Global Economy News
LAST UPDATE: September 25, 2025
UN chief tells countries new climate targets must go ‘futher, faster’
UN Secretary-General Antonio Guterres has called on countries to set new climate plans for 2035 that go “further, faster” to reduce emissions. Guterres made the call at a climate leaders’ summit, urging nations to increase their ambition ahead of the COP30 climate negotiations. He noted that despite progress, the world is still on track for a temperature rise of 2.6 degrees Celsius if current plans are fully implemented.
Insight
Guterres’s call for more aggressive climate action highlights the widening gap between current climate pledges and the goals of the Paris Agreement. It puts pressure on major economies to take more decisive steps to curb emissions and serves as a reality check on the effectiveness of existing climate policies.
China Pledges to Cut Greenhouse Gas Emissions 7% to 10% by 2035
China has pledged to cut greenhouse gas emissions by 7% to 10% by 2035. The announcement was made by President Xi Jinping at a UN climate summit. This is the first time China has set a specific target for emission cuts by a certain year.
Insight
This new emissions pledge from China is a significant development in global climate politics. As the world’s largest emitter, China’s commitment to a specific reduction target could set a powerful precedent and help build momentum for other countries to follow suit in the fight against climate change.
US implements EU trade deal, 15% autos tariffs retroactive to Aug 1
The US has formally implemented a trade agreement with the EU, confirming a 15% tariff on autos and auto parts will be applied retroactively to August 1. The deal is a result of a framework agreement reached in July to lower tariffs on most imports from the EU. The formal notice also specifies hundreds of products that are exempt from tariffs.
Insight
The retroactive application of tariffs adds a layer of complexity and uncertainty for businesses, requiring them to recalculate costs and potentially renegotiate contracts. This signals a new era of agile and often unpredictable trade policy, forcing companies to be more nimble in their supply chain management and financial planning.
WTO hails Chinese decision to forgo developing country benefits
The World Trade Organization (WTO) has hailed China’s decision to forgo “special and differential treatment” (SDT) benefits in future trade negotiations. The move, announced by Premier Li Qiang, means China will no longer seek the flexibilities granted to developing countries, such as higher tariffs or subsidies. The decision is seen as a major step toward making the global trading system fairer.
Insight
China’s move to give up developing country benefits is a strategic diplomatic gesture aimed at easing tensions with the US and other trade partners. It addresses a long-standing complaint and could help revitalize the WTO, demonstrating China’s commitment to a more equitable trading system while still allowing it to maintain its “developing country” self-identification.
Tariffs and conflict causing major volatility in shipping industry, says UN trade agency
A UN trade and development agency report says the shipping industry is experiencing major volatility due to tariffs and geopolitical conflict. The report noted that trade policy shifts and disruptions in key maritime routes are altering global supply chains and increasing shipping costs. The agency has revised down its forecast for maritime trade growth, noting that trade journeys are getting longer.
Insight
The report highlights how geopolitical tensions are now directly impacting the arteries of global commerce. This is a clear indicator that the globalized economy is becoming more fragmented and risky, forcing businesses to re-evaluate their logistical strategies and potentially leading to higher costs for consumers.
