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Trump makes new tariff threats even as his Treasury secretary hints at a pause, hopes rise for a Gaz͏‌  ͏‌  ͏‌  ͏‌  ͏‌  ͏‌ 
 
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July 7, 2025
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The World Today

  1. Trump trade deadline looms
  2. China hits back at EU
  3. African farmers’ tariff fear
  4. LatAm investment falls
  5. The toll of Texas’ storms
  6. Netanyahu-Trump meeting
  7. OPEC’s output hike
  8. Japan’s nuclear revival
  9. Solar problem for Pakistan
  10. Swimmers return to Seine

The London Review of Substacks, and a ‘genre-shattering’ music recommendation.

1

Trump trade deadline looms

A chart showing global trade growth forecasts

US President Donald Trump made fresh tariff threats against major trading partners even as his Treasury secretary suggested extending a pause on the levies. The sharply diverging remarks encapsulated the White House’s headspinning trade policy: Trump threatened to impose a 10% duty on countries aligned with the BRICS bloc following a weekend summit, while Scott Bessent voiced openness to continuing trade negotiations beyond Wednesday, when a reprieve on Washington’s “Liberation Day” duties expires. Global stock markets fell amid the uncertainty. The White House’s rhetoric has become more circumspect recently: The administration predicted it would reach 90 trade deals during its 90-day tariff suspension, but is now targeting a handful of agreements while postponing the most vexing issues.

For the latest from Trump’s Washington, subscribe to Semafor’s daily US politics briefing. →

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2

China retaliates against EU

A chart showing the share of global goods trade for China and the EU

China hit back at European Union trade restrictions, weeks before a summit meant to celebrate 50 years of the pair officially establishing diplomatic relations. Beijing’s ban on the sale of European medical devices came in response to Brussels’ own curbs. The move was largely symbolic — such trade is relatively minimal — but demonstrated the worsening of their ties: Brussels is reportedly pressuring Beijing to raise its target for cutting greenhouse gas emissions ahead of this month’s meeting. The two are also locked in disputes over China’s support for Russia’s invasion of Ukraine, EU curbs on Chinese EV sales, and European dependence on Chinese rare earths. “Tensions are rising each day as we approach the summit,” one expert told Le Monde.

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3

Tariff threats hit African farmers

A South African citrus farm.
Wikimedia Commons photo/South African Tourism/CC BY 2.0

Washington’s tariff threats have upended Africa’s agriculture industry, leaving farmers across the continent racing to adapt. In South Africa, the world’s second-biggest producer of citrus fruits, growers are bracing for the potential impact of Washington’s threats of 31% tariffs. Some farmers in the country hope the tariffs’ impact on US consumers will force the White House to backtrack. “We’ve become dependent on the US market,” one told Bloomberg. “But… US consumers have also become dependent on our fruit.” Ethiopian soy producers are more buoyant, bolstered by China’s move to reduce its import dependence on the US, with Addis Ababa and Beijing recently signing an export agreement.

For more from the continent, subscribe to Semafor’s Africa briefing. →

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4

LatAm investment falls

A chart showing the number of VC deals in Latin America in the first two quarters of each year

Venture capital investment in Latin America has plummeted because of the simmering trade war and global economic uncertainty. The region is on track for its lowest investment totals in almost a decade, with local funds so far this year raising less than 1% of their 2021 record, when low interest rates boosted startup valuations. “The pricing gap between buyers and sellers has been too wide… in recent years,” an analyst told Bloomberg. Slowing economic growth and persistent inflation across the region, especially in Brazil and Mexico, Latin America’s biggest economies, have further spooked funders.

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5

Texas flood toll rises

A photo of the aftermath of the floods
US Coast Guard/Handout via/Reuters

The floods in central Texas are among the deadliest in the US for over a century. At least 81 people, including dozens of children, are dead and more than 40 still missing, with a huge search-and-rescue operation underway. As the state grapples with the tragedy, it is also confronting the reality of extreme weather events that are becoming ever more frequent. Insurance premiums are up — they rose 19% last year and 21% in 2023, The Washington Post reported recently — and many Texas homes are now uninsurable. The problem is particularly acute as the state has seen huge population growth in recent years, especially in popular metro areas such as Houston and Austin, partly thanks to its low housing costs.

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6

Netanyahu set for Trump talks

Donald Trump and Benjamin Netanyahu
Leah Millis/File Photo/Reuters

Hopes rose that Israeli Prime Minister Benjamin Netanyahu’s meeting with US President Donald Trump in Washington today could lead to a ceasefire. Trump is keen to achieve a peace deal in Gaza, and Netanyahu is in a strong position domestically after attacks on Iran severely weakened Israel’s regional rival. That could give him breathing space to announce a truce without suffering a right-wing revolt, The Guardian reported. Hamas responded “positively” last week to Israel’s proposal of a 60-day ceasefire, although it wants a permanent end to the war. Israel has long rejected that demand, but, under pressure from Trump and isolated diplomatically after nearly two years of war, it has agreed to send negotiators to Qatar for indirect talks.

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7

OPEC+ surprises with big output hike

A chart showing US oil production as a percentage of OPEC’s

Major oil producers agreed to ramp up output by more than expected despite falling crude prices. The OPEC bloc and its partners have kept increasing production — this time by 550,000 barrels per day — even with prices mired near multi-year lows, officially voicing confidence about global economic prospects and forecasting a strong summer vacation season, a time when car use tends to increase. Yet experts say the persistent steps to raise output are part of long-term efforts to crowd out US shale companies as well as to maintain adherence to national quotas within the grouping, all while addressing US President Donald Trump’s calls for lower oil prices.

For more on the fallout of the OPEC+ decision in the Gulf, subscribe to Semafor’s Gulf briefing. →

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8

Japan returns to nuclear

A chart showing Japan’s share of electricity generation from nuclear

Japan’s nuclear revival is gathering pace. The country all but switched off its nuclear fleet in the wake of 2011’s earthquake and the Fukushima reactor’s subsequent meltdown. But soaring gas prices after Russia’s invasion of Ukraine, growing need for energy for data centers, and Japan’s decarbonization targets have led to a rethink. The country has restarted 14 of the 54 shuttered plants, and plans to build new, small modular reactors on the sites of several others. Tokyo — the most fossil fuel-dependent economy in the G7 — has further-reaching ambitions, too: Last month it announced plans to deploy nuclear fusion power by the 2030s, including a collaboration with British scientists to share technology.

For the latest on the energy transition, subscribe to Semafor’s Net Zero briefing. →

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9

Pakistan’s solar paradox

A chart showing Pakistan and the world’s average share of electricity generation from solar

The growth of rooftop solar in Pakistan has reduced energy prices for millions but created a problem for the country’s grid. Islamabad had said it would buy excess energy from rooftop generation in a bid to encourage solar installations. But US tariffs on China have amplified what was already a glut of cheap panels, the Financial Times reported, resulting in faster-than-expected deployment. The grid spent more than $500 million last year buying such power, while the cost of paying for grid-supplied electricity is falling on ever fewer, and increasingly poorer, customers. The government plans to cut subsidies, but households are turning to batteries to let them store their own energy even if they can’t sell to the grid.

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10

Seine reopens for swimming

People swimming in the Seine
Abdul Saboor/Reuters

The River Seine reopened for swimming for the first time in more than a century. In the 1970s, the Paris river was considered biologically dead thanks to severe pollution; much of the city’s wastewater poured into it untreated, and wildlife all but disappeared. But after decades of improved sanitation, its ecosystem is thriving, and the number of fish species has tripled since 1990. A $1.6 billion cleanup operation ahead of the 2024 Olympics accelerated the process, and now, three bathing sites have opened, with the city’s mayor joining in on the first day. Similar projects have created clean urban swimming sites in Amsterdam, Berlin, and Copenhagen, while the Thames, once a similarly dead zone, has also seen wildlife return.

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Flagging
  • The US special envoy to Syria will meet Lebanese officials in Beirut to discuss a plan for disarming Hezbollah.
  • The UK marks 20 years since the 7/7 bombings on the London Underground and buses that killed 52 people.
  • Stage three of the 2025 Tour de France opens between Valenciennes to Dunkirk.
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LRS
The London Review of Substacks

Player piano

Western countries have seen a wave of blue-collar voter rebellions against the traditional political order in recent years. The pollster James Kanagasooriam looks at Britain in particular, where Brexit was driven — he argues — by a cocktail of “high migration, expanded higher education and de-industrialisation,” which lowered wages for working-class voters. They shifted toward newer, anti-Europe, anti-immigration parties to register their unhappiness with the status quo. Richer, white-collar voters voted Remain and still tend to back the main two parties, Labour and the Conservatives.

That may change, says Kanagasooriam. White-collar jobs — typically knowledge and language-based — are now at greater risk than more physical blue-collar ones as a result of automation by artificial intelligence. There will soon come a time when it’s well-off college graduates who lose work or whose children can’t get a foot on the ladder. In Britain, it’s the leafy, Remain-voting, affluent areas that face the most disruption from AI: “The white-collar promise of stability and higher incomes may be imploding completely.” High housing costs, punishing marginal rates of taxation, and expensive debt are already hurting white-collar voters. “Automation may be the final straw,” says Kanagasooriam, “before white collar Britain goes into full revolt.”

A stone in the shoe

A few years ago, the effective altruist blogger Matthew Adelstein, aka Bentham’s Bulldog, wrote about the importance of shrimp. About 400 billion shrimp die every year for human consumption, usually in horrible conditions. Adelstein encouraged the use of electric stunners to humanely kill the shrimp, rather than allowing them to asphyxiate slowly. To his surprise, he has indirectly influenced the mainstream: The Daily Show, the huge US comedy-news program, aired a segment about shrimp welfare, apparently inspired by his blog. The episode is not entirely positive, but has pushed a once-niche topic before millions of people.

The story, says Adelstein, is a lesson in the importance of “blasting good ideas into the ether.” When he wrote the original post, he assumed it would flop: “Who the heck cares about shrimp?” But it didn’t. Changing people’s minds is rarely a one-step process, he says; his own conversion to veganism came perhaps a year after watching a video making the case for it. The video “put a stone in my shoe,” he says. You never know when someone will read a thing you’ve read, and find it niggles away in the back of their mind. The aim, he says, is “not to persuade people but to give them the arguments with which they will slowly persuade themself.”

Ice nice, maybe?

Once, if you wanted ice, someone had to go and get it. Ice was harvested in cold places, stored, and shipped to warmer ones. But in 1851, John Gorrie, a Florida physician, patented an ice-making process, using the same evaporative cooling method that powers all modern refrigeration. He would astonish guests by serving wine with ice in the Florida summer, when ice was usually scarce. One newspaper article called him “a crank… who thinks he can make ice as good as God Almighty,” Scientific American acknowledged that it was real but doubted it would ever be commercially viable, and, as artificial ice became cheaper and more convenient, the ice industry began a backlash, pushing the advantages of “natural ice.”

The parallels with the modern rise of artificial meat are obvious, says the technology writer Louis Anslow. “The notion of ‘manufacturing’ ice through an industrial process likely felt similarly strange as lab grown meat feels today,” he writes. “A product of a natural process suddenly produced through scientific wizardry.” Opponents have similarly argued that lab-grown meat is unnatural, and that it can never be cheap enough to be viable. A key difference: Natural ice producers never tried to get artificial ice banned. But several US states have already done so, bowing to powerful agricultural lobbies — including, ironically, Gorrie’s home state of Florida.

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Semafor Recommends

Ghost Quartet by Ghost Quartet. Dave Malloy, the creative force behind this foursome of singer-instrumentalists, is difficult to label, said The New York Times’ classical music critic Joshua Barone, but “his music, regardless of categorization, is just good.” This “genre-shattering” album, 10 years old now, is “in the tradition of Schubert and the Romantics, if they were writing for a rock band,” and is notable particularly for Gelsey Bell’s remarkable vocals. Listen to Ghost Quartet on Spotify.

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Semafor Spotlight
A great read from Semafor Americana.Mike Johnson shakes hands
Jonathan Ernst/Reuters

With the final passage of the GOP megabill through Congress this week, the Republican Party won a generational victory. And they did it by co-opting some of Democrats’ strongest messages — promises to improve federal health care programs and prioritize the neediest Americans — to pass a bill that will cut Medicaid access.

“Republicans have talked a big game about becoming the party of working people,” Texas Rep. Greg Casar, the chair of the Congressional Progressive Caucus, told Semafor’s David Weigel. “This vote should be the final nail in the coffin of that idea.”

Subscribe to Semafor Americana, an insider’s guide to American politics. →

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