Unadorned Notes: June 6-11, 2025
Marines Deployed Amid California Unrest; Kennedy Dismisses Vaccine Panel; EU-China Trade Tensions Escalate; Tariffs Slash Imports, Boost Revenue; U.S.-Iran Tensions Lift Oil
U.S. Politics, Policies, and Geopolitics
Marines Deployed Amid California Unrest: Approximately 700 U.S. Marines and 4,100 National Guard troops have been deployed to Los Angeles to protect federal buildings following protests sparked by recent immigration raids. The deployment, authorized by President Donald Trump without invoking the Insurrection Act or state consent, has drawn legal opposition from California Governor Gavin Newsom, who deemed it unconstitutional. The troops, operating under U.S. Northern Command’s Task Force 51, are not engaged in law enforcement but are trained in crowd control and de-escalation. Isolated confrontations have occurred, and officials indicated a potential further expansion of federal presence. The move marks the first deployment of Marines to a U.S. city for civil unrest since the 1992 Los Angeles riots.1
Trump Proposes Newborn Investment Accounts: President Donald Trump promoted a provision in the Republican tax and spending bill that would grant every U.S.-born child a $1,000 investment account, dubbed “Trump accounts”, beginning in 2025. The accounts, modeled on baby bond programs, would grow tax-deferred and could be used for education, small business, or housing upon maturity at age 18. Critics argue the broader bill makes deep cuts to Medicaid and food assistance programs. The Congressional Budget Office estimates the bill would increase the federal deficit by $2.4 trillion over ten years, driven by tax extensions, revenue losses, and $140 billion in new border security funding. While the House passed the bill, Senate Republicans remain divided over its fiscal impact and scope.2
Kennedy Dismisses Vaccine Panel: U.S. Health and Human Services Secretary Robert F. Kennedy Jr. has dismissed all 17 members of the CDC’s Advisory Committee on Immunization Practices (ACIP), citing the need to rebuild public trust. ACIP, composed of independent vaccine experts, advises on immunization schedules and policy but will now be reconstituted with new members before its June 25–27, 2025, meeting. The decision follows broader moves by Kennedy to scale back federal vaccine initiatives, including reversing guidance on Covid-19 vaccination for healthy children and pregnant women. Critics argue the firings risk politicizing vaccine recommendations and undermining public health confidence. Kennedy claimed existing members had conflicts of interest, though no recent violations have been reported under federal disclosure rules.3
QZ’s Comment: The dismissal of the entire CDC vaccine advisory panel is justified in principle but reckless in execution. Public health institutions lost legitimacy during COVID, not because of public ignorance but due to elite overreach, politicized science, and epistemic gatekeeping disguised as expertise. But RFK Jr.’s remedy risks reinforcing the very pathology he claims to cure. A mass purge without transparent replacement criteria opens the door to ideological capture in reverse.
U.S., China Reach Trade Truce: The United States and China reached a preliminary agreement to reverse several punitive trade measures, including restrictions on rare earth exports and U.S. technology shipments, following high-level talks in London. Under the framework, China agreed to resume critical mineral exports, while the U.S. will ease certain export controls, excluding those on advanced semiconductor tools. President Donald Trump announced the deal, subject to final approval by both heads of state, as restoring the terms of a May 2025 trade truce. Critics warned the concessions may undermine longstanding national security trade positions, while officials confirmed tariffs, currently totaling up to 55%, will remain in place. The talks follow a prior agreement in Geneva and come as tensions over trade, student visas, and tech access continue to strain U.S.-China relations.4
EU-China Trade Tensions Escalate: China has extended its anti-dumping investigation into €1.75 billion in EU pork imports, widely seen as a response to recent European Union tariffs of up to 45% on Chinese electric vehicles. The dispute underscores rising trade tensions ahead of the mid-July 2025 EU-China summit in Beijing, where both sides aim to reset strained economic ties. Ongoing negotiations explore replacing punitive tariffs with minimum price undertakings for EVs, while broader concerns over rare earth export restrictions and procurement access remain unresolved. The European Union recently barred Chinese medical device firms from major public tenders, citing unequal market access under China’s “Buy China” policy. Despite escalating measures, limited goodwill gestures, such as China expanding Spanish food imports, signal potential for progress in upcoming talks.5
Europe Urged to Bolster NATO: Despite $3.1 trillion in defense spending over the past decade, European military effectiveness remains limited due to fragmented procurement and high personnel costs. As Russia rapidly rebuilds its military capabilities, European NATO members must take urgent action to reinforce deterrence, particularly by boosting border forces, maritime control, cyber resilience, and industrial capacity. Immediate measures include deploying unmanned systems, prepositioning equipment, enhancing cyber defenses, and expanding artillery and drone production. Current defense pledges, while ambitious, will take years to materialize, prompting calls for faster implementation and greater cooperation with the private sector and transatlantic partners. Without decisive steps, NATO could face a critical capability gap should conflict arise with a rearmed Russia.6
U.S. Evacuates Amid Iran Tensions: The United States has begun evacuating nonessential staff from its embassy in Baghdad and authorized voluntary departures for military families at several Gulf bases due to rising regional tensions. The move follows threats from Iran to target U.S. bases in retaliation for potential strikes on its nuclear facilities, as nuclear negotiations remain stalled. President Donald Trump recently convened his national security team at Camp David and has set a deadline for a nuclear deal with Iran, which expires this week. Israel has increased its military readiness, while the IAEA is expected to vote on a resolution condemning Iran for non-compliance. Iranian officials continue to assert that diplomacy is the only viable path forward and deny pursuing nuclear weapons.7
South Korea’s Political Cycle Continues: South Korea’s new President Lee Jae-myung has authorized special counsel investigations into former President Yoon Suk Yeol and his wife Kim Keon-hye, despite prior pledges to end political retaliation. The probes target Yoon’s declaration of martial law and alleged corruption involving Kim, amid ongoing legal proceedings. Critics warn the move perpetuates a long-standing cycle in South Korean politics, where successive leaders have faced prosecution. Lee himself faces unresolved legal cases, though a court recently delayed his retrial due to presidential immunity. Observers express concern over the concentration of power in Lee’s hands and its implications for political reconciliation and democratic norms.8
Economics, Finance, and Business
U.S. Inflation Ticks Upward: U.S. consumer prices rose 0.1% in May 2025, driven by higher rents and food costs but offset by lower gasoline prices, according to the Bureau of Labor Statistics. Core inflation, which excludes food and energy, rose 0.1% monthly and 2.8% annually, while overall annual CPI reached 2.4%. Economists expect inflation to accelerate later in the year due to tariffs, which could add 0.4 percentage points to inflation through 2026. Retailers, including Walmart, are expected to raise prices as inventories purchased before tariffs are depleted. The Labor Department has scaled back CPI and PPI data collection due to staffing cuts, prompting concerns about data accuracy amid ongoing economic uncertainty.9
U.S. Job Growth Slows: U.S. nonfarm payrolls rose by 139,000 in May 2025, while the unemployment rate remained unchanged at 4.2%, according to the Labor Department. The April 2025 job gain was revised downward to 147,000 from 177,000, and labor force participation declined to 62.4%. Average hourly earnings increased 0.4% month-over-month and 3.9% year-over-year, supporting continued income growth despite signs of labor market cooling. Economists noted uneven job gains, a rise in unemployment among Black women, and heightened joblessness among recent college graduates, reflecting persistent labor market disparities. The report reinforces expectations that the Federal Reserve will maintain current interest rates, though some analysts foresee potential rate cuts later in the year.10
Tariffs Slash Imports, Boost Revenue: U.S. seaborne imports from China fell 28.5% year-over-year in May 2025, as temporary 145% tariffs disrupted trade flows through major ports. West Coast ports, including Long Beach and Tacoma, saw import volumes plunge as retailers and manufacturers paused shipments. Although a new U.S.-China trade deal framework reduced tariffs to a combined 55%, importers remain cautious due to elevated costs. Despite weakened trade volumes, U.S. customs receipts surged nearly fourfold to $23 billion in May 2025, helping reduce the federal budget deficit by 9% to $316 billion. Year-to-date, the deficit rose to $1.365 trillion, while total receipts and outlays hit record highs.1112
ECB Cuts Rates to 2%: The European Central Bank reduced its deposit rate by 25 basis points to 2% on June 6, 2025, its eighth consecutive cut and the lowest level in over two years. Rates on main refinancing and marginal lending operations were also lowered to 2.15% and 2.40%, respectively. The decision follows a faster-than-expected decline in eurozone inflation, which fell to 1.9% year-over-year in May 2025, below the ECB’s 2% target. Despite improving consumption and infrastructure spending, growth remains vulnerable to global trade disruptions, particularly from U.S. tariffs. Further rate cuts are uncertain, with future decisions dependent on inflation trends and geopolitical developments.13
U.S.-Iran Tensions Lift Oil: The U.S. State Department is preparing to withdraw non-essential personnel from its embassy in Baghdad amid rising tensions with Iran following the breakdown of nuclear negotiations. Escalating threats in the Gulf have triggered maritime security alerts and led to authorized departures from U.S. diplomatic posts in Bahrain and Kuwait. Brent crude rose to $69.44 and WTI to $67.81 on June 11, 2025, driven by fears of regional supply disruptions. The Strait of Hormuz, a key transit route for 20% of global oil, remains a focal point of concern as military risks increase. Markets are bracing for potential energy price volatility, particularly in oil and LNG, with Iraq’s crude exports and regional infrastructure seen as highly vulnerable.14
AI Expansion Strains Energy Systems: The rapid growth of artificial intelligence is driving significant increases in data center electricity consumption and operational emissions, according to the Greening Digital Companies 2025 report. Global data center energy use has risen by 12% annually since 2017, with AI-focused firms experiencing a 150% rise in direct emissions since 2020. Despite corporate commitments to renewable energy, expansion of AI infrastructure is outpacing the growth of clean energy supply, particularly due to grid limitations and rising computational demands. Technological and regulatory solutions—including efficient hardware, improved cooling systems, and supportive energy policies—are emerging to mitigate these impacts. As AI infrastructure firms such as CoreWeave surge in value, industry-wide alignment on sustainability will be critical to managing environmental costs.15
AI Therapy Use Raises Concerns: The use of AI chatbots like ChatGPT and Character AI for emotional support is growing, with users citing convenience, cost-effectiveness, and perceived empathy as key benefits. Some individuals report breakthroughs in mental health after daily use, though professionals caution that AI cannot replace licensed therapy. Experts warn of risks including overdependence, misdiagnosis, emotional attachment, and the spread of harmful or biased content. High-profile cases, including lawsuits involving minors and chatbot interactions, have intensified scrutiny and prompted regulatory attention. While AI may supplement care in the future, psychologists stress that safe, responsible development informed by clinical expertise is essential.16