- Aug. 1 is President Donald Trump’s latest deadline for countries across the globe to try and agree a trade truce with the United States, with the European Union in particular focus.
- The week has become even trickier to predict, however, with talks between the U.S. and China now taking center stage, potentially complicating the picture for Europe.
- Also next week, expect a raft of earnings, along with euro zone growth and inflation data.
Although I believe most people would concur that the news cycle has been unrelenting for the majority of 2025, some articles do seem a bit “Groundhog Day” right now.
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I wrote earlier this month about the newsroom’s dilemma on how to meet President Donald Trump’s July 9 deadline for trade talks. We are now in a similar situation at the end of the month, but this time, August 1 is the date that we are all keeping an eye on.
Why? Another deadline has arrived for nations worldwide to attempt to reach a trade pact with the United States, with the European Union being the main target this time.
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The question of when a deadline is not a deadline comes up again in the newsroom.
With the U.S.-China discussions now taking center stage in Stockholm on Monday and Tuesday, the week has become even more unpredictable and might further complicate matters for Europe.
An EU ambassador told CNBC’s Silvia Amaro that a baseline tariff rate of 15% is the base-case scenario for a trade deal between the United States and the European Union, which had appeared tantalizingly close. Last week, these reports caused stock markets in the U.S. and Europe to rise.
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Trump told reporters on Friday that there was just a “50-50 chance” of an agreement.
In the event that an agreement cannot be reached by the August deadline, the EU is holding onto its so-called “trade bazooka” or Anti Coercion Instrument, as explained by Holly Ellyatt of CNBC.
Pressure is mounting on the European Union to remove the uncertainty as the business community cries out for an accord.Citing the impact of tariffs and the continuous strain the limitations are placing on major companies, Puma, VW, Michelin, and other corporates around Europe have reduced their outlooks.
The banking behemoths UBS, Sander, and Standard Chartered, the beverage company Heineken, the pharmaceutical behemoth AstraZeneca, and the oil giant Shell are just a few of the European companies whose profits are expected to be the focus of attention this week.
On the data front, Wednesday will see the announcement of GDP growth rates for France, Spain, Germany, and Italy. These figures will shed light on the broader effects of market volatility.
The European Central Bank decided to maintain a hawkish hold on the benchmark rate at 2% last week due to the complex economic environment. According to President Christine Lagarde, the ECB is “in a good place to hold and watch how risks develop over the next few months.”
Therefore, until it isn’t, Friday, August 1st, will be a critical date for corporates, market participants, and the newsroom.
Also on CNBC
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EU chief to meet Trump in Scotland in push to avoid a transatlantic trade war
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European companies are taking multimillion-dollar hits from tariffs
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Volkswagen cuts guidance after taking $1.5 billion hit from U.S. tariffs
