Daily Update — July 16, 2025
China’s Hydrogen Pipeline; Security for Model Context Protocol; and US Tariffs on EU, Mexico
Today is Wednesday, July 16, 2025, and here’s your curated selection of Essential Intelligence on global markets from S&P Global. Subscribe to be notified of each new Daily Update.
Energy Transition & Sustainability
Chinese domestic hydrogen demand to compete with exports after Sinopec pipeline approval
Domestic hydrogen producers in the renewables-rich Chinese autonomous region of Inner Mongolia will be able to transport renewable hydrogen to industrial end users near Beijing following the Inner Mongolia Energy Bureau’s decision to approve an interprovincial green hydrogen pipeline to the capital.
The 400-km pipeline, to be built by state-owned Sinopec, will deliver hydrogen from Inner Mongolia to the Beijing-Tianjin-Hebei region. According to local media reports, Sinopec is expected to be the initial end user for the renewable hydrogen. The development of the hydrogen pipeline will help advance the hydrogen economy near the capital and in Inner Mongolia.
Artificial Intelligence
Listen: Security for MCP
The Model Context Protocol — a standard for connecting large language models with datasets and tools — has accelerated access to a wide range of data sources for AI applications. However, there are questions about the security and trust implications of a protocol still in its infancy. S&P Global Market Intelligence analysts Scott Crawford and Justin Lam returned to the “Next in Tech” podcast with host Eric Hanselman to examine the concerns and changes surrounding the specification.
Understanding risk and establishing trust are key issues for the protocol. Data exposure has been a constant concern in AI, but there are more complex issues regarding data integrity. AI is developing rapidly, and adversaries looking to compromise it are keeping pace.
Global Trade
US imposes 30% tariffs on EU, Mexico imports from Aug. 1; steel, automotive products in focus
The US will impose 30% tariffs on all imports from the EU and Mexico from Aug. 1, affecting key commodities such as steel and energy, as well as automotive products.
US President Donald Trump announced the tariffs in letters sent to the presidents of the European Commission and Mexico, which he posted July 12 on Truth Social. In both letters, Trump said that no tariffs would be applied if each market manufactures products in the US. The EU and Mexico are leading trade partners of the US.
In case you missed it
- Iraq's Oil Marketing Co., known as SOMO, raised its official selling price differential for August-loading crudes to Asia and Europe and most grades to North and South America.
- The US potash market is expected to remain unaffected by 35% tariffs on Canadian imports starting Aug. 1.
- A second successive jump in Saudi crude production pushed OPEC+ crude output up by 600,000 b/d.
Upcoming events
- Reshaping the Rules: Understanding the NAIC’s Proposed Investment Framework Overhaul | July 17 (Webinar)
- Talk to the Specialists - Analyzing U.S. datacenter and energy requirements in fast-growing markets | July 22 (Webinar)
- Factoring Climate Risk into Decarbonization | July 23 (Webinar)
- Look Forward: The Future of Capital Markets | Webinar Replay