Trump, European Union comes to trade contracts, 15% tariff
President Donald Trump announced that the United States had reached a trade agreement with the European Union a few days before its August 1 deadline.
U.S. stock futures have risen high after President Donald Trump launched a trade deal with the European Union ahead of the August 1 deadline.
The deal, like recent agreements between Trump and other major trading partners, including Japan, include 15% tariffs on most European goods that have entered the United States. The collection is higher than the 10% percentage Europeans are seeking, but below 30% of Trump, threatened at the beginning of July. Pharmaceuticals, steel and aluminum are not included in the customs contract.
Additionally, the EU will invest $600 billion in the US and buy $750 billion worth of US energy, Trump said.
“For now, more disadvantageous scenarios seem to be avoided, and while this is great news, we still don’t know if everything is ‘big and huge’,” said Karsten Bruzesky, global head of macros at Dutch banks.
At 6am on ET, futures tied to the Blue Chip Dow rose 0.17%, with Broad S&P 500 futures rising 0.26% and Nasdaq futures rising 0.45%.
Separately, the US and China are expected to extend the tariff ceasefire by another three months, the South China Morning Post reported. Treasury Secretary Scott Bescent and China’s deputy prime minister are planning a meeting in Stockholm.
A busy week ahead
With trade agreements that mitigate tariff fears with the largest US trading partner, investors will rely on profits and the Federal Reserve policy meeting to seek more direction.
The seven more so-called grandiose megacup technology companies will report their quarterly results. Includes Facebook Parent Meta and Microsoft. Amazon and Apple.
According to LSEG Ibes, overall quarterly revenue has increased by 7.7% from a year ago, as roughly 30% of S&P 500 companies report results. This is higher than forecast for July 1, with a 5.8% increase.
Meanwhile, no one expects the Fed to lower prices this week, but investors are looking for clues to see when. The Fed says the economy is showing resilience and will wait to see how Trump’s tariffs will occur.
At the end of the week, after the Fed meeting, investors will look at more inflation data and key monthly employment reports to see if the labour market will continue to be maintained despite the tariffs before and after Trump over the past few months.
Medora Lee is a money, market and personal finance reporter for USA Today. mjlee@usatoday.com and Subscribe to our free daily money newsletter Personal finance tips and business news every Monday to Friday.
