Overview

• President Donald Trump announced 30% duties on most goods from the European Union and Mexico effective August 1, prompting both partners to continue talks for a reduced rate.
• U.S. equity futures dropped about 0.5% Sunday evening in reaction to the tariff confirmation and ahead of key inflation data this week.
• The European Union extended its pause on retaliatory measures until early August while urging a negotiated settlement to avoid a full trade conflict.
• Major financial firms including JPMorgan Chase, Wells Fargo, BlackRock and Citigroup begin reporting second-quarter results on Tuesday amid concerns over higher import costs.
• Economic adviser Kevin Hassett’s remark that President Trump could dismiss Fed Chair Jerome Powell “if there’s cause” has intensified worries about political interference in monetary policy.