the legendary” spirit of the Blitz” also had something to do with spending nights cowering in underground stations with hundreds of strangers while people dropped bombs on you.

This is not a flippant point. Without a dramatic change of consciousness on the part of “ordinary” people generally, and policymakers in particular, it is impossible to imagine the sorts of sacrifices that seem necessary to achieve the” shrinkage” being considered, much less enacted as “necessary prohibitions”.

Given that any actions would also need to have a global, rather than just a national rationale, a radical change of collective direction also seems improbable, to put it delicately, especially if it involves something resembling central planning.

And yet Herrmann argues that there is no choice other than radical and seemingly unimaginable change if we are to survive in anything like a civilized condition:

There is no alternative for the industrialised countries. Either they end growth voluntarily, or the era of growth will end violently, when everything that forms the basis of our way of life has been destroyed.

For what it’s worth, I agree. I am not a climate scientist, but I recognize that there is an intellectual division of labor that is a central component of modernity. None of us is capable of knowing everything about the increasingly complex world in which we live.

But if something like 99 % of climate scientists agree on the causes and likely consequences of climate change, I am happy to take their word for it. What possible basis could I have to disagree?

Herrmann may not be right about everything, but she is right about enough to cause any open-minded reader to think seriously about what the future looks like, especially for younger generations who will have to deal with the decisions we make – or don’t make – today.

This is hardly a novel insight. But it is striking that, for all our real understanding about the nature of the unprecedented challenge we collectively face, there is still an equally remarkable unwillingness or inability to act.

Like many before her, Herrmann thinks that salvation could come from “below”, because “parties do not lead their voters, they follow them”. But given what is currently happening in the United States and elsewhere, the durability of democracy itself is uncertain.

In a world where democracy is already in retreat, the environmental emergencies that will inevitably increase without meaningful action could make authoritarian responses even more likely.

Still, what do I care? I’m a baby boomer with no kids. I live in one of the wealthiest, safest places on Earth. In Western Australia, we don’t even care about the rest of the country, let alone the rest of the world.

Local politicians are planning to make an even bigger contribution to destroying the planet than we already do, because Woodside Energy wants to speed up the approval process for the controversial North West Shelf project. Good to know who’s running the state, at least.

It might have been useful if Herrmann had given a bit more attention to the politics of self-absorption or the slightly optimism-inducing literature on “degrowth“.

These are minor criticisms of what is a significant contribution to the literature on the climate crisis, though I fear The End of Capitalism may only be read by an already sympathetic audience.

This remains a seemingly insurmountable obstacle faced by would-be reformers. I know it is considered de rigueur to strike an optimistic note when concluding discussions of this sort, but it is not easy, and may be dishonest.

There is no doubt that unmitigated climate change and environmental degradation will transform our lives and the political systems that circumscribe them. By the time they do, it may be too late to do anything useful, other than keep a lid on social breakdown.

It won’t necessarily be the end of the world, but it may be the end of any human civilization worthy of the name.

Mark Beeson is adjunct professor, Australia-China Relations Institute, University of Technology Sydney

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Duterte’s arrest could backfire badly on Marcos Jr – Asia Times

Former Philippine President Rodrigo Duterte is now in the custody of the International Criminal Court ( ICC ) in The Hague, Netherlands, to face charges of alleged crimes against humanity for his brutal war on drugs in the Philippines.

Duterte and his friends attempted to fight the imprisonment warrant and claimed his move to The Hague was an “illegal act“. However, the former bodybuilder had now become the primary Asian head of state to be tried by the ICC.

The media has left the Philippines reeling at a critical moment for the region. Some of Duterte’s supporters have rallied behind him, while another Filipinos have remembered his black reputation.

The state is also in the presence of intense campaigning for congressional elections in May that could be important for the state of the current leader, Ferdinand Marcos Jr.

Marcos had been allied with Duterte’s daughter, Sara, the government’s vice president, before they significantly fell out last year after she formally threatened to attack him. Sara Duterte was therefore impeached by the House of Representatives by Marcos ‘ allies in February.

Today, there are questions whether Marcos ‘ determination to corner his main adversary and cooperate with Interpol’s arrest of her father may fail in a country where the Dutertes also hold great sway.

Long-simmering rivalry

At stake in May’s vote are over 18, 000 national and local opportunities, including 12 votes in the 24-member Senate, 250 seats in the House of Representatives and 63 party-list staff, as well as 82 valid and other localized government jobs across the country.

The benefits will definitely have major implications for the Philippines in the short term.

In the Senate, it may determine the outcome of Sara Duterte’s impeachment trial later this month. Thus far, eight of the Marcos government’s individuals are likely to succeed, based on the latest elections. If at least two-thirds of the lawmakers vote to indict Duterte, she may be ineligible to run for president herself in 2028 – or keep any open business.

Both Marcos and Sara Duterte have seen their people trust and acceptance ratings decline in recent months. Duterte’s scores declined even further after her prosecution in the lower room, although she still enjoys great rankings in her house foundation of Mindanao.

These latest innovations, however, have never stopped her from hinting at plans to run for president in 2028. She made these opinions on a trip to Hong Kong over the weekend with her father, where they met with international Filipino followers.

It remains to be seen whether the elder Duterte’s arrest and trial at the ICC would make much public sympathy for the home kingdom to raise Sara Duterte in both her impeachment trial and any future social races.

Some of the family’s die-hard supporters still view them as “underdogs” suffering from sustained political persecution by the Marcos administration. Social media posts by supporters have denounced the haste with which the government complied with the arrest warrant.

Sara Duterte will seek to rally these supporters even further as she travels to The Hague to stand by her father’s side. She has called his arrest an “affront to national sovereignty“.

ICC’s long arm

Beyond the Marcos-Duterte rivalry, Rodrigo Duterte’s arrest and impending trial represents a sizeable moment for Filipinos at home and abroad. It shows that a former leader of the country can be held accountable for alleged crimes, no matter how popular they are or how much influence they wield.

New witnesses may surface who were reluctant to testify in trials related to Duterte-era killings in local courts. Some witnesses also refused to participate in the marathon hearings held by a House committee investigating drug-war killings.

This committee has said it would not cooperate with the ICC, as the Philippines withdrew from the court under Duterte’s rule in 2019. Nevertheless, its hearings can still be accessed by the ICC since they have all been posted online.

The ICC trial may also expose the weaknesses and inadequacies of the Philippine justice system, including the limitations of existing laws that are supposed to protect human rights, ensure the rule of law, and guarantee the accountability of government officials and law enforcers in the country.

Duterte’s trial may also persuade the Marcos administration to reconsider his predecessor’s decision to leave the ICC. ( The court says it retains jurisdiction in the case against Duterte because the alleged crimes occurred when the Philippines was still a member. )

The arrest of the former strongman may not end the” culture of impunity” that has long existed in Filipino politics. Yet, it is an important milestone in building public awareness about the importance of upholding human rights protections.

It will also no doubt provide the many families of those killed during Duterte’s time in office a measure of relief.

Noel Morada is visiting professor, Nelson Mandela Centre, Chulalongkorn University, and research fellow at the Centre for the Responsibility to Protect, The University of Queensland

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Why China won’t buckle to Trump’s trade war demands – Asia Times

China’s taxes on American farm materials came into force this year. As a reaction to Washington’s latest 10 % climb on Chinese goods, Beijing’s official information has been clear: it is ready to combat any type of battle against the US.

As a businessman-turned-politician, US President Donald Trump is using a combination of taxes, sanctions and speech to compel states into complying with his requirements.

His” Arts of the Offer” approach has worked in some cases, as seen in apartments made by countries like Canada and Mexico that have sought to discuss his tax challenges.

But China, while still leaving room for negotiation, is taking a different approach – rather than begging for Trump’s trade conflict kindness, Beijing wants to communicate with Washington on an equal footing.

Indeed, the Trump administration has chosen the wrong target if it thinks its tariff threats will work the same on China.

Divergences between the world’s two largest economies are inevitable. But Washington has made a slew of unreasonable demands on Beijing, leveraging its presumed power advantage and vast gap in comprehensive strength. But China is no longer what it was.

Data from the US-based Center for Strategic and International Studies think tank and the World Bank shows that China’s nominal GDP is the second-largest worldwide after the US, but measured at purchasing power parity, China’s GDP is now larger.

The shift in global power dynamics, where China is rising and the US is declining, is by now a widely accepted fact. China has already made it clear that the US can no longer speak from” a position of strength”.

As a result of its recent rapid growth, China has seized economic advantages over the US in many fields. Take, for instance, trade. The Australia-based think tank the Lowy Institute found that around 70 % of the world, representing 145 economies, trade more with China than they do with the US and more than half of all economies trade twice as much with China compared with the US.

China’s lead over the US in international trade relationships, as the Lowy Institute reveals, has widened since Trump initiated his last trade war with China in 2018.

Yet, China is open for talks. At the same time, it has reason to “fight any type of war” until the end and has confidence it will win over the US if Trump insists on a trade war. Trump wants to use tariffs as a card to coerce China, but the US does not have as much leverage as it seems to think it does.

Consider this: In 2024, China imported US$ 29.25 billion worth of US agricultural products, a decrease of 14 % from 2023. Meanwhile, the 2023 import volume had already declined by 20 % compared to 2022.

But this has not weakened the significance of the Chinese market for American farmers – China remains the largest market for US agricultural exports. As the US-China Business Council has stated, US agriculture and livestock exports to China support more American jobs than any other sector by a wide margin.

The China-US tariff fight, as Ole Hansen, head of commodity strategy at Saxo Bank, argues,” will continue to increase China’s dependency on Brazilian corn and soybeans while causing a great deal of stress among US farmers who are about to make their spring planting decisions in the coming weeks”.

Trump has repeatedly boasted about the “benefits” that tariffs would bring to American farmers, but in reality, Trump’s red-state voter base is bearing the brunt of China’s retaliatory tariffs ranging from corn to chicken.

Apart from farmers, blue-collar American workers who elected Trump into the White House will also suffer. ” More than 550, 000 workers at car dealerships representing international brands risk losing their jobs if the industry falters due to the tariffs”, the American International Automobile Dealers Association said in a statement.

The Peterson Institute think tank estimates that the direct cost of import taxes on goods from China, Mexico and Canada will add over$ 1, 200 annually to the typical American household’s expenses. This figure could increase further after reciprocal tariffs are implemented in April.

This is happening while the US is already struggling with stubborn inflation and rising risks of a recession. The country’s CPI rose 3 % from a year earlier, according to the latest US Bureau of Labor Statistics.

Trump’s new tariffs, as S&amp, P Global Ratings estimate, could cause a one-time 0.5 percent to 0.7 percent rise in US consumer prices, provided they remain in place throughout the year.

This means that to win over China in this tariff fight, Trump – under pressure from his voter base and rising inflation –lacks the leverage he claims to have.

His” Art of the Deal” approach of using tariffs to coerce China into complying with his demands will eventually backfire on the US. He should have carefully evaluated the strengths of his rivals, including China, and all the risks and pain his country would face before launching his tariff fight.

Jianxi Liu is a Beijing-based analyst of political and international relations and contributor to Chinese news organizations including Global Times, CGTN and others.

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How a US rate cut would ripple and wash through Asia – Asia Times

February’s US prices record has given the Federal Reserve the room it needs to cut rates—and it may soon taking that action. With year-on-year inflation slowing to 2.8 %, down from 3 % in January, and monthly price growth decelerating, the Fed is under increasing pressure to act. &nbsp,

If it does, the results will resound across international markets, including Asia, where shifting financial situations will alter economies, currencies, and investments. A possible charge cut from the world’s most powerful central banks had so mark a turning level. &nbsp,

For more than a year, Eastern markets have contended with a strong money, forcing central banks to tighten policy to help their economies and curb inflation. If the Fed moves, that stress may comfortable.

Politicians in India, Indonesia and South Korea—previously hesitant to reduce rates—could have room to release economic conditions to help growth.

A weaker money is one of the most immediate outcomes. As price differentials small, the greenback’s dominance may probably diminish, lifting Asian currencies. The renminbi, which has been under stress due to policy difference with the Fed, may develop.

The Chinese rmb, facing challenges from Beijing’s economic change, does stabilize. This shift may offer relief to import-heavy markets and increase trade balances.

For capital markets, the repercussions are important. A Fed hinge may revive investor hunger for emerging markets, leading to new inflows into Asiatic stocks. India and Southeast Asia, with their strong progress stories, stand to benefit, while Hong Kong—long weighed down by outflows—could see a return in attitude. &nbsp,

Lower saving fees will help businesses, especially those in engineering and consumer businesses, which have struggled under high interest rates.

However, there are complexities. A Fed move to ease policy will not resolve all of Asia’s challenges. China, the region’s largest economy, continues to grapple with weak domestic demand and real estate troubles. While a softer dollar may ease liquidity concerns, sustained recovery will depend on Beijing’s policy choices.

Trade risks remain high. The potential rate cuts come as the US shifts toward a more protectionist stance. Trump’s renewed tariff threats on China introduce fresh uncertainty. Even if monetary easing boosts demand, tighter trade conditions could offset those benefits by disrupting supply chains and raising costs.

Commodities markets will react swiftly. A weaker dollar often fuels rallies in oil and industrial metals—key imports for Asia’s manufacturing economies.

While this could raise input costs, it may also indicate stronger demand, benefiting resource-rich nations like Indonesia and Australia. China, the world’s largest commodities consumer, will be closely watching these shifts.

For corporate borrowers, financing conditions will improve. Many Asian firms carry dollar-denominated debt, and a weaker US currency, combined with lower global borrowing costs, would ease repayment burdens. &nbsp,

This could, I believe, unlock delayed investment and support expansion, particularly in real estate and infrastructure sectors.

Bond markets will adjust quickly. As US Treasury yields decline, Asian fixed-income markets will look more attractive. Investors searching for yield will turn to local bonds, potentially lowering borrowing costs for governments and corporations across the region.

The banking sector in Asia is also likely also see changes. A lower interest rate environment in the US would encourage capital flows into emerging markets, reducing pressure on Asian lenders.

Lower borrowing costs may prompt increased credit growth, particularly in economies with robust banking sectors like Singapore and South Korea. But financial institutions must remain cautious about excessive risk-taking in a low-rate environment.

The impact on consumers will be mixed. While lower interest rates could stimulate economic activity, they may also fuel asset bubbles in real estate and equities. Countries like China and South Korea, where housing affordability is already a concern, will need to manage the risk of excessive price surges. &nbsp,

In addition, higher household purchasing power due to stronger currencies could provide a boost to domestic consumption, benefiting retailers and consumer-driven industries.

Asia’s policymakers will have to navigate this shifting landscape carefully. While many economies stand to benefit from the Fed’s potential rate cuts, regional central banks must decide how aggressively to adjust their own policies. Some may choose to maintain higher rates to ensure financial stability, while others could seize the opportunity to stimulate growth.

Ultimately, if the Fed cuts rates, Asia’s economic landscape will shift. The era of aggressive tightening is, I suspect, nearing its end, and a new phase of capital flows and risk positioning is beginning. &nbsp,

The Fed’s next move isn’t guaranteed, but the signs are there. Inflation is cooling, economic momentum is slowing, and policymakers are under pressure to act. The moment the Fed pulls the trigger, Asia will, or at least should, have to respond.

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Trump’s Ukraine mineral deal won’t be easy to extract – Asia Times

Ukraine’s material success has been a crucial factor in its negotiations with the US as the two nations work out information for a peace deal in Ukraine’s war with Russia.

After a rough stop to those conversations, representatives from the US and Ukraine announced an agreement on March 11, 2025. The US would resume support and knowledge sharing with Ukraine, with some problems, and both agreed to work toward” a detailed contract for developing Ukraine’s crucial material resources to expand Ukraine’s business and guarantee Ukraine’s long-term prosperity and security”.

The initial news from Ukraine’s authorities stated that important minerals may likewise “offset the cost of British help”, but that collection was removed from the joint statement. Getting Russia to agree to a peace would be the next phase.

There’s no question that Ukraine has an abundance of vital minerals, or that these sources will be crucial to its postwar rebuilding. But what specifically do those solutions include, and how plentiful and accessible are they?

The conflict has significantly limited access to data about Ukraine’s natural resources. Nevertheless, as a geoscientist with expertise in asset evaluation, I have been reading professional reviews, many of them behind paywalls, to know what’s at stake. Here’s what we know.

Ukraine’s vitamins energy sectors and militaries

Ukraine’s material assets are concentrated in two volcanic provinces. The larger of these, known as the Ukrainian Shield, is a broad belt running through the center of the country, from the north to the south. It consists of very ancient, tectonic and crystalline stones.

A multibillion-year story of wrong movement and volcanic action created a variety of materials concentrated in local sites and across some larger regions.

A second state, near to Ukraine’s borders with Russia in the south, includes a gap valley known as the Dnipro-Donets Depression. It is filled with sediment mountains containing coal, oil and natural gas.

A map shows critical minerals across the country, including near the Russian border.
Ukraine’s essential material sources. Ukrainian Geological Survey

Before Ukraine’s democracy in 1991, both places supplied the Soviet Union with supplies for its industrialization and defense. A substantial industrial region centered on steel grew in the southeast, where iron, iron and coal are particularly abundant.

By the 2000s, Ukraine was a major producer and exporter of these and other materials. It also mine plutonium, used for nuclear energy.

In addition, Russian and Polish geoscientists identified debris of potassium and rare earth metals that remain uninhabited.

However, technical reports suggest that assessments of these and some other essential minerals are based on outdated volcanic data, that a considerable amount of mines are dormant due to the war, and that many employ older, wasteful technology.

That suggests critical mineral production could be increased by peacetime foreign investment, and that these minerals could provide even greater value than they do today to whomever controls them.

Why the US is so interested

Critical minerals are defined as resources that are essential to economic or national security and subject to supply risks. They include minerals used in military equipment, computers, batteries and many other products.

A list of 50 critical minerals, created by the US Geological Survey, shows that more than a dozen relied upon by the US are abundant in Ukraine.

A majority of those are in the Ukrainian Shield, and roughly 20 % of Ukraine’s total possible reserves are in areas currently occupied by Russia’s military forces.

Machinery work in a deep open mine.
Graphite is mined from a quarry that is about 120 meters deep in Zavallya, Ukraine. Photo: Arsen Dzodzaiev / Anadolu via Getty Images/ The Conversation

Critical minerals Ukraine currently mines

Three critical minerals especially abundant in Ukraine are manganese, titanium and graphite. Between 80 % and 100 % of US demand for each of these currently comes from foreign imports.

Manganese is an essential element in steelmaking and batteries. Ukraine is estimated to have the largest total reserves in the world at 2.4 billion tons. However, the deposits are of fairly low grade – only about 11 % to 35 % of the rock mined is manganese. So it tends to require a lot of material and expensive processing, adding to the total cost.

This is also true for graphite, used in battery electrodes and a variety of industrial applications. Graphite occurs in ore bodies located in the south-central and northwestern portion of the Ukrainian Shield.

At least six deposits have been identified there, with an estimated total of 343 million tons of ore – 18.6 million tons of actual graphite. It’s the largest source in Europe and the fifth largest globally.

Titanium, a key metal for aerospace, ship and missile technology, is present in as many as 28 locations in Ukraine, both in hard rock and sand or gravel deposits. The size of the total reserve is confidential, but estimates are commonly in the hundreds of millions of tons.

Two people look out windows at equipment operating in a mine.
Workers operate machinery at an open-pit titanium mine in the Zhytomyr region on Feb. 28, 2025, amid the Russian invasion of Ukraine. Photo: Roman Pilipey / AFP via Getty Images/ The Conversation

A number of other critical minerals that are used in semiconductor and battery technologies are less plentiful in Ukraine but also valuable. Zinc occurs in deposits with other metals such as lead, gold, silver and copper.

Gallium and germanium are byproducts of other ores – zinc for gallium, lignite coal for germanium. Nickel and cobalt can be found in ultramafic rock, with nickel more abundant.

No figures for Ukraine’s reserves of these elements were available in early 2025, with the exception of zinc, whose reserves have been estimated at around 6.1 million tons, putting Ukraine among the top 10 nations for zinc.

Critical minerals that aren’t being mined – yet

Geologists have identified potentially significant volumes in Ukraine of three other types of critical minerals important for energy, military and other uses: lithium, rare earth metals and scandium.

None of these had been mined there as of early 2025, though a lithium deposit had been licensed for commercial extraction.

The largest potential lithium reserves exist at three sites in the south-central and southeastern Ukrainian Shield, where the grade of ore is considered moderate to good. How much lithium these reserves hold remains confidential, but technical reports suggest it’s on the order of 160 million tons of ore and 1.6 million to 3 million tons of lithium oxide.

If most of this could be recovered in a profitable way, it would place Ukraine among the top five nations for lithium.

Smaller volumes of tantalum and niobium, also used in steel alloys and technology, have also been identified in these reserves. Most of Ukraine’s lithium occurs as petalite, which, unlike the other main lithium mineral, spodumene, requires more expensive processing.

Rare earth elements in Ukraine are known to exist in several sites of volcanic origin and in association with uranium in the south-central portion of the Ukrainian Shield. These haven’t been developed, though sampling has indicated commercial potential in some sites, while other sites appear less viable.

Excavators work in a vast mined area.
Despite the ongoing war, many mining companies across the country have continued their operations, extracting resources such as titanium, graphite and beryllium. Photo: Kostiantyn Liberov / Libkos / Getty Images via The Conversation

Rare earth elements in high demand for superior magnets and electronics – neodymium, praseodymium, terbium and dysprosium – are all present in varying amounts in these areas. Other critical minerals are associated with these deposits, especially zirconium, tantalum and niobium, in undetermined but potentially significant amounts.

Finally, scandium, used in aluminum alloys for aerospace components, has been identified as a byproduct of processing titanium ores. Ukraine’s scandium does not appear to have been studied in enough detail to evaluate its commercial potential. However, world production, about 30 to 40 tons per year, is forecast to grow rapidly.

Ukraine’s mineral future

It’s clear that Ukraine is endowed with valuable resources. However, extracting them will require roads and railways for access, infrastructure such as electricity and mining and processing technology, investment, technical expertise, environmental considerations and, above all, cessation of military conflict.

Those are the true determinants of Ukraine’s mining future.

Scott L Montgomery is lecturer, Jackson School of International Studies, University of Washington

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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