Key Takeaways
- The United States and European Union have reached a significant trade agreement, averting a potential trade war with a 15% tariff on most EU goods entering the U.S., including autos and semiconductors.
- German Chancellor Friedrich Merz welcomed the trade deal, emphasizing that it avoids an "unnecessary escalation" of transatlantic trade relations, though some industries still face significant tariffs.
- EssilorLuxottica (EL) reported strong Q2 2025 earnings, with revenue aligning with estimates and revenue excluding foreign exchange accelerating by 7.3%.
- Lyft (LYFT) plans to launch self-driving shuttles in U.S. cities by late 2026, partnering with Benteler Mobility to deploy Holon-branded autonomous electric vehicles.
- ASML Holding NV (ASML) is identified as a key beneficiary of the new U.S.-EU trade agreement, with its shares surging following the deal.
The global financial landscape is experiencing notable shifts as a new trade agreement between the United States and the European Union takes center stage, alongside significant corporate earnings reports and advancements in autonomous vehicle technology.
The U.S. and EU have finalized a trade deal that sets a 15% tariff on most EU goods imported into the U.S., a measure aimed at rebalancing trade relations and avoiding a full-blown trade war. This agreement includes sectors like automobiles and semiconductors, though some exceptions apply, such as a 50% levy on steel and aluminum remaining in place. As part of the deal, the EU has committed to purchasing $750 billion in U.S. energy and investing an additional $600 billion in the U.S. economy by 2028.
German Chancellor Friedrich Merz expressed relief at the agreement, stating it prevents an "unnecessary escalation in transatlantic trade relations" that would have severely impacted Germany's export-oriented economy. While acknowledging the positive development, Merz noted that some industries, particularly the German automotive sector, still face a 15% tariff compared to the previously threatened 27.5%, and some industry groups like the German Chemical Industry Association (VCI) believe the rates remain "too high."
In corporate news, eyewear giant EssilorLuxottica (EL) announced its Q2 2025 earnings, reporting Q2 revenue of EUR7.18 billion, aligning with analyst estimates. The company's revenue, excluding foreign exchange impacts, saw a robust increase of 7.3%, surpassing the estimated 5.93%. North American revenue reached EUR3.10 billion, slightly above estimates, contributing to a H1 revenue of EUR14.02 billion and H1 adjusted operating profit of EUR2.53 billion, both in line with expectations. The company highlighted the strong performance of its AI glasses, with Ray-Ban Meta sales up over 200% in H1.
The new U.S.-EU trade agreement has also created clear beneficiaries in the semiconductor industry. ASML Holding NV (ASML), the Dutch semiconductor capital-equipment giant, has been identified as a significant winner, with its shares seeing a nearly 4% surge after the deal set tariffs at 15% rather than a higher levy. Other European chipmakers like ASM International (ASMI), STMicroelectronics (STMPA), BE Semiconductor (BESI), and Infineon (IFXGn) also experienced gains.
Looking to the future of transportation, Lyft (LYFT) is set to introduce self-driving shuttles to U.S. cities by late 2026. The company is partnering with Benteler Mobility to integrate Holon-branded autonomous electric shuttles into its network, with deployment planned for cities and airports. These shuttles, designed without a steering wheel or pedals, will operate at Level 4 autonomy and can accommodate up to 15 passengers. This move is part of Lyft's broader strategy to expand its autonomous footprint and compete in the evolving urban transport landscape.
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.