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Global stock markets call president’s bluff
WASHINGTON, DC – JULY 7: An aide picks up a page from a letter to Japan and South Korea, signed by U.S. President Donald Trump, announcing 25% tariffs beginning on August 1st, during the daily press briefing in the Brady Press Briefing Room at the White House on July 7, 2025 in Washington, DC.
Andrew Harnik | Getty Images News | Getty Images
U.S. President Donald Trump slapped punitive tariff rates on 14 trading partners on Monday — but global markets are so far shrugging off the new policies.
The president announced on Monday that he had sent letters to the leaders of Japan, South Korea, Malaysia, Kazakhstan, South Africa, Laos, Myanmar, Bosnia and Herzegovina, Tunisia, Indonesia, Bangladesh, Serbia, Cambodia and Thailand. Each letter laid out new tariff rates on goods sent from the individual country to the United States.
The new rates, ranging from 25% to 40%, will come into effect on Aug. 1.
Asia-Pacific markets — several of which are set to be directly impacted by the new tariffs — staged a muted response Tuesday. Japan’s benchmark Nikkei 225 index ended the day 0.3% higher, while South Korea’s Kospi gained 1.8%.
European markets were also subdued, trading broadly flat on Tuesday in the first trading session since Trump made his announcements late Monday. The pan-European Stoxx 600 index was 0.09% lower shortly after midday in London, after moving between slight losses and gains through the morning.
On Wall Street, stock futures were broadly higher ahead of Tuesday’s trading session, coming off of a losing session on Monday.
It’s a drastically different reaction to the wild swings seen in April, when Trump’s initial “reciprocal tariffs” announcement sparked a global selloff.
Return of the ‘TACO’ trade
One reason is likely to be because of Trump’s seemingly more flexible approach to the new policies. Speaking to reporters on Monday, he labeled the Aug. 1 deadline “firm, but not 100% firm.”
“If [the affected countries] call up and they say we’d like to do something a different way, we’re going to be open to that,” the president said.
According to AJ Bell Investment Analyst Dan Coatsworth, markets are counting on Trump to back down on his tariffs regime.
“The ‘TACO’ (Trump Always Chickens Out) trade is back on the table as the Trump administration’s latest announcements on tariffs offered some relief to financial markets,” he said in a Tuesday morning note, adding that the latest developments removed the “immediate cliff edge” of a July 9 tariff deadline.
However, the update also increases the period of uncertainty that governments, corporations and consumers are contending with.
The fact that some key U.S. trading partners — including the European Union, India and Taiwan — did not receive letters on Monday could either mean they are close to sealing preliminary deals — or will get letters shortly, Paul Ashworth, chief North America economist at Capital Economics, said in a Monday note.
Without deals, the effective tariff rate on U.S. imports will rise from 15.5% to 17.3%, he said. At the end 2024, it was at 2.5%.
“Given the very muted impact of tariffs on U.S. consumer prices up to now and that the tariff revenues are now being recycled thanks to the Republican Megabill that Congress just passed, the fallout should be manageable,” he said.
Europe trade deal optimism
In Europe, the muted reaction from stocks may also be attributed to confidence that a EU-U.S. trade deal will be struck, averting the 20% tariff rate the White House had planned to impose on the bloc’s goods.
An EU diplomat told CNBC on Monday that the European Union could receive a letter from Trump later this week, giving the bloc more time to secure a framework agreement with the White House. This broad agreement is likely to include a 10% baseline tariff and may see certain goods — such as aircraft and spirits — given exceptions. The diplomat conceded, however, that it was “ultimately all up to Trump.”
It was also widely reported on Monday that EU Commission President Ursula von der Leyen had a “good exchange” with Trump over the weekend.
Kiran Ganesh, multi-asset strategist at UBS Global Wealth Management’s Chief Investment Office, told CNBC on Tuesday morning that it was notable the EU had not received a letter — potentially because a deal is close, reassuring investors.
“Overall, the market generally seems to be comfortable with the idea that tariffs will probably settle close to the current effective rate (15%), albeit with likely lower country-level tariffs and more sector-level (semis, pharma, minerals) tariffs to come,” Ganesh said in an email.
“So overall, nothing in the letters will have changed the market’s view about where tariffs are going to end up, or the path by which we get there (threats and negotiations).”
Investors had already priced in the fact that many trade deals would not be reached before the July deadline, according to Toni Meadows, head of investment at London’s BRI Wealth Management — but he suggested that some investors may be being complacent.
“One comprehensive trade deal could take months, even years, to negotiate so the market didn’t believe that 90 partial deals in 90 days was ever possible,” he told CNBC in an email.
“At present investors seem comfortable riding Trump’s seesaw path to policy setting, but reciprocal tariffs are a tax on activity and it is too early to judge the actual impact on the economy. Perhaps things will change if we start to see a direct link in economic numbers.”
The U.S. administration should not think that investors will always be this sanguine, he added.
“The deadline extension does not give enough time for proper negotiations and shortly after that we have the usual pantomime with regard to the U.S. debt ceiling to contend with.”
— CNBC’s Ganesh Rao contributed to this report.
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Striking Philadelphia union workers reach deal with city
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“The work stoppage involving District Council 33 and the City of Philadelphia is OVER,” Mayor Cherelle Parker announced on social media early Wednesday morning.
A marathon negotiation session Tuesday between the city and its blue collar workers’ union responsible for trash pick-up and other duties around the city has resulted in a tentative contract agreement.
DC33 President Greg Boulware was exhausted after the 12-hour negotiation session and said they did what they had to do.
“There’s a lot of factors involved in what was going on and we ultimately did what we thought was in the best interest of all of our membership,” Boulware said.
The deal appears to be a complete win for the city because it got just about everything Parker wanted with a 3% raise in each of the three years of the deal. It’s a deal the Parker administration is calling “historic.”
When adding in the 5% increase the city agreed to last year to extend DC33’s contract by one year, the increase for the union over Parker’s four-year term will total 14%. That’s still well below the 32% total pay increase the union was fighting for.
“Your union stood up and fought for you and we did the best we can with the circumstances we had in front of us,” Boulware said.
Those circumstances include workers expecting to miss a paycheck Thursday.
Union officials have told workers to return to the job pending a ratification vote.
Nine thousand members of American Federation of State, County and Municipal Employees District Council 33 went on strike July 1. The strike has resulted in massive piles of trash piling up on city streets and around trash drop-off sites designated by the city.
The strike also resulted in changes to the city’s annual Fourth of July concert with headliner LL Cool J and city native Jazmine Sullivan both dropping out.
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Texas’s Camp Mystic was ‘a place of joy’. Floods turned it into a site of great loss | Texas floods 2025
The loss of 27 campers and counsellors from Camp Mystic to the Texas Hill Country flood may serve, at a terrible cost, to expand its considerable reputation across Texas and beyond. Even as the floods claimed more lives along the valley – more than 100 confirmed dead and 160 people unaccounted for as of Tuesday – the loss of several “Mystic Girls” has dominated the headlines.
The camp, which offers two four-week terms and one two-week term over the summer, has been the go-to summer camp for daughters of Texans for nearly a century. It’s so popular that fathers have been known to call the registrar to get their daughters on the list from the delivery room.
The camp, which spans more than 700 acres, has been widely described as an all-girls Christian camp, lending an image of baptisms in the river, but the religious component may be overstated: the camp is known as one of dozens along the Guadalupe River that Texan families send their young to escape the brutal heat of the lowlands.
Now at least one-half of Camp Mystic, which was due to celebrate its centenary next year, lies in ruins, torn apart by raging floodwaters. The sound of song and girls playing has been replaced by the sound of chainsaws and heavy equipment as 19 state agencies and thousands of volunteers work to search and clear mounds of flood debris along the river, including the muddied personal items of the campers.
Five days after the flood, the task along the valley has become a search-and-recovery operation: no one has been rescued from the river alive since Friday. In addition to the lost girls, Camp Mystic’s director, Richard “Dick” Eastland, a fourth-generation owner of the camp, died while attempting to bring five girls to safety.
“It tugs at the heart of anyone in the world that see the pictures of those little faces,” said Claudia Sullivan, author of a book on the Camp Mystic experience, Heartfelt: A Memoir of Camp Mystic Inspirations. “To know that they were there, having the time of their life, that they were innocent, and then to be taken away in such a tragic event – it takes you to your knees.”
Most alumni contacted by the Guardian indicated they were too upset to discuss the camp, or its reputation, as Texas Monthly put it in a 2011 article, for serving “as a near-flawless training ground for archetypal Texas women”.
It has served generations of Texas women, often from well-to-do or politically connected Texas families, including the former first lady Laura Bush, who was a counsellor, and the daughters and granddaughters of Lyndon Johnson, former secretary of state James Baker, and Texas governors Price Daniel, Dan Moody and John Connally.
The camp may have been incorrectly characterized as a “Christian” camp. “That evokes the idea of church camp but that’s not the case,” said Sullivan. “It’s a private camp for girls that holds Christian values. When I was there we spent a lot of time talking about being kind to one another and having compassion, and there were people from other denominations and faiths.”
Camp Mystic is better understood, Sullivan added, as being in a place free from pressure.
“You’re in nature, in a beautiful setting, and really removed from the world”, said Sullivan. “It’s a place of joy and innocence – or was. My sense is that it will definitely be rebuilt, but it’s awfully early.”
The outpouring of grief and rush to support the community have been striking. A church memorial service was held on Monday in San Antonio for the “Mystic girls” who had been lost. Many dressed in the camp’s green and white, together in song and prayer.
It was not possible to get to the camp on Tuesday, a tailback of 2.5 hours extended across the 7 miles from Hunt, the nearest hamlet, to Camp Mystic. At the season’s peak in July and August, the camp hosted 750 girls aged between seven and 17 years old – that’s more than half of Hunt’s population of around 1,300.
At Ingram, a riverbank town that also lost dozens from RV camps and homes to the flood, emergency workers and volunteers were pitching in, in many cases in the hope of recovering people still lost, and many bodies likely hidden under large piles of river debris, shattered homes and mangled possessions.
John Sheffield, owner of Ingram’s Ole Ingram Grocery, said the flood had not recognized social differences and nor would the recovery effort: “This is Americans taking care of Americans. There’s been such a tremendous outpouring of support and compassion.”
Down by the river, search crews were continuing to comb through debris and mud. Claud Johnson, the mayor of Ingram, was operating a digger up by Hunt. An EMS van pulled up, suggesting another body had been found. Helicopters continued to move overhead despite an incident on Monday when one was struck by a privately operated drone and was forced to make an emergency landing.
Three baristas from the Aftersome Coffee stand in San Antonio had come up to serve recovery workers. Allyson Bebleu said she had gone to church camp and it had given her some of her fondest memories.
“It’s not just for the wealthiest families, people of all types go to camp,” she said. “Everyone is putting themselves in the shoes of the Camp Mystic girls. It’s tragic.”
Camp Mystic was also the subject of a controversial video recently posed by Sade Perkins, a former member of Houston’s Food Insecurity Board. Perkins was “permanently removed” by John Whitmire, the Houston mayor, after she called Camp Mystic a “whites only” conservative Christian camp without even “a token Asian, they don’t have a token Black person”.
Richard Vela, whose 13-year-old daughter Maya was evacuated from a nearby camp, Camp Honey Creek, on Friday and was still too upset to discuss it, said Perkins’ comments “were not right. You don’t talk about people like that. There’s a lot of death going on and they still haven’t found everybody.”
Bruce Jerome, who was manning an outreach for flood survivors in Ingram, said he had known Jane Ragsdale, the director and longtime co-owner of Heart O’ the Hills Camp, in Hunt, Texas, who had died in the flooding.
“She was just genuinely wonderful,” Jerome said.
Further down the track to the river was Josey Garcia, a Democratic representative for San Antonio in the Texas state house. She and her team were also picking through the debris, pointing out vast piles that still need to be be sifted through.
Garcia, a military veteran, said it was important to come “and collaborate with our neighbors here to recover those that are missing and help Kerr county clean up. We’ve had folks coming from Laredo and outstate Kansas to lend assistance. It’s showing the spirit of Texas – when it comes to lives being devastated its our duty to step.”
Garcia, too, rejected negative characterizations of Camp Mystic.
“I’ve been hearing a lot of the rhetoric that’s been going around. This is not the time for those types of distinctions. I don’t care who was at the camp. All I know is that there are parents and families that are missing their loved ones. Whether it’s rich Caucasian children or any other children, we’d still be there.”
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Live updates on Galaxy Z Fold 7, Z Flip 7 and Watch 8
Welcome to Brooklyn, NY where Samsung is unveiling new foldable phones at its latest Galaxy Unpacked event. According to a massive leak yesterday, we’ll likely see the Galaxy Z Fold 7, Z Flip 7 and Z Flip 7 FE. That’s in line with the expectations of Samsung’s usual summer foldable releases that have happened for the past few years.
Adding weight to that report is the fact that Samsung even teased “the next chapter of Ultra” in early June, showing the silhouette of a foldable spinning around in an animation. You can read our whole article on what we expect to see at Unpacked today for the details, in case you can’t wait a few more hours.
Otherwise, buckle in to watch the livestream below and follow live commentary from our own Sam Rutherford on the scene.
Live36 updates
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A flashy video showed off the Z Fold 7’s new very thin profile, which looks a lot the Galaxy S25 Edge, ending on the Z Fold 7 taking the place of New York’s famous Flatiron building.
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