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Attention has turned to a potential tariff agreement between the United States and the European Union, as the White House's self-imposed July 9 deadline approaches.
Brussels wants specific concessions on alcoholic beverages and medical technology, even as a 10% U.S. baseline tariff is seen as unavoidable, with the deal also potentially covering commercial aircraft, pharmaceuticals, and semiconductors.
The Trump administration has also said it's resuming negotiations with Canada after Ottawa abruptly scrapped its digital services tax targeting U.S. tech firms just hours before it was set to kick in.
Canada's finance ministry confirmed late Sunday that Prime Minister Mark Carney and President Donald Trump would restart trade talks, hoping to reach a deal by July 21.
Meanwhile, fresh data shows another sluggish month in June for U.S. manufacturing, with new orders subdued and prices paid for inputs creeping higher, suggesting Trump's tariffs are making it harder for businesses to plan ahead.
Wall Street is looking past any short-term hiccups and betting that Trump will ultimately secure agreements to head off the worst of his announced tariffs with China and other major trading partners, or at least extend again his own deadline. With that, the S&P 500 has returned to all-time highs.
Some stock market traders are betting the Federal Reserve will cut interest rates sooner than previously anticipated, while the potential approval of Trump's "Big Beautiful" tax and spending bill means a likely boost to corporate profits, giving investors even more reason to propel stock prices higher.
Of course, the Republican bill's sweeping tax cuts would also add a massive $3.3 trillion to the national debt.
The S&P 500 benchmark has now fully bounced back from a nearly 20% drop from its February peak to its April low, when global markets were rattled by fears of a tariff-induced recession. AI chip heavyweight Nvidia has hit fresh record highs and become the world's most valuable company at $3.8 trillion, even as its sales remain at risk from Washington's trade restrictions with Beijing.
Foreign exchange traders are less upbeat. The dollar has deepened its recent losses, with an index tracking the U.S. currency trading at its weakest level since 2022.
According to Matthew Weller, global head of market research at StoneX, "It was the worst first half of the year for the U.S. dollar index since 1973 with a lot of that weakness being driven by concerns about trade policy and concerns about a slowing economy."
Read the latest tariff headlines below. If you like this newsletter or have suggestions on how we can make it better, send me an email to noel.randewich@thomsonreuters.com.
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