CCTV Script 15/07/25

CNBC

13 hours ago

Although U.S. President Trump issued new tariff threats over the weekend, U.S. stock indices closed slightly higher on Monday local time. Analysts say the market reaction was relatively mild because investors are betting that the steep tariffs Trump is threatening won't be fully implemented and will eventually be scaled down through negotiations.
The Dow Jones Industrial Average rose 0.2%, the S&P 500 gained 0.14%, and the Nasdaq Composite climbed nearly 0.3%, closing at a record high."It's very bad news for Europe, especially, I would say, for the whole of Europe, because the U.S. is the largest trading partner. I actually think the ultimate tariff will not be 30%, will be lower—probably 20%, not lower. So between the UK and Vietnam, that's where we are."
Although tariffs have not yet been finalized, Wall Street is already sounding the alarm, warning that the threat of U.S. tariffs could drag down the eurozone economy.
Goldman Sachs has warned that if the 30% tariffs are fully implemented, the eurozone's GDP could shrink by a cumulative 1.2% by the end of 2026.
Barclays also predicts that tariffs could prompt the European Central Bank to cut interest rates sooner. The bank says that if the U.S. continues to impose 30% tariffs and the EU retaliates, the ECB may be forced to lower rates to 1% before the first quarter of 2026.
Amid escalating trade tensions with the U.S., the EU is expanding trade ties with other regions. Recently, the EU reached an agreement with Indonesia to advance a free trade deal."The second element is to diversify our trade relationship. So this big and important political agreement on free trade agreement with Indonesia is today a huge milestone forward and shows that we're looking for new market, open market."
Another development to watch: on Monday local time, a nearly 30-year-old trade agreement between the U.S. and Mexico expired. The U.S. Commerce Department announced it will impose a roughly 17% tariff on most tomatoes imported from Mexico.
Tomatoes are a staple food in American households. According to the U.S. Department of Agriculture, 72% of fresh tomatoes supplied in the U.S. in 2024 were imported, with around 90% of those coming from Mexico. The USDA says that under the new tariffs, Mexico's tomato exports are expected to fall by 5% this year. NatureSweet, one of the largest tomato distributors in the U.S., said it cannot absorb the high tariffs caused by the end of the U.S.-Mexico "Tomato Agreement" and may have to raise prices by about 10%.
More clues on how tariffs are affecting U.S. consumers may come in the latest inflation report, the CPI data, to be released Tuesday local time. Many analysts believe the June inflation numbers will offer the first concrete read on the tariff effect. Current market expectations are for headline CPI to rise 2.7% year-over-year, and core CPI to rise 3%. We'll continue to monitor this closely.