Global Economy News
LAST UPDATE: June 12, 2025
Trump Says Trade ‘Deal With China Is Done;’ Bessent Calls It an ‘Excellent Start’
President Trump declared that a trade deal with China is finalized, pending approval by President Xi. Treasury Secretary Bessent described it as a positive beginning. The agreement does not reduce the 55% tariffs on Chinese imports but includes provisions for rare earth exports and Chinese student visas.
Insight
This initial agreement signals progress in trade negotiations but falls short of resolving broader issues. It could build momentum for future discussions while maintaining a strong trade stance.
Lutnick says US tariff levels on China won’t change
Commerce Secretary Howard Lutnick stated that U.S. tariffs on Chinese imports will remain at 55%, despite the new trade agreement. China, however, will lift restrictions on key exports like rare earth minerals.
Insight
The continued high tariffs show that while strategic material access is being negotiated, the U.S. maintains its tough trade position, potentially prolonging economic tensions.
Germany welcomes China-US export deal, hopes for similar progress in EU-US talks
German Chancellor Friedrich Merz welcomed the China-U.S. export agreement, seeing it as a model for future EU-U.S. trade cooperation. He expressed hope for comparable progress in EU negotiations and reaffirmed support for Denmark amid Arctic sovereignty concerns.
Insight
Germany’s response highlights its interest in trade stability and strategic alignment with the U.S. on global economic issues, particularly regarding critical resource access and geopolitical alliances.
World’s oceans remain near record temperatures as CO₂ levels rise
In May 2025, average sea surface temperatures reached the second highest on record (~20.79 °C), alongside atmospheric CO₂ peaks (426–430 ppm). Marine heatwaves in the North Atlantic and Mediterranean intensified, raising concerns about the ocean’s diminishing capacity to absorb carbon and heat (ft.com).
Insight
Persistent ocean warming and high CO₂ levels indicate the Earth’s buffers are weakening, raising the stakes for climate resilience. The ratification of a high-seas protection treaty adds policy momentum, but real-world mitigation remains urgent.
UN rights chief warns of $60 million funding shortfall
UN High Commissioner Volker Türk confirmed that OHCHR has received just $179 m of its $246 m regular budget, plus a $60 m extra-budget gap—forcing cuts in 11 countries, session shortenings, and staff relocations .
Insight
This shortfall underscores a global retreat in human rights funding with potential long-term impacts: diminished monitoring, weaker accountability, and increased human suffering in affected nations.
Funding cuts could harm progress on child labour as world misses key target
A joint ILO–UNICEF report reveals the target to eliminate child labour by 2025 has failed: ~138 million children still work, including 54 million in hazardous conditions. Funding cuts in education and social support threaten to reverse gains .
Insight
With progress stalling, reductions in funding may push vulnerable children back into work. Increasing legal protections, education, and social safety nets is critical—or years of advancement risk being undone.
