You are invited to join us for Global Crisis Watch 352, on Friday, July 4th at 17:00 BST / 12:00 EDT.
The highlighted topics will include:
Israeli Strikes Kill Dozens in Gaza Ahead of US Ceasefire Talks as Iran Reports Heavy Casualties and Glastonbury Faces Backlash Over Anti-Israel Chants
Recent developments in the Israeli-Palestinian conflict and related international responses highlight continued violence and diplomatic efforts toward ceasefire. On Monday, Israeli strikes in Gaza killed at least 60 people, marking one of the deadliest days in weeks. Despite US-led ceasefire talks, heavy bombardment persisted, forcing widespread displacement in northern Gaza. Israeli forces targeted militant positions but also hit civilian areas, including schools and a beachfront café. Palestinian health authorities report over 56,000 Palestinians have died since the conflict escalated in October 2023.
Israeli officials, including Prime Minister Netanyahu’s advisor Ron Dermer, traveled to Washington on June 30th for talks with the US administration on ceasefire prospects and regional security, including Iran. The US has proposed a 60-day ceasefire in Gaza tied to a hostage exchange, but Hamas demands Israel’s withdrawal and refuses to disarm, complicating negotiations. Israel insists the war continues until Hamas is dismantled.
Meanwhile, Iran reported 935 deaths during a recent 12-day air conflict with Israel, with significant civilian casualties. Tehran condemned Israel’s strikes as war crimes and vowed to seek international accountability.
US President Donald Trump urged Hamas to accept a “final proposal” for the ceasefire, expressing hope for progress in upcoming talks. Both sides remain deeply divided, with ongoing hostilities impacting civilians severely.
Separately, the Glastonbury music festival in the UK faced criticism after performers led chants calling for “death to the IDF” and expressed strong pro-Palestinian sentiments live on BBC broadcast. The festival and BBC condemned the chants as hate speech, and police launched investigations. The incident sparked political backlash, raising concerns about the platforming of inflammatory messages and the wider impact of the Israel-Palestine conflict on public discourse globally.
These events bring out the continuing humanitarian crisis in Gaza, regional tensions involving Iran and Israel and the complex global responses influencing peace efforts and public opinion.
Musk Threatens Political Revolt Over Trump Spending Bill
The political alliance between US President Donald Trump and Elon Musk has collapsed in dramatic fashion, with escalating threats and financial fallout. The clash centres on Trump’s newly advanced “Big, Beautiful Bill” — a sweeping tax-and-spending package expected to add over $3 trillion to the national debt while stripping electric vehicle (EV) subsidies and green incentives that have long benefited Tesla.
Musk, who previously donated over $275 million to Republican campaigns, launched a social media offensive against the bill and the lawmakers who supported it. He accused them of hypocrisy over government debt and vowed to fund primary challengers, even suggesting the creation of a new populist “America Party.” In response, Trump warned that Musk’s companies – particularly Tesla and SpaceX – could lose billions in government contracts and subsidies. At a White House press conference, Trump said the Department of Government Efficiency (DOGE), originally tied to Musk, “might have to go back and eat Elon.”
The feud has already hit Musk financially. Tesla’s stock fell 7% on Tuesday, after a 2% drop on Monday, missing out on a broader market rally. Analysts estimate Tesla could lose more than $3 billion annually if EV tax credits and emissions-related regulatory sales are removed. These subsidies have been central to Tesla’s business model and its profitability.
Although Musk insists his opposition is rooted in fiscal concerns, critics suggest his real worry is the bill’s impact on Tesla’s bottom line. Trump mocked Musk’s public stance, saying Musk “gets more subsidy than any human being in history” and questioning his loyalty to the US When asked about Musk’s citizenship, Trump cryptically said, “We’ll have to take a look.”
Beyond the financial risks, the feud signals a deeper ideological rift between big tech leaders and Trump’s brand of populist conservatism. With Musk’s political influence and Trump’s control of the Republican Party, the fallout could shape policy debates ahead of the 2026 midterms – particularly on climate, spending and government-private sector relations.
Canada Rescinds Digital Services Tax to Restart US Trade Talks
Canada has announced it will rescind its planned digital services tax (DST) to resume trade negotiations with the United States. The DST, introduced in 2020, was set to take effect retroactively from 2022 and would have imposed a 3% tax on revenues of large online companies such as Amazon, Google, Apple and Meta operating in Canada. The tax was expected to generate nearly C$6 billion over five years.
US President Donald Trump labeled the DST “a direct and blatant attack” on American businesses and canceled trade talks on June 28th, threatening tariffs on Canadian goods. In response, Canadian Finance Minister François-Philippe Champagne announced on June 30th that Canada would withdraw the tax to support a comprehensive trade agreement. Prime Minister Mark Carney confirmed that trade talks with the US would resume, aiming to reach a deal by July 21st, 2025. The decision also follows mounting concerns from Canadian business groups, who warned that the DST risked triggering a trade war with significant economic consequences for Canadian exporters.
The White House praised Canada’s decision, calling it a “big victory” for US tech companies and workers. White House Press Secretary Karoline Leavitt said Canada had “caved” under US pressure, while Canadian opposition leader Pierre Poilievre criticized the government for backing down at the last moment. Poilievre urged Carney to demand the removal of US tariffs on Canadian softwood lumber in exchange.
The DST was designed to address concerns that multinational tech firms pay limited tax on revenues earned in Canada due to their global business structures. However, the tax became a major point of contention in the US-Canada trade relationship. Since Trump’s return to office, trade between the two neighbors has been strained by tariff threats and policy shifts, creating uncertainty for businesses. Canada’s move mirrors similar back-stepping from the EU on imposing taxes on US corporates with revenues above €750 million, despite the fact that this was an agreed global policy supported by 120 countries through the OECD in 2020.
Canada is the US’s largest trading partner, importing $349 billion and exporting $413 billion worth of goods last year. This tax rollback highlights the complexities of taxing global digital companies while maintaining strong economic ties with the US.
Indo-Pacific Partners Unite on Minerals Supply as Trade Talks Face Challenges
The United States and its Indo-Pacific partners Australia, India and Japan – known as the Quad – have launched a Critical Minerals Initiative aimed at reducing dependence on China’s dominant control of key mineral supply chains. The initiative, announced during a ministerial meeting in Washington, seeks to boost economic security and resilience by encouraging cooperation among the four nations to diversify sourcing of essential minerals used in technology and defense sectors. US Secretary of State Marco Rubio highlighted the importance of moving from talk to action, with dozens of companies from Quad countries scheduled to discuss collaboration.
Despite this shared goal, tensions persist within the Quad, primarily due to US President Donald Trump’s aggressive tariff policies affecting all members. Trump remains optimistic about a potential trade deal with India that could lower tariffs and benefit US companies but is skeptical about reaching a similar agreement with Japan by the July 9th deadline. Indian Foreign Minister Subrahmanyam Jaishankar emphasized the need for compromise to finalize a deal.
Trade talks between the US and India continue amid disagreements on market access, especially India’s protection of its agricultural sector and import-quality regulations. While both sides aim to secure a “mini-deal” focusing on industrial tariffs and strategic commitments, issues such as intellectual property and digital trade are likely to be deferred to future discussions.
The Quad also released a joint statement condemning the deadly April attack in Kashmir, which escalated tensions between India and Pakistan. This reaffirmed the group’s concern over regional security and stability.
Overall, the Quad’s new minerals initiative signals an increased focus on economic and security cooperation to counterbalance China’s influence, even as underlying trade disputes and geopolitical challenges complicate partnerships.
Plus, all the stories that are catching our attention wherever we live in the world. Feel free to join us and add your voice to the conversation.
