New U.S. tariffs on goods from dozens of global economies took effect at midnight Washington time (6:00 AM Italian time), implementing President Donald Trump’s vision for a restructured international trade order. Minutes before the deadline, Trump declared on Truth Social: “Billions of Dollars are pouring into the USA, largely sourced from countries that have taken advantage of us enthusiastically.” These tariffs replace the 10% duties imposed since April on nearly all imports from affected economies.
The rates, ranging from 15% to 41%, notably target major U.S. partners including the EU, Japan, and South Korea—all now subject to at least 15% duties. Under a tariff agreement, the EU submitted “aggregated intentions” to the U.S. administration regarding European energy spending and corporate investments in America. EU Trade Spokesperson Olof Gill clarified: “These are non-binding commitments made in good faith after industry consultations. We secured a uniform 15% tariff ceiling for all products—the only U.S. deal imposing no extra duties beyond Most Favored Nation rates,” adding that the July 27 agreement also covers pharmaceuticals and semiconductors.
European Markets Rally Amid Trump-Putin Summit Hopes**
European stocks rose as markets assessed the 15% tariffs while reacting to Kremlin-confirmed upcoming talks between Trump and Putin, boosting hopes for a Russia-Ukraine truce. Frankfurt’s DAX gained 1.9% early—recovering from a weak start after German industrial output fell 1.9%—before stabilizing at +1.4%. Paris followed (+1.1%), while Moscow’s Moex surged 4.7%. Milan edged up 0.5%, led by Interpump (+6%), Buzzi (+5.1%), Prysmian (+3.8%), and Stellantis (+2.95%). Leonardo fell 5.98%, and Bper dropped 1.4%. Zurich advanced 1% despite Switzerland facing 39% tariffs; last-minute diplomatic efforts by its president failed to secure exemptions.
Italy’s BTP-Bund spread held at 79 basis points, with 10-year yields dipping below 3.44%. Oil prices rose: WTI at $64.80 (+0.7%), Brent above $67.30 (+0.73%). Natural gas fell 0.85% to near €33/MWh, while the euro traded flat at $1.1665.
Lula Coordinates BRICS Response with Modi and Xi**
Brazilian Presidential Advisor Celso Amorim confirmed President Lula da Silva will speak today with Indian PM Narendra Modi about the U.S. tariff hikes, with Chinese leader Xi Jinping next in line. Local media report Lula is considering a coordinated BRICS response—a topic discussed at July’s summit in Rio de Janeiro.
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