Trump's Tariffs on Brazil; Fed Holds Rates Steady
Key Takeaways
- Trump imposed 50% tariffs on Brazil, citing a 'national emergency,' with some exemptions.
- The Fed held rates at 4.25%-4.5%, ignoring Trump's demands, focusing on controlling inflation.
- The U.S. imposed a 25% tariff on Indian exports, causing GIFT Nifty to fall.
- Trump's 50% tariff on semi-finished copper caused a 20% drop in NYMEX copper futures.
- U.S. GDP grew 3% in Q2, rebounding from Q1 contraction, driven by consumer spending.
Top Stories
Trump imposes 50% tariffs on Brazil, citing 'national emergency'.
On August 1, 2025, President Trump announced new trade tariffs on Brazil, increasing them to 50% on exported products, citing a 'national emergency,' with exemptions for nearly 700 industrial and agricultural inputs.
Fed holds rates steady at 4.25%-4.5%, ignoring Trump's demands.
On July 30, 2025, the Federal Reserve maintained the federal funds rate at 4.25%-4.5% for the fifth consecutive time, with Fed Chair Jerome Powell emphasizing the focus on controlling inflation, despite President Trump's demands for rate cuts.
US imposes 25% tariff on Indian exports, GIFT Nifty falls.
On July 30-31, 2025, the U.S. imposed a 25% tariff on Indian exports, leading GIFT Nifty to fall 180 points, including penalties for India's purchases of Russian arms and energy.
Trump's 50% tariff on semi-finished copper shocks global market.
On July 30, 2025, President Trump imposed a 50% tariff on imported semi-finished copper products, effective August 1, 2025, causing a 20% drop in NYMEX copper futures.
US GDP grows 3% in Q2, driven by consumer spending.
In Q2 2025, the U.S. GDP grew by 3%, rebounding from a Q1 contraction, driven by consumer spending and reduced imports, though some analysts point to underlying weakness.
Finance Trends
Wells Fargo raises S&P 500 year-end target to 6,300-6,500.
On July 30, 2025, Wells Fargo Investment Institute raised its year-end target for the S&P 500 index to 6,300-6,500, citing tariff delays and strong corporate earnings.
US Treasury to auction $125 billion in securities in August.
The U.S. Treasury will auction $125 billion in securities to refinance approximately $89.8 billion in maturing notes and bonds due on August 15, 2025.
Global Economy
US, South Korea lower tariffs to 15%; Trump tariffs India, copper.
On July 31, 2025, the U.S. and South Korea reached a trade deal, lowering tariffs to 15%, while President Trump announced a 25% levy on India's goods and imposed a 50% tariff on copper imports. Gold prices rebounded due to renewed trade uncertainties.
BOJ holds rate at 0.5%, raises inflation forecast to 2.7%.
On July 31, 2025, the Bank of Japan maintained its interest rate at 0.5% and raised its inflation forecast for the current fiscal year to 2.7%.
RBA sees inflation within target range, rate cut expected in August.
On July 30-31, 2025, RBA Deputy Governor Andrew Hauser noted that June quarter inflation data was within the bank’s 2-3% target range, with money markets expecting a rate cut to 3.6% at the August meeting.
Hong Kong's economy grows 3.1% in Q2, driven by exports.
In Q2 2025, Hong Kong's economy grew 3.1%, driven by strong exports and improved domestic demand, marking the 10th straight quarter of growth.
Eurozone consumer inflation expectations decrease for next 12 months.
In June 2025, the ECB reported that Eurozone consumer inflation expectations for the next 12 months decreased to 2.6%, while expectations for the next three years remained at 2.4%.
IMF warns additional US tariffs could sharply slow Brazil's economy.
On July 29, 2025, the IMF warned that additional U.S. tariffs on Brazil could cause a sharper economic slowdown than the projected 2.3% growth for 2025.
Italy's GDP contracts 0.1% in Q2, growth forecast maintained.
In Q2 2025, Italy's GDP decreased by 0.1% compared to the previous quarter, attributed to a slowdown in agriculture, forestry, fishing, and industry.
Eurozone unemployment remains stable at 6.2%, a record low.
In June 2025, the Eurozone unemployment rate remained stable at 6.2%, its record low and the lowest since 1998, with approximately 10.7 million people unemployed.
Bank of England expected to cut interest rates on August 7.
The Bank of England is expected to cut interest rates on August 7, 2025, with a possible three-way split among policymakers due to conflicting risks of rising inflation and a weakening job market.
China focuses on domestic demand, no significant new stimulus.
China's Politburo decided not to launch significant new stimulus measures, instead focusing on addressing excess capacity and stimulating domestic demand.
South Africa negotiates with US to avoid tariffs on critical minerals.
South Africa is negotiating with the United States to avoid tariffs on its exports, with an August 1 deadline, particularly on critical minerals like platinum group metals.
Market Overview
Yahoo Finance: Copper plummets 18% on tariff news, gold drops.
On July 30, 2025, Yahoo Finance reported that copper futures plummeted 18% due to tariff news, and gold experienced its worst Fed day reaction since 2013, dropping 1.72%.