International News 26 August 2026
-
German Business Sentiment Reaches One-Year High Amid Economic Recovery
Business optimism in Germany is steadily gaining momentum, with the ifo Institute's business climate index climbing to 88.8 points in August 2026. Marking its fourth consecutive monthly increase, the indicator has now reached its highest level since August 2025. This latest reading significantly outpaced market forecasts, which had projected a more modest rise to 87.2 points, and reflects a solid improvement from July's figure of 86.7 points. The surge in positive sentiment is driven by German companies expressing greater satisfaction with their current operations, as well as a much more optimistic outlook for the months ahead. The current conditions index improved to 88.5 points from 86.5 in July, while the expectations index saw a notable jump to 89.1 points. Clemens Fuest, President of the ifo Institute, noted that these encouraging metrics signal a definitive phase of recovery for the German economy, demonstrating remarkable resilience even as energy prices continue to rise.
Unprecedented Energy Crisis Looms as Conflicts Disrupt Over 40% of Global Oil Supply
In 2026, nearly half of the world's oil output is tied to nations actively involved in geopolitical conflicts, creating an energy supply disruption that surpasses the scale of previous historical crises. According to a Reuters analysis utilizing International Energy Agency (IEA) data, these conflict-stricken countries are responsible for generating approximately 45 million barrels per day based on 2025 levels. This staggering figure accounts for more than 43% of the total global oil supply. This severe supply shock escalated significantly following U.S. and Israeli military strikes against Iran roughly six months ago, triggering one of the most substantial oil crises on record with no immediate resolution in sight. Concurrently, the ongoing war between Russia and Ukraine continues to heavily constrain crude production and refining capabilities, creating regional ripple effects that have forced neighboring nations like Kazakhstan to scale back their own petroleum operations this year.
US Weighs Additional 7.5% Tariff on Chinese Goods Ahead of Trump-Xi Summit
The United States is reportedly preparing to impose an additional 7.5% tariff on Chinese imports in response to alleged manufacturing overcapacity. This new levy, which could be announced prior to a scheduled September 2026 meeting in Washington between President Donald Trump and Chinese President Xi Jinping, would bring the total tariffs on Chinese products during Trump's second term to approximately 20%. According to Beijing, this 20% threshold remains within the acceptable limits of the ongoing trade truce between the two economic superpowers. While Bloomberg reports that the final rate is still under deliberation, one proposed strategy involves setting a higher baseline tariff but suspending a portion of it to achieve an effective 7.5% rate. This potential tariff hike is part of the Trump administration's broader effort to reinstate protectionist trade policies utilizing a Section 301 investigation under the 1974 Trade Act, following the U.S. Supreme Court's rejection of his previous global tariffs. Washington aims to conclude this overcapacity probe before the upcoming September 24 summit, right as both nations are actively discussing the extension of a one-year trade truce set to expire on November 10. Carefully calibrated to avoid triggering a severe escalation in the trade war, this move follows a separate 12.5% tariff imposed in July over forced labor concerns. China, which condemned the July measure but refrained from immediate retaliation, has urged the U.S. to strictly adhere to the mutually agreed 20% cap on additional tariffs.
https://internasional.kontan.co.id/news/trump-siapkan-tarif-baru-75-untuk-barang-china