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Daily News Brief

June 17, 2025

Welcome to CFR’s Daily News Brief. Today we’re covering the Group of Seven (G7) summit in Canada, as well as...

  • Israel and Iran’s heightening conflict
  • A World Bank warning on slow foreign investment
  • Russia’s overnight bombardment of Kyiv
 
 

Top of the Agenda

The G7 summit concludes today following U.S. President Donald Trump’s early departure last night amid an intensifying Israel-Iran war. The group issued a joint statement on that conflict and is working toward one on critical minerals, though host Canada scrapped plans for a traditional summit declaration due to anticipated divisions. Trump reiterated a call for Russia to be readmitted to the G7 even as some members are considering imposing new sanctions on Moscow. 

 

Joint initiatives.

 

  • All G7 members signed a statement supporting Israel’s right to defend itself, calling Iran “the principal source of regional instability and terror,” and urging that “the resolution of the Iranian crisis leads to a broader de-escalation” in the Middle East.
  • They also provisionally agreed to create a plan to diversify global critical mineral supplies by investing in new projects, multiple news outlets reported. China’s recent restrictions on rare earth exports have highlighted its dominance in the sector. The draft declaration does not mention China by name but criticizes “non-market policies.” 

 

On the Russia-Ukraine war.

 

  • Trump’s early departure meant he skipped both a session on the war and a scheduled meeting with Ukrainian President Volodymyr Zelenskyy.
  • Trump said yesterday that expelling Russia from the Group of Eight (G8) following its 2014 invasion of Crimea was a “mistake.” When asked whether the United States would join new sanctions that European countries are planning on Russia, he replied that “sanctions cost us a lot of money.” 

 

News from the side. The summit nevertheless gave countries the chance to hold bilateral meetings.

 

  • After talks with the United Kingdom (UK), Trump signed an order implementing parts of a previously agreed trade deal. It lowers the tariff on UK autos to 10 percent for the first one hundred thousand imported annually, down from a 25 percent tariff faced by other countries. It also pledges to set up a similar system for steel and aluminum, without giving specifics, and removes tariffs on some aerospace products.
  • Trump held trade-focused talks with Japanese Prime Minister Ishiba Shigeru but did not immediately reach an agreement. He also met with French President Emmanuel Macron to discuss trade, the Middle East, and Ukraine.
 
 

“If the liberal, rules-based international order is to survive and thrive, this collection of advanced democracies will need to play a prominent role. Trump seems determined to bring this order down, but the [G7] summit offers a chance for America’s prized allies to talk him out of that, or at least limit the damage done.”

—CFR expert Charles A. Kupchan, Time

 

What Does the G7 Do?

Trump exits Air Force One after leaving the G7 summit on June 16, 2025.

Amber Bracken/Pool/Reuters

The G7 is an informal grouping of advanced democracies that meets annually to coordinate global economic policy and address other transnational issues, but experts are increasingly questioning the group’s relevance, CFR editors write in this Backgrounder. 

 
 

Across the Globe

Call to evacuate Tehran. Thousands of people began fleeing Tehran yesterday after Israel’s military issued evacuation orders for three hundred thousand residents and Trump posted on social media that “everyone” should leave the city of nearly ten million people. Meanwhile, a U.S. aircraft carrier group began moving from Asia to the Middle East. Trump told reporters yesterday that he was seeking something “better than a ceasefire,” while still voicing openness to talks with Iranian leaders. Iran has been sending messages to the United States seeking de-escalation, unnamed European and Middle Eastern sources told the Wall Street Journal.

 

Overnight attack on Kyiv. The deadliest Russian strikes on Kyiv in months killed at least fifteen people and wounded more than one hundred others, Ukrainian officials said. They came after Russia and Ukraine completed a deal yesterday to exchange bodies of soldiers killed during the war, with Ukraine reporting that it received a total of 6,057 bodies and Russia saying it received 78. Separately, Russia’s foreign ministry said that Washington had canceled an upcoming round of U.S.-Russia talks on improving relations, without giving a reason why.

 

North Korea-Russia talks. Russian Security Council head Sergei Shoigu arrived in Pyongyang today for talks with North Korean leader Kim Jong Un about implementing security agreements reached earlier this month, Russian state media reported. It is Shoigu’s second trip to the country in less than two weeks. Shoigu and Kim both reportedly said that bilateral ties were getting stronger; North Korea has sent thousands of troops to fight in Russia’s war against Ukraine, according to a UN report.

 

Hurdles for U.S. battery industry. Higher trade barriers between the United States and China have contributed to a slowdown in the U.S. battery industry boom, the New York Times reported. So too have concerns about a bill that would cut subsidies for firms that use Chinese parts, which many U.S. battery plants rely on. This month, batterymaker AESC paused construction on a $1.6 billion electric vehicle battery plant, citing “policy and market uncertainty.”

 

Dozens killed in southern Gaza. At least fifty-one Palestinians were killed while waiting for food trucks to enter the territory today, Gaza’s health ministry and a local hospital said. Israel’s military said it was investigating what happened and “regrets any harm to uninvolved individuals.” It comes after Israeli fire killed at least thirty Palestinians yesterday in the vicinity of aid distribution sites run by U.S. contractors, according to Gaza’s health ministry. In those incidents, Israel’s military told the BBC it had fired warning shots at people who were approaching and posed a threat.

 

Global foreign investment flows. Global foreign direct investment (FDI) flows into developing countries fell to $435 billion in 2023, the lowest since 2005, the World Bank said in a new report yesterday. FDI to wealthy countries was also at its lowest since 1996. The bank cited factors including new trade barriers and geopolitical fragmentation, with its deputy chief economist saying the drop in investments to poorer countries should “ring alarm bells” given their development needs.

 

Uganda’s military courts. President Yoweri Museveni signed a law yesterday that allows civilians to be tried in military courts. The Supreme Court blocked a previous version of the proposal in January, and Uganda’s opposition maintains the new law still violates the court’s ruling. The opposition has for years said the Museveni administration uses military trials to target political opponents.


New Zealand PM in China. Christopher Luxon today begins his first trip to China since becoming New Zealand’s prime minister in 2023. Wellington has in recent years taken a more conciliatory approach toward Beijing than the other members of the Five Eyes intelligence-sharing group, while also voicing concerns on issues like human rights. Luxon described the bilateral relationship as “complex” but “mature.” He is due to meet with Chinese President Xi Jinping on Friday.

 
 

What Comes Next for the Middle East?

The view from a living room of a residential building that was destroyed in an attack by Israel on June 13, 2025, in Tehran, Iran.

Majid Saeedi/Getty Images

CFR experts discuss Israel’s strikes against Iran’s nuclear program, Iran’s response, and further implications for the region—including the potential for war—at this media briefing.

 
 

What’s Next

  • Today, the Africa Energy Forum begins in Cape Town.
  • Today, German President Frank-Walter Steinmeier begins a visit to Japan. 
  • Today, the executive board of UN Women begins its annual meeting in New York.
  • Tomorrow, Russia starts hosting the St. Petersburg International Economic Forum.
 
 

Where Does U.S. Trade Go From Here?

US Steel Corporation workers rally outside the company's headquarters in Pittsburgh, Pennsylvania, supporting the takeover by Japan's Nippon Steel, on September 4, 2024. United States Steel warned Wednesday it could shut its Pittsburgh headquarters.

The Trump administration’s trade policies of today have already begun to shape the global order of tomorrow. CFR President Michael Froman and CFR Vice President Shannon K. O’Neil explain how on this episode of Why It Matters.

 
 

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