Global Economy News
LAST UPDATE: June 18, 2025
Trump says EU not offering fair trade deal, Japan being ‘tough’ too
President Trump criticized the EU for failing to offer a “fair deal” and described Japan as “tough” in trade negotiations. He warned of potential tariffs and confirmed pharmaceutical tariffs were imminent, also noting Canada would fund the U.S. “Golden Dome” missile shield.
Insight
Trump’s stance indicates aggressive trade tactics aimed at extracting concessions from major allies, leveraging tariffs across industries—including pharma—while exerting pressure on Canada for defense contributions.
Trump, Starmer Agree to Implement Tariff-Cutting Trade Deal
President Trump and UK PM Keir Starmer signed a trade document at the G7 summit to reduce U.S. tariffs on British cars (27.5%→10%) and aerospace products, while deferring steel/aluminum talks. The UK reciprocates by increasing U.S. agricultural access.
Insight
This pact marks Trump’s first trade deal in his second term, strengthening US–UK economic ties. However, unresolved steel tariffs expose potential future friction and limits the deal’s scope.
IMF Met With Emerging‑Market Creditors on Debt Rework Strategies
IMF staff held a private meeting on June 9 with hedge funds and other private creditors to gather input on sovereign debt restructurings for emerging-market countries.
Insight
The IMF is aiming to improve restructuring frameworks by directly engaging with private-sector lenders, seeking smoother debt rework processes ahead of wider implementation in developing economies.
US Draws Ire of France, Canada at Meeting of Finance Regulators
At a Financial Stability Board meeting in Madrid, U.S. delegates opposed treating climate change as a financial stability risk, leading to heated pushback from France and Canada and a temporary meeting ‘timeout’.
Insight
The clash underscores growing international frustration over the U.S.’s resistance to integrate climate risk into financial stability frameworks, potentially slowing global regulatory coordination.
Rare Earth Boss Sees ‘Long, Hard Process’ to Loosen China’s Grip
Mark Smith, former Molycorp CEO, warns Western nations will need years to develop rare-earth processing capacity to challenge China’s dominance, which still controls ~96% of the refined market. He highlights that building capacity is just the start; securing sustainable supply chains and refining tech is a long-term effort. (news.bloomberglaw.com, theguardian.com)
Insight
This underscores that breaking China’s grip on critical minerals like dysprosium and terbium will require substantial investment—not just in mining, but in refining, tech development, and supply-chain resilience.
Next G7 leaders summit to take place at Evian in French Alps – Macron
President Macron announced the 52nd G7 summit will be held at Évian-les-Bains, France, from June 14–16, 2026. He emphasized the summit will adopt new formats to enhance collaboration while maintaining unity among trusted partners.
Insight
Hosting in Évian recalls the 2003 G8 expansion era; Macron appears keen to reinforce cohesion and innovation in agenda-setting amid evolving geopolitical rifts.
