Key Takeaways
- The United States and the European Union have reached a framework trade agreement, imposing a 15% tariff on most EU goods exported to the US, while the EU commits to purchasing $750 billion in American energy and investing $600 billion in the US.
- Alphabet's (GOOGL, GOOG) Waymo is set to launch its robotaxi service in Dallas in 2026 through a multi-year partnership with Avis Budget Group (CAR), marking a significant expansion in its autonomous ride-hailing operations.
- The UK's BRC Shop Price Index for July rose to 0.7% year-on-year, exceeding expectations of 0.3% and up from June's 0.4%, driven by a sixth consecutive monthly increase in food inflation.
Commerce Secretary Howard Lutnick indicated a 90-day extension of the US-China trade truce is probable, with ongoing talks in Stockholm addressing tariffs and fentanyl-related issues. President Trump is also considering tariff rates for over 150 countries that have not secured trade agreements.
US-EU Trade Deal Averts Escalation
The United States and the European Union have announced a comprehensive framework for a new trade agreement, aiming to de-escalate tensions and prevent a full-blown transatlantic trade war. The deal establishes a uniform 15% tariff on most goods exported from the EU to the United States, including automobiles and pharmaceuticals. This rate is considerably lower than the 30% tariffs previously threatened by President Donald Trump.
A central component of the agreement involves substantial commitments from the EU regarding energy and investment. European Commission President Ursula von der Leyen confirmed that the bloc will purchase $750 billion worth of American energy over the next three years, a strategic move to diversify its supply and reduce reliance on Russian energy. Additionally, EU member states have agreed to increase their total investment in the US economy by over $600 billion, targeting key industries such as automotive manufacturing, pharmaceuticals, and defense.
While the deal aims to foster "balanced, tough, and fair trade," critics warn about a lack of legal clarity and potential long-term damage, with Germany and France reportedly voicing strong concerns. Certain goods, including aircraft, aircraft parts, some agricultural products, semiconductor equipment, generic medicines, and specific chemicals, will see tariffs reduced to zero. However, sectors like steel and pharmaceuticals were notably excluded from these reductions.
Waymo Expands Robotaxi Service to Dallas with Avis Partnership
Alphabet's (GOOGL, GOOG) autonomous driving subsidiary, Waymo, is accelerating its US expansion with plans to launch its robotaxi service in Dallas in 2026. This move is part of a new multi-year partnership with car rental giant Avis Budget Group (CAR), which will manage Waymo's fleet operations in Dallas, including maintenance and depot infrastructure.
Waymo currently provides over 250,000 paid trips weekly with approximately 1,500 vehicles across cities like Phoenix, San Francisco, Los Angeles, and Austin. The Dallas expansion, alongside planned launches in Miami and Washington, D.C. in 2026, signifies Waymo's broader national rollout and its ambition to widen its lead in the robotaxi market. Rides in Dallas will be available through the Waymo app, unlike its Austin service, which is exclusively on the Uber platform.
This expansion comes as electric vehicle manufacturer Tesla (TSLA) also pushes to grow its recently launched robotaxi business, though Waymo remains the only company to operate paid driverless taxis in the US at scale. The collaboration with Avis (CAR) highlights a strategic shift for the rental car company towards becoming a broader mobility services provider.
UK Shop Price Inflation Rises in July
The UK BRC Shop Price Index (YoY) for July came in at 0.7%, surpassing expectations of 0.3% and increasing from the previous month's 0.4%. This marks a return to inflation for headline shop prices for the first time in nearly a year, primarily driven by a sixth consecutive monthly increase in food inflation.
Food prices are now 4% higher than a year ago, up from 3.7% in June. Staples such as meat and tea were particularly affected by tighter global supplies and higher wholesale prices. While fresh food inflation remained steady at 3.2%, ambient food prices saw a significant jump to 5.1% year-on-year, up from 4.3% in June.
Conversely, non-food deflation continued, albeit at a slower pace, registering a 1.0% decrease in July compared to a 1.2% decrease in June. Retailers have warned that higher prices for consumers are likely, especially following the costs imposed by last autumn's budget.
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.