Key Takeaways
- Mexico and the United States have agreed to a 90-day extension on existing tariffs, avoiding a planned increase set for Friday and allowing for continued negotiations on a long-term trade deal.
- JPMorgan Chase (JPM) CEO Jamie Dimon cautioned the Federal Reserve to be prudent with interest rate decisions, warning that markets might be underestimating inflation risks and overestimating the likelihood of rate cuts.
- Israeli airstrikes targeted multiple sites in eastern Lebanon's Bekaa Valley, raising concerns about escalating regional tensions.
- The U.S. State Department condemned the increasing threats from Iranian intelligence agencies, highlighting concerns over their activities in Europe and North America.
- Neuralink announced the launch of a clinical study in Great Britain, aiming to test its brain-computer interface technology for patients with severe paralysis.
Mexican President Claudia Sheinbaum announced that a tariff hike previously slated for Friday has been prevented, following a "very good" phone call with U.S. President Donald Trump. Both leaders confirmed a 90-day extension to the current trade agreement, providing a window to negotiate a comprehensive long-term deal.
Under the extended agreement, Mexico will continue to face specific tariffs imposed by the U.S. These include a 25% tariff on fentanyl, a 25% tariff on cars, and a 50% tariff on steel, aluminum, and copper. Additionally, Mexico has agreed to "immediately terminate its Non Tariff Trade Barriers." The dialogue aims to address the complexities of the border and security concerns, including drug distribution and illegal immigration.
In economic news, Jamie Dimon, CEO of JPMorgan Chase (JPM), urged the Federal Reserve to adopt a measured and cautious approach to interest rate decisions. Dimon warned that markets may be underestimating inflation risks and overestimating the likelihood of rate cuts, suggesting that the economy is not "out of the woods" and could face stagflation.
Geopolitical tensions continue to simmer in the Middle East, with Israeli airstrikes hitting multiple targets in eastern Lebanon's Bekaa Valley. These strikes reportedly targeted "military compounds" used by Hezbollah's elite Radwan Force, including training sites and equipment storage. The U.S. State Department, alongside several European nations, issued a joint statement condemning the "increasing number of threats from Iranian intelligence agencies" in Europe and North America. The statement highlighted concerns over Iranian intelligence services collaborating with international criminal organizations to target journalists, dissidents, and officials.
In technological advancements, Elon Musk's brain implant company, Neuralink, announced it is launching its first clinical study in Great Britain. The GB-PRIME study will evaluate the safety and initial functionality of Neuralink's fully-implantable, wireless brain-computer interface and surgical robot, aiming to enable patients with severe paralysis to control digital and physical tools with their thoughts.
Meanwhile, top Senate Democrats are reportedly moving to block President Trump's proposed 50% tariff on Brazilian goods, charging that the motive behind it is political. This comes as Trump has also imposed a 25% tariff on India, effective August 1, 2025.
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.