Trump rattles allies and foes

Trump puts allies and foes on notice [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. More tariffs. Fewer sanctions. And plenty of doubts about how much US support Taiwan could count on in a conflict with China. Those were among the many issues Donald Trump discussed [in an interview]( with Bloomberg Businessweek at his Mar-a-Lago compound. Taiwan has enjoyed a wave of bipartisan support in Congress as both parties jockey to be tougher on China. But Trump sees the democratically governed island in a harsher light: “They took all of our chip business,” he said, adding that they should pay for US protection. Taiwan pushed back today, with Premier Cho Jung-tai [touting increased defense spending]( and extended military conscription. WATCH: Bloomberg News Desk Editor Jill Disis leads an analysis of the interview. Under Trump, no one gets off easy. European allies “treat us violently,” he said, citing difficulties getting American autos and agricultural products into the European Union. All imports to the US could get slapped with 10% tariffs, Trump said, dismissing concerns that such moves would be inflationary. On a related policy the entire world is watching — US interest rates — the Republican Party nominee said the Federal Reserve should hold off on any cuts before the election in November, suggesting that would benefit his rival, Joe Biden. The late June interview came before Biden’s disastrous debate performance and [the assassination attempt against Trump](, two events that rallied his supporters and fueled debate among Democrats about [whether the president should step aside]( for a different nominee. Trump’s first term made his break with the Republican foreign policy establishment clear, from meeting with North Korea’s Kim Jong Un to expressing admiration for Russian leader Vladimir Putin and embracing other strongmen in countries from Saudi Arabia to Turkey. There are still more than three months to go before the election, and many more campaign surprises could be in store, but for now Trump appears brimming with confidence and momentum. America’s allies and rivals will be taking note. — [Bill Faries]( Trump and his running mate, JD Vance, at the Republican National Convention yesterday. Photographer: Al Drago/Bloomberg Global Must Reads The parade of Trump’s primary rivals who took the stage at the Republican National Convention in Milwaukee to support the man they once derided — Nikki Haley once [called him “totally unhinged”]( — was an unmistakable sign of his total control over the party. Meanwhile, the US Secret Service boosted security around Trump after [picking up intelligence]( of an Iranian plot to assassinate him, sources say. Biden is planning to unveil proposals to reshape the Supreme Court, including term limits on justices, who currently have life mandates, a source says. Yet any significant changes would face a tough road, with Congress not expected to take up major legislation before the election. Even if the president is reelected, he’d have to overcome [opposition from congressional Republicans](, who have viewed the Supreme Court’s latest rightward turn as a major political victory. Negotiations aimed at winding down Israel’s nine-month war on Hamas in Gaza face [four key sticking points,]( including which hostages held by the militant group should be released, sources say. Other key issues are whether Israeli Prime Minister Benjamin Netanyahu holds to his demands that Hamas be barred from northern Gaza, that his forces retain control of a key southern border corridor and that he isn’t bound to extend a cease-fire indefinitely. The aftermath of an Israeli strike at a camp for displaced Palestinians in Khan Younis in southern Gaza on July 13. Photographer: Ahmad Salem/Bloomberg At least once a month a private plane lands in a secure part of the international airport in Zimbabwe’s capital, Harare, carrying millions of US dollars. The pallets of cash are unloaded, broken down into packages, and distributed to transfer points across the country. The operation, organized by the country’s biggest mobile money app, Mukuru, illustrates how far companies will go to accommodate customers seeking to avoid the local currency [in one of the world’s most dysfunctional economies](. The Biden administration is considering using the most severe export controls available unless chip-equipment companies such as Tokyo Electron and ASML stop selling advanced semiconductor technology to China, sources say. While allies have already restricted sales to Beijing, the latest US move suggests that attempts to [curtail China’s chip ambitions]( have fallen short. Russia and Ukraine may swap 180 prisoners today in a deal facilitated by the United Arab Emirates today, a source says, the [sixth exchange this year]( managed by the Gulf state. Colombian President Gustavo Petro accused the nation’s banking and energy sectors of trying to [block his social reforms]( yesterday during the signing of his flagship plan to boost state control over pensions. Thailand’s top constitutional judges will rule next month on whether to disband the largest opposition party, which is accused of breaking election rules over a campaign to amend a [stringent royal defamation law](. Washington Dispatch The conviction of Senator Bob Menendez yesterday [on federal corruption charges]( generated immediate demands for his resignation and touched off political intrigue in New Jersey, a state that he’s represented for three decades in the House and Senate. Menendez, 70, a former chairman of the Senate Foreign Relations Committee, said yesterday that he would appeal the conviction but didn’t answer questions about his next steps. New Jersey Democrats have already chosen Representative Andy Kim to replace him, but the senator had threatened to run as an independent. Senate Majority Leader Chuck Schumer warned that if Menendez refused to step down, “I call on the US Senate to vote to expel him.” No senator has been expelled since the Civil War. Governor Phil Murphy also called on Menendez to resign and said in a statement that if the office became vacant, “I will exercise my duty to make a temporary replacement to ensure the people of New Jersey have the representation they deserve.” One thing to watch today: Under Secretary for Terrorism and Financial Intelligence Brian Nelson will take part in the Aspen Security Forum in Colorado. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 1 and 5 p.m. ET weekdays on Bloomberg Television. Chart of the Day The International Monetary Fund warned that a slower-than-expected cooling of inflation in many major economies is a potential [risk to global growth]( due to interest rates staying higher “for even longer.” The Washington-based lender also pointed to price pressures from trade and geopolitical tensions, particularly on commodities like oil. And Finally One thing you won’t see when you hop into a carriage at the Grand Place in Brussels for a tour of centuries-old architecture, gothic-style churches and picturesque shops lining cobblestone streets are horses. Or their [manure fouling the streets](. A new offering in the center of Belgium’s capital is part of a shift to electric vehicles and an opportunity for visitors to discover the charm of a city that trails peers like Paris and Rome as a tourist destination but still has much to offer. Tourists can now hail a traditional carriage starting in Grand Place. Photographer: Megan Howard More from Bloomberg - Check out our [Bloomberg Investigates]( film series about untold stories and unraveled mysteries - [Green Daily]( for the latest in climate news, zero-emission tech and green finance - [Bloomberg Opinion]( for a roundup of our most vital opinions on business, politics, economics, tech and more - [Next Africa](, a twice-weekly newsletter on where the continent stands now — and where it’s headed - [India Edition](, an insider’s guide to the emerging economic powerhouse, and the billionaires and businesses behind its rise - Explore more newsletters at [Bloomberg.com](. Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. 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