Key Takeaways
- The European Union has agreed to reduce its car import duty to 2.5% as part of a new framework trade deal with the United States, while a 15% tariff will apply to most other EU imports into the U.S.
- The UK's Medicines and Healthcare products Regulatory Agency (MHRA) has approved ToferSen, a new genetic therapy, to treat a rare inherited form of motor neuron disease (SOD1-ALS).
- JPMorgan has raised its price target for Qualcomm (QCOM) to $200 from $190, citing robust cloud spending prospects for the latter half of 2025.
- China has announced a new policy providing 3,600 Yuan in yearly child support for children under the age of three, as part of broader efforts to boost birth rates.
- Discussions are still ongoing regarding potential tariff exemptions for wines and spirits within the EU-U.S. trade agreement.
The global economic landscape saw significant developments today, with a major trade agreement between the European Union and the United States taking center stage. Concurrently, a breakthrough drug approval in the UK and an analyst upgrade for a key technology stock signaled important movements in specific sectors.
EU-U.S. Trade Agreement Reshapes Tariff Landscape
A new framework trade deal between the European Union and the United States has been announced, bringing both relief and new challenges for various industries. An EU official confirmed that the European Union has agreed to cut its car import duty to 2.5% as part of this agreement. This reduction is a notable shift from the previous combined rate of 27.5%, which included a 25% Trump-era tariff and an existing 2.5% duty. While this offers some relief for European car manufacturers, some, like Volkswagen, have already reported significant profit drops, with Volkswagen experiencing a $1.5 billion loss in the first half of the year due to higher tariffs.
The broader agreement sets a 15% tariff on the vast majority of EU imports into the U.S., including vehicles, semiconductors, and pharmaceuticals. This is a reduction from the 30% tariff that U.S. President Donald Trump had previously threatened to impose if no agreement was reached by August 1. However, this 15% rate remains substantially higher than the average 2% tariff that applied prior to Trump's trade measures, falling short of the zero-for-zero tariff deal that EU negotiators had initially sought.
Discussions are still underway regarding specific tariff exemptions for the wines and spirits sectors. European producers, including major players like Diageo, Pernod Ricard, Remy Cointreau, and Campari, are hopeful for exemptions, as alcohol exports to the U.S. were valued at approximately 9 billion euros ($10.5 billion) in 2024. French Trade Minister Laurent Saint Martin expressed optimism that the spirits sector, in particular, would be exempted from U.S. tariffs.
UK Approves New Treatment for Motor Neuron Disease
In a significant development for the healthcare sector, the UK's Medicines and Healthcare products Regulatory Agency (MHRA) has granted approval for ToferSen to treat a rare inherited form of motor neuron disease (MND) caused by genetic changes in the SOD1 gene. This approval marks a crucial step forward for patients in the UK suffering from SOD1-ALS, offering a new targeted treatment option. The drug, developed by Biogen (BIIB), has shown promise in trials by slowing, and in some cases halting, disease progression in individuals with the SOD1 genetic alteration.
Qualcomm Sees Price Target Boost from JPMorgan
JPMorgan has demonstrated increased confidence in Qualcomm (QCOM), raising its price target for the semiconductor giant to $200 from $190. This upgrade comes amid expectations of robust cloud spending in the latter half of 2025, which is anticipated to positively impact the company's performance. The analyst, Samik Chatterjee, maintained an "Overweight" rating on Qualcomm shares, indicating continued optimism despite potential sensitivities in other customer verticals to broader macroeconomic conditions.
China Implements New Child Support Policy
In an effort to address its demographic challenges and boost birth rates, China has announced a new policy providing 3,600 Yuan in yearly child support for children under the age of three. This measure is part of a broader set of initiatives aimed at optimizing family planning policies, which also include tax deductions, expanded childcare services, and improved leave policies to support parenting. The move reflects the government's commitment to promoting long-term and balanced population development.
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.