Global Markets React to Trump's Tariff Threats and China GDP

China's economy has grown by 5.2% in the second quarter, beating expectations despite the looming threat of US President Donald Trump's tariffs and a struggling property market. The growth was driven by a 6.4% expansion in manufacturing and gains in the services sector. However, retail sales growth slowed in June, and new home prices fell at the fastest monthly pace in eight months. Economists remain uncertain about the second half of the year, with some predicting that China may miss its annual growth target of 'around 5%'.

The article discusses the reaction of stock markets to President Trump's announcement of 30% tariffs on European Union and Mexico starting August 1. European markets mostly fell, while Asian markets were mixed. The EU has delayed its planned retaliation and is still open to negotiations, with EU Commission chief Ursula von der Leyen stating that they have until August 1 to reach an agreement. The move has thrown months of talks with Brussels into disarray and has caused economic uncertainty.

The article discusses the impact of the US-China trade war on trade between the two countries. Despite a rush of orders ahead of new tariffs, US imports from China fell sharply in June. China's exports to the US dropped 16% in June, but the decline was less severe than in May. The trade data comes as the Trump administration and China are engaged in talks to resolve their trade dispute. China's overall trade growth remained robust, with exports climbing 5.8% year-on-year in June. However, experts warn that the outlook is uncertain due to the ongoing trade tensions.

Asia-Pacific markets mostly rose on Tuesday following China's second-quarter GDP growth of 5.2%, surpassing analyst forecasts. Singapore's Straits Times Index hit a fresh all-time high for the seventh consecutive session. China's property stocks fell as real estate investments continued to slide. Japan's government bond yields rose ahead of the upper house election. Indian stocks rose in early trade. The article also mentions the impact of Trump's tariffs on global trade and the rise in gold prices.

The article discusses recent developments in global markets and geopolitics, highlighting U.S. President Donald Trump's announcement to impose 100% secondary tariffs on countries buying Russian exports unless Russia ends its invasion of Ukraine within 50 days. Other key points include China's second-quarter economic growth beating expectations, the White House allowing Nvidia to resume chip exports to China, and U.S. stocks showing mild gains despite tariff threats.

Nvidia announced it will resume sales of its H20 AI chip to China 'soon' after the U.S. government assured the company that licenses will be granted. The move comes after Nvidia's CEO, Jensen Huang, met with U.S. President Donald Trump and lobbied against export controls. The H20 chip was designed to bypass earlier export controls but was halted in April when the U.S. government required Nvidia to obtain a license for sales to China.

The US inflation rate rose to 2.7% in June, its highest level in four months, as tariffs imposed by the Trump administration began to impact consumer prices. The Consumer Price Index (CPI) data showed that prices increased 0.3% in June, with categories such as home furnishings, toys, and appliances experiencing significant price hikes due to tariffs. Economists expect the effects of tariffs to continue to drive inflation higher as businesses pass on higher import costs to consumers.

China's economy grew 5.2% in the second quarter, exceeding expectations despite the ongoing US trade war. The growth was attributed to diversification efforts to non-US markets, which buoyed exports. However, economists warn that existing obstacles, including structural challenges and persistent deflationary pressure, could weigh on exports and slow economic momentum in the months ahead.

US President Donald Trump announced a trade agreement with Indonesia, which includes a 19% tariff on Indonesian exports, a reduction from the initially threatened 32%. Indonesia will not charge tariffs on US exports and has agreed to purchase $15 billion in US energy, $4.5 billion in American agricultural products, and 50 Boeing jets. The deal was negotiated directly between Trump and Indonesian President Prabowo Subianto.

The article analyzes President Donald Trump's recent shift in stance towards Russian President Vladimir Putin, suggesting that while Trump has criticized Putin in unprecedented terms, he is also rewriting history by claiming he never trusted Putin. The article highlights Trump's past statements and actions that demonstrate his previous trust in Putin, including vouching for Putin's credibility and dismissing concerns about Russian interference in the 2016 US election. The article argues that Trump's current criticism of Putin is accompanied by a healthy dose of revisionism, as he attempts to downplay his own past miscalculations and shift the blame to other American presidents.

President Trump's tariffs may disproportionately affect low-income households in the U.S. as they tend to buy more imported goods that are subject to tariffs. Economist Ernie Tedeschi of Yale's Budget Lab argues that Trump's tariffs are 'almost tailor-made' to hit lower-income families, potentially leading to a 4% drop in their purchasing power. The White House disputes this, claiming that the cost of tariffs will be borne by foreign exporters.

President Donald Trump has issued a 50-day deadline for Russia to 'make a deal' with Ukraine, warning that countries doing business with Russia will face a 100% tariff on trade with the US if no agreement is reached. The ultimatum is accompanied by a major agreement to supply Ukraine with new weapons from European stockpiles under NATO's auspices. This move is seen as a significant shift in Trump's approach, signaling the end of Russia's strategy of stalling for time and a major breakthrough for Ukrainian President Volodymyr Zelensky.

The article discusses President Trump's recent shift in stance on the Russia-Ukraine war, announcing a plan to send more weapons to Ukraine and threatening harsh penalties on Russia's trading partners if a cease-fire is not achieved within 50 days. However, details of the plan remain unclear, and experts doubt the credibility of Trump's threats, particularly given the potential impact on China's economy. The article highlights the transactional nature of Trump's approach and the efforts of NATO leaders and European partners to influence his stance on Ukraine.

China's economy grew steadily in the second quarter of 2025, driven by domestic investment and exports, despite President Trump's tariffs. The economy expanded 1.1% over the previous quarter, and is expected to grow at an annual rate of 4.1%. While consumer spending remains weak, factory investment is booming to meet export demand. China's exports to Southeast Asia, Europe, and Africa have jumped, offsetting a decline in exports to the US. The government has implemented measures to encourage spending, including subsidies for households to buy electric cars and other manufactured goods.

The article discusses the rising inflation in the US, partly due to President Trump's tariffs, and how it may impact the economy. The inflation rate rose to 2.7% in June, with prices increasing on appliances, clothing, and furniture. Economists warn that Trump's planned tariff expansion could further destabilize the economy and increase prices. The White House has downplayed the inflation report, but experts predict that the trend could lead to more significant price increases later. Trump has renewed his demand for the Fed to lower interest rates, despite the potential risks of worsening inflation.

China's economy grew 5.2% in Q2 2025, beating market forecasts and staying on track to meet its annual growth target of around 5%. Despite resilience in the face of the ongoing US trade war, analysts warn of potential slowdown in H2 2025 due to weak domestic demand, a wobbly job market, and looming US tariff risks.

Taiwanese leader William Lai Ching-te is reportedly planning a stopover trip to the US in August, potentially visiting New York and Texas, en route to South America. The trip is expected to anger Beijing. Lai is confirmed to visit Paraguay next month, and may also visit Guatemala and Belize. The choice of New York and Texas is seen as an attempt to avoid the political symbolism of visiting Washington, which would greatly anger Beijing. The stopover could be derailed if US-China ties improve, potentially prompting the US president to cancel Lai's visit to avoid jeopardizing a summit between Trump and Chinese President Xi Jinping.

The US is unlikely to secure public pledges from Japan and Australia on their actions in a potential conflict with China over Taiwan. Analysts see the US efforts to pressure its allies as a sign of 'weakening' confidence in managing regional tensions and as an attempt to hype up the 'China threat' to increase defence spending and military cooperation.

Australian Prime Minister Anthony Albanese met with Chinese President Xi Jinping in Beijing, where they discussed strengthening cooperation between the two countries despite global instability and tensions over issues like Taiwan and the Port of Darwin. Xi emphasized the need for Australia and China to 'unswervingly' work together, while Albanese promised 'patient, calibrated advocacy' on sensitive issues. The visit was marked by a confrontation between Australian journalists and Chinese security guards, highlighting China's strict media controls.