Key Takeaways
- President Trump is set to sign an executive order today, formally extending the reciprocal tariff deadline to August 1, with new country-specific tariffs ranging from 15% to 50% going into effect on Friday for nations without finalized trade agreements.
- The White House confirmed President Trump opposes France, Canada, and the UK on the recognition of a Palestinian state, with Trump stating Canada's move would make a trade deal "very hard."
- A U.S. appeals court upheld a jury verdict against Alphabet's Google (GOOG, GOOGL), ruling its Play Store operates as an illegal monopoly and requiring it to allow alternative app stores and payment options.
- Colombia's deforestation surged 43% year-over-year in 2024 to 113,608 hectares, driven largely by illegal armed groups and agriculture.
- US stocks saw a mixed close on Wednesday, with the Dow Jones Industrial Average down 0.4%, the S&P 500 down 0.1%, and the Nasdaq up 0.2%, as the Federal Reserve held interest rates steady.
Trade and Geopolitics
President Donald Trump is poised to sign an executive order today, solidifying the August 1 deadline for reciprocal tariffs. These new tariffs, ranging from 15% to 50%, will be imposed on countries that have not reached new trade agreements by Friday. This move follows Trump's recent statements on Truth Social, emphasizing that the August 1 deadline "stands strong, and will not be extended." Specific industries will face additional sectoral tariffs, including a 50% tariff on copper, steel, and aluminum for most countries, and a 20% levy on pharmaceutical products. The White House confirmed that major trading partners such as Mexico, Taiwan, and Canada are likely to be affected.
In a significant diplomatic development, the White House announced President Trump's opposition to the recognition of a Palestinian state by countries including France, Canada, and the UK. Trump explicitly stated that Canada's decision to back Palestinian statehood would make a trade deal with the U.S. "very hard." This stance contrasts with his earlier apparent ambivalence towards similar moves by the UK and France. Meanwhile, U.S. Special Envoy Steve Witkoff and Ambassador Mike Huckabee are scheduled to visit Gaza on Friday to inspect aid distribution sites and formulate a plan for increased food delivery, following a productive meeting with Israeli Prime Minister Benjamin Netanyahu.
On the economic front, U.S.-China relations are reportedly "moving in the right direction," with direct talks ongoing. However, recent trade talks between the U.S. and China concluded inconclusively regarding an extension of the August 12 tariff pause, with Treasury Secretary Scott Bessent hinting that an extension is still likely.
Domestic and Corporate News
In a major legal blow to Alphabet's Google (GOOG, GOOGL), a U.S. appeals court upheld a jury's finding that the Google Play Store operates as an illegal monopoly. The ruling maintains a court order requiring Google to permit alternative app stores and payment options on Android devices. Google has stated its intent to appeal the decision to the U.S. Supreme Court, arguing it would "significantly harm user safety, limit choice, and undermine innovation."
President Trump also took action on pharmaceuticals, sending letters to 17 major U.S. pharmaceutical companies including Eli Lilly (ELI), Sanofi (SNY), Regeneron (REGN), Merck (MRK), AstraZeneca (AZN), GSK (GSK), Pfizer (PFE), Novo Nordisk (NVO), and Amgen (AMGN), urging them to adopt "Most Favored Nation" pricing for Medicaid and new drugs, and to extend it to direct purchases. The White House warned that non-compliance within 60 days could lead to enforcement actions.
Market Performance and Environmental Concerns
U.S. stocks experienced a mixed performance on Wednesday. The Dow Jones Industrial Average declined 0.4%, the S&P 500 slipped 0.1%, and the Nasdaq saw a modest gain of 0.2%. This comes after the Federal Reserve opted to keep interest rates steady at its July meeting, despite pressure from President Trump for rate cuts. Technology stocks, however, showed strength on Thursday, with Microsoft (MSFT) and Meta Platforms (META) rallying after reporting strong earnings, driven by advancements in artificial intelligence.
Environmentally, Colombia reported a significant surge in deforestation, increasing 43% year-over-year in 2024 to 113,608 hectares. This increase is primarily attributed to illegal armed groups converting forested areas into pastures and coca plantations, with the Amazon region being the most severely affected.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.