Weekly News Recap - 04.04.2025
Read about what you've missed this week: A Stock market crash, a guilty verdict for Marine Le Pen and the rise of the far-right in Germany.
Trump’s worldwide tariffs cause stock market crash
On Thursday, US President Donald Trump announced worldwide tariffs.
Every country will be charged a 10% base tariff. In addition, some countries like China or EU members get additional tariff rates. The tariffs caused worldwide markets to tumble with the American Dow Jones having its worst day since 2020 (Covid crash).
Many economists believe the tariffs will raise prices in the US, disrupt global trade, and increase the likelihood of a US recession in 2025. Some economists have even compared the situation to the US tariffs in the 1930s that powered the Great Recession.
Trump’s team tries to communicate that Americans must accept higher prices. It’s a break from his campaign promise when he repeatedly stated that tariffs won’t lead to higher inflation.
Germany’s far-right AFD continues to rise
On the campaign trail, CDU’s Friedrich Merz promised to “half” AFD support in Germany which had climbed to 20% ahead of the election.
But while Merz and the CDU are stuck in difficult coalition talks with the social Democrats, the party is losing voters to the AFD.
The latest national ARD-poll showed support for the far-right AFD climbing by 3% and CDU support falling by 3%. The two parties are now essentially tied in polls.
According to polls, many conservative voters feel that Merz broke his central campaign promise to not raise Germany’s debt ceiling when he announced plans for taking on 500 billion € in new debt last month.
Le Pen found guilty and banned from running for president
France’s far-right leader Marine Le Pen has been found guilty of embezzling EU funds. The verdict includes 2 years of house arrest with an electronic ankle bracelet and bars Le Pen from running in France’s upcoming 2027 presidential election. She was leading in the polls.
Le Pen’s allies depicted the verdict as meddling in a democratic election and called for a quick appeal. Others have argued the verdict shows that the justice system in France works, no matter if the accused is popular or not.
It will be interesting to see if the verdict impacts the far-right's high support among France’s voters.
South Korea’s president is removed from office
Four months after he declared martial law and was impeached by parliament, South Korea’s president Yoon Suk Yeol was removed from office by the nation's highest court.
The decision ends a month-long political limbo and sets up a new presidential election for a country that is seeking a new direction.