International News 24 July 2025
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Gold Hits Five-Week High Amid Trade Uncertainty and Falling Yields
Gold prices surged to their highest level in five weeks on Tuesday, July 22, as investors sought safe-haven assets amid growing trade uncertainty and declining U.S. Treasury yields. Spot gold rose 1% to $3,428.84 per troy ounce by 2:10 p.m. ET, marking its highest since June 16, while U.S. gold futures climbed 1.1% to $3,443.70. The yield on the U.S. 10-year benchmark fell to a near two-week low, boosting the appeal of non-yielding bullion. Analysts attribute the rally to concerns over stalled trade negotiations, with Kitco’s Jim Wyckoff noting that “rumors of a deadlock between the U.S. and the EU are driving safe-haven demand.” U.S. Treasury Secretary Scott Bessent indicated a potential extension of the August 12 tariff deadline amid talks with Chinese officials, while signaling upcoming trade deals with other countries. Meanwhile, EU diplomats hinted at broader retaliatory measures against the U.S. over trade tensions. Gold is likely to stay bullish, with resistance near $3,420 and support at $3,350, according to Reliance Securities. The market is also eyeing next week’s Federal Reserve meeting. Though no rate cut is expected, speculation is growing for a potential easing in October. Amid political pressure from President Trump, Fed officials, including Vice Chair Michelle Bowman, emphasized the importance of central bank independence.
U.S. and Indonesia Strike Landmark Trade Framework to Slash Tariffs and Boost Market Access
The United States and Indonesia have agreed on a comprehensive trade framework that will eliminate tariffs on over 99% of U.S. goods entering Indonesia, while the U.S. will lower its tariff threats on Indonesian products from 32% to 19%. The agreement, hailed by former President Trump as a “major victory” for American workers and industries, also includes Indonesia’s commitment to remove non-tariff barriers, such as import licensing and inspection requirements that have hindered U.S. agricultural exports. In return, Indonesia will gain expanded access to U.S. markets, and the two countries will negotiate rules of origin to ensure trade benefits are not diverted to third-party nations. The deal also includes significant digital trade and industrial provisions. Indonesia will abandon plans to impose tariffs on cross-border data flows and will support extending the WTO’s long-standing e-commerce tariff moratorium. Additionally, Indonesia has agreed to recognize U.S. Federal Motor Vehicle Safety Standards for auto imports and lift restrictions on the export of key industrial commodities like critical minerals. The agreement marks one of a few achieved ahead of the August 1 deadline when higher U.S. tariffs are scheduled to take effect and reflects intensified efforts to rebalance trade relationships in Southeast Asia amid global economic shifts.
U.S.–Japan Trade Deal Lowers Tariffs, Unlocks $550 Billion Investment
President Donald Trump announced on July 22, 2025, that the United States and Japan have reached a trade agreement imposing a 15% tariff on Japanese imports, including automobiles. In return, Japan has pledged a $550 billion investment in the U.S. and agreed to expand market access for American goods such as cars, trucks, rice, and agricultural commodities. While Trump did not explicitly confirm a reduction in the 25% auto tariff, Japanese media outlet NHK reported the rate was cut to 15%. The agreement marks a major breakthrough in U.S.–Japan relations, especially as trade between the two nations hit $230 billion in 2024, with Japan running a $70 billion surplus. The announcement sparked rallies in Japanese markets, with auto stocks like Honda, Toyota, and Nissan surging over 6%. Although the full details remain unconfirmed by the White House, Japan’s Prime Minister Shigeru Ishiba acknowledged receiving preliminary reports but withheld comments, pending a full review. Economists say the 15% tariff could help Japan avoid recession and is a better outcome than prior threats of higher tariffs. The deal may also pave the way for joint ventures, including a potential Japan–U.S. partnership in a long-planned Alaskan gas pipeline project. This agreement follows a pattern of rapid trade deals Trump is pushing ahead of the August 1 deadline for new tariffs, including similar frameworks with Indonesia, the UK, Vietnam, and a truce with China.