Trade Tensions Industrial Struggles and Housing Pressures Shake Global Markets
The global economy is wavering between trade disputes, industrial crises, and mounting real estate pressures.
Topic
Negotiations
U.S.-China trade talks expected amid rising tensions
China’s chief trade negotiator, Li Chenggang, is heading to Washington to launch a first round of discussions with U.S. officials.
The move is seen as an attempt to reopen dialogue channels between the world’s two largest economies after a period of escalating friction.
Talks are expected to focus on contentious issues, including tariffs imposed by the Trump administration on Chinese imports and restrictions on technology exports to Beijing, particularly in the vital semiconductor sector.
According to informed sources, Beijing is also seeking to boost imports of U.S. agricultural products—especially soybeans—in an effort to achieve a more balanced trade relationship.
Global financial markets are closely watching the talks,
with investors viewing any breakthrough in the trade dispute as a positive signal.
At the same time, fears remain that negotiations could stall again, as happened in previous rounds,
already reflected in early-week volatility in Asian markets.
Germany
German industry loses a quarter million jobs since 2019 as auto sector struggles
A new study by Ernst & Young (EY) published Tuesday showed that Germany’s industrial sector continues to shed jobs at an accelerating pace, under pressure across the manufacturing base of Europe’s largest economy.
The report revealed that employment in German industrial companies fell 2.1% in the second quarter of 2025,
bringing the total workforce down to 5.43 million.
Compared to 2019 levels, the sector has lost around 245,500 jobs, a 4.3% decline over six years.
Industry revenues reached €533 billion ($623.9 billion) in Q2, down 2.1% year-on-year, after a slight 0.2% decline in Q1.
The auto industry was hit hardest, losing 51,500 jobs in the second quarter alone—a 6.7% annual drop.
This decline is linked to intensified competition from Asian manufacturers,
rising costs tied to the shift toward electric vehicles, and the impact of recent U.S. tariffs.
United States
U.S. new home sales fall in July despite lower prices
The U.S. housing market slowed in July, as new home sales declined despite lower prices and relatively stable supply levels.
Data released Monday by the U.S. Census Bureau showed that sales of new single-family homes dropped 0.6% month-on-month to 652,000 units, down from 656,000 in June. Compared to July 2024, sales fell 8.2%.
On supply, the Bureau estimated 499,000 new homes available for sale at the end of July—a 0.6% monthly decline but still 7.3% higher than the previous year.
As for prices, the median sales price fell to $487,300 in July,
down 3.6% from June and 5% year-on-year.
This reflects ongoing pressure on the U.S. housing market, driven by high financing costs despite easing prices.
Trade Tensions Industrial Struggles and Housing Pressures Shake Global Markets