Powell cautioned that inflation could rise further this summer due to tariffs, potentially postponing any policy easing.

Donald Trump confirmed that discussions with Brussels are ongoing to reach a trade agreement before the August 1 deadline.

The euro fell to $1.165, a two-week low, after Trump announced a 30% tariff on EU and Mexican goods starting August 1. Both parties pledged to continue negotiations.

Global markets braced for impact as President Trump’s aggressive tariff escalation shook investor confidence and ignited safe-haven demand.

The euro rose to 1.1740 on Thursday, supported by broad US dollar weakness as Treasury yields declined and Fed minutes suggested possible rate cuts, with markets overlooking Trump’s new tariff threats. Gold climbed to $3,320, lifted by a softer dollar and renewed trade risks after Trump’s Brazil tariff threats, while Fed minutes showed officials divided on rate cuts, increasing safe-haven demand. Bitcoin traded near $111,000, holding steady with resistance at $112,130 and support at $108,000.

Trump confirmed tariffs will start August 1 with no extensions, imposing 25–40% tariffs on 14 countries and 50% on copper imports, while a 200% pharmaceutical tariff is delayed 12–18 months.

China warned the U.S. against reimposing tariffs in August, threatening retaliation amid fragile trade talks. Trump has begun notifying partners of higher tariffs starting August 1, giving China until August 12 to reach a deal.

Trump announced a 10% tariff on countries backing BRICS “anti-American policies,” with tariffs starting August 1 for nations without trade deals. Only China, the UK, and Vietnam have partial agreements so far.