International News 14 October 2025
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IMF and World Bank Meetings Clouded by Renewed U.S.–China Trade Tensions
Global financial leaders are convening in Washington this week for the IMF and World Bank Annual Meetings, overshadowed by escalating trade tensions after U.S. President Donald Trump threatened to impose 100% tariffs on Chinese imports, reigniting fears of a renewed U.S.–China trade war. The move follows Beijing’s expanded export controls on rare earth metals, a key resource for the tech industry, which triggered a sharp market sell-off. Analysts warn the standoff could reverse recent gains in global growth forecasts, which had improved as earlier tariff cuts eased trade frictions. Former IMF strategist Martin Muehleisen noted Trump’s threats might be a negotiating tactic but cautioned that another tariff wave “would shake markets severely.” The IMF’s preliminary World Economic Outlook expects global GDP growth of around 3.0% for 2025, reflecting resilience despite uncertainty from tariffs, inflation, and rapid AI-driven disruptions. IMF chief Kristalina Georgieva urged caution, calling the current environment “one of extraordinary uncertainty.” Meanwhile, G7 finance ministers are set to meet separately on Wednesday to tighten sanctions on Russia, with plans to use frozen Russian assets to back €140 billion ($162 billion) in loans for Ukraine. As thousands of policymakers gather, all eyes remain on whether Trump and Chinese President Xi Jinping will proceed with their planned meeting in Seoul — or if rising rhetoric will push the world’s two largest economies toward another costly confrontation.
Republican Senators Under Pressure Amid ACA Subsidy Standoff and Government Shutdown
A growing number of Republican senators are facing political pressure as the U.S. government enters its 13th day of partial shutdown, with the deadlock now revolving around the fate of Affordable Care Act (ACA) subsidies. The program, which provides crucial premium support for millions of middle-class Americans — including freelancers, farmers, and small business owners — is set to expire at the end of the year, potentially sending healthcare costs soaring. Six GOP senators, including Tommy Tuberville, Lisa Murkowski, Josh Hawley, Susan Collins, Thom Tillis, and Jim Justice, have urged immediate action to prevent a spike in premiums, though they have yet to endorse the Democrats’ proposal to extend the subsidies. Negotiations between the White House, Democrats, and moderate Republicans remain tense as Democrats use the funding bill to push for ACA continuation. With 53 Republican and 47 Democratic seats, at least 60 votes are required to pass a temporary spending measure. While Senate Minority Leader Chuck Schumer warns of dire social and economic consequences without action, some Democrats have defected, citing the heavy toll of the shutdown. Ironically, ACA enrollment has grown fastest in Republican-led states such as Texas, Mississippi, and Louisiana — regions that overwhelmingly supported Donald Trump in 2024. Senator Murkowski has floated a two-year tax credit extension as a compromise, but the idea has yet to gain traction within her party, leaving both the shutdown and the future of healthcare subsidies in limbo.
Trump and Xi to Meet in South Korea Amid Signs of Trade De-escalation
U.S. President Donald Trump is set to meet Chinese leader Xi Jinping in South Korea as both sides move to ease tensions in their long-standing trade dispute. The latest round of U.S.-China negotiations intensified last week after Beijing expanded export controls on rare earth minerals, prompting swift retaliatory threats from Washington. However, officials on both sides have since resumed dialogue. U.S. Treasury Secretary Scott Bessent confirmed that “substantial de-escalation” took place over the weekend, noting that Trump delayed the implementation of new tariffs until November 1 and would meet Xi to discuss next steps. Bessent added that multiple staff-level meetings are scheduled this week in Washington alongside the IMF and World Bank Annual Meetings, underscoring a renewed diplomatic effort to stabilize relations. He emphasized that the U.S. expects support from allies in Europe, India, and other Asian democracies, framing the dispute as a broader stand against state-controlled economic practices. “China is a command-and-control economy,” Bessent stated, “but they will not govern or control us.” The upcoming summit in Seoul is viewed as a pivotal opportunity to prevent a full-blown escalation and restore confidence in global trade cooperation.
https://internasional.kontan.co.id/news/menkeu-as-trump-siap-bertemu-xi-jinping-di-korea-selatan