Lula and Modi Take Center Stage as BRICS Begins With Xi Absent
Brazil's Luiz Inacio Lula da Silva, hosting the two-day meeting of BRICS countries, took center stage, flanked by South Africa's Cyril Ramaphosa and India's Narendra Modi on either side. Other representatives from the newly-expanded bloc fanned out from there, with the most controversial international attendees — the foreign ministers of Russia and Iran — on either flank.
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Bloomberg
42 minutes ago
- Bloomberg
US Probe Forcing Brazil to Negotiate at Gunpoint, Lula Aide Says
A US trade probe suddenly ordered by President Donald Trump on Brazil sent shockwaves through President Luiz Inacio da Silva's government, according to a senior Brazilian diplomat who described it as an unwarranted threat that has helped to plunge relations to their lowest point in over a century. In an interview, Celso Amorim, Lula's top foreign policy adviser, sharply criticized the so-called Section 301 trade investigation into allegedly unfair restrictions on US exports to Brazil, Latin America's largest economy.
Yahoo
an hour ago
- Yahoo
Trump tariffs live updates: Trump says he'll send letters to over 150 countries, plans tariff barrage Aug. 1
President Trump on Wednesday said he would be sending letters to over 150 countries as he plans a barrage of duties to take effect Aug. 1, including levies on pharmaceutical imports and semiconductors. "We're just going to send a notice of payment out, and the notice of payment is going to say what the tariff" rate will be, Trump said. "It's all going to be the same for everyone, for that group." Earlier, Trump said drug and chip levies would come in August, putting them on track to be implemented alongside the paused "reciprocal" tariffs laid out in April, as well as planned tariffs on copper imports. The latest moves come as Trump has already sent letters to over 20 trade partners outlining tariffs on goods imported from their countries. The letters set new baseline tariff levels at 20% to 40% — except for a 50% levy on goods from Brazil in a move that waded into the country's domestic politics. Last week, Trump announced a 35% tariff on Canadian goods and followed that up with promises of 30% duties on Mexico and the EU. The EU has been preparing an extensive list of counter-tariffs that would affect $84 billion of American products should talks fail. The letters have at times upended months of careful negotiations, with Trump saying he is both open to reaching different deals but also touting his letters as "the deals" themselves. On Tuesday, Trump said his team has struck a trade deal with Indonesia that will see goods from the country face a 19% tariff, lowering the rate he had threatened in his letter. As markets focus on US talks, here is where things stand with other key partners: Vietnam: Trump said a deal with Vietnam is "pretty well set." Two weeks ago, Trump said the pact would see the country's imports face a 20% tariff — lower than the 46% Trump threatened in April. In addition, there's a higher 40% tariff "on any transshipping" — when goods shipped from Vietnam originate elsewhere, like China. India: Trump's tariffs on Brazil have raised the stakes for India, another member of the BRICS coalition. Bloomberg reported that the countries are working toward a framework deal that could see US tariffs on goods from India drop below 20%. Read more: What Trump's tariffs mean for the economy and your wallet Here are the latest updates as the policy reverberates around the world. Trump says he'll soon send letters to 150 countries, will 'live by the letter' on Japan President Trump on Wednesday said he'd soon send letters to over 150 countries that are smaller trade partners with the US, dictating tariff rates their goods will face coming into the US. He also said he would "live by the letter" with Japan — his letter last week had outlined a 25% tariff on Japanese imports — and hinted at a possible deal with India soon. From Bloomberg: And Reuters: Canada announces new tariff measures on non-US imported steel to protect domestic industry Reuters reports: Read more here. Striking trade deal with US was an 'extraordinary struggle,' Indonesia says Nearly 24 hours after President Trump announced a trade agreement with Indonesia on Tuesday, Indonesia's government confirmed the deal, saying that the talks were an "extraordinary struggle." A government spokesperson said Indonesia's President Prabowo Subianto negotiated the deal directly with Trump over the phone. 'This is an extraordinary struggle by our negotiating team led by the Coordinating Minister for Economic Affairs,' Hasan Nasbi, the Indonesian president's spokesperson, told Reuters. Trump stated that the agreement calls for the US to impose a 19% tariff on Indonesia's exports, whereas Indonesia would not charge any tariffs on American exports. Trump also said Indonesia committed to buying '$15 Billion Dollars in U.S. Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777's.' Read more here. France adds support for using most-potent trade tool on US France has reportedly joined fellow European Union members in deciding to respond more directly to looming tariff threats. If activated, the EU would take retaliatory action against the US in trade activity. Bloomberg reports: Read more here. Rio Tinto: Tariffs added $300 million in aluminum costs Bloomberg reports: Read more here. Vietnam trade deal is 'pretty well set', Trump says President Trump said a trade agreement with Vietnam is almost completed, after the US struck a preliminary deal with the Communist country earlier in July. That deal laid out a cut to planned US tariffs on imports from Vietnam, lowering the rate to 20% from the 46% level laid out in April's "Liberation Day" announcement. But Trump said at the time that goods illegally transshipped via Vietnam to other countries would face a 40% levy. On Tuesday, Trump told reporters at Joint Base Andrews near Washington that he could release details of the Vietnam trade agreement, but did not think it was necessary. Reuters reports: Read more here. Chip linchpin ASML warns on growth amid tariff headwinds ASML's (ASML) US-listed stock slumped in premarket trading after the chip industry linchpin said it may not achieve growth in 2026, citing tariff uncertainty as a factor. The warning came even as the world's biggest supplier of chipmaking gear's second quarter bookings topped Wall Street estimates on Wednesday. Reuters reported: Read more here. Trump says drug tariffs are probable by Aug. 1 Bloomberg reports: Read more here. Trump: Indonesia goods will see 19% tariff under new deal President Trump on Tuesday unveiled more details of an emerging trade agreement with Indonesia, saying the country's goods would face a 19% tariff when imported into the US. US goods will see no tariff when exported to Indonesia, Trump said. More from Bloomberg: Read more here. Trump tariff inflation is arriving Yahoo Finance's Rick Newman reports: Read more here. Indonesia's trade deficit with the US grew to $17.9 billion last year Here's a look at the US's trade relationship with Indonesia as we await further details about a deal. In 2024, the US's trade deficit with Indonesia increased by 5.4% ($923 million) to $17.9 billion. The total goods traded between the countries reached $38.3 billion that year, with the US exporting $10.2 billion in goods and importing $28.1 billion worth of products. According to OEC, Indonesia's largest export products to the US include palm oil, electrical machinery, and broadcasting equipment, and rubber products, as of 2023. The US exports petroleum products, soybeans, and aircraft to Indonesia. President Trump announced that the two countries had reached a deal, though he withheld details, on Tuesday, not long after leaders of Indonesia and the European Union met in Brussels over the weekend and struck their own agreement. The US has said it will impose 30% tariffs on the EU starting Aug. 1. Trump's Russia tariff threat risks relations with China, India President Trump's latest threat to impose secondary tariffs of up to 100% on Russia comes at a delicate time for trade talks with China and India, which are crucial to the Trump administration's economic and strategic goals. On Monday, Trump threatened to place a 100% tariff rate on Russia if it didn't make significant progress toward a peace deal with Ukraine in the next 50 days. He said the duties would be secondary, meaning they would penalize any nation that traded with Russia. Such tariffs would notably target China, in particular, as it's a major buyer of Russian oil. Bloomberg reports: Read more here. Trump says US has reached trade deal with Indonesia President Trump posted on Truth Social: Indonesia was facing 32% tariffs on exports to the US from Aug. 1. It was one of over 20 countries whose leaders Trump has sent letters to in the past week-plus, dictating the tariff rates their countries will face next month. Inflation accelerates in June as investors eye tariff-related price increases The latest consumer inflation report showed inflation accelerating in June, a sign that tariffs are beginning to affect consumer price increases. The latest data from the Bureau of Labor Statistics showed that the Consumer Price Index (CPI) increased 2.7% on an annual basis in June, an uptick from May's 2.4% gain, driven by a reversal in falling gas prices. Economists had expected headline inflation to come in at 2.6%. On a monthly basis, prices rose 0.3% compared to May's 0.1% uptick, matching economists' estimates. "Core" inflation, which excludes volatile food and energy costs, came in a little better than expected with a 0.2% monthly increase, compared to the 0.3% rise expected. Core CPI rose 2.9% over the past year in June, in line with estimates. 'This is just the initial onset of these tariff increases, and we're going to see more over the summer," EY chief economist Gregory Daco told Yahoo Finance in response to the inflation print. "I expect a very muggy summer when it comes to inflation." Read more here. China posts better-than-expected Q2 growth in face of Trump tariffs CNN reports: Read more here. European Union finalizes list of counter-tariffs totaling €72 billion The European Union has prepared a list of American goods that will be tariffed by the bloc should a mutually beneficial trade deal be reached by the Aug 1 deadline set by Trump last week. With just shy of 20% of US trade being done with the EU, there's a swath of industries that will be impacted by the tariffs should they come into effect. The full list of impacted products totals €72 billion ($84 billion USD). Bloomberg reports: Read more here. The issues at play in negotiations with America's top trading partners In recent weeks, President Trump postponed the tariff deal deadline to Aug. 1 and sent letters to the leaders of 25 countries informing them of new tariff rates. But one factor complicating negotiations in the days ahead is that each trade relationship faces its own set of complex issues. And while most issues center on particular industries or trade barriers, others don't seem to directly pertain to trade, as in the case of Brazil and Trump's opposition to its Supreme Court trial of former President Jair Bolsonaro. The chart below highlights the top issues for the US's top trading partners, which make up 85% of US trade. It also highlights the challenge of inking one-off deals with each partner, as was revealed the first time the Trump team boldly predicted 90 deals in 90 days. Talks with Canada, for instance, are likely to focus on oil and potash, whereas the Trump administration's dealings with Japanese officials are likely to center around automobiles and general market openness. Transshipping, when cargo is routed through a third country to avoid tariffs, has become a particularly tricky issue for many Southeast Asian countries, as companies look to circumvent tariffs on Chinese goods. EU warns of 'big gap' after Trump's threat of 30% tariffs The European Union on Monday warned of a "big gap" in trade talks after President Trump's threat of a 30% tariff on the bloc from Aug. 1. "We've been quite close in agreeing the text on the [trade] agreement in principle, but there have been clearly areas where we have quite a big gap between our two positions," said Maroš Šefčovič, the EU's lead trade negotiator, per The Financial Times. Trump's threat appears to have "confounded" the EU, with Šefčovič warning that it would make trade between the US and EU "almost impossible." For his part on Monday, Trump said he is open to more negotiations, including with the EU. But he also repeated a refrain that "the letters are the deals." The EU "would like to do a different kind of deal," he said. "We're always open to talk. We are open to talk, including to Europe. In fact, they're coming over. They'd like to talk." Trump threatens 100% tariffs on Russia over war in Ukraine President Trump on Monday threatened to hit Russia with tariffs of up to 100% as he grows increasingly frustrated with the country and President Putin over the lack of progress toward ending the war in Ukraine. The tariffs Trump floated would be so-called secondary tariffs, which would theoretically apply to countries that trade with Russia on their imports to the US. Per the FT: Trump also confirmed plans to provide weapons to Ukraine, including Patriot missile systems that Ukraine has urged the US to send. US trade with Russia has plummeted amid the Ukraine war, with Russia now ranking out of the top 50 US partners on imports, according to 2024 US Census data. But Russia still trades with many countries in Europe and Asia — most notably China. Reebok founder on Trump tariffs: It's virtually impossible to make sneakers in US Reebok founder Joe Foster weighed in on the realities of President Trump's tariffs that are pressuring Reebok and its rivals, such as Nike (NKE), Under Armour (UAA), and Skechers (SKX). Shifting sneaker manufacturing from China and Vietnam to the US would be 'virtually impossible overnight,' Foster said in a new episode of the Opening Bid Unfiltered podcast. 'It's not something you can just turn the switch on,' Foster said. 'You've got to go somewhere where you've got a lot of people who are quite willing to sit on a machine [and the] production line. That doesn't happen overnight. In fact, in the UK, we can't get people to do that. They won't do it.' Read more here. Trump says he'll soon send letters to 150 countries, will 'live by the letter' on Japan President Trump on Wednesday said he'd soon send letters to over 150 countries that are smaller trade partners with the US, dictating tariff rates their goods will face coming into the US. He also said he would "live by the letter" with Japan — his letter last week had outlined a 25% tariff on Japanese imports — and hinted at a possible deal with India soon. From Bloomberg: And Reuters: President Trump on Wednesday said he'd soon send letters to over 150 countries that are smaller trade partners with the US, dictating tariff rates their goods will face coming into the US. He also said he would "live by the letter" with Japan — his letter last week had outlined a 25% tariff on Japanese imports — and hinted at a possible deal with India soon. From Bloomberg: And Reuters: Canada announces new tariff measures on non-US imported steel to protect domestic industry Reuters reports: Read more here. Reuters reports: Read more here. Striking trade deal with US was an 'extraordinary struggle,' Indonesia says Nearly 24 hours after President Trump announced a trade agreement with Indonesia on Tuesday, Indonesia's government confirmed the deal, saying that the talks were an "extraordinary struggle." A government spokesperson said Indonesia's President Prabowo Subianto negotiated the deal directly with Trump over the phone. 'This is an extraordinary struggle by our negotiating team led by the Coordinating Minister for Economic Affairs,' Hasan Nasbi, the Indonesian president's spokesperson, told Reuters. Trump stated that the agreement calls for the US to impose a 19% tariff on Indonesia's exports, whereas Indonesia would not charge any tariffs on American exports. Trump also said Indonesia committed to buying '$15 Billion Dollars in U.S. Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777's.' Read more here. Nearly 24 hours after President Trump announced a trade agreement with Indonesia on Tuesday, Indonesia's government confirmed the deal, saying that the talks were an "extraordinary struggle." A government spokesperson said Indonesia's President Prabowo Subianto negotiated the deal directly with Trump over the phone. 'This is an extraordinary struggle by our negotiating team led by the Coordinating Minister for Economic Affairs,' Hasan Nasbi, the Indonesian president's spokesperson, told Reuters. Trump stated that the agreement calls for the US to impose a 19% tariff on Indonesia's exports, whereas Indonesia would not charge any tariffs on American exports. Trump also said Indonesia committed to buying '$15 Billion Dollars in U.S. Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777's.' Read more here. France adds support for using most-potent trade tool on US France has reportedly joined fellow European Union members in deciding to respond more directly to looming tariff threats. If activated, the EU would take retaliatory action against the US in trade activity. Bloomberg reports: Read more here. France has reportedly joined fellow European Union members in deciding to respond more directly to looming tariff threats. If activated, the EU would take retaliatory action against the US in trade activity. Bloomberg reports: Read more here. Rio Tinto: Tariffs added $300 million in aluminum costs Bloomberg reports: Read more here. Bloomberg reports: Read more here. Vietnam trade deal is 'pretty well set', Trump says President Trump said a trade agreement with Vietnam is almost completed, after the US struck a preliminary deal with the Communist country earlier in July. That deal laid out a cut to planned US tariffs on imports from Vietnam, lowering the rate to 20% from the 46% level laid out in April's "Liberation Day" announcement. But Trump said at the time that goods illegally transshipped via Vietnam to other countries would face a 40% levy. On Tuesday, Trump told reporters at Joint Base Andrews near Washington that he could release details of the Vietnam trade agreement, but did not think it was necessary. Reuters reports: Read more here. President Trump said a trade agreement with Vietnam is almost completed, after the US struck a preliminary deal with the Communist country earlier in July. That deal laid out a cut to planned US tariffs on imports from Vietnam, lowering the rate to 20% from the 46% level laid out in April's "Liberation Day" announcement. But Trump said at the time that goods illegally transshipped via Vietnam to other countries would face a 40% levy. On Tuesday, Trump told reporters at Joint Base Andrews near Washington that he could release details of the Vietnam trade agreement, but did not think it was necessary. Reuters reports: Read more here. Chip linchpin ASML warns on growth amid tariff headwinds ASML's (ASML) US-listed stock slumped in premarket trading after the chip industry linchpin said it may not achieve growth in 2026, citing tariff uncertainty as a factor. The warning came even as the world's biggest supplier of chipmaking gear's second quarter bookings topped Wall Street estimates on Wednesday. Reuters reported: Read more here. ASML's (ASML) US-listed stock slumped in premarket trading after the chip industry linchpin said it may not achieve growth in 2026, citing tariff uncertainty as a factor. The warning came even as the world's biggest supplier of chipmaking gear's second quarter bookings topped Wall Street estimates on Wednesday. Reuters reported: Read more here. Trump says drug tariffs are probable by Aug. 1 Bloomberg reports: Read more here. Bloomberg reports: Read more here. Trump: Indonesia goods will see 19% tariff under new deal President Trump on Tuesday unveiled more details of an emerging trade agreement with Indonesia, saying the country's goods would face a 19% tariff when imported into the US. US goods will see no tariff when exported to Indonesia, Trump said. More from Bloomberg: Read more here. President Trump on Tuesday unveiled more details of an emerging trade agreement with Indonesia, saying the country's goods would face a 19% tariff when imported into the US. US goods will see no tariff when exported to Indonesia, Trump said. More from Bloomberg: Read more here. Trump tariff inflation is arriving Yahoo Finance's Rick Newman reports: Read more here. Yahoo Finance's Rick Newman reports: Read more here. Indonesia's trade deficit with the US grew to $17.9 billion last year Here's a look at the US's trade relationship with Indonesia as we await further details about a deal. In 2024, the US's trade deficit with Indonesia increased by 5.4% ($923 million) to $17.9 billion. The total goods traded between the countries reached $38.3 billion that year, with the US exporting $10.2 billion in goods and importing $28.1 billion worth of products. According to OEC, Indonesia's largest export products to the US include palm oil, electrical machinery, and broadcasting equipment, and rubber products, as of 2023. The US exports petroleum products, soybeans, and aircraft to Indonesia. President Trump announced that the two countries had reached a deal, though he withheld details, on Tuesday, not long after leaders of Indonesia and the European Union met in Brussels over the weekend and struck their own agreement. The US has said it will impose 30% tariffs on the EU starting Aug. 1. Here's a look at the US's trade relationship with Indonesia as we await further details about a deal. In 2024, the US's trade deficit with Indonesia increased by 5.4% ($923 million) to $17.9 billion. The total goods traded between the countries reached $38.3 billion that year, with the US exporting $10.2 billion in goods and importing $28.1 billion worth of products. According to OEC, Indonesia's largest export products to the US include palm oil, electrical machinery, and broadcasting equipment, and rubber products, as of 2023. The US exports petroleum products, soybeans, and aircraft to Indonesia. President Trump announced that the two countries had reached a deal, though he withheld details, on Tuesday, not long after leaders of Indonesia and the European Union met in Brussels over the weekend and struck their own agreement. The US has said it will impose 30% tariffs on the EU starting Aug. 1. Trump's Russia tariff threat risks relations with China, India President Trump's latest threat to impose secondary tariffs of up to 100% on Russia comes at a delicate time for trade talks with China and India, which are crucial to the Trump administration's economic and strategic goals. On Monday, Trump threatened to place a 100% tariff rate on Russia if it didn't make significant progress toward a peace deal with Ukraine in the next 50 days. He said the duties would be secondary, meaning they would penalize any nation that traded with Russia. Such tariffs would notably target China, in particular, as it's a major buyer of Russian oil. Bloomberg reports: Read more here. President Trump's latest threat to impose secondary tariffs of up to 100% on Russia comes at a delicate time for trade talks with China and India, which are crucial to the Trump administration's economic and strategic goals. On Monday, Trump threatened to place a 100% tariff rate on Russia if it didn't make significant progress toward a peace deal with Ukraine in the next 50 days. He said the duties would be secondary, meaning they would penalize any nation that traded with Russia. Such tariffs would notably target China, in particular, as it's a major buyer of Russian oil. Bloomberg reports: Read more here. Trump says US has reached trade deal with Indonesia President Trump posted on Truth Social: Indonesia was facing 32% tariffs on exports to the US from Aug. 1. It was one of over 20 countries whose leaders Trump has sent letters to in the past week-plus, dictating the tariff rates their countries will face next month. President Trump posted on Truth Social: Indonesia was facing 32% tariffs on exports to the US from Aug. 1. It was one of over 20 countries whose leaders Trump has sent letters to in the past week-plus, dictating the tariff rates their countries will face next month. Inflation accelerates in June as investors eye tariff-related price increases The latest consumer inflation report showed inflation accelerating in June, a sign that tariffs are beginning to affect consumer price increases. The latest data from the Bureau of Labor Statistics showed that the Consumer Price Index (CPI) increased 2.7% on an annual basis in June, an uptick from May's 2.4% gain, driven by a reversal in falling gas prices. Economists had expected headline inflation to come in at 2.6%. On a monthly basis, prices rose 0.3% compared to May's 0.1% uptick, matching economists' estimates. "Core" inflation, which excludes volatile food and energy costs, came in a little better than expected with a 0.2% monthly increase, compared to the 0.3% rise expected. Core CPI rose 2.9% over the past year in June, in line with estimates. 'This is just the initial onset of these tariff increases, and we're going to see more over the summer," EY chief economist Gregory Daco told Yahoo Finance in response to the inflation print. "I expect a very muggy summer when it comes to inflation." Read more here. The latest consumer inflation report showed inflation accelerating in June, a sign that tariffs are beginning to affect consumer price increases. The latest data from the Bureau of Labor Statistics showed that the Consumer Price Index (CPI) increased 2.7% on an annual basis in June, an uptick from May's 2.4% gain, driven by a reversal in falling gas prices. Economists had expected headline inflation to come in at 2.6%. On a monthly basis, prices rose 0.3% compared to May's 0.1% uptick, matching economists' estimates. "Core" inflation, which excludes volatile food and energy costs, came in a little better than expected with a 0.2% monthly increase, compared to the 0.3% rise expected. Core CPI rose 2.9% over the past year in June, in line with estimates. 'This is just the initial onset of these tariff increases, and we're going to see more over the summer," EY chief economist Gregory Daco told Yahoo Finance in response to the inflation print. "I expect a very muggy summer when it comes to inflation." Read more here. China posts better-than-expected Q2 growth in face of Trump tariffs CNN reports: Read more here. CNN reports: Read more here. European Union finalizes list of counter-tariffs totaling €72 billion The European Union has prepared a list of American goods that will be tariffed by the bloc should a mutually beneficial trade deal be reached by the Aug 1 deadline set by Trump last week. With just shy of 20% of US trade being done with the EU, there's a swath of industries that will be impacted by the tariffs should they come into effect. The full list of impacted products totals €72 billion ($84 billion USD). Bloomberg reports: Read more here. The European Union has prepared a list of American goods that will be tariffed by the bloc should a mutually beneficial trade deal be reached by the Aug 1 deadline set by Trump last week. With just shy of 20% of US trade being done with the EU, there's a swath of industries that will be impacted by the tariffs should they come into effect. The full list of impacted products totals €72 billion ($84 billion USD). Bloomberg reports: Read more here. The issues at play in negotiations with America's top trading partners In recent weeks, President Trump postponed the tariff deal deadline to Aug. 1 and sent letters to the leaders of 25 countries informing them of new tariff rates. But one factor complicating negotiations in the days ahead is that each trade relationship faces its own set of complex issues. And while most issues center on particular industries or trade barriers, others don't seem to directly pertain to trade, as in the case of Brazil and Trump's opposition to its Supreme Court trial of former President Jair Bolsonaro. The chart below highlights the top issues for the US's top trading partners, which make up 85% of US trade. It also highlights the challenge of inking one-off deals with each partner, as was revealed the first time the Trump team boldly predicted 90 deals in 90 days. Talks with Canada, for instance, are likely to focus on oil and potash, whereas the Trump administration's dealings with Japanese officials are likely to center around automobiles and general market openness. Transshipping, when cargo is routed through a third country to avoid tariffs, has become a particularly tricky issue for many Southeast Asian countries, as companies look to circumvent tariffs on Chinese goods. In recent weeks, President Trump postponed the tariff deal deadline to Aug. 1 and sent letters to the leaders of 25 countries informing them of new tariff rates. But one factor complicating negotiations in the days ahead is that each trade relationship faces its own set of complex issues. And while most issues center on particular industries or trade barriers, others don't seem to directly pertain to trade, as in the case of Brazil and Trump's opposition to its Supreme Court trial of former President Jair Bolsonaro. The chart below highlights the top issues for the US's top trading partners, which make up 85% of US trade. It also highlights the challenge of inking one-off deals with each partner, as was revealed the first time the Trump team boldly predicted 90 deals in 90 days. Talks with Canada, for instance, are likely to focus on oil and potash, whereas the Trump administration's dealings with Japanese officials are likely to center around automobiles and general market openness. Transshipping, when cargo is routed through a third country to avoid tariffs, has become a particularly tricky issue for many Southeast Asian countries, as companies look to circumvent tariffs on Chinese goods. EU warns of 'big gap' after Trump's threat of 30% tariffs The European Union on Monday warned of a "big gap" in trade talks after President Trump's threat of a 30% tariff on the bloc from Aug. 1. "We've been quite close in agreeing the text on the [trade] agreement in principle, but there have been clearly areas where we have quite a big gap between our two positions," said Maroš Šefčovič, the EU's lead trade negotiator, per The Financial Times. Trump's threat appears to have "confounded" the EU, with Šefčovič warning that it would make trade between the US and EU "almost impossible." For his part on Monday, Trump said he is open to more negotiations, including with the EU. But he also repeated a refrain that "the letters are the deals." The EU "would like to do a different kind of deal," he said. "We're always open to talk. We are open to talk, including to Europe. In fact, they're coming over. They'd like to talk." The European Union on Monday warned of a "big gap" in trade talks after President Trump's threat of a 30% tariff on the bloc from Aug. 1. "We've been quite close in agreeing the text on the [trade] agreement in principle, but there have been clearly areas where we have quite a big gap between our two positions," said Maroš Šefčovič, the EU's lead trade negotiator, per The Financial Times. Trump's threat appears to have "confounded" the EU, with Šefčovič warning that it would make trade between the US and EU "almost impossible." For his part on Monday, Trump said he is open to more negotiations, including with the EU. But he also repeated a refrain that "the letters are the deals." The EU "would like to do a different kind of deal," he said. "We're always open to talk. We are open to talk, including to Europe. In fact, they're coming over. They'd like to talk." Trump threatens 100% tariffs on Russia over war in Ukraine President Trump on Monday threatened to hit Russia with tariffs of up to 100% as he grows increasingly frustrated with the country and President Putin over the lack of progress toward ending the war in Ukraine. The tariffs Trump floated would be so-called secondary tariffs, which would theoretically apply to countries that trade with Russia on their imports to the US. Per the FT: Trump also confirmed plans to provide weapons to Ukraine, including Patriot missile systems that Ukraine has urged the US to send. US trade with Russia has plummeted amid the Ukraine war, with Russia now ranking out of the top 50 US partners on imports, according to 2024 US Census data. But Russia still trades with many countries in Europe and Asia — most notably China. President Trump on Monday threatened to hit Russia with tariffs of up to 100% as he grows increasingly frustrated with the country and President Putin over the lack of progress toward ending the war in Ukraine. The tariffs Trump floated would be so-called secondary tariffs, which would theoretically apply to countries that trade with Russia on their imports to the US. Per the FT: Trump also confirmed plans to provide weapons to Ukraine, including Patriot missile systems that Ukraine has urged the US to send. US trade with Russia has plummeted amid the Ukraine war, with Russia now ranking out of the top 50 US partners on imports, according to 2024 US Census data. But Russia still trades with many countries in Europe and Asia — most notably China. Reebok founder on Trump tariffs: It's virtually impossible to make sneakers in US Reebok founder Joe Foster weighed in on the realities of President Trump's tariffs that are pressuring Reebok and its rivals, such as Nike (NKE), Under Armour (UAA), and Skechers (SKX). Shifting sneaker manufacturing from China and Vietnam to the US would be 'virtually impossible overnight,' Foster said in a new episode of the Opening Bid Unfiltered podcast. 'It's not something you can just turn the switch on,' Foster said. 'You've got to go somewhere where you've got a lot of people who are quite willing to sit on a machine [and the] production line. That doesn't happen overnight. In fact, in the UK, we can't get people to do that. They won't do it.' Read more here. Reebok founder Joe Foster weighed in on the realities of President Trump's tariffs that are pressuring Reebok and its rivals, such as Nike (NKE), Under Armour (UAA), and Skechers (SKX). Shifting sneaker manufacturing from China and Vietnam to the US would be 'virtually impossible overnight,' Foster said in a new episode of the Opening Bid Unfiltered podcast. 'It's not something you can just turn the switch on,' Foster said. 'You've got to go somewhere where you've got a lot of people who are quite willing to sit on a machine [and the] production line. That doesn't happen overnight. In fact, in the UK, we can't get people to do that. They won't do it.' Read more here. Sign in to access your portfolio
Yahoo
3 hours ago
- Yahoo
Trump tariffs live updates: Trump says he'll send letters to over 150 countries, plans tariff barrage Aug. 1
President Trump on Wednesday said he would be sending letters to over 150 countries as he plans a barrage of duties to take effect Aug. 1, including levies on pharmaceutical imports and semiconductors. "We're just going to send a notice of payment out, and the notice of payment is going to say what the tariff" rate will be, Trump said. "It's all going to be the same for everyone, for that group." Earlier, Trump said drug and chip levies would come in August, putting them on track to be implemented alongside the paused "reciprocal" tariffs laid out in April, as well as planned tariffs on copper imports. The latest moves come as Trump has already sent letters to over 20 trade partners outlining tariffs on goods imported from their countries. The letters set new baseline tariff levels at 20% to 40% — except for a 50% levy on goods from Brazil in a move that waded into the country's domestic politics. Last week, Trump announced a 35% tariff on Canadian goods and followed that up with promises of 30% duties on Mexico and the EU. The EU has been preparing an extensive list of counter-tariffs that would affect $84 billion of American products should talks fail. The letters have at times upended months of careful negotiations, with Trump saying he is both open to reaching different deals but also touting his letters as "the deals" themselves. On Tuesday, Trump said his team has struck a trade deal with Indonesia that will see goods from the country face a 19% tariff, lowering the rate he had threatened in his letter. As markets focus on US talks, here is where things stand with other key partners: Vietnam: Trump said a deal with Vietnam is "pretty well set." Two weeks ago, Trump said the pact would see the country's imports face a 20% tariff — lower than the 46% Trump threatened in April. In addition, there's a higher 40% tariff "on any transshipping" — when goods shipped from Vietnam originate elsewhere, like China. India: Trump's tariffs on Brazil have raised the stakes for India, another member of the BRICS coalition. Bloomberg reported that the countries are working toward a framework deal that could see US tariffs on goods from India drop below 20%. Read more: What Trump's tariffs mean for the economy and your wallet Here are the latest updates as the policy reverberates around the world. Trump says he'll soon send letters to 150 countries, will 'live by the letter' on Japan President Trump on Wednesday said he'd soon send letters to over 150 countries that are smaller trade partners with the US, dictating tariff rates their goods will face coming into the US. He also said he would "live by the letter" with Japan — his letter last week had outlined a 25% tariff on Japanese imports — and hinted at a possible deal with India soon. From Bloomberg: And Reuters: Canada announces new tariff measures on non-US imported steel to protect domestic industry Reuters reports: Read more here. Striking trade deal with US was an 'extraordinary struggle,' Indonesia says Nearly 24 hours after President Trump announced a trade agreement with Indonesia on Tuesday, Indonesia's government confirmed the deal, saying that the talks were an "extraordinary struggle." A government spokesperson said Indonesia's President Prabowo Subianto negotiated the deal directly with Trump over the phone. 'This is an extraordinary struggle by our negotiating team led by the Coordinating Minister for Economic Affairs,' Hasan Nasbi, the Indonesian president's spokesperson, told Reuters. Trump stated that the agreement calls for the US to impose a 19% tariff on Indonesia's exports, whereas Indonesia would not charge any tariffs on American exports. Trump also said Indonesia committed to buying '$15 Billion Dollars in U.S. Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777's.' Read more here. France adds support for using most-potent trade tool on US France has reportedly joined fellow European Union members in deciding to respond more directly to looming tariff threats. If activated, the EU would take retaliatory action against the US in trade activity. Bloomberg reports: Read more here. Rio Tinto: Tariffs added $300 million in aluminum costs Bloomberg reports: Read more here. Vietnam trade deal is 'pretty well set', Trump says President Trump said a trade agreement with Vietnam is almost completed, after the US struck a preliminary deal with the Communist country earlier in July. That deal laid out a cut to planned US tariffs on imports from Vietnam, lowering the rate to 20% from the 46% level laid out in April's "Liberation Day" announcement. But Trump said at the time that goods illegally transshipped via Vietnam to other countries would face a 40% levy. On Tuesday, Trump told reporters at Joint Base Andrews near Washington that he could release details of the Vietnam trade agreement, but did not think it was necessary. Reuters reports: Read more here. Chip linchpin ASML warns on growth amid tariff headwinds ASML's (ASML) US-listed stock slumped in premarket trading after the chip industry linchpin said it may not achieve growth in 2026, citing tariff uncertainty as a factor. The warning came even as the world's biggest supplier of chipmaking gear's second quarter bookings topped Wall Street estimates on Wednesday. Reuters reported: Read more here. Trump says drug tariffs are probable by Aug. 1 Bloomberg reports: Read more here. Trump: Indonesia goods will see 19% tariff under new deal President Trump on Tuesday unveiled more details of an emerging trade agreement with Indonesia, saying the country's goods would face a 19% tariff when imported into the US. US goods will see no tariff when exported to Indonesia, Trump said. More from Bloomberg: Read more here. Trump tariff inflation is arriving Yahoo Finance's Rick Newman reports: Read more here. Indonesia's trade deficit with the US grew to $17.9 billion last year Here's a look at the US's trade relationship with Indonesia as we await further details about a deal. In 2024, the US's trade deficit with Indonesia increased by 5.4% ($923 million) to $17.9 billion. The total goods traded between the countries reached $38.3 billion that year, with the US exporting $10.2 billion in goods and importing $28.1 billion worth of products. According to OEC, Indonesia's largest export products to the US include palm oil, electrical machinery, and broadcasting equipment, and rubber products, as of 2023. The US exports petroleum products, soybeans, and aircraft to Indonesia. President Trump announced that the two countries had reached a deal, though he withheld details, on Tuesday, not long after leaders of Indonesia and the European Union met in Brussels over the weekend and struck their own agreement. The US has said it will impose 30% tariffs on the EU starting Aug. 1. Trump's Russia tariff threat risks relations with China, India President Trump's latest threat to impose secondary tariffs of up to 100% on Russia comes at a delicate time for trade talks with China and India, which are crucial to the Trump administration's economic and strategic goals. On Monday, Trump threatened to place a 100% tariff rate on Russia if it didn't make significant progress toward a peace deal with Ukraine in the next 50 days. He said the duties would be secondary, meaning they would penalize any nation that traded with Russia. Such tariffs would notably target China, in particular, as it's a major buyer of Russian oil. Bloomberg reports: Read more here. Trump says US has reached trade deal with Indonesia President Trump posted on Truth Social: Indonesia was facing 32% tariffs on exports to the US from Aug. 1. It was one of over 20 countries whose leaders Trump has sent letters to in the past week-plus, dictating the tariff rates their countries will face next month. Inflation accelerates in June as investors eye tariff-related price increases The latest consumer inflation report showed inflation accelerating in June, a sign that tariffs are beginning to affect consumer price increases. The latest data from the Bureau of Labor Statistics showed that the Consumer Price Index (CPI) increased 2.7% on an annual basis in June, an uptick from May's 2.4% gain, driven by a reversal in falling gas prices. Economists had expected headline inflation to come in at 2.6%. On a monthly basis, prices rose 0.3% compared to May's 0.1% uptick, matching economists' estimates. "Core" inflation, which excludes volatile food and energy costs, came in a little better than expected with a 0.2% monthly increase, compared to the 0.3% rise expected. Core CPI rose 2.9% over the past year in June, in line with estimates. 'This is just the initial onset of these tariff increases, and we're going to see more over the summer," EY chief economist Gregory Daco told Yahoo Finance in response to the inflation print. "I expect a very muggy summer when it comes to inflation." Read more here. China posts better-than-expected Q2 growth in face of Trump tariffs CNN reports: Read more here. European Union finalizes list of counter-tariffs totaling €72 billion The European Union has prepared a list of American goods that will be tariffed by the bloc should a mutually beneficial trade deal be reached by the Aug 1 deadline set by Trump last week. With just shy of 20% of US trade being done with the EU, there's a swath of industries that will be impacted by the tariffs should they come into effect. The full list of impacted products totals €72 billion ($84 billion USD). Bloomberg reports: Read more here. The issues at play in negotiations with America's top trading partners In recent weeks, President Trump postponed the tariff deal deadline to Aug. 1 and sent letters to the leaders of 25 countries informing them of new tariff rates. But one factor complicating negotiations in the days ahead is that each trade relationship faces its own set of complex issues. And while most issues center on particular industries or trade barriers, others don't seem to directly pertain to trade, as in the case of Brazil and Trump's opposition to its Supreme Court trial of former President Jair Bolsonaro. The chart below highlights the top issues for the US's top trading partners, which make up 85% of US trade. It also highlights the challenge of inking one-off deals with each partner, as was revealed the first time the Trump team boldly predicted 90 deals in 90 days. Talks with Canada, for instance, are likely to focus on oil and potash, whereas the Trump administration's dealings with Japanese officials are likely to center around automobiles and general market openness. Transshipping, when cargo is routed through a third country to avoid tariffs, has become a particularly tricky issue for many Southeast Asian countries, as companies look to circumvent tariffs on Chinese goods. EU warns of 'big gap' after Trump's threat of 30% tariffs The European Union on Monday warned of a "big gap" in trade talks after President Trump's threat of a 30% tariff on the bloc from Aug. 1. "We've been quite close in agreeing the text on the [trade] agreement in principle, but there have been clearly areas where we have quite a big gap between our two positions," said Maroš Šefčovič, the EU's lead trade negotiator, per The Financial Times. Trump's threat appears to have "confounded" the EU, with Šefčovič warning that it would make trade between the US and EU "almost impossible." For his part on Monday, Trump said he is open to more negotiations, including with the EU. But he also repeated a refrain that "the letters are the deals." The EU "would like to do a different kind of deal," he said. "We're always open to talk. We are open to talk, including to Europe. In fact, they're coming over. They'd like to talk." Trump threatens 100% tariffs on Russia over war in Ukraine President Trump on Monday threatened to hit Russia with tariffs of up to 100% as he grows increasingly frustrated with the country and President Putin over the lack of progress toward ending the war in Ukraine. The tariffs Trump floated would be so-called secondary tariffs, which would theoretically apply to countries that trade with Russia on their imports to the US. Per the FT: Trump also confirmed plans to provide weapons to Ukraine, including Patriot missile systems that Ukraine has urged the US to send. US trade with Russia has plummeted amid the Ukraine war, with Russia now ranking out of the top 50 US partners on imports, according to 2024 US Census data. But Russia still trades with many countries in Europe and Asia — most notably China. Reebok founder on Trump tariffs: It's virtually impossible to make sneakers in US Reebok founder Joe Foster weighed in on the realities of President Trump's tariffs that are pressuring Reebok and its rivals, such as Nike (NKE), Under Armour (UAA), and Skechers (SKX). Shifting sneaker manufacturing from China and Vietnam to the US would be 'virtually impossible overnight,' Foster said in a new episode of the Opening Bid Unfiltered podcast. 'It's not something you can just turn the switch on,' Foster said. 'You've got to go somewhere where you've got a lot of people who are quite willing to sit on a machine [and the] production line. That doesn't happen overnight. In fact, in the UK, we can't get people to do that. They won't do it.' Read more here. Trump says he'll soon send letters to 150 countries, will 'live by the letter' on Japan President Trump on Wednesday said he'd soon send letters to over 150 countries that are smaller trade partners with the US, dictating tariff rates their goods will face coming into the US. He also said he would "live by the letter" with Japan — his letter last week had outlined a 25% tariff on Japanese imports — and hinted at a possible deal with India soon. From Bloomberg: And Reuters: President Trump on Wednesday said he'd soon send letters to over 150 countries that are smaller trade partners with the US, dictating tariff rates their goods will face coming into the US. He also said he would "live by the letter" with Japan — his letter last week had outlined a 25% tariff on Japanese imports — and hinted at a possible deal with India soon. From Bloomberg: And Reuters: Canada announces new tariff measures on non-US imported steel to protect domestic industry Reuters reports: Read more here. Reuters reports: Read more here. Striking trade deal with US was an 'extraordinary struggle,' Indonesia says Nearly 24 hours after President Trump announced a trade agreement with Indonesia on Tuesday, Indonesia's government confirmed the deal, saying that the talks were an "extraordinary struggle." A government spokesperson said Indonesia's President Prabowo Subianto negotiated the deal directly with Trump over the phone. 'This is an extraordinary struggle by our negotiating team led by the Coordinating Minister for Economic Affairs,' Hasan Nasbi, the Indonesian president's spokesperson, told Reuters. Trump stated that the agreement calls for the US to impose a 19% tariff on Indonesia's exports, whereas Indonesia would not charge any tariffs on American exports. Trump also said Indonesia committed to buying '$15 Billion Dollars in U.S. Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777's.' Read more here. Nearly 24 hours after President Trump announced a trade agreement with Indonesia on Tuesday, Indonesia's government confirmed the deal, saying that the talks were an "extraordinary struggle." A government spokesperson said Indonesia's President Prabowo Subianto negotiated the deal directly with Trump over the phone. 'This is an extraordinary struggle by our negotiating team led by the Coordinating Minister for Economic Affairs,' Hasan Nasbi, the Indonesian president's spokesperson, told Reuters. Trump stated that the agreement calls for the US to impose a 19% tariff on Indonesia's exports, whereas Indonesia would not charge any tariffs on American exports. Trump also said Indonesia committed to buying '$15 Billion Dollars in U.S. Energy, $4.5 Billion Dollars in American Agricultural Products, and 50 Boeing Jets, many of them 777's.' Read more here. France adds support for using most-potent trade tool on US France has reportedly joined fellow European Union members in deciding to respond more directly to looming tariff threats. If activated, the EU would take retaliatory action against the US in trade activity. Bloomberg reports: Read more here. France has reportedly joined fellow European Union members in deciding to respond more directly to looming tariff threats. If activated, the EU would take retaliatory action against the US in trade activity. Bloomberg reports: Read more here. Rio Tinto: Tariffs added $300 million in aluminum costs Bloomberg reports: Read more here. Bloomberg reports: Read more here. Vietnam trade deal is 'pretty well set', Trump says President Trump said a trade agreement with Vietnam is almost completed, after the US struck a preliminary deal with the Communist country earlier in July. That deal laid out a cut to planned US tariffs on imports from Vietnam, lowering the rate to 20% from the 46% level laid out in April's "Liberation Day" announcement. But Trump said at the time that goods illegally transshipped via Vietnam to other countries would face a 40% levy. On Tuesday, Trump told reporters at Joint Base Andrews near Washington that he could release details of the Vietnam trade agreement, but did not think it was necessary. Reuters reports: Read more here. President Trump said a trade agreement with Vietnam is almost completed, after the US struck a preliminary deal with the Communist country earlier in July. That deal laid out a cut to planned US tariffs on imports from Vietnam, lowering the rate to 20% from the 46% level laid out in April's "Liberation Day" announcement. But Trump said at the time that goods illegally transshipped via Vietnam to other countries would face a 40% levy. On Tuesday, Trump told reporters at Joint Base Andrews near Washington that he could release details of the Vietnam trade agreement, but did not think it was necessary. Reuters reports: Read more here. Chip linchpin ASML warns on growth amid tariff headwinds ASML's (ASML) US-listed stock slumped in premarket trading after the chip industry linchpin said it may not achieve growth in 2026, citing tariff uncertainty as a factor. The warning came even as the world's biggest supplier of chipmaking gear's second quarter bookings topped Wall Street estimates on Wednesday. Reuters reported: Read more here. ASML's (ASML) US-listed stock slumped in premarket trading after the chip industry linchpin said it may not achieve growth in 2026, citing tariff uncertainty as a factor. The warning came even as the world's biggest supplier of chipmaking gear's second quarter bookings topped Wall Street estimates on Wednesday. Reuters reported: Read more here. Trump says drug tariffs are probable by Aug. 1 Bloomberg reports: Read more here. Bloomberg reports: Read more here. Trump: Indonesia goods will see 19% tariff under new deal President Trump on Tuesday unveiled more details of an emerging trade agreement with Indonesia, saying the country's goods would face a 19% tariff when imported into the US. US goods will see no tariff when exported to Indonesia, Trump said. More from Bloomberg: Read more here. President Trump on Tuesday unveiled more details of an emerging trade agreement with Indonesia, saying the country's goods would face a 19% tariff when imported into the US. US goods will see no tariff when exported to Indonesia, Trump said. More from Bloomberg: Read more here. Trump tariff inflation is arriving Yahoo Finance's Rick Newman reports: Read more here. Yahoo Finance's Rick Newman reports: Read more here. Indonesia's trade deficit with the US grew to $17.9 billion last year Here's a look at the US's trade relationship with Indonesia as we await further details about a deal. In 2024, the US's trade deficit with Indonesia increased by 5.4% ($923 million) to $17.9 billion. The total goods traded between the countries reached $38.3 billion that year, with the US exporting $10.2 billion in goods and importing $28.1 billion worth of products. According to OEC, Indonesia's largest export products to the US include palm oil, electrical machinery, and broadcasting equipment, and rubber products, as of 2023. The US exports petroleum products, soybeans, and aircraft to Indonesia. President Trump announced that the two countries had reached a deal, though he withheld details, on Tuesday, not long after leaders of Indonesia and the European Union met in Brussels over the weekend and struck their own agreement. The US has said it will impose 30% tariffs on the EU starting Aug. 1. Here's a look at the US's trade relationship with Indonesia as we await further details about a deal. In 2024, the US's trade deficit with Indonesia increased by 5.4% ($923 million) to $17.9 billion. The total goods traded between the countries reached $38.3 billion that year, with the US exporting $10.2 billion in goods and importing $28.1 billion worth of products. According to OEC, Indonesia's largest export products to the US include palm oil, electrical machinery, and broadcasting equipment, and rubber products, as of 2023. The US exports petroleum products, soybeans, and aircraft to Indonesia. President Trump announced that the two countries had reached a deal, though he withheld details, on Tuesday, not long after leaders of Indonesia and the European Union met in Brussels over the weekend and struck their own agreement. The US has said it will impose 30% tariffs on the EU starting Aug. 1. Trump's Russia tariff threat risks relations with China, India President Trump's latest threat to impose secondary tariffs of up to 100% on Russia comes at a delicate time for trade talks with China and India, which are crucial to the Trump administration's economic and strategic goals. On Monday, Trump threatened to place a 100% tariff rate on Russia if it didn't make significant progress toward a peace deal with Ukraine in the next 50 days. He said the duties would be secondary, meaning they would penalize any nation that traded with Russia. Such tariffs would notably target China, in particular, as it's a major buyer of Russian oil. Bloomberg reports: Read more here. President Trump's latest threat to impose secondary tariffs of up to 100% on Russia comes at a delicate time for trade talks with China and India, which are crucial to the Trump administration's economic and strategic goals. On Monday, Trump threatened to place a 100% tariff rate on Russia if it didn't make significant progress toward a peace deal with Ukraine in the next 50 days. He said the duties would be secondary, meaning they would penalize any nation that traded with Russia. Such tariffs would notably target China, in particular, as it's a major buyer of Russian oil. Bloomberg reports: Read more here. Trump says US has reached trade deal with Indonesia President Trump posted on Truth Social: Indonesia was facing 32% tariffs on exports to the US from Aug. 1. It was one of over 20 countries whose leaders Trump has sent letters to in the past week-plus, dictating the tariff rates their countries will face next month. President Trump posted on Truth Social: Indonesia was facing 32% tariffs on exports to the US from Aug. 1. It was one of over 20 countries whose leaders Trump has sent letters to in the past week-plus, dictating the tariff rates their countries will face next month. Inflation accelerates in June as investors eye tariff-related price increases The latest consumer inflation report showed inflation accelerating in June, a sign that tariffs are beginning to affect consumer price increases. The latest data from the Bureau of Labor Statistics showed that the Consumer Price Index (CPI) increased 2.7% on an annual basis in June, an uptick from May's 2.4% gain, driven by a reversal in falling gas prices. Economists had expected headline inflation to come in at 2.6%. On a monthly basis, prices rose 0.3% compared to May's 0.1% uptick, matching economists' estimates. "Core" inflation, which excludes volatile food and energy costs, came in a little better than expected with a 0.2% monthly increase, compared to the 0.3% rise expected. Core CPI rose 2.9% over the past year in June, in line with estimates. 'This is just the initial onset of these tariff increases, and we're going to see more over the summer," EY chief economist Gregory Daco told Yahoo Finance in response to the inflation print. "I expect a very muggy summer when it comes to inflation." Read more here. The latest consumer inflation report showed inflation accelerating in June, a sign that tariffs are beginning to affect consumer price increases. The latest data from the Bureau of Labor Statistics showed that the Consumer Price Index (CPI) increased 2.7% on an annual basis in June, an uptick from May's 2.4% gain, driven by a reversal in falling gas prices. Economists had expected headline inflation to come in at 2.6%. On a monthly basis, prices rose 0.3% compared to May's 0.1% uptick, matching economists' estimates. "Core" inflation, which excludes volatile food and energy costs, came in a little better than expected with a 0.2% monthly increase, compared to the 0.3% rise expected. Core CPI rose 2.9% over the past year in June, in line with estimates. 'This is just the initial onset of these tariff increases, and we're going to see more over the summer," EY chief economist Gregory Daco told Yahoo Finance in response to the inflation print. "I expect a very muggy summer when it comes to inflation." Read more here. China posts better-than-expected Q2 growth in face of Trump tariffs CNN reports: Read more here. CNN reports: Read more here. European Union finalizes list of counter-tariffs totaling €72 billion The European Union has prepared a list of American goods that will be tariffed by the bloc should a mutually beneficial trade deal be reached by the Aug 1 deadline set by Trump last week. With just shy of 20% of US trade being done with the EU, there's a swath of industries that will be impacted by the tariffs should they come into effect. The full list of impacted products totals €72 billion ($84 billion USD). Bloomberg reports: Read more here. The European Union has prepared a list of American goods that will be tariffed by the bloc should a mutually beneficial trade deal be reached by the Aug 1 deadline set by Trump last week. With just shy of 20% of US trade being done with the EU, there's a swath of industries that will be impacted by the tariffs should they come into effect. The full list of impacted products totals €72 billion ($84 billion USD). Bloomberg reports: Read more here. The issues at play in negotiations with America's top trading partners In recent weeks, President Trump postponed the tariff deal deadline to Aug. 1 and sent letters to the leaders of 25 countries informing them of new tariff rates. But one factor complicating negotiations in the days ahead is that each trade relationship faces its own set of complex issues. And while most issues center on particular industries or trade barriers, others don't seem to directly pertain to trade, as in the case of Brazil and Trump's opposition to its Supreme Court trial of former President Jair Bolsonaro. The chart below highlights the top issues for the US's top trading partners, which make up 85% of US trade. It also highlights the challenge of inking one-off deals with each partner, as was revealed the first time the Trump team boldly predicted 90 deals in 90 days. Talks with Canada, for instance, are likely to focus on oil and potash, whereas the Trump administration's dealings with Japanese officials are likely to center around automobiles and general market openness. Transshipping, when cargo is routed through a third country to avoid tariffs, has become a particularly tricky issue for many Southeast Asian countries, as companies look to circumvent tariffs on Chinese goods. In recent weeks, President Trump postponed the tariff deal deadline to Aug. 1 and sent letters to the leaders of 25 countries informing them of new tariff rates. But one factor complicating negotiations in the days ahead is that each trade relationship faces its own set of complex issues. And while most issues center on particular industries or trade barriers, others don't seem to directly pertain to trade, as in the case of Brazil and Trump's opposition to its Supreme Court trial of former President Jair Bolsonaro. The chart below highlights the top issues for the US's top trading partners, which make up 85% of US trade. It also highlights the challenge of inking one-off deals with each partner, as was revealed the first time the Trump team boldly predicted 90 deals in 90 days. Talks with Canada, for instance, are likely to focus on oil and potash, whereas the Trump administration's dealings with Japanese officials are likely to center around automobiles and general market openness. Transshipping, when cargo is routed through a third country to avoid tariffs, has become a particularly tricky issue for many Southeast Asian countries, as companies look to circumvent tariffs on Chinese goods. EU warns of 'big gap' after Trump's threat of 30% tariffs The European Union on Monday warned of a "big gap" in trade talks after President Trump's threat of a 30% tariff on the bloc from Aug. 1. "We've been quite close in agreeing the text on the [trade] agreement in principle, but there have been clearly areas where we have quite a big gap between our two positions," said Maroš Šefčovič, the EU's lead trade negotiator, per The Financial Times. Trump's threat appears to have "confounded" the EU, with Šefčovič warning that it would make trade between the US and EU "almost impossible." For his part on Monday, Trump said he is open to more negotiations, including with the EU. But he also repeated a refrain that "the letters are the deals." The EU "would like to do a different kind of deal," he said. "We're always open to talk. We are open to talk, including to Europe. In fact, they're coming over. They'd like to talk." The European Union on Monday warned of a "big gap" in trade talks after President Trump's threat of a 30% tariff on the bloc from Aug. 1. "We've been quite close in agreeing the text on the [trade] agreement in principle, but there have been clearly areas where we have quite a big gap between our two positions," said Maroš Šefčovič, the EU's lead trade negotiator, per The Financial Times. Trump's threat appears to have "confounded" the EU, with Šefčovič warning that it would make trade between the US and EU "almost impossible." For his part on Monday, Trump said he is open to more negotiations, including with the EU. But he also repeated a refrain that "the letters are the deals." The EU "would like to do a different kind of deal," he said. "We're always open to talk. We are open to talk, including to Europe. In fact, they're coming over. They'd like to talk." Trump threatens 100% tariffs on Russia over war in Ukraine President Trump on Monday threatened to hit Russia with tariffs of up to 100% as he grows increasingly frustrated with the country and President Putin over the lack of progress toward ending the war in Ukraine. The tariffs Trump floated would be so-called secondary tariffs, which would theoretically apply to countries that trade with Russia on their imports to the US. Per the FT: Trump also confirmed plans to provide weapons to Ukraine, including Patriot missile systems that Ukraine has urged the US to send. US trade with Russia has plummeted amid the Ukraine war, with Russia now ranking out of the top 50 US partners on imports, according to 2024 US Census data. But Russia still trades with many countries in Europe and Asia — most notably China. President Trump on Monday threatened to hit Russia with tariffs of up to 100% as he grows increasingly frustrated with the country and President Putin over the lack of progress toward ending the war in Ukraine. The tariffs Trump floated would be so-called secondary tariffs, which would theoretically apply to countries that trade with Russia on their imports to the US. Per the FT: Trump also confirmed plans to provide weapons to Ukraine, including Patriot missile systems that Ukraine has urged the US to send. US trade with Russia has plummeted amid the Ukraine war, with Russia now ranking out of the top 50 US partners on imports, according to 2024 US Census data. But Russia still trades with many countries in Europe and Asia — most notably China. Reebok founder on Trump tariffs: It's virtually impossible to make sneakers in US Reebok founder Joe Foster weighed in on the realities of President Trump's tariffs that are pressuring Reebok and its rivals, such as Nike (NKE), Under Armour (UAA), and Skechers (SKX). Shifting sneaker manufacturing from China and Vietnam to the US would be 'virtually impossible overnight,' Foster said in a new episode of the Opening Bid Unfiltered podcast. 'It's not something you can just turn the switch on,' Foster said. 'You've got to go somewhere where you've got a lot of people who are quite willing to sit on a machine [and the] production line. That doesn't happen overnight. In fact, in the UK, we can't get people to do that. They won't do it.' Read more here. Reebok founder Joe Foster weighed in on the realities of President Trump's tariffs that are pressuring Reebok and its rivals, such as Nike (NKE), Under Armour (UAA), and Skechers (SKX). Shifting sneaker manufacturing from China and Vietnam to the US would be 'virtually impossible overnight,' Foster said in a new episode of the Opening Bid Unfiltered podcast. 'It's not something you can just turn the switch on,' Foster said. 'You've got to go somewhere where you've got a lot of people who are quite willing to sit on a machine [and the] production line. That doesn't happen overnight. In fact, in the UK, we can't get people to do that. They won't do it.' Read more here. Sign in to access your portfolio
