Latest / Markets with Megan: A Quick Financial Markets Update / Tariff Talks: Who's In, Who's Still Negotiating | S2 E061 | 07-29-25

Transcript

Tariff Talks: Who's In, Who's Still Negotiating | S2 E061 | 07-29-25 · Markets with Megan: A Quick Financial Markets Update

• 0:00
  Megan Horneman: The trade deals are trickling in.
• 0:01
  Megan Horneman: It is Tuesday, July 29th, and this is Markets with Megan.
• 0:05
  Megan Horneman: If you like this podcast, please, you can subscribe.
• 0:07
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• 0:11
  Megan Horneman: But we're here today to give some of the information we've received on trade deals that are being made, and remember this is ahead of Friday's August 1st deadline, which is a hard deadline for the Trump administration.
• 0:22
  Megan Horneman: In order for these countries to make trade deals, we wanted to outline first of all what we've seen thus far.
• 0:28
  Megan Horneman: So over the weekend, the European Union matched similar to what Japan had come out with the prior week, and that was a 15 percent tariff.
• 0:36
  Megan Horneman: This is lower.
• 0:39
  Megan Horneman: This is a baseline tariff.
• 0:40
  Megan Horneman: This is lower than some of the expectations of what it would increase to if there wasn't a deal, and there are some certain sectors that are still being negotiated when you look at things like wine, steel and aluminum.
• 0:51
  Megan Horneman: But that framework is there for the European Union as well as Japan.
• 0:56
  Megan Horneman: Some of the other countries that we've seen trade deals come out of have been the United Kingdom, indonesia, the Philippines and Vietnam.
• 1:04
  Megan Horneman: These are all important steps going towards that August 1st deadline the couple countries that we haven't heard much from, or that we don't think is likely before the August 1st deadline, would be the NAFTA countries, that's, canada and Mexico.
• 1:17
  Megan Horneman: This has just been kind of in a stall the NAFTA or the products that are a part of the USMCA.
• 1:25
  Megan Horneman: They are not part of this, so they're currently benefiting from that tariff suspension.
• 1:30
  Megan Horneman: But we would like to see a little bit more progress made with some of our biggest trading partners there China.
• 1:35
  Megan Horneman: Today we're getting some details here.
• 1:38
  Megan Horneman: They're still in the negotiating phase, nothing set in stone.
• 1:41
  Megan Horneman: However, they are much closer.
• 1:44
  Megan Horneman: According to the Trump administration, they're waiting to talk to President Trump himself to get the final call specifically around that August 12th deadline.
• 1:52
  Megan Horneman: And do we want to extend that further?
• 1:54
  Megan Horneman: The Treasury Secretary of Percent has said that there is the possibility that they could go and extend that another 90 days while they work out a lot of different details in that trade deal.
• 2:04
  Megan Horneman: The other country that we're watching is India.
• 2:07
  Megan Horneman: Again, that progress has stalled.
• 2:09
  Megan Horneman: We don't think there'll be something before the August 1st deadline.
• 2:16
  Megan Horneman: But again, if it goes beyond the August 1st deadline, we do expect some deals to be made after that.
• 2:18
  Megan Horneman: We're looking at what we've gotten thus far as being promising In the long run.
• 2:23
  Megan Horneman: We don't necessarily know what this can do to inflation yet.
• 2:27
  Megan Horneman: It will depend on how much companies can pass through, but this is still highly uncertain and something you'll hear from the Federal Reserve.
• 2:33
  Megan Horneman: As far as watching this through the remainder of this year and then long run, this can be positive for the US economy.
• 2:40
  Megan Horneman: Right now, the US economy has brought in just this fiscal or just this year to date, $120 billion in tariff revenue and that's up from about $50 billion this same time in 2024.
• 2:53
  Megan Horneman: So we are adding some revenue here as well as investment into the US.
• 2:58
  Megan Horneman: This is something we've seen from both the European Union and Japan that they are committing to further investment in the US over the coming years.
• 3:06
  Megan Horneman: We'll be back with some more details as additional deals are outlined, but this is what we've gotten so far and this is positive.
• 3:14
  Megan Horneman: Ahead of that Friday deadline.
• 3:15
  Megan Horneman: That's all we have.
• 3:17
  Megan Horneman: If you want a history of our podcast, go to marketswithmegan dot FM.