International News 16 July 2025
-
China’s Economy Grows 5.2% in Q2, Beats Expectations Despite U.S. Tariff Pressures
China’s economy expanded by 5.2% year-on-year in the second quarter of 2025, slightly surpassing analysts’ expectations of 5.1% growth despite a slowdown from Q1’s 5.4%. The better-than-expected GDP figure signals resilience amid rising trade tensions with the United States and ongoing domestic headwinds such as weak consumer confidence and continued declines in property prices. On a quarterly basis, GDP rose 1.1%, beating forecasts of 0.9%. While China remains on track to meet its full-year growth target of around 5%, analysts warn of mounting risks in the second half of the year. Investors now await the upcoming Politburo meeting in late July for signs of new stimulus, as policymakers face growing pressure to support the economy. Measures so far have included infrastructure spending, consumer subsidies, and modest monetary easing. However, deflationary pressures remain, with producer prices in June falling at their fastest rate in nearly two years. Analysts expect further rate cuts and possible deficit spending if growth deteriorates sharply.
EV Sales Surge Globally, But U.S. Lags Behind Amid Policy Shift
Global sales of electric vehicles (EVs) and plug-in hybrids jumped 24% year-on-year in June 2025, driven largely by strong demand in China and Europe, according to market research firm Rho Motion. China led the market with 1.11 million units sold, up 28% from last year, followed by Europe with approximately 390,000 units, up 23%. In contrast, North America saw a 9% decline, with U.S. EV sales dropping 1% amid reduced tax incentives and looming 25% import tariffs under President Donald Trump’s new budget bill. Analysts warn that the U.S. now trails emerging markets like Southeast Asia and Latin America for the first time. Rho Motion expects new subsidies in China later this year to further boost global sales in the second half of 2025.
Trump Slaps 17% Tariff on Mexican Tomatoes, Ending Decades-Old Trade Deal
The Trump administration officially imposed a 17.09% tariff on fresh tomato imports from Mexico on July 14, ending a longstanding trade agreement that had been in place since 1996. The U.S. Department of Commerce cited evidence of dumping, claiming Mexican tomatoes were sold at prices below fair market value, harming American farmers. Mexico, which supplies nearly two-thirds of the tomatoes consumed in the U.S., criticized the move as unfair and politically motivated, warning of potential economic repercussions for both countries. The termination of the 2019 tomato suspension agreement has raised concerns over rising consumer prices in the U.S., with lawmakers warning that products like salsa and canned goods could become more expensive. While Mexican producers had proposed compromises, they were reportedly rejected by Washington. The decision is part of a broader trade strategy by President Trump, who has also threatened a 30% tariff on all Mexican imports starting August 1 if no comprehensive trade deal is reached.