Global Markets React to US Tariff Threats and Economic Data

By / / Breaking News

Key Takeaways

  • The US is reportedly preparing new legal grounds for potential 50% tariffs on Brazilian imports, escalating trade tensions.
  • The New York Federal Reserve's GDP Nowcast for the second quarter of 2025 has been revised slightly downward to 1.68% from 1.71%.
  • Italy plans to issue up to €9 billion in new bonds on July 30, including 10-year, 5-year, and floating-rate bonds.
  • European stock markets showed mixed performance, with the FTSE 100 and DAX down, while the CAC 40 saw an increase.

The United States is reportedly seeking new legal justifications for imposing tariffs on Brazil, a move that could significantly escalate trade tensions between the two nations. This development comes as the US administration under former President Donald Trump has threatened a 50% levy on Brazilian imports, citing the ongoing trial of former Brazilian President Jair Bolsonaro and rulings against US social media companies in Brazil. Brazil has indicated it will retaliate with reciprocal tariffs if the US proceeds with these measures.

Meanwhile, the US economic outlook shows a slight moderation, with the New York Federal Reserve's GDP Nowcast for the second quarter of 2025 revised to 1.68%, a marginal decrease from the previously reported 1.71%. This nowcast provides a real-time estimate of GDP growth, incorporating various macroeconomic data. The Atlanta Fed's GDPNow model currently estimates Q2 GDP growth at 2.4% as of July 18.

In Europe, Italy's Treasury is set to issue a substantial amount of new debt on July 30, with plans to offer up to €3.50 billion in 10-year bonds, up to €1.50 billion in 10-year bonds, up to €2 billion in 5-year bonds, and up to €2 billion in floating-rate bonds. This bond issuance comes as European markets displayed varied performance, with the FTSE 100 down 0.21%, Germany's DAX (DAX) down 0.26%, and Spain's IBEX down 0.08%. Conversely, France's CAC 40 (CAC) saw a positive movement, increasing by 0.36%.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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