Trump Tariffs
U.S. President Donald Trump on Wednesday warned of imposing a steep 50% tariff on Brazil starting August 1, as stated in a letter addressed to Brazilian President Luiz InĂ¡cio Lula da Silva.
Several countries received tariff notifications on Wednesday, including the Philippines, Sri Lanka, Moldova, Brunei, Algeria, Libya, and Iraq, with duties reaching up to 30% on exports to the U.S. These new tariffs are set to take effect on August 1, subject to ongoing negotiations.
Compared to the announcements made in early April, the proposed tariff rates on imports from Sri Lanka, Moldova, Iraq, and Libya have been reduced, while those on goods from the Philippines and Brunei have increased. The tariff rate on Algerian exports remains unchanged at 30%.
Fed minutes
At their June meeting, Federal Reserve officials were divided on how quickly to lower interest rates, with some expressing concerns about inflation driven by tariffs, while others pointed to weakening labor markets and underlying economic resilience.
According to minutes from the June 17-18 meeting released on Wednesday, most policymakers preferred a cautious, wait-and-see approach regarding future rate decisions. The Federal Open Market Committee (FOMC) ultimately voted unanimously to keep the benchmark interest rate steady at 4.25%-4.5%, a level maintained since December 2024.
US Dollar
The U.S. dollar continued to retreat from its two-week high against major currencies on Thursday, as President Donald Trump's latest tariff threats had limited impact on global markets-except in Brazil, where the real tumbled as much as 2.8% overnight due to a proposed 50% tariff.
Adding to the dollar's weakness was a steep drop in U.S. Treasury yields after a strong demand for 10-year notes in Wednesday's auction. This helped ease concerns surrounding the earlier "Sell America" trend, which had led to simultaneous sell-offs in U.S. Treasuries, the dollar, and Wall Street stocks
source: mint
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