Paying Billions to Surrender?

Hi Global Recap readers,

Happy weekend!

• I took a slight detour from our usual format today.

• I spent the past few hours trying to make the stories snappier and quicker to read, but cutting them down too much would have lost important details and nuance.

So it might look a bit longer than usual, but I promise I tried to keep it as concise as possible. 😬

Also, on a side note: if you’re a video creator, check out Veo 3—an insanely realistic AI video+audio generator from Google. It’s free to try this weekend only.

I’m not sponsored. Just sharing in case it’s something you’d like to experiment with.

🇨🇦 CANADA
Is this A Fold,
Or Good Will?

Canada just scrapped a big chunk of its retaliatory import tariffs on US goods. PM Carney is framing it as a goodwill move to revive trade, but critics (and even some supporters who are anti-US) are blasting the move as a complete surrender.

• Scope: The removal covers all US goods under the US-Mexico-Canada Agreement (USMCA), restoring free trade for most products between the two countries.

  • But this wasn’t the first time Carney backed down. Canada recently scrapped its digital services tax targeting tech giants like Google just hours before it was set to take effect, saving the companies nearly $2 billion a year.

  • Tariffs on US autos, steel, aluminum, and lumber remain in place, with rates like 25 percent on steel still active.

• Trigger: The US recently confirmed it would not impose tariffs on Canadian goods compliant with USMCA, which reportedly prompted Canada’s reciprocal step.

• Politics: However, Carney is taking heat from opposition leaders who argue his softer approach to President Trump goes against his campaign promise to stand firm, with many accusing him of folding under pressure.

• Ukraine: But it’s not just tariffs drawing fire.

  • Canada recently pledged $2 billion in military support + another $2.3 billion loan for Ukraine’s defense, yet Carney wasn’t invited to the recent White House meeting with Zelenskyy.

  • Critics say he’s footing the bill but not getting a seat at the table.

🇺🇦 UKRAINE
Trump’s Angry

Ukraine just struck Russia’s Druzhba oil pipeline for the third time in a week, cutting off crude deliveries to Hungary and Slovakia and triggering diplomatic panic.

• Damage: The Druzhba pipeline, which cuts through Ukraine into Central Europe, was fixed by August 19 but got hit again Thursday by Ukraine’s Unmanned Systems Forces. The attack is expected to halt the flow for at least five days, leaving both sides without supply.

• Identity: The unit’s commander, Robert Brovdi, announced the second hit on Telegram with the 1956-era slogan “Russians go home.”

• Response: Foreign Ministers Szijjártó (Hungary) and Blanár (Slovakia) fired off a joint letter to Brussels, calling Ukraine’s actions “completely irresponsible.”

• Reserves: The EU says both countries have 90-day emergency oil stocks and haven’t touched them yet.

• Reaction: In response, Orbán’s Fidesz party shared a note the PM wrote to Trump, griping about another drone strike on August 13 that damaged the same pipeline—just ahead of Trump’s planned sit-down with Vladimir Putin in Alaska. Trump responded too.👇️ 

🇨🇳 CHINA
Denied Again

Ukraine just rejected China’s offer to help broker peace in its war with Russia, calling Beijing out for aiding Moscow and staying silent when it mattered.

• Proposal: Russia floated the idea of China joining a group of UN Security Council members to guarantee Ukraine’s security under a future peace deal.

• Response: Zelensky dismissed the idea, accusing China of enabling Russia’s invasion by opening its drone market and buying sanctioned oil.

• History: He cited China’s failure to act in 2014 when Russia took Crimea, despite Beijing’s recognition of the Budapest Memorandum.

• Position: China’s foreign ministry claimed it has always maintained an “objective and fair stance” and wants to play a “constructive role.”

• Alternative: Ukraine’s allies, including the US, are now working on a NATO-style collective defense pact to deter future Russian aggression. And now, even mainstream media is actively discussing sending NATO troops to Ukraine.

🇰🇷 SOUTH KOREA
Warning Shots Fired

South Korea’s military just revealed that it fired over ten warning shots at North Korean troops who briefly crossed the DMZ on Tuesday. Pyongyang called it a “deliberate provocation” and threatened retaliation.

• Incursion: Several North Korean soldiers entered the Demilitarized Zone while working to seal the border, prompting South Korea’s Joint Chiefs to respond with gunfire.

• Accusation: Lt. Gen. Ko Jong Chol claimed Seoul’s actions were “premeditated” and risk pushing the region into an “uncontrollable phase.”

• Leadership: President Lee Jae Myung, elected in June, has pushed for dialogue and “military trust,” but North Korea says it has zero interest in warming ties.

• Backdrop: The US and South Korea launched joint military drills on Monday, which Kim Jong Un called a potential trigger for war.

• History: The last border flare-up was in April, when ten North Korean troops briefly crossed and South Korea again fired warning shots.

An honest mistake, or are they testing the waters?

🇺🇸 UNITED STATES
Trump Grabs
Intel Stake

President Trump just said Intel agreed to hand the US government a 10% stake in the company, making the US government the chip giant’s largest shareholder overnight.

• Deal: Trump said he told Intel, “I think you should pay us 10% of your company,” and they said yes. The stake reflects equity in return for CHIPS Act grants.

  • Intel previously received $11 billion in federal subsidies under the CHIPS and Science Act, passed during the Biden administration.

  • The government will not take a board seat or interfere in Intel’s operations, according to the New York Times.

  • BlackRock, previously Intel’s top shareholder with 8.92 percent, got bumped.

• Shares: Intel stock jumped 5.5% after the announcement. The company declined to comment.

• Pressure: Trump had publicly called for Intel CEO Lip-Bu Tan’s resignation over alleged China ties. Tan flew to Washington last week and met Trump in person.

• Critics: Some critics argue that this move could signal a shift toward state capitalism, where increased government involvement in major industries risks undermining the principles of a free market.

  • Supporters, however, say it’s only fair as compensation for government subsidies.

  • Others dismiss these concerns entirely, claiming the issue is less about ideology and more about bullying, coercion, and optics.