Trump Says Countries Will Face Tariffs Ranging From 15% to 50%; Trump to Tour Fed Construction Site

Bloomberg Audio Studios, Podcasts, radio News.
Good morning.
I'm Nathan Hager and I'm Karen Moscow. Here are the
stories we're following today.
Karen, we begin with the trade wars.
Optimism around the latest deals is pushing global equities to
record highs. Ahead of President Donald Trump's self imposed August
first tariff deadline, the US and the European Union are
progressing toward an agreement that would set a fifteen percent tariff.
Right In remarks heard live here on Bloomberg, President Trump
suggested he will not go below fifteen percent for his
so called reciprocal tariffs.
We're going to have a very very simple tariff for some.
Of the countries. Have so many countries, you can negotiate.
Deals with everyone.
So we'll have a straight simple tariff of anywhere between
fifteen and fifty percent. A couple of we have fifteen
because we haven't been getting along with those countries too well.
So we just say let's pay fifty. And that's the
way it is.
President Trump says the EU could pay a lower tariff
if it agrees to open up to American businesses. Other countries,
including South Korea and India, are also pushing for agreements
before the higher tariffs go into effect August first, Nathan.
The President is making a trip to the Federal Reserve
today to tour a construction site he has criticized for
cost overruns. The President has attacked FED chair J Powell
for not cutting rates and has repeatedly criticized the Fed's
two and a half billion dollar renovation project. Although he
says he does not plan to remove Powell before the
end of his term, President Trump has not fully closed
the door on that decision. Powell has called media reports
about the renovations inaccurate.
Last night, Karen, the Trump administration struck a deal with
Columbia University to restore its federal research funding and ease
a crisis that has upended the Ivy League schools finances
and leadership. Columbia will pay a two hundred million dollar
penalty to resolve multiple civil rights investigations. It'll pay an
additional twenty one million dollars to settle claims the Jewish
faculty and staff faced unlawful workplace discrimination. Columbia's deal could
serve as a template for other colleges negotiating with the government,
including Harvard.
Nathan we also continue to follow the latest developments in
the Jeffrey Epstein case. The Wall Street Journal is reporting
that the Justice Department and Attorney General Pam Bondi told
President Trump his name appears in documents related to Epstein,
along with many other high profile figures. Being mentioned in
the records is not a sign of wrongdoing. But last week,
the President told reporters that Bondi did not tell him
his name was in the files. A White House spokesman
says the Journal report his fake news.
Well, Meanwhile, Karen the House Oversight Committee has suboenat Epstein's
jailed ex girlfriend and accomplice, Gallaine Maxwell, to testify next month.
Tennessee Republican Tim Burchett serves on the committee.
He told ABC News what he hopes to find out.
I'd like to know the cash flow.
I'd like to know the client list.
I'd like to know the apparatus they use, their method.
Of getting these young follows folks.
I just like to know all of it.
And she's the last one standing.
In Tennessee Congressman Tim birch Att House Oversight Chairman James
Comer wrote in the subpoena that it is quote imperative
that Congress conduct oversight of the federal government's handling of
the Jeffrey Epstein case.
Nathan Muss turned out at Tech Earnings and a big miss,
and the mag seven Tesla missed already low Wall Street expectations.
Revenue for the ev maker felt twelve percent, its sharpest
decline in a decade. Tesla CEO Elon Musk is warning
that growth in the near term will be challenging.
We probably could have a few rough quarters. I'm not
saying it well, but we could Q four, Q one,
maybe Q two. But once you get to autonomy at
scale in the second half and half of next year,
certainly by the end of next year, I think the
I was surprised if Tesla's economics I'm not very compelling.
Elon Muski also blame the loss of government incentives for
electric vehicles for Tesla's performance. Tesla shares tumbled eighteen percent
this year, and shares this morning down another six percent.
I Meanwhile, Karen Google parent Alphabet is rebounding this morning
after beating Wall Street expectations for second quarter revenue. The
shares briefly slipped after the tech giant warned of higher
spending ahead Capex's forecast hit eighty five billion dollars this year.
It's up from an earlier estimate of seventy five billion.
Bloomberg Intelligence senior tech analyst man Deep Singh says Alphabet
CEO Soon Darpshi sees the investments as necessary to keep
up with consumer needs.
One third of their business is cloud and YouTube and
that's still growing north off twenty five percent. So to
my mind, they are showing ROI on all that AI spend,
and if they have more AI infrastructure capacity, the cloud
business would be growing even faster.
Mandeep sing of Bloomberg Intelligence says Alphabet shares did dip
but rebound in after hours trading. This morning, they're up
three percent.
Nathan, we continue to follow the massive cybersecurity breach involving
Microsoft Sharepoints software. According to this cyber firm, I security
hackers have now breached about four hundred government agencies, corporations,
and other entities. Microsoft has blamed the breach in part
on Chinese state backed hacker groups.
Man Karen Tech is front and center in Washington as well.
President Trump has signed a series of executive orders to
boost artificial intelligence development by loosening regulations and expanding energy
supplies for data centers. The AI Action Plan also calls
for revamping the permitting process and streamlining environmental standards to
speed AI related infrastructure projects. President Trump announced the plan
and comments heard on Bloomberg Radio.
Without question, the most brilliant place anywhere on Earth. America
is a country that started the AI race, and as
President of the United States, I'm here today to declare
that America is going to win it.
President Trump also confirmed that Nvidia will be allowed to
resume sales of its H twenty AI chip in China
as part of the trade truce with Beijing.
Time now for a look at some of the other
stories making news in New York and around the world,
and for that were joined by Bloomberg's Michael Barr Michael,
good morning.
Good morning, Karen. Breaking news. A passenger plane with forty
nine people on board crashed in the remote area of
Russia's far East. The Antonov airplane went down nine miles
from Tinda with forty three passengers, including five children and
six crew and investigation has begun into the causes of
what appears to be the deadliest air crash in Russia
since twenty eighteen. A Federal Appeals Court in San Francisco
rule that President Donald Trump's limits on birthright citizenship are
unconstitutional and the latest setback for his immigration crackdown. The
decision by the ninth US Circuit Court of Appeals upholds
an earlier ruling by a judge in Seattle who blocked
mister Trump's executive order nationwide. In the case brought by
a group of Democratic state officials from Washington, Arizona, Illinois,
and Oregon, a federal judge as prohibitive the Trump administration
from taking k Abrego Garcia into immediate immigration custody if
he's released from jail in Tennessee while awaiting trial on
human smuggling charges. The judge ordered the government to provide
notice of seventy two hours if Immigration and Customs enforcement
intends to deport the man who worked and lived in Maryland.
A judge has ordered Brian Coberger to serve life in
prison without parole for killing four University of Idaho's students.
Friends and relatives delivered powerful statements at the sentencing hearing.
Coburger killed the students in their rental home in twenty
twenty two. Judge Stephen Hipler.
His actions have made him the worst of the worst.
Even in pleading guilty, he is giving nothing hinting of
remorse or redemption, nothing suggesting even a recognition or understanding,
let alone regret for the pain that he has caused.
About one thousand workers who staff concession stands at Fenway Park,
home of the Boston Red Sox, and the MGM Music
Hall next door, are planning to strike after negotiations between
the union and Aramark failed. Union is seeking higher wages
and the rollback of self checkout systems. The Global Footprint
Network is marking the day as Earth Overshoot Day. It's
an estimated date for twenty twenty five to show that
humanity has already spent more resources than the planet can
regenerate in a single year. The network's founder Mathis vonder Knockel.
This overshoot makes ever more clear that the future is
far more predictable than we typically think we will be
in a word, with more climate change and resource constraints.
Global News twenty four hours a day and whenever you
want it with Bloomberg News Now Michael Barr, and this
is Bloomberg.
Karen, all right, Michael Barr, thank you time now for
the Bloombergy Spores update. Here's John stash Hour, John good Morning.
De Morny Kear comedy of errors for the Yankees in Toronto.
Throwing errors by Max Fried and Jazz Chisholm, fielding errors
by Ben Rice and Jason Dominguez, and with the score
tied in the sixth inning, Cody Bellinger completely lost sight
of a fly ball that turned into a triple that
led to the Blue Jays retaking the league. They went
on to win eight to four. So the Yanks played
seven games in Toronto the past month. They lost six
of them and that's why though Jays have a four
game lead for he took the loss after beating so
dominant in July. He's one in three with a six
and a half ERA home runs in defeat for Dominguez,
Anthony Volpe, and Aaron Judge at his thirty seven, three
hundred and fifty second home run of Judges' career. He's
now sixth on the Yankees all time home run list.
Matt's got a big home run third in eight Deplot second,
Ladora first Book, one out and that's on out to
lot center. Forget that you're a shot by a lot.
So with a second deck A three one.
Howit sir, at it's five to one. There you are.
Career Hall bought upper two hundred.
At forty eight and that leads Pete Alonzo four from
Darryl Strawberry's club record. That said, why the call Mets
met the Angels six to three. They sweep the series.
Sean Mny has got his first win, Edwin Diaz his
twenty first save, Red Sox a while nine to eight
eleven and win over the Phillies, so the Mets are
back in first place. The Nationals got shut out by
the Reds five to nothing. The Giants, as they began
training camp, made official that Russell Wilson will beat their
Week one starting quarterback and Wilson is so far impressed
with his new team.
Just to see the evolution of the guys daily and
the focus and the championship level that we want to
practice at and play at every day and the habits.
You know, your habits have to align as well, and
our guys have great habits and that's the good thing
about it.
Giants coach Brian Dabel did not reveal who the backup
QB will be, Jameis Winston or the Rookie Jackson, Dark
Jus Dashley Hoarnor Bloomberg Sports Karen Nathan.
Coast to Coast on Bloomberg Radio nationwide on Serious x
Them and around the world on Bloomberg dot Com and
The Bloomberg Business Apple. This is Bloomberg Daybreak.
Good morning. I'm Nathan Hager.
President Trump maybe setting a new floor when it comes
to what he's called reciprocal tariffs.
So with eight days to go till his trade.
Deadline, the President says most countries will see duty rates
between fifteen and fifty percent.
Mostly we'll be charging straight tariffs to most of the
rest of the world because we have over two hundred countries.
People don't realize it's a lot of that's a lot
of deals.
Was President Trump speaking in an AI Action summit in Washington.
Has heard on Bloomberg Radio.
Joining us this morning, Bloomberg News Global Trade Editor Brendan Murray,
You've been very busy, of course, keeping track of all
the changes in President Trump's tariff rhetoric and strategy. We
saw the deal with Japan yesterday on fifteen percent reports
the EU is heading to fifteen percent as well.
What happened to ten percent Brendan, good morning.
Good morning. Yeah, fifteen is the new ten percent, essentially,
that's the way it's shaping up in these global trade talks.
A lot of countries thought that they might get ten
percent a few weeks ago, but that's still become the
benchmark and the goal if you want to continue doing
trade with the United States, according to the Trump administration.
So we've got the European Union, what they're most concerned
about is not the fifteen percent, but the sectoral tariffs
on autos which are twenty five percent and steel aluminum
that are fifty percent. Those are crushing those industries in
Europe and they would like to see those come down,
or at least some sort of quota system set up
to where they can export to the US a certain
tonnage and then anything above that would be facing the
higher tariff. So there's some fine print that still needs
to be worked out, but it sounds like the way
the deals that the Trump administration have announced this week,
these number, these tariff numbers that are being handed out
are coming in less than they could have been threatened
that was, you know, that's a negotiating strategy of President Trump's.
He threatens you with a very large hammer, and then
he gives you a lower number, and you know, it
seems like it's not so bad, so that it seems
to be the pattern and where we're heading. We still
have South Korea, Taiwan, the European Union, the Swiss, a
number of other countries that want to get in get
these deals done by this August first headline.
Yeah, considering the fine print, those sectoral tariffs have got
to be a concern for a lot of these trading partners,
aren't they considering that Section two thirty two has a
lot firmer legal standing than perhaps some of these country
based tariffs that President Trump has seemed to be focusing
a lot more on.
Yeah. Actually, there's a court case next week concerning the
country based tariffs, and you know, they could ultimately be
thrown out by the court, leaving President Trump with only
these sectoral tariffs to impose on countries to accomplish what
he's trying to accomplish. So there's a you know, there's
a big question that the courts have to settle yet,
and hearing will be will be held next week that
will help tell us whether what direction the courts are
going to go in. But in the meantime, these reciproval
tariffs are being handed out fifteen to fifty percent in
the case of Brazil, which is what the President said
he will put on Brazil's products headed to the US
because of, you know, some issues he has there with
the political system.
Just thirty seconds, Brendan.
So what should we be looking for, particularly in the
EU negotiations.
We should be looking for how much the EU is
willing to how much pain the EU is willing to
accept when it comes to those autos, pharmaceuticals, chip tariffs
that are coming down the pipeline. The reciprocal rate seems
to be kind of settling around that fifteen percent, as
we said, But it's these it's these other industries. You know,
the German auto industry is going to be very important
in these talks, and Europe supplies a lot of chemical
to the US. So there's some of these sectors that
are key to the trade relationship overall that need to
be resolved to make sure that they're not damaged on
either side of the Atlantic.
This is Bloomberg Daybreak, your morning podcast on the stories
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