Trump Signals Impatience With Russia | Balance of Power: Late Edition 7/14/2025

International Relations & Geopolitics - President Trump is teaming up with NATO allies to increase pressure on Vladimir Putin, threatening severe tariffs if a deal isn't reached in 50 days [1] - The U S Senate is considering legislation to impose more economic restrictions on Russia and countries indirectly financing its war efforts [2] - Trump threatens the EU with 30% tariffs but remains open to talks as European trade ministers strategize [3] - NATO will coordinate the distribution of weaponry indirectly received from the U S to Ukraine [5] - The U S is negotiating new trade deals with India and China amidst potential secondary sanctions on countries buying oil from Russia [6][7] - Senator Shaheen states that Vladimir Putin will not negotiate seriously unless he feels more pressure from the Trump administration [16] - Senator Shaheen highlights the importance of implementing and policing sanctions to prevent countries like India and China from buying oil from Russia [18] - Senator Shaheen notes China has moved in where the United States has shut down foreign assistance programs [24] - The U S plans to send a top-tier weapons package to Ukraine, with NATO buying the weapons [54] - The German Defense Minister is in Washington seeking additional Patriot batteries for Ukraine as soon as possible [59] - Evelyn Farkas emphasizes the importance of both military and economic pressure on Putin, noting sanctions are crucial [62][63] - Rear Admiral Mark Montgomery notes Ukraine is fighting Russia, North Korea, Iran, and China, with Russia hiring artillery from North Korea [64][65] - Evelyn Farkas states that stopping Putin in Ukraine is the best way to prevent a war with Russia [79] Trade & Tariffs - The market is starting to look through President Trump's comments on tariffs, anticipating that the follow-through will be less severe than initially stated [33][34] - PIMCO suggests the equity market is sanguine about tariffs, while the fixed income market is pricing in slower growth partly due to tariffs [39][40] - The effective average tariff rate on U S imports has risen from 3% at the start of the year to around 14%, potentially exceeding 20% [40][41] - PIMCO anticipates the economy will slow and inflation could pick up due to tariffs [42] - PIMCO notes tariffs are a tax that will ultimately be paid by exporters, corporate importers, and/or consumers [44][45] - The U S is imposing a 17% tariff on tomatoes from Mexico [43] Monetary Policy & Federal Reserve - PIMCO expects President Trump to pressure Fed Chair Powell for lower rates but does not anticipate Powell's firing [47][48] - PIMCO believes Trump will have opportunities to reshape the Fed in the near future [48][49] Cryptocurrency - Bitcoin is touching another record high as the House kicks off Crypto Week [4] - PIMCO welcomes regulatory clarity for digital assets but does not expect the Clarity Act to pass quickly in the Senate [51][52] US Domestic Policy - The Supreme Court allows the Trump administration to resume its purge of the Department of Education [80][82] - The House is facing a deadline to pass a $94 billion package in cuts to funding for PBS, NPR, and USAID [88]