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ANALYSIS: From AI to Cars, Tariffs to GDP - How Is the US Economy Really Faring?

Extra Friday, 2nd January 2026, 20:56

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This analysis examines the geopolitical implications of Donald Trump’s latest economic policies, specifically focusing on US tariffs, manufacturing declines, and the dismantling of national scientific institutions. These shifts occur alongside massive AI infrastructure investments by Amazon and a significant cooling of relations between the United States and the European Union. Jonathan MS Pearce explores the contradictions within the Trump administration's trade strategy, highlighting the recent rollback of Italian pasta tariffs and furniture duties amidst rising domestic food prices. The report assesses the impact of suspending offshore wind projects on national security grounds and the planned closure of the National Center for Atmospheric Research. Furthermore, the video investigates the European Union's move to launch an independent digital payments infrastructure to circumvent American financial dominance. The segment also scrutinises the declining delivery figures for Tesla and the broader international pushback against Elon Musk’s alignment with current US leadership.

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