Trump's Tariffs Threaten European Growth; Irish Whiskey Industry Faces Impact
Key Takeaways
- U.S.-EU trade deal imposes 15% tariffs on EU goods; EU leaders challenge deal.
- Federal Reserve likely to hold rates steady at 4.25-4.50% amid tariff concerns.
- Fidelity forecasts gold could hit $4,000 by 2026 due to Fed cuts.
- Hedge funds sold tech stocks at fastest pace in 12 months amid S&P highs.
- Hungary cuts 2025 growth forecast to 1% due to weak industrial performance.
Top Stories
Trump imposes 15% tariff on imports to U.S. from August 1.
President Trump announced a 15% tariff on imports to the U.S., effective August 1st, impacting sectors like footwear, metal, and furniture. The EU will invest $600 billion in the U.S.
U.S. tariffs threaten Europe's economic growth, Irish whiskey impacted.
Economists predict that the rise in U.S. tariffs will negatively affect Europe's already weak economic growth. Pat Cooney, managing director of Boann Distillery, expressed concern that a 15% tariff on Irish whiskey would have a 'serious' impact.
S&P 500, Nasdaq hit record highs amid new U.S.-EU trade deal.
On July 28, 2025, the S&P 500 and Nasdaq closed at record highs, reacting to a new trade deal between the U.S. and EU that set tariffs on Europe's goods at a baseline 15%.
US dollar rallies as US-EU trade deal boosts risk appetite.
The US dollar extends its rally as the US-EU trade deal boosts risk appetite, while the euro suffers as European leaders challenge the US-EU trade deal.
U.S.-EU trade deal: 15% tariffs, mixed results for EU markets.
Ursula von der Leyen announced a U.S.-EU trade deal with 15% tariffs on EU goods, while European stock markets closed with mixed results on July 28, 2025.
U.S. stock futures steady amid U.S.-EU trade deal, Fed meeting.
On July 28, 2025, U.S. stock futures remained steady as investors focused on economic data, including the Federal Reserve's policy meeting, and a U.S.-EU trade agreement was reached, including a 15% tariff.
Gold prices fall on U.S.-EU trade deal, strong dollar.
On July 28-29, 2025, gold prices fell due to a U.S.-EU trade agreement and a strong dollar, with the U.S. imposing a 15% tariff on some EU goods.
Federal Reserve likely to hold rates steady at 4.25-4.50%.
The Federal Reserve is expected to hold interest rates steady at its July 2025 meeting, with rates remaining at 4.25-4.50%.
Wall Street mixed July 28: Dow down, S&P 500 and Nasdaq up.
On July 28, 2025, Wall Street saw mixed performance, with the Dow Jones Industrial Average falling while the S&P 500 and Nasdaq Composite rose as investors awaited the Fed's interest rate decision.
FOMC likely to hold U.S. interest rates steady at 4.25-4.50%.
The FOMC is expected to maintain U.S. interest rates between 4.25% and 4.50%, as tariff-related price increases have been milder than feared and signs of softening hiring emerge.
Federal Reserve likely to hold rates, deepening Powell-Trump divide.
The Federal Reserve is likely to keep rates unchanged this week, a decision that deepens the divide between Powell and Trump.
Bond investors increase risk, anticipate steady Fed rate policy.
On July 29, 2025, bond investors are increasing portfolio risk, encouraged by a stable U.S. economy and the Federal Reserve's expected steady interest rate policy, with a 65% probability of a rate cut in September.
Oil prices stable amid U.S.-EU trade deal, Fed decision awaited.
On July 29, 2025, oil prices were stable due to global economic uncertainty following the U.S.-EU trade deal and anticipation of the U.S. Federal Reserve's interest rate decision, with Brent crude futures around $70.05 a barrel.
Gold could hit $4,000 by 2026 on Fed cuts, weaker dollar.
Fidelity International forecasts gold prices could reach $4,000 an ounce by the end of 2026, driven by Federal Reserve interest rate cuts, a weaker dollar, and increased central bank holdings.
Hedge funds sell tech stocks at fastest pace in 12 months.
During the week of July 28, 2025, hedge funds sold technology stocks at the fastest pace in 12 months, according to a Goldman Sachs note, as the S&P 500 reached all-time highs.
Hungary cuts 2025 growth forecast to 1% due to economic challenges.
Hungary's government cut its 2025 economic growth forecast to 1% on July 29, 2025, down from 2.5% earlier in the year, citing economic challenges including weak industrial performance and a decline in agriculture.
Business News
Peak earnings season begins, tech giants like Meta, Apple report.
The peak earnings season for Q2 has begun, with 75% of S&P 500 companies reporting, and tech giants like Meta, Microsoft, Apple, and Amazon set to release results.
Finance Trends
U.S. Treasury plans $1 trillion borrowing in Q3, driven by debt.
The U.S. Treasury Department announced net borrowing for Q3 2025 is expected to be approximately $1 trillion, an increase of $453 billion from the April estimate, following President Trump's tax and spending bill.
Analysts bet on major Bitcoin price shift, $50T shock possible.
Analysts are betting on a major shift in Bitcoin's value, suggesting the cryptocurrency market is bracing for a potential $50 trillion price shock.
U.S. Treasury to maintain auction sizes, deficit set to rise.
On July 28, 2025, the U.S. Treasury is expected to maintain current auction sizes for notes and bonds, delaying increases in long-dated debt auctions, as the fiscal deficit is set to increase to a record $2.8 trillion.
Global Economy
Asian shares decline amid tariff concerns, Trump hints at 'world tariff'.
On July 28 and 29, 2025, Asian shares declined due to investor concerns over tariffs and their impact on growth and inflation, with Trump mentioning a potential 15% to 20% 'world tariff'.
Taiwan's Q2 GDP grew 5.7%, driven by strong tech demand.
According to a Reuters poll published on July 29, 2025, Taiwan's economy likely grew at a quicker pace in the second quarter of 2025, driven by strong tech demand, forecasting a 5.7% year-on-year GDP growth.
Lula urges Trump to reconsider 50% tariff on Brazilian products.
President Lula urged President Trump to reconsider the 50% tariff on Brazilian products, set to take effect on August 1, 2025, requesting Trump to consider Brazil's importance and propose dialogue.
Market Overview
S&P 500 subdued but hits sixth record high, tech sector rises.
On July 29, 2025, US equities were largely subdued, with the S&P 500 inching up +0.02%, marking its sixth straight record high, as investors await tech earnings.