Latest news for 31 July 2025

SOUTH KOREA

Truce?

President Trump says he’ll impose a 15% tariff (down from Liberation Day’s 25%) on long-time US ally South Korea, in exchange for $350B in investments and $100B in energy purchases. The US president says Korea will now be “completely open” to US products while giving Trump personal control over where Seoul’s investments go. President Lee is due to visit the White House in the next two weeks. (Chosun)

Comment: The details are similar to other recent deals the US president has announced: immediate 15% tariffs, plus longer-term investment and energy pledges. Meanwhile, Trump told reporters the US will also impose 25% tariffs on India “plus an unspecified penalty” for buying Russian oil and weapons: they can “take their dead economies down together, for all I care.”

UNITED STATES

Not yet!

The Fed has held rates steady despite intense pressure from President Trump (and a very awkward press conference last week), sending the dollar soaring and stocks tumbling. Two Trump-appointed Fed governors dissented in favour of cuts, but Powell held firm, telling markets to wait for more data despite borrowing costs remaining at their highest level since before the 2023 inflation fight began. (ABC)

Comment: We haven’t seen that level of internal Fed dissent in decades, arguably reflecting both a) current economic uncertainty, and b) the current political pressure.

ANGOLA

Oil unrest.

Protests over fuel prices have turned deadly with at least 22 killed and 200 injured, as taxi strikes over a 33% diesel hike morph into riots, looting, and gunfire. President Lourenço has dismissed it all as a pretext to undermine his government, but with hospitals overwhelmed, flights cancelled, and supermarkets ransacked, the oil-rich nation now faces its most serious civil upheaval in years. (TRT Global)

CHINA

It’s showtime.

China and Russia have announced joint drills near Vladivostok in August, coinciding with the US Air Force holding its “biggest combat exercise in the region”. Beijing insists the 11th iteration of these ‘Joint Sea’ drills isn’t aimed at any country, but the timing speaks volumes as Russia and China deepen their military ties. (SCMP)

Comment: These exercises might present as two powerful allies working together as a show of force against the US and its allies, but it’s also a chance for China to solidify its senior status within its relationship with Russia.

UNITED STATES

Second runner-up.

Tech giant Microsoft became the second company to reach the $4 trillion market cap benchmark in after-hours trading Wednesday, after announcing better-than-expected quarterly earnings. Nvidia beat Microsoft by a few weeks. (CNBC)

CHINA

Are these safe?

Beijing has summoned Nvidia executives to discuss some “serious security issues” around the US firm’s H20 AI chip, which is purpose-built to clear US export controls against China. China’s concern? Potential “tracking and positioning functions” and fears of a “remote shutdown” function. (WP $)

Comment: We flagged surprise at the time when the White House suddenly allowed H20 sales again — was there a quiet deal? It seems the same question is fomenting a bit of paranoia in Beijing.

UNITED KINGDOM

Fight or flight.

Disruptions at one of the world’s busiest travel hubs could continue for the next few days after Britain’s air traffic control systems went dark for 20 minutes on Wednesday, grounding and diverting flights from the country. (Euronews)