Trump-EU Trade Deal Sets 15–20% Tariffs, Markets Edge Higher

U.S. equities finished little changed on 18 July after a Financial Times report said President Donald Trump was weighing steep duties on European Union imports. The S&P 500 edged down 0.01% to 6,296.79, the Nasdaq Composite gained 0.05% to 20,895.66, and the Dow Jones Industrial Average fell 142.30 points, or 0.32%. An early sell-off triggered by the tariff headlines was largely reversed by the close. Talks accelerated over the following week and culminated in a U.S.–EU trade agreement disclosed on 29 July. Under the pact, Washington will impose a baseline tariff of 15–20% on most European goods starting next month, while Brussels pledged to channel roughly $750 billion into purchases of U.S. energy supplies. President Trump framed the arrangement as a ‘new default’ for trans-Atlantic commerce. Markets reacted calmly. S&P 500 and Nasdaq futures in New York edged higher, although Europe’s Stoxx 600 slipped as some EU leaders questioned the deal’s fairness. The dollar recorded its strongest jump against the euro since May, and oil prices eased ahead of this week’s Federal Reserve meeting. Investors are now turning their attention to the Fed’s policy decision and a wave of corporate results from Microsoft, Meta, Apple and Amazon. The four companies, which together account for about 20% of the S&P 500’s market value, are expected to provide clearer signals on whether robust earnings can offset the potential drag from the new tariff regime.