The stock markets, which had hit record highs, saw corrections by week’s end. Tariff updates were a key market driver. The U.S. confirmed trade agreements with key partners like the EU and South Korea, while others like Canada, Mexico, India, and Australia remained pending.
Notably, tariffs on Canadian goods outside the USMCA increased from 25% to 35%, while Mexico received another 90-day tariff pause.
President Trump also announced 10–50% tariffs on various partners/sectors, with a special 40% transshipment tariff targeting goods rerouted through third countries. Talks with China in Stockholm hinted at an extension to their tariff pause, set to expire August 12.
Weather-wise, heavy rainfall reduced drought in the U.S. Midwest to just 8.5%, down from about 30% in June, removing much of the grain market’s weather risk. A derecho event earlier in the week turned out to be minor.
In financial updates, The U.S. Federal Reserve left rates unchanged, but poor jobs data raised expectations for a September rate cut. Bank of Canada held interest rates at 2.75%, with underlying inflation believed to be 2.5%.
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