If you are a trader, tariff talk can make or break your day trades. So it's created an environment where you need to keep an eye on the headline almost 24/7 which is exhausting. With that being said I just saw that Trump announced today that the U.S. reached a trade deal with the European Union, following pivotal discussions with European Commission President Ursula von der Leyen days before the Aug. 1 tariff deadline.
Trump said that the deal imposes a 15% tariff on most European goods to the U.S., including cars. There were some additonal details that some products, including aircrafts and their components, some chemicals and pharmaceuticals, will not be subject to tariffs,
Von der Leyen said that the new 15% tariff rate would not be added to any tariffs already in effect. If you have not been paying attention the 15% tariff rate is lower than the 30% rate Trump had previously threatened, but higher than the 10% baseline tariffs the EU was hoping for. Trump said that they agreed to purchase $750 billion worth of U.S. energy and invest an additional $600 billion worth of investments into the U.S. above current levels. As with any of these deals questions remain about the specific details and timeline of the EU investments, the agreement marks a pivotal moment for Trump, following weeks of uncertainty surrounding the U.S.-EU trade talks.
I'm waiting to see how market react considering most of the these deals have been good for markets as uncertainty is removed from the equation.