Weekly Geopolitical Intelligence Briefing
From the Birch Intelligence Geopolitical & Business Advisory Team
Federal Deployment Escalates: Trump's Use of National Guard in Chicago and D.C., and Global Diplomatic Shifts
1 September 2025
This week’s summary
- Mayor Brandon Johnson of Chicago publicly opposes President Trump’s threat to deploy the National Guard, citing declining crime rates and legal challenges.
- National Guard units in Washington, D.C., now carry firearms as part of an escalated federal deployment.
- C. students return to school amid tension, with federal agents conducting checkpoints and immigration enforcement.
- Trump plans to sign an executive order ending cashless bail in D.C., threatening federal fund withholding.
- South Korea’s new president meets with Trump to discuss tariffs, shipbuilding investments, and North Korea.
- AP freelancer among four journalists killed in an Israeli strike on a Gaza hospital, raising press safety concerns.
- Cambodia passes a bill allowing citizenship revocation for “national betrayal,” criticized as repressive.
- China’s Evergrande is delisted from the Hong Kong exchange, signaling ongoing real estate sector turmoil.
Background
President Trump’s expanded use of the National Guard and federal agents reflects his administration’s focus on law enforcement and immigration control. Chicago and Washington, D.C., both Democrat-led jurisdictions, are primary targets. The deployments follow executive orders emphasizing public safety and federal authority, though local leaders argue they exacerbate tensions and infringe on municipal rights. Globally, diplomatic activity intensifies as South Korea seeks economic cooperation, Norway reaffirms support for Ukraine, and Russia-China discussions on sanctions proceed.
Core analysis
Trump’s threats to deploy the National Guard align with his broader agenda to assert federal power over Democratic cities, often citing crime reduction as justification. However, these actions face legal and political pushback, with mayors like D.C.’s Muriel Bowser and Chicago’s Brandon Johnson challenging their necessity and constitutionality. The armed presence of National Guard troops in D.C. marks a significant escalation, potentially normalizing military roles in domestic policing. Internationally, the U.S.’s fluctuating foreign policy—from Ukraine negotiations to trade talks with South Korea—creates uncertainty among allies.
Geopolitical Implication
- Domestic federal-local tensions may strain governance and resource allocation, especially in sanctuary cities.
- Global partners like South Korea and Norway adjust strategies amid unpredictable U.S. diplomatic shifts.
- Events in Gaza and Cambodia highlight press freedom and human rights concerns, impacting international perceptions of U.S. alliances.
- Evergrande’s delisting signals persistent economic risks in China, affecting global markets.
Strategic implications
Short-term federal interventions in cities could redefine state-federal relations, influencing upcoming elections. sectors like education and local law enforcement may face operational disruptions. For businesses, volatility in U.S. policy—especially on trade and immigration—requires agile risk management. The emphasis on enforcement also increases scrutiny for visas (e.g., F, J categories), urging alternatives like EB-1/EB-2 pathways.
Insider Insight
The administration aims to expand National Guard deployments to additional cities like Baltimore, despite legal hurdles. Targets for arrests or enforcement actions may rise to meet political objectives, though logistical and public resistance could slow implementation.
Strategic Recommendation
- Individuals in affected cities should avoid large gatherings and stay informed on federal actions.
- Businesses in sectors reliant on foreign labor (e.g., hospitality, construction) should audit compliance and train staff on ICE interactions.
- Those seeking U.S. immigration should prioritize green card pathways (e.g., EB-1, EB-2/NIW) over non-immigrant visas.
- Monitor federal-local legal battles, which could trigger policy reversals or new compliance requirements.
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