Global Economy News
LAST UPDATE: July 24, 2025
Xi says China, EU must deepen trust but bloc chief urges ‘real solutions’
At a high-stakes summit on July 24 in Beijing, China’s Xi Jinping emphasized the need for China and the EU to strengthen mutual trust and manage differences amid global turbulence. EU Commission President Ursula von der Leyen countered by urging China to address deep trade imbalances—highlighting the €305.8 billion deficit—and deliver concrete outcomes.
Insight
The summit underscores a critical turning point: both sides recognize the importance of cooperation but diverge on implementation. Xi’s call for “correct strategic choices” and restrained trade tools counters Europe’s demand for “real solutions” on market access and fairness. Progress is possible in climate cooperation, yet core economic and geopolitical grievances remain unresolved.
Trump Says Countries Will Face Tariffs Ranging From 15% to 50%
At an AI summit, President Trump reaffirmed his tariff strategy: imposing “straight, simple” reciprocal tariffs on other countries, ranging from 15% to 50%, with baseline not below 15%, ahead of an August 1 deadline.
Insight
Trump’s public tariff range reiterates aggressive protectionism with thresholds calibrated per country. The floor of 15% serves as leverage in negotiations, while maximum 50% escalates pressure.
Bessent, Lutnick Hail Japan Finance Pledge as EU Talks Loom
U.S. trade negotiators praised Japan’s plan to invest hundreds of billions in U.S. infrastructure and industry—citing it as a model ahead of EU talks—tying investment to preferential tariffs.
Insight
The deal signals a strategic shift: the U.S. is pairing trade concessions with investment commitments, using Japan as a template to entice the EU toward similar arrangements.
Britain and India to sign landmark free trade pact during Modi visit
The U.K. and India will sign a major free trade agreement during PM Modi’s visit to the UK. The deal cuts tariffs on whisky, cars, textiles, and EVs, and extends duty-free access on 99% of Indian exports.
Insight
This marks the UK’s most significant post-Brexit deal, diversifying trade ties while offering Indian exporters broad access. It balances strategic economic and geopolitical objectives.
WHO rejects US charge it is violating countries’ sovereignty
WHO firmly denied U.S. accusations that amendments to the International Health Regulations infringe on national sovereignty, emphasizing that member states voluntarily implement WHO recommendations.
Insight
The rejection underscores WHO’s stance that health guidelines respect member autonomy, highlighting tensions in global health governance and resistance to U.S. calls for rollback.
