S&P 500 Tumbles as Tariff War Ignites Growth Fears
The American equities benchmark plunged over 3% — following global markets sharply lower from Tokyo to London — and putting it on course for its biggest drop since September 2022. The Nasdaq 100 Index sank nearly 4%, driven by Apple Inc. 's 8.2% loss, the biggest laggard among the Magnificent Seven stocks. Stocks tied to the economy's health fell, with Nvidia Corp., Micron Technology Inc. and Dell Technologies Inc. all trading lower. Automakers General Motors Co. and Ford Motor Co. each fell while Nike Inc. dropped 11%.
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Business Insider
27 minutes ago
- Business Insider
Trump strikes a deal with the EU on tariffs
The US and the EU reached a trade deal on Sunday after negotiations in Scotland between President Donald Trump and European Commission President Ursula von der Leyen. The deal sets 15% tariffs on most European goods imported to the United States, a significant reduction from the 30% Trump had threatened earlier, but more than the 10% the EU originally sought. In return, Trump said the EU would ramp up investments in the United States. "The European Union is going to agree to purchase from the United States $750 billion worth of energy," Trump told reporters. "They are going to agree to invest into the United States $600 billion more than they're investing already." The EU also agreed to purchase a "vast amount" of military equipment from the US. "I think it's the biggest deal ever made," Trump said. There are some exceptions to the 15% tariffs, including steel, which Trump said would remain at the 50% he earlier set for all countries worldwide. The agreement comes days before August 1, when the Trump administration's tariffs will go into effect for numerous countries, some of which could face levies as high as 50%. Commerce Secretary Howard Lutnick said Sunday that there would be no more extensions and that tariffs would go into effect on August 1 as planned.
Bloomberg
27 minutes ago
- Bloomberg
Trump Says a Deal Has Been Reached With the EU
European Commission President Ursula von der Leyen met with US President Donald Trump at Trump Turnberry golf club in Scotland on July 27. The leaders agreed to a deal that will see the bloc face 15% tariffs on most of its exports, including automobiles, staving off a trade war that could have delivered a hammer blow to the global economy. (Source: Bloomberg)
Los Angeles Times
28 minutes ago
- Los Angeles Times
U.S. and European Union announce a trade framework
EDINBURGH, Scotland — The United States and the European Union reached a tariff deal Sunday after a brief meeting between President Trump and European Commission chief Ursula von der Leyen. A White House deadline was days away from imposing punishing import taxes on the 27-member EU, which is America's leading global trading partner. 'It was a very interesting negotiation. I think it's going to be great for both parties,' Trump said. The make-or-break talks were meant to head off trade penalties — and promised retaliation from Europe — that could have sent shock waves through economies around the globe. Trump and Von der Leyen held private talks at one of Trump's golf courses in Scotland, then emerged a short time later saying they had reached an 'across the board' agreement. In remarks before the session, Trump pledged to change what he characterized as 'a very one-sided transaction, very unfair to the United States.' 'I think the main sticking point is fairness,' he said while also noting, 'We've had a hard time with trade with Europe, a very hard time.' Von der Leyen had said the U.S. and EU combined have the world's largest trade volume, encompassing hundreds of millions of people and trillions of dollars. Trump said the stakes involved meant a deal should be pursued. 'We should give it a shot.' Von der Leyen said Trump was 'known as a tough negotiator and deal maker,' which prompted the president to interject, 'But fair.' She said that, if the agreement is successful, 'I think it would be the biggest deal each of us has ever struck.' For months, Trump has threatened most of the world with large tariffs in hopes of shrinking major U.S. trade deficits with many key trading partners. More recently, he had hinted that any deal with the EU would have to 'buy down' the currently scheduled export tax rate of 30%. The Republican president pointed to a recent U.S. agreement with Japan that set tariff rates for many goods at 15% and suggested the EU could agree to something similar. Asked whether he would be willing to accept tariff rates lower than that, Trump said, 'No.' As for the threat of retaliation from the Europeans, he said: 'They'll do what they have to do.' Their meeting came after Trump played golfed for the second straight day at his Turnberry course. The president's five-day visit to Scotland is built around golf and promoting properties bearing his name. A small group of demonstrators at the course waved American flags and raised a sign criticizing British Prime Minister Keir Starmer, who plans his own Turnberry meeting with Trump on Monday. Other voices could be heard cheering and chanting, 'Trump! Trump!' as he played nearby. On Tuesday, Trump will be in Aberdeen, in northeastern Scotland, where his family business has another golf course and is opening a third next month. The president and his sons plan to help cut the ribbon on the new course. Joining Von der Leyen were Maros Sefcovic, the EU's chief trade negotiator; Bjorn Seibert, the head of Von der Leyen's Cabinet; Sabine Weyand, the commission's directorate-general for trade; and Tomas Baert, head of trade and agriculture at the EU's delegation to the U.S. The deadline for the Trump administration to begin imposing tariffs has shifted in recent weeks but was now firm, the administration said. 'No extensions, no more grace periods. Aug. 1, the tariffs are set, they'll go into place. Customs will start collecting the money and off we go,' U.S. Commerce Secretary Howard Lutnick told 'Fox News Sunday.' He added, however, that even after that, 'people can still talk to President Trump. I mean, he's always willing to listen.' Without an agreement, the EU said it was prepared to retaliate with tariffs on hundreds of American products, including such diverse items as beef, auto parts, beer and Boeing airplanes. If Trump eventually made good on his threat of tariffs against Europe, it could mean that items including French cheese, Italian leather goods, German electronics and Spanish pharmaceuticals would be more expensive in the United States. The U.S. and Britain, meanwhile, announced a trade framework in May and a larger agreement last month during the Group of 7 meeting in Canada. Trump says that deal is concluded and that he and Starmer will discuss other matters, though the White House has suggested it still needs some polishing. Weissert writes for the Associated Press.
