Global Economy News
LAST UPDATE: July 26, 2025
EU, US could reach framework trade deal this weekend, EU officials say
EU and U.S. officials expect to reach a framework trade deal during a weekend meeting in Scotland. Proposed terms include a 15% baseline tariff on EU goods and 50% on European steel and aluminium, effective before an August 1 escalation.
Insight
A narrow agreement may forestall a major escalation of tariffs. However, EU officials question its fairness—especially tariffs on autos and industrial goods. Markets have responded positively but uncertainties remain over longer-term bilateral balance.
OPEC+ panel likely to keep oil policy steady on Monday, sources say
Reuters
Four OPEC+ delegates said the panel is unlikely to alter its existing oil‑output policy on Monday, continuing a plan to raise production by about 548,000 barrels per day in August to regain market share amid strong summer demand.
Insight
With OPEC+ gradually rolling back prior production cuts, maintaining the policy reflects confidence that demand can absorb higher supply. This underscores the group’s focus on market share over tight price control.
World court climate ruling: non-binding but game changing
The International Court of Justice issued an advisory opinion on July 23, 2025, declaring that countries failing to combat climate change may breach international law; it framed environmental harm as potentially warranting legal reparations.
Insight
Although advisory and not legally binding, the ruling marks a turning point: it empowers domestic courts and international litigants, strengthens climate justice advocacy, and may influence COP30 outcomes and national policy frameworks.
