US Trade Deals: South Korea Secures Tariff Deal, Brazil & India Face Higher Duties

Trade Deals Ahead of Deadline

• 🎯 Countries are rushing to strike trade deals with the US before a Friday deadline, with President Trump making several trade announcements.
• 🤝 South Korea secured a deal, reducing tariffs on its exports to the US to 15%, promising $300 billion in US investments and $100 billion in American energy purchases.

Tariffs on Brazil and India

• ⚠️ Brazil faces a significant 50% tariff, described as more political than economic, with exemptions for aircraft parts, energy, and orange juice, but not coffee.
• 📈 India is subject to a 25% tariff, though talks are ongoing, and a 50% duty has been imposed on copper pipes and wiring.
• 📦 The US has also scrapped the tariff exemption for parcels under $800 from anywhere in the world.

Big Tech Earnings and AI Investment

• 🚀 Meta's stock jumped 11% after AI boosted its core advertising business, exceeding estimates and leading to a predicted 22% increase in third-quarter revenue.
• 💰 Meta plans to spend approximately $72 billion on data centers and AI development this year, while Microsoft is investing around $120 billion.
• ☁️ Microsoft's cloud computing revenue has reached $75 billion on an annualized basis.

Federal Reserve Policy and Interest Rates

• 📉 Two Fed governors expressed a desire to cut rates, contrasting with Chair Jerome Powell's stance on ignoring political pressure.
• 📊 Markets have revised down expectations for a Fed rate cut in September, as Powell indicated the economy remains resilient.