The first year of Donald Trump’s second term has been marked by turmoil in domestic and international politics. The president withdrew the US from the Paris Agreement on climate change, deployed the armed forces to stop migration at the border, ordered the National Guard into cities to help round up illegal immigrants, canceled all diversity programs in government, rescinded policies supporting renewable energy, attacked judges with whom he disagreed and renamed the Defense Department the War Department. The atmosphere in America deteriorated due to the public murder of charlie kirk At a college in Utah, where students had come to debate his conservative politics.
Mr. Trump also provoked harshly trade policies However, the world economy remains remarkably resilient and is projected to grow by about 3% in 2025. His big-bang “Liberation Day” tariffs in April led to the stockmarket’s biggest drop of the year. The S&P 500 fell 4.9% in one day (and another 6% the next day) and the NASDAQ fell 6%. However, many tariffs were eventually reduced or postponed, causing stock markets to surge. Overall, he had another good year.
AI is growing
Bosses from OpenAI, Oracle and SoftBank joined Mr Trump at the White House shortly after his inauguration to announce the Stargate project, a $500 billion investment in artificial intelligence infrastructure. A new AI industrial policy came out in America, in which the government took a step 10% stake in IntelThe speed and size of AI deals were astonishing, $50 billion here, $300 billion there, and stocks of AI-related companies soared, NVIDIA Became the world’s first $4trn company, and just a few months later became the first $5trn company (albeit briefly). However, investors have some doubts about whether all the spending on AI will yield profits. Shares fell in January deepseek A Chinese firm developed an AI model at a fraction of the cost of ChatGPT and the rest.
The ceasefire finally came into effect Gaza Largely because of the pressure put on Israel and Hamas by Mr Trump and some energetic shuttle diplomacy by his emissaries. The US unveiled an ambitious peace plan for the region that was cautiously welcomed. The remaining Israeli hostages were freed by Hamas and Israel allowed some aid to reach the starving and heartbroken residents of Gaza. Clashes continue and peace remains fragile. Israel bombed Iran, killing several senior regime officials, including the chief of staff of the armed forces and the head of the Islamic Revolutionary Guard, as well as 11 nuclear scientists. The US dropped bunker-busting bombs on Iran’s uranium-enrichment facilities during the 12-day campaign. Iran took symbolic retaliation by firing missiles at the US military base in Qatar.
In December two gunmen killed at least 15 people at a Jewish event Sydney’s Bondi BeachThe gunmen were followers of Islamic State and had spent time in the southern Philippines when IS was active, Earlier in the year a man of Syrian origin attacked a synagogue in Manchester, He fatally stabbed one man and the police mistakenly shot another, And a Palestinian supporter shot and killed two Israeli embassy staff outside a Jewish museum in Washington,
robocop
America’s new national security strategy declared its dominance in the Western Hemisphere. For the first time, US armed forces attacked suspected drug-smuggling boats in the Caribbean and eastern Pacific. Mr Trump called for or even threatened to bomb invade venezuela To remove Nicolas Maduro from the presidency. Colombia was discredited as a partner in fighting drugs; Mr Trump called his leftist president an “illegal drug leader”. Violence increased in the country. Conservative presidential candidate Miguel Uribe Turbay was shot at a rally. Mr Trump also used force to seize the Panama Canal. Not all Latin American countries seceded from it. El Salvador struck a deal to house drug criminals deported from the US in its prisons.
Former Brazilian President Jair Bolsonaro was found guilty by the country’s Supreme Court of plotting a coup after losing the elections in 2022. sentenced to 27 years in prisonAt the end of the year the Brazilian Congress passed a bill that could reduce that sentence to at least two years, although it would require court approval,
former machine
Elon Musk was made the new in-charge Department of Government EfficiencyWhich recommended the mass firing of federal employees (317,000 left their jobs for one reason or another). But Mr Musk and Mr Trump fell out over the president’s “big beautiful” tax-cut bill, which widened the deficit. Disputes in Congress over health care meant that a bill to renew federal spending was delayed, leading to America’s longest government shutdown ever.
Mr Musk was honored Remuneration package by Tesla up to $1 trillion (Based on very ambitious performance targets). This year was a mixed one for Tesla and there was a huge decline in deliveries. Pace of growth in demand for pure electric vehicles Stalled in America and EuropeBut sales of hybrids increased. Recognizing the new reality, the EU eased plans to ban the sale of new gasoline-engine cars by 2035; Now emissions will have to be 90%. Norway was a notable exception to the EV reversal. Nearly 100% of new car sales in the country were electric.
The deadliest military conflict in decades broke out between India and Pakistan Sparked by a terrorist attack in Jammu and Kashmir in which 26 people were killed. India accused Pakistan of aiding the attackers and fired missiles at terrorist hideouts in Pakistan. Pakistan responded with drone and missile attacks. Tension remains high; Incidents like the deadly car bomb near the Red Fort in Delhi have not helped.
Other big stories from Asia of the year include the ouster of Yoon Suk Yeol as South Korea’s president after martial law is imposed in late 2024. The subsequent election was won by Lee Jae Myung of the Democratic Party. Japan got first female prime ministerTakaichi Sanae has been described as the country’s Margaret Thatcher, Their propensity towards disputes is also the same and soon a full-fledged diplomatic dispute with China over Taiwan will begin, The Constitutional Court in Thailand dismissed Patongtarn Shinawatra as prime minister after an ill-advised phone call with Hun Sen, an influential Cambodian politician, amid a border conflict between the two countries,
A devastating earthquake and aftershocks occurred myanmarAt least 5,500 people died. The epicenter was near Mandalay but the earthquake also caused damage in Vietnam and Thailand. A skyscraper under construction in Bangkok collapses, killing about 95 people. Afghanistan was also hit by a major earthquake, killing about 2,200 people.
war in ukraine Russia was enraged, having gained (very limited) territorial gains. The Trump administration has waxed and waned its support for Ukraine. Volodymyr Zelensky’s visit to the White House in February was a disaster. He was scolded by the President and Vice President J.D. Vance in a public confrontation that was unprecedented for any world leader. Later in the year Ukraine irritated Russia by carrying out drone attacks on airports and refineries inside the country. A much-hyped summit between Mr Trump and Vladimir Putin in Alaska in August came to naught. The year ended with the US putting forward a peace plan.
Christian Democrats came first Germany’s snap electionOn which the populist-right option got the best result ever for Germany. New Chancellor Friedrich Merz said Europe could no longer rely on the US for its defense and loosened Germany’s constitutional “debt brake” to increase spending on arms and infrastructure. In France, François Bayrou resigned from the post of Prime Minister over the budget dispute in the National Assembly. Sébastien Lecornu also resigned after less than a month in the job, but was reappointed by Emmanuel Macron.
Oblivion
civil war in Sudan The situation worsened when Darfur’s besieged capital, al-Fashar, fell to rebel Rapid Support Forces. The RSF, descended from the mostly Arab Janjaweed militia, began killings in the city. America has accused it of genocide. The Office of the Prosecutor of the International Criminal Court expressed “deep concern” over possible war crimes.
Fighting also intensified in eastern Democratic Republic of Congo, where the region’s largest city is Goma. Fallen to Rwandan-backed M23 rebels The presidents of Congo and Rwanda eventually signed a peace agreement in Washington at the end of the year, although fighting continued on the ground,
minority Report
Mark Carney becomes Prime Minister of Canada After the resignation of Justin Trudeau. The Liberals returned to power in elections in April and led another minority government. Mr Carney promised to “stand up” to America. During a meeting with Mr. Trump at the White House, Mr. Carney said Canada is not for sale.
It’s been a tough year for Los Angeles. Forest fire It destroyed the affluent Pacific Palisades neighborhood in January, killing 12 people and leveling 6,837 structures. A man was ultimately charged with arson in October. The first house to be rebuilt was completed in November. Riots broke out in the city during the summer in response to the crackdown on migrants. On the opposite coast, New York elected Zohran MamdaniA democratic socialist, as mayor. Mr Mamdani has promised to put affordable housing at the center of his agenda when he takes office on January 1.
Vatican conclave after the death of Pope Francis Cardinal Robert Prevost elected PopeFirst Pope to come from the United States. Pope Leo’s first foreign tour took him to Türkiye and Lebanon, where about 40% of the population is Christian.
Bishop Sarah Mullally was appointed as the first female Archbishop of Canterbury in 2024, following the resignation of Justin Welby. She was due to start the job in early 2026, but like her predecessor she is already embroiled in a scandal over the Church of England’s handling of allegations of sexual abuse by clergy.
It was a year of political turmoil in Türkiye. protests started After the arrest of Istanbul MayorPresident Recep Tayyip Erdogan’s main opposition leader, his supporters, claim the allegations are politically motivated corruption. Turkish markets fell in response. In a historic decision, the Kurdish Workers’ Party (PKK), which Türkiye, the US and the European Union consider a terrorist group. laid down arms And said that after four decades of struggle it would dissolve on its own.
The American economy remained strong. Throughout the year Mr Trump pressured the Federal Reserve to cut interest rates Demanded removal of Lisa Cook From the Fed’s Board of Governors; The Supreme Court will hold a hearing in January to determine whether it has the power to do so. The Fed finally started lowering rates in September. Many other central banks, including the European Central Bank and the Bank of England, have also cut rates.
me, robot
Polling in Britain showed that Sir Keir Starmer is one of the most unpopular prime ministers ever, and Rachel Reeves, his tax-raising, welfare-spending chancellor, is the most unpopular person in her job. Angela Rayner left the post of Deputy Prime Minister (she was also Housing Minister) due to non-payment of property taxes. The populist-right-wing Reform UK comes out ahead in the elections. Even the Greens are polling as well as Labour. Sir Keir can take some solace at Christmas that the Tories are doing just as badly.
warren buffett Decided to retire as chief executive of Berkshire Hathaway, the company he led for six decades. At 95, the Oracle of Omaha will remain chairman after handing over the CEO role to Greg Abel in January. Berkshire’s stock is up 6,000,000% since 1965, outperforming the S&P 500, which is up 46,000% over that period.
