Global Economy News
LAST UPDATE: June 25, 2025
Trump Hails NATO Spending Plan, Says With Them ‘All The Way’
At the Hague NATO summit, Donald Trump praised the alliance’s commitment to boost defense spending, stating he stands “with them all the way” even after earlier questioning the scope of Article 5 mutual defense.
Insight
Trump’s backing reflects a tactical pivot: using his influence to push NATO members, while reaffirming U.S. commitment, with the aim of securing higher defense budgets from allies. This move blends diplomatic reassurance with strategic pressure.
NATO chief: US ‘totally committed’ to collective defence pledge
NATO Secretary General Mark Rutte said on June 25 in The Hague that the United States is “totally committed” to NATO’s Article 5 mutual defence clause. His reassurance came after President Trump, en route to the summit, had expressed ambiguity—stating the U.S. commitment “depends on your definition” and that he supports NATO “as friends.”
Insight
Rutte’s statement was aimed at restoring confidence among European allies shaken by Trump’s earlier remarks. It underscores a broader strategy: by demanding increased defence spending from allies, the U.S. maintains credibility, while Europe accelerates its military build-up.
NATO to up spending out of conviction, not to please anyone, Merz says
Germany’s Chancellor Friedrich Merz stated that increased NATO defense spending is driven by conviction rather than appeasement, reinforcing Germany’s commitment alongside the new 5% GDP target by 2035.
Insight
Merz’s framing positions Germany as a proactive leader in European defense, showing determination to follow through on higher budget pledges independently of external pressures, including from the U.S.
Greek PM says all NATO members should commit to defence spending target
Greek Prime Minister Kyriakos Mitsotakis urged all NATO members to adopt the new defense spending goal of 5% of GDP by 2035, asserting it’s essential for alliance security amid Russian aggression.
Insight
Greece’s support reflects wider European consensus on collective defense duties, acknowledging that meeting funding targets is vital to sustaining deterrence and strategic credibility.
China Tells Brazil Xi Jinping Will Miss BRICS Summit in Rio
China informed Brazil that President Xi Jinping will not attend the BRICS summit in Rio (July 6–7) due to a scheduling conflict. Premier Li Qiang will represent China, marking Xi’s first absence from the summit since taking power.
Insight
Xi’s decision to miss the summit may signal strategic caution amidst Brazil’s lukewarm stance on China’s Belt and Road Initiative and shifting geopolitical dynamics within BRICS.
China’s premier warns global trade tensions ‘intensifying’
Premier Li Qiang warned at the World Economic Forum in Tianjin that protectionist measures are rising, deepening global trade frictions. He emphasized the need for cooperation and mutual success amid growing economic challenges.
Insight
Li’s remarks highlight Beijing’s concern over alignment of global tariffs, likely referencing U.S. actions, and signal China’s push for multilateralism to counteract a fragmenting trade environment.
