Business & Economy

Business & Economy

The Big Story

Trade tensions rise against Trump's Friday deadline

White House trade talks are intensifying ahead of Aug. 1 deadline for “reciprocal” tariffs and as President Trump stares down a big week on the economy.

© The Associated Press

Talks between the U.S. and China are starting in Stockholm, Sweden, and Trump and U.K. Prime Minister Keir Starmer are in Scotland fleshing out the U.K. trade deal that was announced earlier this year.

Trump’s Aug. 1 deadline for the resumption of tariffs is fast approaching, though China and the U.S. are facing an Aug. 12 deadline following agreements announced in May and June that brought down mutually imposed triple-digit tariffs.

The White House announced a trade deal with the European Union on Sunday that will see the EU purchase U.S. fossil fuels. European leaders are criticizing the deal.

“It’s a dark day when an alliance of free peoples - who are joined to affirm their values and defend their interests - resolve to submit,” French Prime Minister Francois Bayrou said.

Trump has threatened to impose tariffs on any other country that doesn’t make a trade deal before Friday, suggesting Monday that that rate would be around 15 percent to 20 percent.

“We’re going to be setting a tariff for essentially the rest of the world, and that’s what they’re going to pay if they want to do business in the United States. Because you can’t sit down and do 200 deals. But we made the big ones,” he said.

The White House has also insisted it would hold the Aug. 1 deadline, while previous deadlines for tariffs have moved since April.

Read more here on Trump's big economic week from The Hill's Tobias Burns and Alex Gangitano.

Welcome to The Hill’s Business & Economy newsletter, I'm Aris Folley - covering the intersection of Wall Street and Pennsylvania Avenue.

Did someone forward you this newsletter? Subscribe here.

Essential Reads

Key business and economic news with implications this week and beyond:

Trump faces critical week on economy

President Trump is staring down a big week on the economy.

France denounces US-EU trade deal: ‘Submission’

French Prime Minister François Bayrou is criticizing the trade deal struck by President Trump and European Commission President Ursula von der Leyen as an act of “submission” by the European Union (EU).

US-EU trade deal: What to know

President Trump and European Commission President Ursula von der Leyen unveiled a trade deal over the weekend, with tariffs set at 15 percent for European goods.

Elon Musk says new Samsung plant will make Tesla AI chips

Tesla CEO Elon Musk said a new Samsung plant in Texas will be devoted to making the next generation of semiconductors for the electric vehicle (EV) company as it pushes the needle on artificial intelligence (AI).

The Ticker

Upcoming news themes and events we're watching:

• The Federal Open Market Committee (FOMC) is set to make a decision on interest rates on Wednesday at 2 pm EDT.
• The Senate is expected to consider its first batch of government funding bills for fiscal 2026 this week.

In Other News

Branch out with more stories from the day:

Wall Street kicks off a week full of potential flashpoints with a whisper

NEW YORK (AP) - U.S. stock indexes drifted through a quiet Monday after the United States agreed to …

Good to Know

Business and economic news we've flagged from other outlets:

• S&P 500 gives up gain and turns lower despite EU trade deal as traders brace for busy week (CNBC)
• How Trump’s latest tariffs could affect your wallet (The Associated Press)
• Is this even legal? Answers to every question about the Tea app drama (CNN)

What People Think

Opinion related to business and economic issues submitted to The Hill:

• Pop goes the deficit: The warning signs are all there

You're all caught up. See you tomorrow!

Thank you for signing up!

Subscribe to more newsletters here

Source: The Hill - News