Markets Wobble as Trump Threatens New Tariffs on EU and Mexico
Trump announced plans to slap 30% tariffs on goods from the European Union and Mexico, following a series of other recent tariff threats—like 50% on copper and Brazilian goods, 35% on Canadian goods, and up to 200% on pharmaceuticals.
While these moves raise concerns about a negative impact on the global economy, investors remain hopeful that trade deals will be reached before the White House's August 1 deadline.
Trump said the new tariffs were in response to Mexico's role in illegal drug trade and a trade imbalance with the EU. The announcement disrupted months of ongoing trade talks between the US and EU.
Despite the tension, European Commission President Ursula von der Leyen said the EU is still committed to reaching an agreement. In a goodwill gesture, the EU also postponed retaliation over separate US steel and aluminum duties.
However, the EU has warned that it could hit back with €100 billion ($117 billion) worth of tariffs on US goods, including cars and planes, if talks break down.
French President Emmanuel Macron supported a deal but said the EU should also prepare strong countermeasures just in case.
Analysts noted that it's surprising to see Trump targeting Mexico and Canada, especially after he signed a trade deal with them during his first term.
Meanwhile, Bitcoin hit a new record of $122,582, and Chinese exports rose more than expected in June, especially to the US, after a recent trade truce between Beijing and Washington.
Investors are also watching the Federal Reserve, as Trump criticized its chairman, Jerome Powell, saying, 'I hope he quits.' Reports suggest Trump allies are even looking into Powell's handling of a costly Fed building renovation, possibly building a case to remove him.
Experts warn that removing Powell could shake the Fed's independence, push interest rates higher, and cause the US dollar to fall.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Insider
3 hours ago
- Gulf Insider
Trump Wants Gaza Deal 'Straightened Out' Within The Next Week
President Trump on Sunday said he hopes a ceasefire deal in Gaza can be finalized within this week, in comments made to reporters before boarding a flight to attend yesterday's FIFA Club World Cup Final. When asked about the ongoing crisis in Gaza, he responded, 'We're talking, and hopefully we'll get that straightened out over the next week. Let's see what happens.' While there had been anticipation in Israel for a deal announcement during Prime Minister Benjamin Netanyahu's recent visit to Washington DC last week, recent days have seen the typical non-committal, ambiguous statements out of both Washington and Tel Aviv. The war looks to have no solutions, given the stated goals of Israel and the United States. Middle East envoy Steve Witkoff expressed optimism Sunday, saying he was 'hopeful' an agreement could be reached. But as it stands the Netanyahu government is still insisting on the full disarming of Hamas, while Hamas for its part wants full withdrawal of the Israeli military. Neither is expected to happen, and at this point it looks to be a fight to the death – with Israeli hostages still in limbo (and many feared dead) – and thousands of Palestinian civilians getting slaughtered each week. Currently, a plan floated by some Israeli officials for a designated 'humanitarian city' inside a sector of Gaza has continued to be met with immense pushback. Critics call it in effect a 'concentration camp' – while many within Israel say it is logistically impossible. The plan was announced by Israel's Defense Minister Israel Katz last week: Israeli affairs analyst, Dan Perry, says the plan to build a 'humanitarian city' would involve 'by all indications a very long process' to build and maintain, while the country does not have the 'funds or the energy or the desire' to do so. 'I think this has to be viewed in the context of the current negotiations where the very reporting of such a plan might be an effort to put pressure on Hamas to show more flexibility,' Perry told Al Jazeera. 'I agree with [opposition leader Yair] Lapid that it is a security, political and logistical nightmare. I would add that it's ethically inadmissible,' he added. And so it is unlikely to get off the ground. In the meantime aid delivery continues to also be mired in controversy and scandal, as American military contractors have reportedly fired on hungry Palestinians. Reports say the IDF troops have shot dead scores of Palestinians seeking the aid, and UN and international rights groups have slammed the unsafe aid station set-ups. 'At least 798 killed' at Gaza aid points – as medical charity warns acute malnutrition at all-time high | World News | Sky News — William Dalrymple (@DalrympleWill) July 12, 2025
Gulf Insider
3 hours ago
- Gulf Insider
It's Not Too Late To Become A Bitcoin Billionaire. Here's What You Need To Do
If you're curious about Bitcoin but haven't made a move yet, you're not alone. The hardest part is getting off zero. That place of paralysis — where you're interested, but overwhelmed — is where so many people get stuck. But, like anything, the way forward is a single goal broken down into manageable steps. Let's say your goal is to accumulate as much Bitcoin as possible before adoption goes mainstream. That's a great objective. If I were starting from zero today, here's exactly what I'd do: Start by opening an account with a cryptocurrency exchange. If you're in the UAE, BitOasis is a good option. It's intuitive and easy to use. You'll need to complete a process called KYC, or Know Your Customer, by providing basic ID documents. Down the road, the platform might ask you to verify your knowledge about investing before allowing higher-level transactions. Don't stress, it's standard and manageable. Don't throw your savings at Bitcoin right away. Don't think you have to go in even with a few thousand dirhams. Start with Dh100, Dh250, or Dh500. Pick an amount you can afford to lose and more importantly, afford to continue investing regularly. Think small, sustainable, and repeatable. Pick a daily, weekly, or monthly investment amount and stick to it. This strategy is called dollar-cost averaging, and it protects you from trying to 'time' the market. You'll be buying Bitcoin at a variety of prices, and over time, that averages out. The key here is long-term commitment. You're not in this to make a quick buck — you're buying and holding a scarce digital asset. After years of struggling to save regularly, doing this with Bitcoin has proved not only doable but also addictive. Remember: there will only ever be 21 million Bitcoins. And institutional investors are already scooping them up in a major way. That alone is reason enough to get serious. Understanding why Bitcoin matters is essential. Start with reading The Bitcoin Standard by Saifedean Ammous. Watch Strategy founder and Bitcoin maximalist Michael Saylor's talks — he speaks clearly and compellingly about Bitcoin's value from a corporate perspective, but it translates to individuals, too. I also like Mark Moss, who talks about how to retire using Bitcoin on YouTube. Subscribe to Bitcoin newsletters like The Daily Bitcoiner and set up Google Alerts for 'Bitcoin news' to stay in the loop. This part might surprise you. But in the beginning, don't talk about your investments. Most people don't understand Bitcoin and their scepticism will chip away at your confidence. They might also make fun of you. (The joke's on them, but it will probably take awhile for that to become apparent. Who needs ridicule from the obtuse?) Instead, seek out others who are knowledgeable and positive about the space. It'll help you stay grounded as you learn. Bitcoin isn't a sprint — it's a marathon. This isn't crypto madness; it's sound money. The learning curve is steep, but it's worth it. Over time, as your knowledge grows, so will your conviction. And as your Bitcoin balance grows, you'll reach a point where you're ready to take the next step. When you reach an amount you'd be uncomfortable losing — only you will know when this is — it's time to move your Bitcoin off the exchange and into a wallet you control. A hardware wallet like Ledger is a great option. This will involve setting up a 'seed phrase' — a set of words that gives you access to your Bitcoin. Never lose it. Never share it. Keep it safe in multiple secure locations. Once you're comfortable with Bitcoin, you might want to expand your learning: Raoul Pal is a brilliant voice in the space. Coach John Vasquez (coach JV) offers accessible foundational courses. Mike Dillard's 'Richer Every Day' community and his Crypto 101 course are excellent resources. Eventually, maybe other large, mid or small cap projects will catch your eye. Always do your own research. As you go deeper, DCA still applies. But also remember: altcoins are riskier. Some may yield massive returns. Others may not. Always invest only what you're willing to lose. If we're heading into a bull run, and it seems like we might be, it's tempting to jump on every new coin. Be cautious. Don't buy at the top out of FOMO (fear of missing out) and don't give into FUD (fear, uncertainty, and doubt). Stay grounded in what you've learned, and what goal you are pursuing. As your confidence grows, something else happens. Your mindset starts to shift. You begin to notice more conversations, resources, and people in this space. You've awakened your reticular activating system to something new, which means your awareness has expanded. You're now open to new possibilities and in many ways, that's what this entire journey is about.
Gulf Insider
3 hours ago
- Gulf Insider
Bitcoin Is Draining The Value Out Of Real Estate
With nearly $400 trillion in global value, real estate is the world's largest asset class, over three times the size of the global stock market and nearly four times global GDP. As more people have put their savings in real estate, houses have evolved from shelter to inflation-hedging assets that carry a significant monetary premium. Whether it's San Francisco, London, or Prague, residential and commercial landlords keep investing in more buildings despite only earning a 3% net rental yield. The reason is very simple: real estate makes for great collateral. In normal market conditions, banks are always happy to lend against real estate, which is why nearly anyone can get a mortgage. With mortgages, property owners can access liquidity through initial financing, refinancing, second loans, and Home Equity Lines of Credit. Despite the excesses that triggered the 2008 crisis, this system has largely worked: mortgages have democratized credit, offering liquidity without giving up ownership. That's part of what made real estate the undisputed king of store-of-value assets. But here's a question: why only real estate? Imagine you're a lender choosing between three borrowers—one offers gold, another a Ferrari, and the third a house. Technically, all can be collateral. But in practice? The house wins every time. Why? Gold can easily be transferred overseas, and cars can be driven away. But real estate is tied to land. As long as the state enforces property rights, the lender's position is secure. But what if there were a form of collateral that didn't even rely on legal enforcement? Enter Bitcoin. David vs. Goliath As collateral, Bitcoin outperforms real estate on nearly every metric: it's always available, globally recognized, instantly transferable, programmable, and secured by cryptography rather than legal systems. While selling a property requires navigating local markets, appraisals, fees, capital controls, and regulatory hurdles, liquidating Bitcoin collateral can be as simple as clicking one button. Even though everybody is currently focused on ETFs or corporate treasuries, Bitcoin's natural next step, as institutional adoption grows, will be collateral markets. As soon as you democratize non-custodial Bitcoin-backed loans, BTC becomes usable capital, similar to how people have been treating their house. And if borrowing against Bitcoin becomes easier, safer, and cheaper than borrowing against real estate, why would anyone store wealth in houses? Simple: they won't. Generally speaking, real estate's value is determined based on the cash flows the property can generate, plus a market-driven monetary premium. Bitcoin, on the other hand, is a pure expression of monetary value, unburdened by physical constraints or ownership costs. As more capital flows into Bitcoin-backed credit markets, this monetary premium baked into property will inevitably collapse, and real estate will return to its utility value. Some indicators suggest this is already happening. The Tide is Changing Last year, Relai observed that real estate investors, private clients, and businesses have been 'flocking to Bitcoin, [considering it] the ultimate hedge against central banks and the dangers they bring with unexpected rate cuts.' Demographics reveal a clear generational shift: Millennials and Zoomers don't aspire as much to their grandparents' lifestyle of settling in one place. Many can no longer afford to buy a house because of the above-mentioned monetary premium. The rise of digital nomads and remote workers reveals a new reality—the ideal store of wealth today must be portable, global, and native to the internet. According to a 2024 survey, Zoomers are more invested in crypto (20%) than they are in stocks (18%), real estate (13%), or bonds (11%). The generational divide is even clearer when looking at Charles Schwab's survey: 62% of Millennials planned to invest in crypto ETFs last year, compared to only 15% of Baby Boomers. Bitcoin is poised to take a significant bite out of real estate's dominance. That's not just because it performs better as a store of value, but because lenders will prefer it as frictionless, programmable, and borderless collateral. As we have already seen a shift in generational preferences, if Bitcoin captures even a fraction of the monetary premium embedded in the $400T real estate market, tens of trillions worth of capital will rotate into it. That's not a tweak in capital flows—it's a global repricing event. Most people are not ready for how fast this will happen. But it's inevitable. Source Bitcoin Magazine
