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    Flattery or Discipline? The Difficult Task of Managing Trump.

    Canada’s prime minister Mark Carney deployed both methods on the first day of the Group of 7 summit in Alberta to keep Mr. Trump focused and avoid drama.Prime Minister Mark Carney of Canada began by wishing President Trump a happy birthday. He emphasized the importance of U.S. leadership in the Group of 7 alliance, which is meeting in Alberta, Canada.But after seven minutes of questioning by journalists during which Mr. Trump complained about Russia’s absence at the summit and attacked Democrats over immigration policies, the host of the summit had heard enough.He took a step forward and into the center of the frame and effectively stopped the questioning, preventing the American president from saying more.With war raging in the Middle East and U.S. tariffs hammering his own country’s economy as well as global trade, Mr. Carney was intent on limiting the chances of a Trump-related derailment of the gathering.“If you don’t mind, I’m going to exercise my role, if you will, as G7 chair, since we have a few more minutes with the president and his team and then we actually have to start the meeting to address some of these big issues,” Mr. Carney said. “So, merci beaucoup.”With that, the press was rapidly escorted out of the room.The brief moment at the start of the gathering provided a window into a daunting challenge for world leaders entering the summit: Just what is the best way to manage Mr. Trump on the global stage?We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Trump’s Trade and Tax Policies Start to Stall U.S. Battery Boom

    Battery companies are slowing construction or reconsidering big investments in the United States because of tariffs on China and the proposed rollback of tax credits.Battery manufacturing began to take off in the United States in recent years after Congress and the Biden administration offered the industry generous incentives.But that boom now appears to be stalling as the Trump administration and Republican lawmakers try to restrict China’s access to the American market.From South Carolina to Washington State, companies are slowing construction or reconsidering big investments in factories for producing rechargeable batteries and the ingredients needed to make them.A big reason for that is higher trade barriers between the United States and China are fracturing relationships between suppliers and customers in the two countries. At the same time, Republicans are seeking to block battery makers with ties to China, as well as those that rely on any Chinese technology or materials, from taking advantage of federal tax credits. The industry is also dealing with a softening market for electric vehicles, which Republicans and Mr. Trump have targeted. The China-related restrictions — included in the version of Mr. Trump’s domestic policy bill passed by the House — would be very difficult for many companies to operate under. China is the world’s top battery manufacturer and makes nearly all of certain components.The Trump policy bill highlights a difficult dilemma. The United States wants to create a homegrown battery industry and greatly reduce its dependence on China — and many Republican lawmakers want to end it altogether. But China is already so dominant in this industry that it will be incredibly hard for the United States to become a meaningful player without working with Chinese companies.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    As Trump Returns to G7, Rift With Allies Is Even Deeper

    In 2018, the president called for the group to embrace Russia and stormed out of the summit. Now he is seeking to shrink America’s military role abroad and embarking on a more expansive trade war.When President Trump last attended a Group of 7 meeting in Canada, he was in many ways the odd man out.At that meeting, in 2018, Mr. Trump called for the alliance of Western countries to embrace Russia, antagonized allies and ultimately stormed out of the summit over a trade battle he began by imposing metals tariffs on Canada.As he returns on Sunday for the Group of 7 meeting in Alberta, those fissures have only deepened. Since retaking office, the president has sought to shrink America’s military role abroad and made threats to annex the summit’s host after embarking on a much more expansive trade war.Mr. Trump is now facing a self-imposed deadline of early July to reach trade deals. His trade adviser even promised in April that the tariffs would lead to “90 deals in 90 days.” Despite reaching framework agreements with Britain and China, the administration has shown scant progress on deals with other major trading partners.The future of the president’s favored negotiating tool is uncertain as a legal battle over his tariffs plays out in the courts. But a failure to reach accords could lead the Trump administration to once again ratchet up tariffs and send markets roiling.“I think we’ll have a few new trade deals,” Mr. Trump told reporters at the White House on Sunday as he left for the summit.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Trump is Pushing Allies Away and Closer Into Each Other’s Arms

    Important U.S. allies are trying to bolster their ties as the Trump administration shifts priorities and reshapes the world order.New trade deals. Joint sanctions against Israel. Military agreements.America’s closest allies are increasingly turning to each other to advance their interests, deepening their ties as the Trump administration challenges them with tariffs and other measures that are upending trade, diplomacy and defense.Concerned by shifting U.S. priorities under President Trump, some of America’s traditional partners on the world stage have spent the turbulent months since Mr. Trump’s January inauguration focusing on building up their direct relationships, flexing diplomatic muscles and leaving the United States aside.This emerging dynamic involves countries such as Britain, France, Canada and Japan — often referred to by international relations experts as “middle powers” to distinguish them from superpowers like the United States and China.“These are industrialized democracies, allies of the United States, supporting multilateral rules and institutions,” said Roland Paris, a professor of international relations and the director of the Graduate School of Public and International Affairs at the University of Ottawa.“And as the international order has been disintegrating, and the United States has been indicating that it’s less willing to underwrite it, what we’ve seen is a shift in the role of middle powers,” he added.That role, Professor Paris said, is characterized by the pursuit of “opportunistic and self-interested initiatives that are still collaborative,” including a slew of smaller agreements over trade and defense involving European countries and Canada.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    U.S. Court Agrees to Keep Trump Tariffs Intact as Appeal Gets Underway

    The appeals court’s decision delivered an important but interim victory for the Trump administration.A federal appeals court agreed on Tuesday to allow President Trump to maintain many of his tariffs on China and other U.S. trading partners, extending a pause granted shortly after another panel of judges ruled in late May that the import taxes were illegal.The decision, from the U.S. Court of Appeals for the Federal Circuit in Washington, delivered an important but interim victory for the Trump administration, which had warned that any interruption to its steep duties could undercut the president in talks around the world.But the government still must convince the judges that the president appropriately used a set of emergency powers when he put in place the centerpiece of his economic agenda earlier this year. The Trump administration has already signaled it is willing to fight that battle as far as the Supreme Court.The ruling came shortly after negotiators from the United States and China agreed to a framework intended to extend a trade truce between the two superpowers. The Trump administration had warned that those talks and others would have been jeopardized if the appeals court had not granted a fuller stay while arguments proceeded.At the heart of the legal wrangling is Mr. Trump’s novel interpretation of a 1970s law that he used to wage a global trade war on an expansive scale. No president before him had ever used the International Emergency Economic Powers Act, or IEEPA, to impose tariffs, and the word itself is not even mentioned in the statute.But the law has formed the foundation of Mr. Trump’s campaign to reorient the global economic order. He has invoked its powers to sidestep Congress and impose huge taxes on most global imports, with the goal of raising revenue, bolstering domestic manufacturing and brokering more favorable trade deals with other countries.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    World Bank Forecast Underscores Cost of U.S. Trade War

    Along with a sharply downgraded projection for global output this year, it urged a “course correction” on trade to help preserve living standards.The global economy is projected to slow sharply this year as President Trump’s trade policy disrupts international commerce and increases economic uncertainty, the World Bank said on Tuesday in a report that underscores the toll of America’s trade war.Despite the weakening outlook, the global economy is not expected to fall into a recession, the World Bank said. However, the trade tension is setting the stage for the weakest decade of growth since the 1960s. Economic development in many of the poorest parts of the world has come to a standstill.Expansion in global output is forecast to slow to 2.3 percent in 2025 from 2.8 percent last year, the World Bank said in its Global Economic Prospects report. That is down from the 2.7 percent growth that it forecast in January.“The world economy today is once more running into turbulence,” Indermit Gill, chief economist of the World Bank, wrote in the report. “Without a swift course correction, the harm to living standards could be deep.”The United States enacted across-the-board 10 percent tariffs on imports and 50 percent tariffs on steel and aluminum imports this year. It has also threatened “reciprocal” tariffs on dozens of trading partners and raised tariffs on Chinese imports to 145 percent before lowering them to allow for trade negotiations.The tariffs have pushed the average effective U.S. tariff rate to the highest level in a century.The World Bank released its new forecasts as officials from the United States and China held their second day of trade talks in London. In recent months, the world’s two largest economies have each imposed export controls limiting the other’s access to a broad range of items critical to high-technology and military applications.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    What to Know About China’s Halt of Rare Earth Exports

    Since early April, China has stopped almost all shipments of critical minerals that are needed for cars, robots, wind turbines, jet fighters and other technologies.China has suspended almost all exports since April 4 of seven kinds of rare earth metals, as well as very powerful magnets made from three of them. The halt has caused increasingly severe shortages that threaten to close many factories in the United States and Europe.Why are these metals so needed, why has China stopped exporting them and, crucially, what happens next?What are rare earths?There are 17 types of metals known as rare earths, which are found near the bottom of the periodic table. Most of them are not actually very rare — they are all over the world, though seldom in large enough ore deposits to be mined efficiently.They are called rare because it is very difficult to separate them from each other. Breaking the chemical bonds that bind them in nature can require more than 100 stages of processing and large quantities of powerful acids.A close-up of a gram of terbium.Romain Rabier/Hans Lucas, via ReutersWhy does China control so much of the rare earth supply?China mines 70 percent of the world’s rare earths. Myanmar, Australia and the United States mine most of the rest. But China does the chemical processing for 90 percent of the world’s rare earths because it refines all of its own ore and also practically all of Myanmar’s and nearly half of U.S. production.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Trump’s Tariffs Expected to Drag Down the Global Economy

    Economic growth will slow this year and next as the trade war hampers development in the United States and around the world, the Organization for Economic Cooperation and Development said.President Trump’s trade war is expected to slow growth in the world’s leading economies, including the United States, this year and in the years to come, unless world leaders can resolve their differences over trade.The Organization for Economic Cooperation and Development slashed its outlook for global output to 2.9 percent this year, from 3.3 percent in 2024, the organization said in its economic report released on Tuesday.Economic growth in the United States is expected to be particularly weak, the organization said, rising 1.6 percent this year, a drop from the 2.2 percent projected in March, and 1.5 percent in 2026, down from its previous estimate of 1.6 percent. The U.S. economy grew 2.8 percent in 2024.“Through to the end of 2024, the global economy showed real resilience,” said Mathias Cormann, the organization’s secretary general. “But the global economic environment has become significantly more challenging since.”In the first three months of the year, economic growth in the countries monitored by the organization, which is based in Paris, “dropped abruptly” to 0.1 percent from the last three months of 2024, which is “the slowest rate of growth since the peak of the Covid-19 pandemic some five years ago,” Mr. Cormann said.Since taking office, Mr. Trump has imposed tariffs, then halted them for several weeks, then reinstated some, in the hopes of winning new trade deals with countries ranging from once-close allies like Canada, Mexico and the European Union, as well as longtime rivals like China.The lack of certainty coming from that on-again, off-again strategy, combined with frequent changes in how high the tariffs will eventually be, has roiled markets and disrupted the flow of goods and services around the world. From January to March, many companies rushed goods to the United States, hoping to avoid the higher tariffs, many of which are now set to take effect in July.Even if the Trump administration increases tariffs on most of America’s trading partners by just 10 percent, it would shave off 1.6 percent of economic growth in the country over two years, the report said. Growth on a global scale would contract nearly a full percentage point in the same time span.Further pressure is coming from the need for leading economies, such as those in the European Union, to increase military spending while also investing in the transition to a green economy, the report said.The economies of the 20 countries using the common euro currency are projected to grow to 1 percent in 2025 and 1.2 percent in 2026, in line with the O.E.C.D. forecast from March. China’s economy is expected to see 4.7 percent growth this year, and 4.3 percent in 2026, down 0.1 percent from the organization’s spring projection.Economists in the organization urged countries to reach agreements on trade and to increase investment to revive economic growth.“Our key recommendation, to all governments, is to engage with each other to address issues in a global trading system cooperatively,” Mr. Cormann said. More