Global Economy News
LAST UPDATE: June 27, 2025
Donald Trump says US‑China trade truce has been ‘signed’
On June 26, 2025, Trump announced the signing of a US‑China trade truce, formalising a 90‑day tariff rollback. The deal, agreed in Geneva and codified in London, includes reciprocal tariff reductions and a mechanism to resolve trade tensions. Chinese officials confirmed the framework, noting commitments on rare‑earth exports.
Insight
Formalising the truce boosts trade certainty, particularly in strategic areas like rare‑earths. It also sets a precedent for up to 10 additional trade deals by the July 9 deadline, signaling a broad shift in US trade diplomacy.
Lutnick Says US‑China Trade Truce Signed, 10 Deals Imminent
US Commerce Secretary Lutnick said the US and China finalized the trade truce two days ago, including commitments on rare‑earths trade. The administration is also negotiating 10 additional trade agreements with key partners ahead of the July 9 deadline.
Insight
The administration is rapidly expanding trade diplomacy, aiming to lock in multiple truce deals. Securing rare‑earths access reflects a strategic industrial supply‑chain priority for the U.S., signaling a more assertive trade agenda.
China Confirms US Trade Framework, Repeats Vow to Review Exports
China’s Commerce Ministry confirmed and further detailed the agreed US‑China trade framework, stating it will review and approve export applications for controlled items (e.g., rare‑earths) while US restrictions are lifted in return. The agreement further cements the Geneva/London framework.
Insight
The Chinese official confirmation shows strong political coordination. This signals proactive steps to operationalize the framework and shows China’s willingness to stabilize trade flows under mutual concessions.
EU alliance with Pacific rim could lead to WTO redesign, von der Leyen says
On June 27, 2025, EU Commission President Ursula von der Leyen proposed working with Pacific Rim nations (e.g. CPTPP members) to revamp the WTO, aiming to restore its relevance amidst geopolitical and trade tensions. She views this alliance as the beginning of redesigning global trade rules. (reuters.com)
Insight
Highlighting the EU’s strategic pivot toward Asia, this initiative could offer practical trade rule updates and revival of WTO dispute mechanisms, signaling stronger cooperation to counter US tariffs and global economic fragmentation.
UN conference seeks foreign aid rally as Trump cuts bite
Spain is set to host a UN conference (June 30–July 3) in Seville, aimed at offsetting steep US development aid cuts under Trump and addressing global crises impeding progress on poverty, hunger, and climate change. Key leaders like Macron, Ramaphosa, and Ecuador’s Noboa will attend.
Insight
As major donor reductions threaten global aid systems, this summit represents a coordinated international push to uphold development funding, reaffirming commitments to vulnerable countries amid global instability and geopolitical shifts.
