The US and the EU established a written framework on Thursday for the trade deal agreed to on July 27. The terms include a 15% US tariff on most EU imports: These include autos, pharmaceutical goods, semiconductors, and lumber — but not wine and spirits.
The two sides also outlined the EU’s promise to remove tariffs on US industrial goods and give better access to US seafood and agricultural products.
“The United States and the European Union, in line with their relevant internal procedures, will promptly document the Agreement on Reciprocal, Fair, and Balanced Trade to implement this Framework Agreement,” the statement concluded.
On Wednesday, US Treasury Secretary Scott Bessent said the US is content with its current tariff setup with China, signaling the Trump administration wants stability ahead of the November trade truce deadline.
In a Fox News interview, Bessent said the status quo is “working pretty well” and called China the biggest source of tariff revenue.
Bessent went on to add in a further interview with CNBC that he expects tariff revenues under President Trump to exceed his earlier $300 billion estimate, with the money going to pay down the federal debt rather than rebate checks for Americans.
“I’ve been saying that tariff revenue could be $300 billion this year. I’m going to have to revise that up substantially,” Bessent said.
Earlier this week, S&P Global Ratings affirmed the US’s AA+ long-term credit rating with a stable outlook, saying tariff revenues will help offset the fiscal blow from President Trump’s recent tax and spending bill.
The agency’s view comes despite Trump’s sweeping tariffs, which have rattled markets and strained trade ties.
Earlier this month, Trump unveiled “reciprocal” tariffs on dozens of US trade partners (which you can see in the graphic below).
The biggest negotiations to watch in the coming months are Canada, Mexico, and China.
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.
LIVE 1724 updates
Tariffs are giving parents back-to-school sticker shock
As the summer holidays come to an end and children head back to school, parents are getting a nasty surprise when they check price tags for kids clothing due to President Trump’s sweeping tariffs.
CNN reports:
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US-EU trade deal impacts on pharma industry more ‘manageable’ than expected
Yahoo Finance’s Anjalee Khemlani reports:
Read more here.
J&J to invest $2B to boost US manufacturing as drug tariffs loom
Reuters reports:
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Walmart CEO: Tariff impact has been ‘gradual,’ but we expect costs to increase
Walmart (WMT) reassured investors that it’s continuing to gain market share and generate healthy sales growth.
But even though executives said the company didn’t see any “dramatic shifts” with consumer behavior last quarter, they did communicate that keeping costs low could become a greater challenge in the second half of the year as tariff-related price increases work their way through inventory.
“With regards to our US pricing decisions, given tariff-related cost pressures, we’re doing what we said we would do: We’re keeping our prices as low as we can for as long as we can,” Walmart CEO Doug McMillon said on Walmart’s earnings call.
“The way things have played out so far, the impact of tariffs has been gradual enough that any behavioral adjustments by the customer have been somewhat muted,” McMillon continued. “But as we replenish inventory at post-tariff price levels, we’ve continued to see our costs increase each week, which we expect will continue into the third and fourth quarters.”
Read more live coverage of corporate earnings.
Economic impact of US tariffs will be key for US rating
(Reuters) – S&P Global Ratings’ decision to affirm its U.S. credit rating reflected the impact of tariff revenues, but questions remain on the economic outcome of U.S. trade policies that could influence the country’s rating in the next few years, the primary analyst on the U.S. said.
S&P on Monday affirmed its “AA+” credit rating on the U.S., saying the revenue from President Donald Trump’s tariffs has the potential to offset the fiscal hit from his massive tax-cut and spending bill. S&P, which became the first ratings agency to cut the pristine U.S. government rating in 2011, said the outlook on the U.S. rating remains stable.
“Outcomes are what’s really going to weigh and inform the rating,” Lisa Schineller, primary U.S. analyst at S&P Global Ratings, said in an interview.
“The outcomes of how you execute the budgetary legislation, how the tariff revenue comes, their combined impact on growth and investment that leads to either better or worse or similar fiscal out-turns, that’s our focus,” she said.
Read more here.
EU-US trade deal does not include wine and spirits
BRUSSELS (Reuters) – The EU-U.S. trade deal does not include wine and spirits, European Union Trade Commissioner Maros Sefcovic said on Thursday, adding that the door was not closed to tariff reductions for the sector and others not included in the deal. …
“This one we didn’t get in. But I can tell you that there is clear commitment from the European Commission to put it on the table”, Sefcovic said, referring to wines and spirits.
Read more here.
US, EU lock in trade deal; US official sees auto tariff relief in weeks
The US and the EU on Thursday finalized a framework trade deal reached last month. The agreement keeps US tariffs on most EU imports, including autos, chips, pharmaceuticals and lumber.
In a joint statement, the two sides outlined their commitments. The EU pledged to remove tariffs on all US industrial goods and give preferential market access to a range of US seafood and agricultural products.
Reuters reports:
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Why Trump tariff inflation is arriving slowly
Yahoo Finance’s senior columnist Rick Newman looks at how the higher cost of tariffs appears to be hiding deep inside global supply chains.
Read more here.
China turns against Nvidia’s AI chip after ‘insulting’ Howard Lutnick remarks
Beijing has restricted sales of Nvidia’s (NVDA) China specific AI chip after US Commerce Secretary Howard Lutnick made comments officials found “insulting.”
Chinese regulators, which include the Cyberspace Administration of China (CAC), the National Development and Reform Commission (NDRC), and the Ministry of Industry and Information Technology (MIIT), are now trying to discourage domestic tech firms from buying the H20 processor.
The FT reports:
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Southwire praises copper tariffs it says will help US companies
President Trump’s tariffs may have rattled markets and nations alike, but one group have applauded Trump tariffs saying that adding import duties on aluminum and copper products will help American manufacturers.
Bloomberg News reports:
Read more here.
EU says draft joint statement on trade and tariffs sent back to US
The European Commission said it has sent back the US draft joint statement on trade and tariffs, with talks on going between top officials.
While the EU and US agreed on a trade framework in July, only a 15% baseline tariff has been implemented so far, and Brussels is waiting for Washington to issue executive orders on sectors such as the auto industry.
Reuters reports:
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Korea’s early export lifted by chips despite US tariffs toll
Bloomberg News reports:
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Wed, August 20, 2025 at 4:42 PM UTC
Sony hikes PlayStation 5 prices in US as tariff uncertainty weighs
Reuters reports:
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Wed, August 20, 2025 at 3:30 PM UTC
China snaps up Russian oil as Indian demand drops following Trump tariffs
CNN reports:
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Wed, August 20, 2025 at 1:30 PM UTC
China’s rare earth magnet exports hit 6-month high in July
Reuters reports:
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Wed, August 20, 2025 at 11:07 AM UTC
Target beat low earnings expectations as sales continue to fall
Target (TGT) released its second quarter results on Wednesday. The results are not as bad as the first quarter but declining sales due to falling demand and tariff headwinds has the retail giant in a bit of a bind. Shares in target fell 8% before the bell
Yahoo Finance’s executive editor Brian Sozzi looks at the latest from Target and whether it will ever find its place in this new economic environment.
Read more here.
Wed, August 20, 2025 at 10:44 AM UTC
Japan’s exports fall most in 4 years as tariff pain deepens
Bloomberg News reports:
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Wed, August 20, 2025 at 10:32 AM UTC
Estee Lauder forecasts annual profit below estimates as tariffs hit
Estee Lauder (EL) stock fell 8% before the bell on Wednesday after the beauty group forecast annual profit below Wall Street estimates, as it grapples with persistent weakness in the US and China markets and tariff uncertainty.
Reuters reports:
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Wed, August 20, 2025 at 10:30 AM UTC
US soybean farmers near ‘financial precipice’ due to tariffs
US soybean farmers have said they are now in a very vulnerable position due to President Trump’s tariffs and that they will not be able to survive a prolonged trade war with China.
Bloomberg News reports:
Read more here.
Wed, August 20, 2025 at 9:45 AM UTC
Nordic postal operators pause shipments to US as Trump ends parcel tariff relief
Norwegian and Swedish-Danish postal groups Posten Bring and PostNord said on Wednesday, they are pausing parcel shipments to the US ahead of the US customs tax loophole that allows duty-free entry for low-value packaged being scrapped.
Reuters reports:
Read more here.
