Trump's Unprecedented Week of Success, Big Risks Awaken

US President Donald Trump has just marked an impressive week of diplomatic and trade successes, from the Israel-Iran ceasefire agreement, NATO defense spending, to a trade framework agreement with China.

However, trade tensions with Canada and financial and diplomatic risks are posing major challenges for Mr. Trump.

Mr. Trump continues to make his mark

During the week of June 23-27, US President Donald Trump made his mark with a series of outstanding successes on the international stage, consolidating his leadership position since taking office.

First, he succeeded in brokering a ceasefire between Israel and Iran, a diplomatic breakthrough that helped ease tensions in the Middle East. The deal was not only a personal diplomatic victory for Mr. Trump but also cemented America’s role as a mediator in global affairs.

Following that success, at the NATO summit on June 25 in the Netherlands, Mr. Trump succeeded in forcing member countries to commit to increasing defense spending from the current 2% of GDP to 5% by 2035.

This is a major step forward, reflecting Mr. Trump's hard-line strategy of asking allies to share the financial burden of maintaining the military alliance. This commitment not only strengthens NATO but also helps the US reduce financial pressure in its role as alliance leader, and may even increase arms exports.

Mr. Trump had a successful week. Photo: CNBC

In addition, Mr. Trump also announced an important step forward in trade relations with China. On June 26, the White House confirmed that the US and China had reached a “framework agreement” to implement the provisions from the trade talks in Geneva last month.

Speaking at an event at the White House, Mr. Trump declared: "We are starting to open up the Chinese market, things that were not possible before." The deal is seen as an effort to reduce the trade deficit and facilitate US businesses to access the world's second largest market.

Mr Trump also revealed that the US was about to sign a “major deal” with India, along with other “great deals”.

These achievements not only cement Mr. Trump's image as a decisive leader but also bring domestic political advantages, as he prepares for his next plans.

Big risks lie ahead

While the past week has been a milestone, President Trump still faces a number of major risks, from trade tensions to financial and diplomatic issues, that could threaten his recent achievements.

One of the biggest challenges is trade tensions with Canada, a close ally and important trading partner of the United States. On June 27, Mr. Trump suddenly announced the end of all trade negotiations with Canada, after Ottawa imposed a 3% digital services tax on American technology companies such as Amazon, Google and Meta.

Trump called it a “blatant attack” and threatened to impose steep tariffs on Canadian goods within a week, in response to Canada’s “quota” of steel and aluminum imports from the United States in retaliation for Washington’s 50% tariffs.

With bilateral trade worth $762 billion last year, the tension could be costly for both sides and weaken the alliance.

Not only Canada, Mr. Trump also faces the risk of trade wars with many other countries. He announced that he would impose tariffs of 25% or higher on a series of countries, from the EU to Latin American countries, Japan and South Korea if they do not reach a “fair” trade agreement.

However, these partners could respond with similar tariffs, leading to a spiral of trade wars. The International Monetary Fund (IMF) recently warned that these tariffs could push up consumer prices, causing stagflation (inflation combined with low economic growth) in the US and globally.

At home, Mr Trump’s “One Big Beautiful Bill” is facing strong opposition. The bill, which includes an extension of 2017 tax cuts and increased spending, is expected to add trillions of dollars to the US budget deficit over the next decade.

Billionaire Elon Musk, a prominent figure in the industry, has publicly criticized the bill on social media X, calling it “insane” and “devastating to the future economy.” Musk is particularly opposed to subsidies for the coal industry and increased taxes on renewable energy sectors such as batteries, solar and wind — industries in which Tesla is a leader.

Elon Musk's opposition not only complicates the bill's passage, but also exposes divisions within tech entrepreneurs who once supported Mr. Trump.

Trump’s tough trade policies and massive spending bill are also causing concern in financial markets. While the S&P 500 and Nasdaq Composite have rallied, investors are cautious about Trump’s inconsistent policies. The Federal Reserve has warned that inflation could return due to the impact of tariffs on commodity prices.

On the international front, Mr Trump’s “America First” policy, with its tariffs and pressure on allies, is raising the risk of strategic disconnection. Regions such as Latin America, the EU, Japan and South Korea may shift to strengthening cooperation with other countries, potentially undermining US global economic leadership.

Trump has a very important 'new victory', how does the US benefit? Under pressure from US President Donald Trump, NATO members have just pledged to more than double defense spending to 5% of GDP by 2035. This move reshapes European security and opens up great opportunities for the US.

Source: https://vietnamnet.vn/mot-tuan-thanh-cong-chua-tung-co-cua-ong-trump-rui-ro-lon-dang-cho-2416447.html