President Trump and European Commission President Ursula von der Leyen announced that the US and EU had agreed to the framework of a trade deal after negotiations in Scotland on Sunday.

Trump called it “the biggest deal ever,” while von der Leyen said that the EU had agree to 15% tariffs across the board. The details of the deal are still being confirmed.

The South China Morning Post, a Hong Kong-based English-language newspaper, reported on Sunday that "Beijing and Washington are expected to extend their tariff truce by another three months at trade talks in Stockholm beginning on Monday, according to sources close to the matter on both sides."

On Friday, Trump said that letters dictating tariff rates for over 200 countries would go out soon while his administration works to clinch deals with larger trade partners, including the EU, India, and Canada. Trump said the US hasn't had a "lot of luck" with Canada and suggested he may impose threatened 35% levies on goods not covered by the US-Canada-Mexico trade agreement.

Last week, President Trump touted a deal with Japan that included a $550 billion investment in the US and a 15% tariff on goods imported into the US from Japan. On Saturday, Japanese trade negotiator Ryosei Akazawa suggested the money could be used to help finance an unnamed Taiwanese chipmaker building plants in the US.

"For example, if a Taiwanese chipmaker builds a plant in the U.S. and uses Japanese components or tailors its products to meet Japanese needs, that's fine too," he said.

In March, Taiwan's TSMC announced a $100 billion investment in the US, on top of plans to build three plants in Arizona, one of which is already operating.

In any case, the Japan trade deal may have set a precedent for Trump's new baseline tariff rate. On Thursday, Trump said tariffs would range from 15% to 50%, with tougher partners facing higher rates.

Trump's April "Liberation Day" tariffs had set a baseline rate of 10% on all US trading partners.

Read more: What Trump's tariffs mean for the economy and your wallet

Here are the latest updates as the policy reverberates around the world.

Here are some Bloomberg terminal headlines with various details on the agreement reached between President Trump and European Commission President Ursula von der Leyen:

*TRUMP: WE HAVE REACHED A DEAL WITH EU

*TRUMP: EU WILL AGREE TO BUY US $750B WORTH OF ENERGY

*TRUMP: EU WILL AGREE TO INVEST $600B MORE THAN PREVIOUSLY IN US

*EU'S VON DER LEYEN: TREADE DEAL WITH US WILL BRING STABILITY

*VON DER LEYEN: AGREED TO 15% ACCROSS THE BOARD TARIFFS

More to come.

The South China Morning Post (SCMP) reported that \\"Beijing and Washington are expected to extend their tariff truce by another three months at trade talks in Stockholm beginning on Monday.\\"

More from the Hong-Kong-based SCMP:

During the third round of trade negotiations between the world’s two biggest economies, both will expound their views on major sticking points – such as the US’ concerns over China’s industrial overcapacity – rather than achieve specific breakthroughs, the sources said.

One source said that, during the expected 90-day extension, the two nations will commit to not impose additional tariffs on each other, nor escalate the trade war by other means.

According to three people familiar with Beijing’s position, while the earlier discussions in Geneva and London focused on “de-escalation”, in the latest meeting the Chinese delegation will also press Trump’s trade team on fentanyl-related tariffs.

Read more here.

As President Trump prepares for a planned meeting about tariffs with European Commission President Ursula von der Leyen, Commerce Secretary Howard Lutnick said Sunday that the European Union has to open its markets for US exports if it wants to convince Trump to reduce the 30% tariff he's threatened to put in place August 1.

Reuters reports Lutnick said the EU appeared to want to make a deal:

\\"The question is, do they offer President Trump a good enough deal that is worth it for him to step off of the 30% tariffs that he set,\\" Lutnick told \\"Fox News Sunday,\\" adding that Trump was looking to increase access for U.S. firms.

On Friday, Trump said the odds of a trade deal with the EU were about \\"50-50,\\" even as negotiators from both sides expressed optimism.

Read more here.

Tariffs remain a key concern for South Korean appliance maker LG Electronics (066570.KS).

The company said that if President Trump's blanket tariffs take effect on Aug. 1, it will adjust prices and move some production to its plants in Mexico and the US. LG produces its products worldwide, particularly in South Korea, China, and Vietnam.

On Aug. 1, imports from South Korea face a 25% tariff, while those from Vietnam face a 20% tariff. Imports from China are estimated to face tariffs of roughly 50%, though that could change after US and Chinese officials meet in Sweden for the next round of trade talks.

According to LG, consumers rushed to purchase items in the first half of the year to avoid tariffs. Still, the company's net profit fell 3.1% in Q2 as operating costs increased.

\\"Some consumers have been rushing to make purchases before the tariffs take effect,\\" an executive said on the earnings call. \\"In the first half of 2025, we achieved approximately 3% growth year over year, higher than the market demand with new product launches and efficient sales operations, continuing to strengthen our market presence.\\"

But that pull-forward in demand could signal weakness ahead in the months to come if trade tensions escalate again.

\\"A rise in product costs driven by the 50% tariff on steel and reciprocal tariffs that are set to be applied in the latter half of the year could translate into greater uncertainties for the market price,\\" the executive said. \\"Additionally, shifts in the US government's trade policies and weakening consumer sentiment cast doubt on the demand outlook for home appliances.\\"

This isn't the first time LG has grappled with US protectionist policies. In 2018, during Trump's first term, washing machine prices rose when Trump targeted the industry with tariffs.

The $550 billion President Trump said Japan gave to the US \\"to lower their tariffs a little bit,\\" could be used to help finance a Taiwanese chipmaker building plants in the US, the Associated Press reported Saturday.

Japan agreed to the sweeping U.S.-bound investment initiative, which includes equity, loans and guarantees, in exchange for lower tariffs on its exports to the U.S.

However, the structure of the scheme remains unclear.

\\"Japan, the United States, and like-minded countries are working together to build supply chains in sectors critical to economic security,\\" [Japan's top trade negotiator] Ryosei Akazawa told public broadcaster NHK.

To that end, he said projects eligible for financing under the package are not limited to U.S. or Japanese firms.

\\"For example, if a Taiwanese chipmaker builds a plant in the U.S. and uses Japanese components or tailors its products to meet Japanese needs, that's fine too,\\" he said, without specifying companies.

The U.S. is significantly reliant on Taiwan's TSMC (TSMC.BA) for advanced chip manufacturing, raising economic security concerns due to geographic proximity to China.

TSMC announced plans for a $100 billion U.S. investment with President Donald Trump at the White House in March, on top of $65 billion pledged for three plants in the state of Arizona, one of which is up and running.

Trump on Thursday called the $550 billion \\"seed money\\" and that 90% of profits from the money invested would go to the US. \\"It’s not a loan or anything, it’s a signing bonus,\\" Trump said.

Read more here.

We detailed earlier (keep scrolling) some initial, if gentle, pushback from the Japanese side on the US portrayal of the countries' trade deal.

The Financial Times has a good, detailed look at some of the \\"cracks\\" forming:

US commerce secretary Howard Lutnick boasted on Wednesday that Japan would be “the banker” for $550bn worth of investments in US strategic sectors such as semiconductors, shipbuilding and critical minerals, in return for the reduction in tariffs.

“The Japanese will finance the project. We will give it to an operator and the profits will be split 90 per cent to the taxpayers and 10 per cent to the Japanese. They basically bought down their tariff rate by this commitment,” said Lutnick.

On Thursday, Trump said the $550bn was a “signing bonus” to the US.

“What Japan did is they brought down their tariffs,” Trump told reporters. “They gave us $550bn upfront, 100 per cent. We get 90 per cent, they get 10 per cent.”

But a slideshow issued by Japan’s Cabinet Office on Friday appeared to contradict Lutnick by saying the ratio of profit distribution would be “based on the degree of contribution and risk taken by each party”.

Officials familiar with the US-Japan talks said the deal was pulled together in a slapdash manner during a 70-minute meeting between Japan’s chief negotiator Ryosei Akazawa and Trump on Tuesday.

Read more here (subscription required).

Bloomberg reports that European Commission President Ursula von der Leyen will meet with President Trump this weekend as he travels to his golf club in Scotland in a bid to secure a trade deal.

The meeting will come as the two sides race to secure a deal ahead of next Friday — Trump's self-imposed deadline for 30% tariffs on EU goods to kick in. On Friday, Trump put the odds of a deal at \\"50-50.\\"

From the report:

After months of talks and shuttle diplomacy between Brussels and Washington DC, the two sides have been zeroing in on an agreement this past week that would see the EU face 15% tariffs on most of its trade. Limited exemptions are expected for aviation, some medical devices and generic medicines, several spirits, and a specific set of manufacturing equipment that the US needs, Bloomberg previously reported.

Steel and aluminum imports would likely benefit from a quota under the arrangements under discussion but above that threshold they would face a higher tariff of 50%.

President Trump on Friday expressed pessimism on US trade negotiations with Canada, suggesting he may simply impose threatened 35% tariffs on Canadian goods not covered by the existing US-Canada-Mexico trade agreement.

\\"We haven't really had a lot of luck with Canada. I think Canada could be one where there's just a tariff, not really a negotiation,\\" he said.

More from Reuters:

Canadian officials have increasingly made clear that the chances of a deal by August 1 are unlikely.

Dominic LeBlanc, the federal cabinet minister in charge of U.S.-Canada trade, told reporters in Washington on Thursday after two days of talks that \\"we've made progress, but we have a lot of work in front of us.\\"

LeBlanc said Canada would take the time necessary to get the best deal possible.

The Boston Beer Company (SAM) continues to feel the effects of President Trump's tariffs, but a strong quarter of sales and profit is helping the Samuel Adams brewer absorb some of those cost increases.

Boston Beer expects tariffs to add about $15 million to $20 million in costs for the full year. Previously, it modeled tariff costs of $20 million to $30 million.

Expect the company to raise prices by 1% to 2% to offset some of the costs as well, executives said.

Boston Beer did see tariffs negatively affect its gross margin toward the end of the second quarter, but it benefited from improved brewery efficiencies. For the second quarter, the company reported profits of $5.45 per share on revenue of $625 million, versus estimates for earnings of $4.00 per share on $588 million, according to S&P Global Market Intelligence.

\\"Right now, I think we're very happy with the performance,\\" Boston Beer CEO Michael Spillane said on the earnings call. \\"Not only that, but that's allowed us to offset some of the tariffs that we've seen so far.\\"

Via Bloomberg:

TRUMP: 50-50 CHANCE OF MAKING DEAL WITH EU

TRUMP: WE HAVE CONFINES OF DEAL WITH CHINA

TRUMP ON CANADA TRADE: COULD JUST BE A TARIFF, NOT NEGOTIATION

TRUMP: EU MAY HAVE TO BUY DOWN THEIR TARIFFS

TRUMP: MOST OF THE TRADE DEALS ARE FINISHED RIGHT NOW

TRUMP: EU HAS PRETTY GOOD CHANCE OF MAKING A DEAL

President Trump said on Thursday that the US will sell \\"so much\\" beef to Australia, following Canberra relaxing import restrictions.

Trump added that other countries who had refused US beef products were on notice.

Reuters reports:

Australia on Thursday said it would loosen biosecurity rules for U.S. beef, something analysts predicted would not significantly increase U.S. shipments because Australia is a major beef producer and exporter whose prices are much lower.

\\"We are going to sell so much to Australia because this is undeniable and irrefutable Proof that US Beef is the Safest and Best in the entire World,\\" Trump said in a post on Truth Social.

\\"The other Countries that refuse our magnificent Beef are ON NOTICE,\\" the post continued.

Read more here.

Reuters reports:

South Korea's Kia Corp (000270.KS) said on Friday that it aims to increase its US sales and market share in the second half, driven by sales of new hybrid and gasoline vehicles and as some rivals are expected to raise prices to cope with tariffs.

Kia, which together with affiliate Hyundai Motor ranks as the world's no. 3 carmaker, said its operating profit in the second quarter slumped by a quarter as it took a hit of 786 billion won ($570 million) from U.S. tariffs and warned of a bigger blow in the second half.

Still, it increased April-June US sales by 5% as consumers brought forward some car purchases due to concerns that US tariffs would lead to higher vehicle prices. Kia also credited solid sales of its new Carnival hybrid sport utility vehicles for the rise.

It said it aimed to increase its US sales by 7% to 8% in the second half of the year even as overall auto sales in the US market are expected to slump by 10%, leading to a gain in market share to over 6% from 5.1% in the first half.

Read more here.

Puma (PUM.DE) shares fell 17% on Friday after the sportswear brand said that it now expects an annual loss due to a decline in sales and US tariffs denting profit.

Reuters reports:

Puma (PUM.DE) has been struggling to attract shoppers as re-released retro sneakers, such as the Speedcat, have not sold as well as hoped, and CEO Arthur Hoeld, in the role since July 1, said the company needs to \\"course-correct\\".

\\"This year, 2025, will be a reset for Puma and 2026 will be a transition year for us,\\" said Hoeld, formerly sales chief at Adidas, who was appointed by Puma's board in April to turn performance around.

\\"We as a company need to take a hard look at ourselves,\\" he said on a conference call with journalists. \\"We do have tremendous potential with a brand that hasn't been unlocked yet, but a brand that also requires a reset and a new way forward.\\"

Read more here.

Reuters reports:

South Korean battery firm LG Energy (373220.KS) Solution warned on Friday of a further slowdown in demand by early next year due to U.S. tariffs and policy uncertainties after it posted a quarterly profit jump.

Its major customers Tesla (TSLA) and General Motors (GM) warned of fallout from U.S. tariffs and legislation that will end federal subsidies for EV purchases on September 30.

\\"US tariffs and an early end to EV subsidies will put a burden on automakers, potentially leading to vehicle price increases and a slowdown in EV growth in North America,\\" CFO Lee Chang-sil said during a conference call.

Read more here.

Japan said Friday that profits from the $550 billion investment deal with the US will be shared based on how much each side contributes. A government official suggested the US will also put in significant funds, but details of the scheme remain unclear.

The White House had announced earlier in the week that the US would retain 90% of the profits from the $550 billion US-bound investment and loans that Japan would exchange in return for reduced tariffs on auto and other exports to the US.

This would mean that returns would be split 10% for Japan and 90% for the US, according to the White House official, and that it would be \\"based on the respective levels of contribution and risk borne by each side.\\"

Bloomberg News reports:

Similarly, Japan's top trade negotiator, Ryosei Akazawa, said on Friday that he understands the US side seeking a 90-10 split of returns as a sign of its commitment to shouldering a large share of the contribution and risk.

\\"Some people are saying Japan is simply handing over $550 billion, but such claims are completely off the mark,\\" he said.

Akazawa also said the final decision on profit sharing will rest with private-sector companies joining forthcoming investment projects.

According to the Japanese government, the U investment package includes loans and guarantees from state-owned Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI).

A law revision in 2023 has expanded the scope of JBIC, making foreign companies key to Japan's supply chains eligible for loans from the bank.

Read more here.

US business activity rose in July, but companies increased the prices for goods and services, supporting the view from economists that inflation will accelerate in the second half of 2025 and it will mainly be due to tariffs on imports.

Reuters reports:

Despite the increase in activity this month, the survey from S&P Global on Thursday also showed sentiment among businesses remained downbeat, which it said \\"primarily reflected broad-based concerns over tariffs and cuts to state funding following recent federal government policy changes.\\"

Consumer prices increased by the most in five months in June, with solid rises in the costs of tariff-exposed goods like household furnishings and supplies, appliances, sporting goods and toys, signaling that President Donald Trump's broad import duties were starting to have an impact on inflation.

Read more here.

President Trump set a new rhetorical floor for tariffs on Wednesday night in comments in a shift that raises the president's baseline rate from 10%.

Yahoo Finance's Ben Werschkul writes:

Taken together, the moves suggest that his administration is aiming to make 15% a new minimum rate for tariffs worldwide.

That is an increase from current 10% duties in place on much of the world and comes after months of trade negotiations saw American trading partners searching for ways to lower rates to little apparent avail.

Trump's comments Wednesday night came at an AI summit and included a touting of a recent deal with Japan that saw tariffs on a variety of products move to 15%.

\\"We're going to have a very, very simple tariff for some of the countries,\\" the president then added of other talks, saying, \\"We'll have a straight simple tariff of anywhere between 15% and 50%.\\"

He added that only a \\"couple\\" of countries could see the 50% rate because of larger disagreements — an apparent reference to Brazil — and that others could see the lower rate if they open up their markets to American goods.

Read more here.

Keurig Dr. Pepper CEO Tim Cofer said that tariffs are putting additional pressure on the company in an earnings call Thursday, especially when it comes to its coffee business, which KDP expects to be \\"subdued\\" for the remainder of the year.

\\"Commodity inflation will build as we roll into the back half and we roll into our higher cost hedges on green coffee,\\" Cofer said. \\"The tariff impacts will become prominent. And we all know that tariff situation is a bit fluid.\\"

Keurig is one of the biggest coffee importers in the US, along with Starbucks (SBUX) and Nestle (NSRGY). The US sources most of its coffee from Brazil, which is set to face 50% tariffs on its products on Aug. 1, and Colombia, which faces a tariff rate of 10%.

In Keurig's coffee business, appliance volume decreased 22.6% during the quarter, reflecting impacts of retailer inventory management, and K-Cup pod volume decreased 3.7%, reflecting category elasticity in response to price increases, the company reported.

\\"Our retail partners will likely continue to manage their inventory levels tightly, in particular on brewers,\\" Cofer commented. \\"And then finally, you know we did a round of pricing at the beginning of the year. We've announced another round of pricing that will take effect next month, and we'll need to closely monitor how that elasticity evolves.\\"

Read more about Keurig earnings here.

As my colleague detailed below, EU member states voted to impose tariffs on over $100 billion of US goods from Aug. 7.

The Financial Times reported that this move that allows the bloc to impose the levies quickly at any point in the future should its trade relationship with the US take a turn for the worse.

From the report:

Two diplomats told the Financial Times that these would be suspended if there was a deal with Washington, as expected, by a deadline of August 1. However, they will not be reversed so they can be activated quickly in case Donald Trump fails to stick to agreed terms.

“Our first, second and third priorities are to get to a negotiated outcome. But we will not hesitate to use all tools available to us in case a deal is blocked or not upheld,” said one of the diplomats.

The two sides are closing in on a deal that would levy 15 per cent “reciprocal” tariffs on most EU exports to the US, copying one sealed between Washington and Tokyo this week.

However, if they fail and Trump carries out his threat to raise tariffs to 30 per cent from August 1, the bloc would impose its retaliatory measures. These target products including Boeing aircraft, Levi jeans, chicken and soyabeans.

A levy would also be added to EU scrap metal, which the US uses for fresh steel products.

Read more here (subscription required).

A report in the Wall Street Journal on Thursday said that the European Union has now approved its retaliatory tariff package on US goods that could start in August if no trade agreement is reached.

The EU announced on Wednesday that it will hit the US with 30% tariffs on over $100 billion worth of goods in the event that no deal is made and if President Trump decides to follow through with his threat to impose that rate on most of the bloc's exports after Aug. 1.

The US exports, which would include goods such as Boeing (BA) aircraft, US-made cars and bourbon whiskey would all face heavy tariffs that match Trump's 30% threat.

The approval of the package comes despite the growing optimism that the US and EU will reach a deal that would put baseline tariffs on the bloc at 15%, matching the level the US applied to Japan.

The EU is keen to reach a deal with the US but as a cautionary measure has approved 30% tariffs if a deal is not made.