Aerial photo taken on April 3, 2025 shows a view of a port in Rio de Janeiro, Brazil.
Wang Tiancong | Xinhua News Agency | Getty Images
Just this morning Singapore time, U.S. President Donald Trump said that the 50% tariff on copper imports, which he announced earlier on Tuesday, will begin on Aug. 1.
On Wednesday, Trump posted a fresh slate of tariff letters on goods from at least seven more countries, including Mexico, the no. 1 importer of goods to the U.S., Philippines, Brunei and Sri Lanka.
But the president took a few steps further with Brazil by threatening a 50% tariff on the country. This is partly in response to the ongoing trial of his vocal ally Jair Bolsonaro over the role of Brazil’s former president in an alleged coup to overturn his 2022 reelection loss.
The 50% tariff on Brazil marks the largest duties rate that the White House has imposed on its trading partners in the recent round of new levies, which are set to begin on Aug. 1.
But it appears that investors have decided to approach Trump’s tariffs by not responding at all. They seem to have shifted their focus away from tariff developments and instead rekindled their appetite for artificial intelligence.
On Wednesday, traders boosted shares of Nvidia, causing the company to be the first in the world to touch a market capitalization of $4 trillion. Other major tech names also rose, including Meta Platforms, Microsoft and Alphabet.
What you need to know today
New tariff developments. Trump revealed updated tariff rates on the Philippines, Brunei, Moldova, Algeria, Iraq, Libya and Sri Lanka, via screenshots on Truth Social. The 50% duty on copper imports is set to kick in on Aug. 1.
U.S. stocks rise as investor appetite for AI rekindles. On Wednesday, all three major U.S. benchmarks were up. The Nasdaq Composite advanced 0.94% to close at a new high of 20,611.34. The Stoxx Europe 600 climbed 0.78%.
Starbucks China draws bids of up to $10 billion. About 30 domestic and foreign private equity firms in China have submitted non-binding offers for the coffee chain’s Chinese business, sources familiar with the deal told CNBC.
Most Fed officials see rate cuts coming, but are split on how many. Officials saw tariff-induced inflation pressures as potentially “temporary and modest” while economic growth and hiring could weaken, minutes from the June 17-18 meeting released Wednesday showed.
[PRO] AI is still reigning over the market. Chipmaker Nvidia briefly passed $4 trillion in market value on Wednesday, the first company ever to do so. Being the world’s most valuable company is not a sign of permanent superiority. But Wall Street sees more potential in Nvidia.
And finally…
Pictured here is construction on the One Sunac Opus high-end apartment complex in Beijing on Oct. 17, 2024.
Bloomberg | Bloomberg | Getty Images
The hidden drag on China’s economy
Falling real estate prices are the elephant in the room when it comes to China’s economy. Even as authorities have tried to address the financial risks, the property market is far from rebounding.
The impact of the property slump has continued to weigh on consumer sentiment and real estate-related industries. It’s a perfect storm of events weighing on China’s economy, even without a trade war.
— Evelyn Cheng