Global Economy News
LAST UPDATE: July 24, 2025
US and EU close in on 15% tariff deal
The U.S. and EU are nearing a deal implementing a unified 15% tariff on EU exports (integrating existing tariffs) to avoid Trump’s threatened 30% hike. Some exemptions are expected. Markets have reacted positively.
Insight
This compromise illustrates pragmatic diplomacy to stabilize trade ties and markets. It tempers escalatory rhetoric but retains contingency threats via EU retaliatory measures.
EU to advance retaliation on US goods as tariff hike looms
The European Commission will seek approval to impose counter-tariffs on €93 billion of U.S. goods, ready to enact them from August 7 if a U.S. tariff deal fails.
Insight
This prepares strategic retaliation and signals EU readiness to defend its interests should talks collapse. It strengthens the EU’s leverage.
Japan, EU Pledge Deeper Economic, Defense Ties as US Tariffs Hit
Japan and the EU agreed in Tokyo to strengthen economic and defense cooperation in response to U.S. tariff pressures, forming a ‘competitiveness alliance’ and enhancing WTO cooperation.
Insight
The pact is a strategic hedge, aligning Japan and the EU under rules-based trade and shared defense priorities, and diversifying geopolitical alignment beyond U.S. influence.
EU and China Intend to Sign Climate Statement at Beijing Summit
EU and Chinese leaders are expected to sign a joint climate statement during a summit in Beijing, marking cooperation on emissions targets, clean energy investment, and environmental challenges.
Insight
This agreement signals strategic environmental diplomacy, aiming to counterbalance U.S. withdrawal from global climate norms and promote low-carbon cooperation across major global actors.
Trump’s Japan Trade Pact Could Spark a Flurry of Tariff Deals. Goldman Says 15% Is New Baseline
Goldman Sachs views the Trump administration’s Japan trade pact and related agreements as setting a new 15% U.S. tariff baseline, potentially rising to 17% by 2027. This shift follows the August 1 deadline for higher tariffs and could spur negotiations with India and the EU.
Insight
The deal signals a strategic recalibration: a moderate but permanent tariff level aimed at balancing protectionism with trade continuity. It reshapes expectations for future trade talks and inflation outlooks.
WTO reform prospects clouded by investment deal block, sources say
India, South Africa, and Turkey blocked the Investment Facilitation for Development initiative at the WTO, putting broader reform efforts at risk. That initiative—backed by 127 of 166 members—aimed to lower investment barriers.
Insight
The block exposes deep fractures within the WTO consensus model. It underscores challenges in reviving multilateral trade and may stall wider institutional reforms.
World court says failure to meet climate goals could lead to damages
The International Court of Justice ruled that states failing to meet climate obligations could be liable for damages. This binding opinion supports reparations claims and expands pathways for climate justice.
Insight
The ICJ’s decision marks a pivotal shift: climate policy becomes enforceable under international law. It strengthens legal positions of vulnerable nations and pressures major emitters.
