Donald Trump’s foreign policy and economic agenda are facing growing challenges as tariffs, the Iran conflict and stalled Russia-Ukraine peace efforts reshape the global political landscape.

From sweeping tariff policies and their impact on global trade to the escalating Iran conflict, Trump’s approach to international affairs is facing intense scrutiny. At the same time, efforts to end the Russia-Ukraine war have struggled to produce a lasting breakthrough, raising questions over Washington’s ability to deliver a negotiated settlement.

The developments come as allies, rivals and financial markets closely watch the Trump administration’s next moves. Tariffs have created uncertainty for businesses and economies, while conflicts in the Middle East and Europe continue to test US diplomatic influence.

Is Trump losing momentum on some of his biggest foreign-policy promises? Or could his administration still turn these challenges into political and diplomatic victories?

Watch the full analysis for a closer look at Trump, tariffs, Iran, the Russia-Ukraine war, peace talks and the wider geopolitical fallout.

Trump's Fall: Tariffs, Iran War, Failed Russia-Ukraine Peace Talks & More...

The Russia-Ukraine war continues to escalate, with both sides exchanging heavy long-range strikes far beyond the front lines.

Ukrainian drone attacks in Russia’s southern regions reportedly killed two people, including an eight-year-old child, while debris damaged buildings in the port city of Novorossiysk. Russian authorities said their air defenses shot down dozens of Ukrainian drones over Russian territory and the Black Sea.

Ukraine, meanwhile, reported that Russian drone and missile strikes killed civilians in Kherson. Ukraine’s Air Force said Russia launched a large wave of missiles and drones targeting areas including the Odesa region and northeastern Ukraine.

Ukrainian President Volodymyr Zelenskyy has also warned that Russia could be preparing for a new mobilisation following its September parliamentary elections. Ukrainian authorities say intelligence points to preparations for a potential large-scale recruitment drive, although Russian officials have not confirmed such a plan.

Ukraine Strikes Russia With Hundreds of Drones as Moscow Launches Major Air Assault

The findings come as Russia has stepped up missile attacks on Ukrainian cities, with the UN reporting a sharp increase in verified civilian deaths and injuries during the first half of 2026.

June records highest civilian death toll in Ukraine in over four years: UN

Trump's remarks came after a lengthy call with Putin, during which the Kremlin said he offered to help find a diplomatic solution. Zelensky also confirmed speaking with Trump, calling their discussion on the war's 1,200-kilometre frontline "very good."

Both Russia and Ukraine want to 'settle' war: Trump at NATO summit in Ankara

Ukraine formally began its EU membership talks in June 2024, but progress was later blocked by Hungary. The accession process covers key areas such as agriculture, governance and the rule of law, and usually takes several years to complete.

European Union to resume Ukraine membership talks after Hungary lifts veto

The proposed package also includes a comprehensive visa ban on current and former Russian military personnel and members of proxy groups.

EU proposes new Russia sanctions, targets firms in India, China and UAE

The bill was supported by 18 Republicans, marking a rebuke of Trump’s position on Russia’s war in Ukraine and exposing divisions within the GOP.

US House approves Ukraine aid and Russia sanctions in setback to Trump

Putin on Thursday said US President Donald Trump had asked Russia to show flexibility in negotiations over a Ukraine peace settlement, adding that Moscow was ready to make compromises provided Kyiv did the same.

Zelensky proposes direct meeting with Putin to end Ukraine war; Kremlin says he can visit Moscow anytime

Zelensky said he hoped the United States would back the idea of freezing the front line where it is, rather than Ukraine ceding the entire Donbas region as Moscow demands.

Russia-Ukraine war: Zelensky meets US envoys in Berlin for peace talks

Trump sounds alarm on a possible third world war, citing 25,000 deaths in a month. The White House says he's fed up with endless Ukraine-Russia meetings and wants a real breakthrough.

'Extremely frustrated' Trump warns Ukraine war could explode into a 'third world war'

Ukrainian President Volodymyr Zelensky has thanked Indian Prime Minister Narendra Modi for his Independence Day greetings to Ukraine and called on India to play a more active role in securing "lasting peace" amid the ongoing war with Russia.


Russia Ukraine peace talks |  'We count on India': Zelensky sends 'heartfelt' reply to Modi

The dollar index rose 0.1% to 98.19 after President Donald Trump pledged security guarantees to Volodymyr Zelenskiy in any peace deal with Russia. The euro slipped to $1.1656 and sterling edged lower to $1.3501, while the yen strengthened slightly to 147.77 per dollar.

Dollar firms as Ukraine peace push and Fed expectations guide markets

The pullback followed a near 1% gain in the previous session. The moves came after US President Donald Trump said he had spoken with Vladimir Putin following talks with Volodymyr Zelenskiy, confirming plans for a trilateral summit to discuss ending the conflict.

Oil slips as markets weigh Trump’s push for Russia-Ukraine peace talks

Despite deep divisions, both sides confirmed an agreement to exchange 1,200 prisoners of war each. Russian negotiator Vladimir Medinsky said Moscow would also return the bodies of 3,000 Ukrainian soldiers. 

'24 to 48-hour ceasefires, prisoners swap': Ukraine, Russia conclude peace talks in Istanbul as Kyiv pushes for Zelensky-Putin meeting

Neither side said how many soldiers had been freed in the swap -- the second in as many days following another exchange on Monday.

Russia, Ukraine conclude second round of prisoner swap

US Defence Secretary Pete Hegseth won't attend meeting for military aid to Ukraine amid Trump's silence on drone attacks: What this means for Russia-Ukraine peace talks 

Pete Hegseth to skip Ukraine military aid meet amid Trump's silence on drone attacks: Will US ditch Russia-Ukraine peace talks?

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