January 16, 2026

Tariffs and technological hegemony

The Trump administration’s sweeping tariff measures are intended to increase the competitiveness of US firms – especially in high-tech sectors – and reduce US trade deficits. This column discusses the impact of trade policies on innovation and technological hegemony. The analysis suggests that large and persistent changes in tariffs are likely to affect firms’ innovation

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Macroeconomic impacts of defense spending

EU member states are facing an important multi-year period of increased defence spending. 1   To boost defence capability, NATO allies have committed to a significant increase in defence- and security-related spending by 2035. The NATO Hague summit Declaration of June 2025 2 indicates a target of 5% of GDP for defence spending by 2035, including 3.5% of GDP

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