International News 24 December 2025
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Australian Stocks Rise on Mining Rally Ahead of RBA Minutes
Australian equities advanced on Tuesday (Dec 23), supported by gains in mining stocks as commodity prices strengthened. The benchmark S&P/ASX 200 rose 0.4% to 8,735.9, touching its highest level in more than five weeks during the session. The mining sector climbed 0.4%, trimming earlier gains, in line with higher iron ore prices amid tight supply—particularly for BHP’s Jimblebar and Jingbao fines—while copper traded at record highs. BHP shares rose 1.3%, and Rio Tinto gained up to 1.4%, hitting a new all-time high. The mining index, which lagged the broader market for much of 2024, is now on track for nearly 40% annual gains, further supported by strong rallies in gold producers as global gold prices surge. Investors are now awaiting the release of the Reserve Bank of Australia’s December meeting minutes, due around 00:30 GMT, for clues on the interest-rate outlook in 2026. Markets currently price in nearly a 30% chance of a 25-basis-point rate hike at the RBA’s February meeting. Elsewhere, Goodman Group jumped 6.9% to its highest level since early November after announcing a A$14 billion (US$9.32 billion) data-center partnership with Canada Pension Plan Investment Board in Europe, lifting the property sector by 2.4%. Financial heavyweights edged up 0.2%, led by Commonwealth Bank of Australia (+0.6%). Meanwhile, New Zealand’s S&P/NZX 50 rose 0.2% to 13,530.44.
China Imposes Up to 42.7% Tariffs on EU Dairy in Escalating Trade Dispute
China will impose temporary import duties of up to 42.7% on selected dairy products from the European Union starting Tuesday (Dec 23, 2025), following the conclusion of a preliminary anti-subsidy investigation. The move is widely seen as retaliation for EU tariffs on Chinese-made electric vehicles. According to reports, the duties will range from 21.9% to 42.7%, with most companies facing tariffs of around 30%. Affected products include milk and cheese, including protected-origin items such as France’s Roquefort and Italy’s Gorgonzola. The European Commission condemned the decision as “unjustified and unjustifiable,” arguing that the investigation is based on questionable claims and insufficient evidence. The measures are provisional and may be revised in the final ruling, as seen previously when China lowered tariffs on EU pork. Trade tensions between China and the EU have intensified since 2023, when Brussels launched its anti-subsidy probe into Chinese EVs. Beijing has since imposed duties on EU brandy, pork, and now dairy products, though it has occasionally softened their impact by exempting certain major producers. In 2024, China imported US$589 million worth of EU dairy products covered by the investigation. Around 60 companies, including Arla Foods, will face tariffs near 29%, while FrieslandCampina units face the highest rate of 42.7%. Chinese authorities argue the measures protect domestic producers struggling with oversupply and falling prices. Overall, the move signals a broadening China–EU trade conflict into the food sector, raising risks of prolonged global trade uncertainty if negotiations fail to ease tensions.
Trump’s 2025 Tariff Shock Reshapes Global Trade Landscape
President Donald Trump’s return to the White House in 2025 sent shockwaves through global trade, as sweeping tariffs on U.S. trading partners pushed average import duties close to 17%, up from under 3% at the end of 2024—the highest levels since the Great Depression, according to Yale Budget Lab. The measures, aimed at reviving U.S. manufacturing, now generate roughly US$30 billion per month in government revenue and have forced global leaders to rush to Washington to renegotiate trade terms, often in exchange for large-scale investment pledges in the United States. Framework agreements were reached with key partners including the EU, UK, Japan, South Korea, Switzerland, and Vietnam, while a comprehensive deal with China remains elusive despite multiple negotiation rounds. Despite dire predictions, a global economic meltdown failed to materialize. Europe adapted to the new tariff regime through exemptions and market diversification, with Societe Generale estimating the direct impact at just 0.37% of EU GDP, even as the EU’s 15% tariff deal drew political backlash. China, meanwhile, posted a record US$1 trillion trade surplus, diversifying exports, moving up the value chain, and leveraging its dominance in rare earth minerals. The U.S. economy briefly contracted in Q1 due to pre-tariff import surges but rebounded strongly on robust consumer spending and an AI-driven investment boom. The IMF raised its global growth outlook twice after Trump’s “Liberation Day” tariffs, while U.S. inflation remained elevated but manageable, with tariff costs spread across supply chains rather than triggering a sustained price shock.