"We are all looking for more independency from American defense"

Summary

Marketplace Morning Report Summary Episode: "We are all looking for more independency from American defense" Release Date: July 18, 2025 Host: Nick Qureshi, Marketplace

---

1. European Defense Independence

The episode opens with a significant focus on Europe's shifting stance towards its defense and security. German Chancellor Friedrich Mertz addresses longstanding criticisms from the United States regarding Europe's dependency on American defense support.

Key Points:

• Acknowledgment of Past Dependency: Chancellor Mertz concedes that Europe has historically been a "free rider" on American defense capabilities.
• Shift in US Focus: He highlights the United States' pivot towards Asia and its strategic competition with China as reasons for urging Europe to bolster its own defense.
• Commitment to Increased Responsibility: Europe is actively working towards greater independence in defense matters as the US reallocates its focus globally.

Notable Quotes:

• Friedrich Mertz [01:44]: "We are all looking for more independency from American defense... we had been free riders in the past and the Americans guaranteed our freedom and our security and they are not willing understandably to do that any longer."
• Chancellor Mertz [02:10]: "The pivot to Asia is happening... they are seeing themselves in a very hard competition with China. And that's the reason why they are telling us, take care for your own."

---

2. EU Sanctions and Global Economic Pressures

The report delves into the European Union's ongoing sanctions against Russia, focusing on the economic implications of these measures.

Key Points:

• Targeted Sectors: The EU has intensified sanctions targeting Russia's financial and energy sectors.
• Oil Price Impact: A lower price cap on Russian crude has led to an increase in oil prices, with Brent crude nearing $70 per barrel.
• Global Grain Prices: Rice prices in Japan surged by over 99% year-on-year in June, sparking public discontent due to escalating food costs.

Notable Quotes:

• Nick Qureshi [02:35]: "The EU has agreed more sanctions against Russia, further targeting its financial and energy sectors. A lower price cap for Russian crude means oil prices are up."
• Nick Qureshi [03:00]: "The price of rice in Japan rose by more than 99% year on year in June. The surging cost of the grain has been a source of public anger."

---

3. US-Brazil Trade Tensions

A segment is dedicated to the escalating trade tensions between the United States and Brazil, particularly focusing on President Trump's recent threats.

Key Points:

• Trump's Tariff Threats: President Trump has threatened to impose a 50% tariff on Brazilian goods and has called for the termination of the trial against former President Jair Bolsonaro.
• Brazil's Response: Brazilian President Luis Inacio Lula da Silva has condemned these threats as unacceptable and a form of blackmail.
• Trade Dynamics: The US maintains a trade surplus with Brazil, contradicting Trump's claims that tariffs target countries benefiting from trade surpluses.

Notable Quotes:

• Maura Fogarty [03:46]: "The US has a trade surplus with Brazil. That means more US Goods are sent to Brazil than Brazilian goods sent to the United States, which in a way flies in the face of President Trump's argument that these tariffs are put on countries who have trade surpluses with the US."

---

4. Prada's Cultural Appropriation Controversy

The episode highlights a significant controversy involving the luxury brand Prada and its alleged appropriation of traditional Indian craftsmanship.

Key Points:

• Prada’s Similar Design: Prada debuted a pair of sandals at Milan's Menswear Fashion Week that closely resemble traditional Kolhapuri sandals from India.
• Artisan Backlash: Indian artisans and designers criticized Prada for copying their designs without proper credit or compensation.
• Artisan Perspectives: Artisans like Sadashiv Sanaki expressed concerns over cultural appropriation and the lack of recognition for their traditional work.
• Prada’s Response: The brand acknowledged Indian influence and initiated talks with the Maharashtra Chamber of Commerce to address the issue.

Notable Quotes:

• Sadashiv Sanaki [05:10]: "I make about 50 pairs of the sandals in 10 days. I earn about four to five dollars in one day."
• Ritu Berri [05:54]: "The artisan from India remains invisible while the brands profit from it from the inspiration that they get from here. So I think it's time we Indians claim our heritage."
• Prada Representative [06:22]: "Actually, it is a good thing that a brand like Kolhapuri Chappal gets an endorsement from Prada. Definitely. The value is increased many folds. We want some share of that profit to be shared with the artisans."

Additional Insights:

• Local Artisan Impact: In Kolhapur’s Chappal Gully, artisans produce affordable traditional sandals, unaware of Prada’s high-priced imitation.
• Economic Disparity: While Prada’s version may sell for hundreds of dollars, local artisans like Sadashiv’s products remain accessible at around $8, despite their intricate craftsmanship.

---

Conclusion

The episode of Marketplace Morning Report provides a comprehensive overview of critical global issues affecting defense independence in Europe, economic sanctions, international trade tensions, and cultural appropriation in the fashion industry. Through insightful interviews and on-the-ground reporting, listeners gain a nuanced understanding of the interplay between geopolitical strategies, economic policies, and cultural dynamics shaping today's world.

---

Produced by Craig Henderson and edited by Naomi Raley. Reporting by Nick Qureshi and contributions from Maura Fogarty and Devina Gupta.

Transcript

[Sponsor Representative]

This Marketplace podcast is supported by Palo Alto Networks. Enterprises are deploying and experimenting with AI apps and agents, often without the right security in place. Leverage the power of a comprehensive AI platform to secure AI at every step from apps, agents, models and data. Deploy AI bravely with Prisma Airs. [e-mail] this Marketplace podcast is supported by.

[Dell Representative]

Dell Introducing the new Dell AI PC powered powered by Intel Core Ultra processor. It helps do your busy work for you so you can fast forward through editing images, designing presentations, generating code, debugging code, summarizing meeting notes, finding files, managing your schedule, responding to long emails, leaving all the time in the world for the things you actually want to do. Get a new Dell AI PC starting at $699.99 at Dell.com AI PC how those ahead Stay ahead.

[Nick Qureshi]

Germany's leader says Europe must be able to look after itself and not rely on the U.S. live from the U.K. this is the Marketplace Morning Report from the BBC World Service. Hello, I'm Nick Qureshi in for Liana Byrne. In an exclusive interview with the BBC, the German Chancellor Friedrich Mertz has accepted US Accusations that Europe has done too little to fund its own defence and security and that it's been free riding on the US in the past. It follows a BBC interview with President Trump this week where he backed the NATO military alliance now that members were paying their own bills. Mr. Mertz told the BBC's Nick Robinson that Europe needs to be more independent as the US focuses more on other parts of the world.

[Friedrich Mertz]

We are all looking for more independency from American defense. We know that we have to do more on our own and we had been free riders in the past and the Americans guaranteed our freedom and our security and they are not willing understandably to do that any longer. And they are asking us to do more and we are doing more. I'm observing that the Americans for years now moving away from Europe and turning to Asia. This, so to say, pivot to Asia is happening and there are other places in the world the Americans are interested in and they are seeing themselves in a a very hard competition with China. And that's the reason why they are telling us, take care for your own. And we are doing it.

[Nick Qureshi]

That's the German Chancellor Friedrich Mertz speaking to the BBC's Today programme. Right, let's move on to some numbers. The EU has agreed more sanctions against Russia, further targeting its financial and energy sectors. A lower price cap for Russian crude means oil prices are up. Brent crude currently just under $70 a barrel, and new figures confirm the price of rice in Japan rose by more than 99% year on year in June. The surging cost of the grain has been a source of public anger. Brazil's President Luis Inacio Lula da Silva has condemned President Trump's threat to impose harsh tariffs on his country as unacceptable blackmail. Mr. Trump last week threatened Brazil with 50% tariffs and called for an end to the trial of his ally, the right wing former president Jair Bolsonaro, who's accused of trying to overturn Brazil's 2022 election. There's a lot at stake. The amount of trade between the US and Brazil is huge. As the BBC's Maura Fogarty explains, $90.

[Maura Fogarty]

Billion was how much trade between the two countries was worth last year. Interestingly, I need to point out that the US Has a trade surplus with Brazil. That means more US Goods are sent to Brazil than Brazilian goods sent to United States, which in a way flies in the face of President Trump's argument that these tariffs are put in countries who have trade surpluses with the us.

[Nick Qureshi]

More refugee there and Prada's new collection debuted at Milan's Menswear Fashion Week. A pair of sandals labeled as leather footwear caught the attention of many in India due to their similarity to traditional sandals. Some have criticized the luxury brand for copying the work of artisans with without giving any credit or compensation. The BBC's Davina Gupta reports from Kolhapur City and spoke to the Indian workers making the original leather sandals.

[Devina Gupta]

I'm in a cramped, dimly lit workshop in Kolhapur. As I walk around to my right, there's a stack of freshly made leather sandals wrapped in a plastic sheet. In front of me, there are artisans who are sitting on the concrete floor. There are bits of threads, tools that are scattered around them. They're all working in a rhythmic motion. These sandals are made from Buffalo High, says Sadashiv Sanaki. He's been working in this workshop for nearly 40 years now.

[Sponsor Representative]

I make about 50 pairs of the sandals in 10 days. I earn about four to five dollars in one day.

[Devina Gupta]

Sadashev is one of nearly a hundred thousand people in India still making these open leather sandals, known for their distinctive T strap. And many of those in the trade come from marginalized communities and face low wages, soaring material costs and tough working conditions. So when luxury brand Prada showcased a strikingly similar design at Milan Fashion Week and called them leather footwear without crediting their Indian origin, the backlash was swift.

[Sponsor Representative]

I really believe that Kolh Puri is a cultural legacy for India and lack of credit or collaboration makes this appropriation.

[Devina Gupta]

That's prominent Indian fashion designer Ritu Berri.

[Sponsor Representative]

The artisan from India remains invisible while the brands profit from it from the inspiration that they get from here. So I think it's time we Indians claim our heritage.

[Devina Gupta]

In response to their criticism, Prada issued a statement acknowledging Indian influence. The brand told the BBC it's now in talks with the Maharashtra Chamber of Commerce, a local trade body. Lalit Gandhi is its president.

[Sponsor Representative]

Actually, it is a good thing that a brand like Kolhapuri Chappal get an endorsement from Prada. Definitely. The value is increase many folds. We want the some share of that profit to be shared with the artisan.

[Devina Gupta]

I'm now in Kolhapur's famous Chappal gully or sandal market. It's a vibrant street lined with shops and Kolh puri. Sandals are everywhere, in every shade. And unlike Prada's luxury price tag, these ones are quite affordable.

[Sponsor Representative]

I saw it on the Prada Milan Fashion Week. That's why I really liked it and like that's why I got it.

[Devina Gupta]

How much have you paid for that?

[Sponsor Representative]

I paid around $8 for it.

[Devina Gupta]

But back in the workshop, artisans including Sadashiv had never heard of Prada. So I show him a video from the Milan fashion show and tell him sandals like his might be selling for hundreds of dollars in the near future. Are they made of gold? He says. In Delhi, I'm the BBC's Devina Gupta for Marketplace.

[Nick Qureshi]

And that is it from the Marketplace morning report from the BBC World Service. Our producer today was Craig Henderson and the editor Naomi Raley. I'm Mick Qureshi. Thanks for listening.

[Sponsor Representative]

This Old House Radio hour is your new home improvement podcast. In each episode we answer your questions. Whether you're fixing a le, refinishing a floor, or restoring a century old house, our roster of experts have the answers to help you get the job done right. I never thought I'd be saying this.

[Nick Qureshi]

To a bunch of people I'm just meeting, but I have a stinky house.

[Maura Fogarty]

Tell us more.

[Sponsor Representative]

I want the details. Find this Old House Radio Hour in your favorite podcast. Apparently.