Nicaragua Cuts Diplomatic Ties With Italy Over Red Brigades Extradition Dispute 
US Stock Futures Fall as Netflix Outlook, Chip Selloff and Iran Tensions Weigh on Markets 
Trump Administration Launches AI Cybersecurity Partnership to Protect Critical Infrastructure 
Trump Declassifies China Election Intelligence, Revives 2020 Election Security Claims 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
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US-Iran Conflict Escalates as Hormuz Tensions Disrupt Global Oil Shipping 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Ukraine, EU Sign Landmark Drone Deal to Boost Defense Production 
Hegseth Defends Blue Angels After Low Flyover Sparks Safety Review 
North Korea Calls South Korea ‘Puppet’ After U.S.-Led RIMPAC Naval Exercise 
Japan Core Inflation Seen Rising in June, Strengthening BOJ Rate Hike Outlook 
Gold Prices Head for Biggest Weekly Loss Since June as Fed Rate Outlook Weighs 
Oil Prices Set for Weekly Surge as U.S.-Iran Conflict Fuels Supply Fears 
President Donald Trump confirmed that starting Tuesday, all imports from Mexico and Canada will face a 25% tariff, citing insufficient efforts to curb fentanyl trafficking. Additionally, China will see an extra 10% tariff, raising the total to 20%.
“There’s no room left for Mexico or Canada,” Trump stated at the White House, emphasizing that negotiations have reached a dead end.
Economists at Morgan Stanley warn these tariffs could increase U.S. inflation by 0.3 to 0.6 percentage points in the next few months, pushing PCE inflation to 2.9%–3.2%. U.S. GDP growth could also decline by 0.7%–1.1%, dropping to 1.2%–1.6%. A Mexican recession is now their base-case scenario.
Market strategists expect increased downside risks for economic growth, likely leading to a more dovish monetary policy. Sectors most vulnerable to the tariffs include IT hardware, autos, and consumer goods.
While an eleventh-hour resolution remains possible, Trump could either postpone the tariffs, implement them for a short period, or maintain them long-term. Analysts believe Mexico and Canada have a higher chance of reaching a resolution due to ongoing diplomatic efforts, whereas the China tariffs appear more persistent.
As trade tensions escalate, businesses and investors brace for potential economic shifts, watching for further policy developments.
