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2025 is Filled with Challenges and Unknowns

Last year brought a series of challenges that dramatically reshaped the world as we know it. From the grinding war in Ukraine and turmoil across the Middle East to Donald Trump’s return to the presidency and the fall of Bashar al-Assad’s regime in Syria, these geopolitical shocks have redefined global politics. These events unfolded against a backdrop of massive democratic participation—over 1.6 billion people across 72 countries cast their votes in 2024, with many choosing to oust incumbent governments. As the world heads into 2025, the pressing question remains: what comes next?

Already, the early weeks of this new year have been packed with significant developments. On January 19, Israel and Hamas reached a ceasefire agreement after 15 months of fierce conflict. The deal also included a pivotal hostage release. The following day, January 20, Donald Trump was inaugurated as president for a second term. Wasting no time, Trump signed a series of executive orders that have both domestic and global ramifications. Among these were U.S. withdrawals from the Paris Climate Agreement and the World Health Organization (WHO), along with a controversial order to rename the Gulf of Mexico as the “Gulf of America.”

Meanwhile, global leaders convened at the World Economic Forum in Davos, Switzerland, on January 21 to address mounting challenges. Days later, on January 27, a seismic shift rocked global markets as Chinese AI company DeepSeek disrupted the tech landscape, wiping $1 trillion in value from the leading U.S. tech index. And all of this has transpired within just the opening weeks of 2025.

Follow the Leader

The critical question this year is who will take the reins in a world increasingly defined by uncertainty. With Trump back in power and recommitting to his signature “America First” policies, many fear a more fragmented, transactional world order. In anticipation of his return, nations around the globe spent the latter half of 2024 “Trump-proofing” their policies—preparing for a U.S. president known for skepticism toward multilateral agreements. Now, as those fears are materializing, the world must adjust to this shifting paradigm.

China looms large as the other power in this global realignment. The U.S. continues to push for economic “decoupling” from China, but other regions, particularly Europe, face difficult choices: should they align with Washington’s hardline stance or opt for a more cooperative approach? Missteps in either direction could carry significant consequences, with the potential to either inflame tensions or leave China unchecked in its global ambitions.

One of Trump’s top promises is to broker an end to the war in Ukraine. However, peace seems far from reach, as Russia and Ukraine hold irreconcilable visions for any resolution. With Western nations showing signs of fatigue and Russia’s economy weakening under prolonged sanctions, there are growing concerns about how long this grinding war of attrition can last.

Elsewhere, Sudan’s civil war has spiraled into the largest humanitarian crisis on the planet, and experts forecast worsening conditions throughout the year. Syria, Ukraine, Sudan, Israel, and Palestine—these and other hotspots suggest that 2025 will be marked by shifting borders and sustained instability. Sadly, the protracted nature of these conflicts offers little hope for swift resolution.

Politically, the ripple effects of Trump’s reelection are unmistakable. Around the world, right-wing populism is gaining momentum, with leaders such as Hungary’s Viktor Orbán, Argentina’s Javier Milei, and France’s National Rally party channeling similar platforms. Austria’s Liberal-National coalition has also echoed Trumpian policies. With the U.S. as a global trendsetter, other countries may feel compelled to mirror Trump’s approach to maintain political relevance on the world stage.

Economic Discontent

Economic uncertainty is adding to the world’s growing unease. The International Monetary Fund (IMF) projects that global growth will remain modest at 3.3 percent in 2025, while inflation is expected to decline to 4.2 percent. However, there is widespread concern about protectionist policies, particularly those emanating from the United States. Trump has proposed a universal tariff on all imported goods, with rates ranging between 10 and 20 percent. He has further threatened targeted tariffs as high as 25 percent on imports from key trading partners like Canada and Mexico. These moves could have significant repercussions for global trade.

Nevertheless, economists remain cautiously optimistic about the U.S. economy’s prospects. Many predict that strong growth will continue, bolstered by low unemployment, stabilizing energy costs, and declining interest rates. Whether these economic forecasts hold true will depend heavily on how global markets and governments navigate Trump’s aggressive trade policies and the ongoing geopolitical turbulence.

The reverberations of 2024 will continue to shape 2025. Perhaps most importantly, the nature of international alliances is changing. With the U.S. taking a more transactional, inward-focused approach, many of its traditional allies may follow suit, potentially unraveling decades-old partnerships. We are entering what some have called a “new, non-cooperative normal,” where nations are left to fend for themselves amid a landscape defined by rivalry and fragmentation.