In a significant shift in trade policy, US President Joe Biden announced a 100% tariff on all electric vehicles imported from China in May 2024, a move that Canada followed with similar tariffs in August 2024. The European Union also joined the fray, imposing tariffs as high as 45.3% on Chinese EVs [0e3a957d]. This series of tariffs reflects growing concerns over reliance on Chinese imports, particularly as the EU currently depends on China for 97% of its raw lithium, a critical component for electric vehicle batteries [0e3a957d].
The geopolitical landscape was further impacted by the BRICS+ annual summit held in Kazan, Russia, from October 22-24, 2024, which saw representatives from 40 countries discussing economic cooperation and trade strategies [0e3a957d]. This summit comes at a time when developing countries faced significant financial challenges, paying $1.4 trillion in debt service in 2024, highlighting the ongoing economic pressures in the global south [0e3a957d].
In the cryptocurrency sector, the market capitalization surged from $1.65 trillion to $3.65 trillion in 2024, indicating a robust recovery and growing interest in digital currencies [0e3a957d]. Meanwhile, the US Treasury's Outbound Investment Security Program, set to take effect on January 2, 2025, aims to restrict investments in critical sectors such as AI and semiconductors, reflecting heightened national security concerns [0e3a957d].
Additionally, the Chinese government experienced a drastic 56.6% drop in revenue from land sales in 2024 compared to 2021, signaling potential economic instability within the country [0e3a957d]. In the energy sector, Microsoft and Google announced plans to invest in small nuclear reactors by 2030, a move that could reshape energy production and consumption patterns [0e3a957d]. Notably, Russia, which previously supplied 35% of US nuclear fuel imports, faced a ban in August 2024, further complicating energy dynamics [0e3a957d].
As these developments unfold, the global economy in 2024 is marked by increasing tariffs, shifting alliances, and a growing emphasis on self-reliance in critical industries, setting the stage for a transformative year ahead.