Major US Tariff Rates Take Effect; Trump-Putin Summit Scheduled

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1:41And when losses do happen, the Hartford can pair that risk control work with insurance coverage grounded in underwriting, risk engineering, and claims experience developed over time. Learn more at thehartford.com slash risk mitigation. 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 latest on the Trump administration's trade policy. President Trump announced on social media that his sweeping new tariffs are in effect as of midnight East Coast time, targeting what he calls countries that have taken advantage of the United States for many years.

2:27The move pushes U.S. tariff rates to their highest level since World War II. Bloomberg's Bill Ferry says the ultimate goal of onshoring manufacturing jobs could have secondary effects. The U.S. average tariff rate is now just over 15 percent, and it was below 2.3 percent last year before President Trump took office. So from 2 percent to 15 percent, certainly at some point that is going to really wind its way through the U.S. economy and show up on the shelves of stores. Bloomberg's Bill Ferry says trading partners, including the European Union, Japan and South Korea, negotiated a 15 percent tariff rate.

3:06Switzerland was assigned the highest tariff of any developed nation at 39 percent after failing to reach a deal when its president visited Washington for an emergency visit yesterday. And Nathan, the president has signed a much higher tariff on one key trading partner, India. President Trump said yesterday he plans to double tariffs on Indian goods to 50 percent as a penalty for buying Russian oil. As you know, we put a 50 percent tariff on India on oil. They're the second largest. They're very close to China in terms of the purchase of oil from Russia. Why are you singling India out for these additional sanctions?

3:41It's only been eight hours. So let's see what happens over the next. You're going to see a lot more. You're going to see a lot more. President Trump added he may also punish China with additional tariffs over its purchases of crude from Russia. Negotiations with China are still ongoing, along with the U.S.'s other two largest trade partners, Mexico and Canada. Meanwhile, Karen, speaking of Russia, President Trump told reporters there's a very good chance he'll meet President Vladimir Putin and Ukraine's Vladimir Zelensky soon. In another bid to broker peace, the Kremlin says an agreement is in place for the U.S.

4:15and Russian presidents to meet in the coming days. The location is still to be determined, according to the Interfax News Service. In the Oval Office, President Trump addressed a meeting between Putin and U.S. Special Envoy Steve Witkoff in Moscow. We had some very good talks with President Putin today. And there's a very good chance that we could be ending the round, ending the end of that road. That road was long and continues to be long, but there's a good chance that there will be a meeting very soon. How close do you think you are to a deal? Excuse me? How close do you think you are to some kind of deal?

4:48Well, look, I don't want to say. I've been disappointed before. President Trump informed allies he was positive about the possibility of a ceasefire in Ukraine. Well, turning back to trade, Nathan, President Trump additionally declared plans for a new 100 % tariff on semiconductor imports. Standing next to Apple's CEO, Tim Cook, in the Oval Office, The president said the aim is to bring manufacturing back to the U.S. We'll be putting a terraform of approximately 100 percent on chips and semiconductors. But if you're building in the United States of America, there's no charge. And in light of President Trump's announcement, companies including Apple, TSMC and NVIDIA pledged to spend more than$1 trillion collectively in the U.S.

5:33And part of that pledge from Apple, Karen, is a promise to onshore 100 percent of iPhone and watch cover glass production in the U.S. as part of an expanded two and a half billion dollar partnership with Corning. This is a significant step toward the ultimate goal of ensuring that iPhone sold in the United States of America also are made in America. President Trump singled out Apple as an example of how to avoid increased levies, saying, quote, Apple's coming back to America. CEO Tim Cook did tell the president that final iPhone assembly will be elsewhere for a while. Let's turn to the airline industry now, Nathan, and the tech issue grounding United Air flights across major U.S.

6:14airports. United Airlines announced it's resuming flights after fixing a tech issue that temporarily delayed hundreds of flights. The airline said the underlying technology issue has been resolved. And while we expect residual delays, our team is working to restore our normal operations. That being a quote. A United spokesman said the outage was not related to recent instances of cybersecurity issues in the airline industry. Turning to the broader economy now, Karen. Three Federal Reserve officials are voicing fresh concerns over the labor market and signaling a potential rate cut next month. San Francisco Fed President Mary Daly says policymakers need to prevent further deterioration in the labor market.

6:56Once the labor market stumbles, it falls. And it falls quickly and it falls hard. So you don't want to get into that situation. So all this means, as you put it together, that I think we'll likely need to adjust the policy rate sometime in the coming months. San Francisco Fed President Mary Daly's comments followed rhetoric from Fed Governor Lisa Cook. She says downward revisions in the jobs report are typical of turning points in the economy. And Minneapolis Fed President Neil Kashkari told CNBC he expects two interest rate cuts before the end of the year. Well, let's go to other Fed news, Nathan.

7:36President Trump indicated he'll likely nominate a temporary Federal Reserve governor within the coming days. The president said he's considering probably three candidates for the temporary position. The Fed announced on Friday that Fed Governor Adriana Kugler would resign from her seat on the Board of Governors before her term is up in January. And in earnings news, Karen, Topgolf Callaway Brands rose after boosting guidance and saying promotions helped increase customer visits at its venues. The golf company's Topgolf unit beat as increased promotions in the quarter, like frozen margaritas and half-off golf during the week, were enough to lure swingers in.

8:15CEO Artie Starrs says Topgolf Summer Pass is selling more than twice what it was offered three years ago.

8:25Time now for a look at some of the other stories making news in New York and around the world. And for that, we're joined by Bluebirds, John Tucker. John, good morning. And good morning, Karen. The Trump administration is offering to simplify its lawsuit with Harvard University. The shift is the latest twist in the litigation over the government's attempt to revoke Harvard's ability to enroll international students, citing claims of campus anti-Semitism and alleged ties to the Chinese Communist Party. UCLA has entered into negotiations with the administration, trying to restate about$484 million in frozen federal research funding.

8:59The move comes after the Trump Justice Department had given the school a Tuesday deadline to enter into a resolution agreement. Five people are hurt after an Army sergeant opened fire on fellow soldiers at Fort Stewart in Georgia. The accused shooter now under arrest. No word on a motive for the shooting or how the shooter got his personal weapon onto the base. An outbreak of Legionnaire's disease in central Harlem in New York that has now caused three deaths. Let's get more from Bloomberg's Charlie Pellett. Health officials are still trying to track down the source, and the New York City Health Department says scores have been sickened from the Legionella bacteria.

9:38The outbreak was identified in central Harlem in late July after a handful of people presented pneumonia-like symptoms and tested positive for the disease. Health officials have been testing nearby cooling towers as a likely source of the bacteria and have found some positive results. In New York, Charlie Pellett, Bloomberg Radio. Steve Bannon, senior advisor to President Trump in his first term and an influential voice in conservative circles, is pushing for E.J. Antony to lead the Bureau of Labor Statistics. Antony is chief economist at the Conservative Heritage Foundation. Trump fired the BLS commissioner on Friday after a weak jobs number on Bannon's podcast.

10:20And Tony added that the absence of a trumpet pick running the agency is part of the reason why we continue to have all these different data problems. Global News, 24 hours a day and whatever you want with Bloomberg News Now. I'm John Tucker and this is Bloomberg. Karen. All right, John, thank you.

10:41Time now for the Bloomberg Sports Update. Here's John Stashauer. John, good morning. Good morning, Karen. The Yankees were out to avoid an 0-6 road trip. If they hadn't gotten swept in Texas in 15 years, they beat the Rangers. 3-2 on Paul Goldschmidt's pinch hit home run seventh inning of lefty reliever Robert Garcia. Goldschmidt against lefty pitching is batting over 400. His average versus right-handers is just 230. It was a game where Cousins both pitched. Jack Leiter started for Texas. Mark Leiter pitched in relief for the Yanks. Mets got swept by the Guardians and at Citi Field. Cleveland's Gavin Williams was two outs from a no-hitter.

11:19High fly ball, center field. Angel Martinez back. On the track at the wall. It's off the face. Soto in the second base with a double. Now they're going to say he did clear the fence and went out of the park for a home run. And Soto ends the big rig's bid for a no-hitter with a solo homer in the bottom of the ninth. I'm Guardian TV. The big rig, the nickname for the 6 '6". Williams who threw a hundred and twenty six pitches the Guardians won the game four to one at Fenway Kansas City ended the Red Sox seven game win streak seven to three in DC Nationals ended a six game losing streak two to one over the A's in Denver Toronto one twenty to one the Blue Jays swept the series from the Rockies by a combined score of forty five to six there's sixty three hits it's the most a team has had in a three game series since at least nineteen hundred NFL preseason tonight including the Raiders and Seahawks in Seattle.

12:18So the first game for Las Vegas, his new coach, 73-year-old Pete Carroll, is back where Carroll coached. For 14 years, the Patriots play the Commanders tomorrow in Foxborough. Two teams had a joint practice and a fight broke out and the new Patriots coach, Mike Vrabel, jumped in to help break it up and merged with a bloody face. John Stashauer, Bloomberg Sports. Bloomberg Daybreak U.S. Edition is brought to you by OTC Markets Group. Thinking about joining the exploding overnight market space, but unsure where to start? Designed to meet the needs of a growing international investor base, OTC Markets' overnight platform for exchange-listed securities, Moon ATS, provides access to global securities in U.S.

12:57dollars from 8 p.m. to 4 a.m. Eastern, Sunday through Thursday. Extend your trading day and trade global securities in U.S. dollars through a FINRA-licensed broker-dealer. In the first half of 2026, over$28.1 billion U.S. dollars traded on Moon ATS. Learn more about Moon ATS. Visit otcmarkets.com slash moon. Moon ATS is operated by OTC Link LLC, a FINRA-registered broker-dealer. So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now, a global workforce of 300 ,000 can use AI to fill their HR questions, resolving 94 % of common questions.

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15:05This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. After months of threats, reversals, negotiations, and surprises, President Donald Trump's sweeping new tariffs on almost every U.S. trading partner are now in effect. And now investors, companies, and global leaders are bracing for impact. Fabiana Fideli, a CIO for multi-asset and sustainability at M &G Investments. Until now, we really haven't seen the impact of tariffs on markets besides some uncertainty among the companies. And our concern is that going forward, we are starting to see some of that impact. And so we'll have to see how the next six months pan out.

15:44That's Fabio Fidelli with M &G Investments. For more, we're joined by Bloomberg's Jill Deesis. Jill, good morning. The change is here. And now, at least what we do know is tariff rates in this country are now as high as they've been since World War II. Walk us through the change. Good morning. Yes. Good morning, Nathan. Well, I think really to kind of drive that point home, you just look at what the average U.S. tariff rate is right now under these latest Trump actions. So Bloomberg Economics estimates it's now up to 15.2 percent, just for comparison's sake. Last year, it was 2.3 percent. So, I mean, we're talking massive, massive jumps in terms of how much these, you know, sort of so-called reciprocal tariffs that Trump has handed down are really, really going to impact how global trade is shaped here.

16:36All that being said, I mean, look, there are some deals that Trump, you know, has announced has reached with some of these major trading partners that I think are obviously really worth noting here. The European Union, Japan, South Korea, they accepted 15 % levies on their products, trying to stay away from some of the even higher tariffs that Trump has negotiated. But I would also point out, Nathan, that there are still some trade agreements that seem kind of mired in ongoing negotiations. I mean, look at India, for example, another important U.S. trading partner. They were slapped to the 25 percent tariff last week.

17:12Now you've got Trump threatening over the next couple of weeks to increase that level into some 50 percent. You've still got, you know, sort of this back and forth with what, you know, potential China levies could look like. So that's another sort of open question here. So the one thing that I would just point out when it comes to a lot of this trade policy is that, you know, we still, I think, have to see what this ultimately looks like long term. I mean, you know, in the olden days, like literally just a year ago, you know, you would imagine these trade agreements would take not just, you know, days or months, but ultimately years to effectively negotiate.

17:48And so I do think that there is that possibility that things could continue to evolve, if not even just over the next few months, maybe over the course of Trump's German office. Now, it raises the questions once again, specifically on some of the countries you mentioned and others, including Switzerland. We saw the president of Switzerland come to Washington at literally the last minute trying to get out from under 39 percent tariffs, walking away without a deal. Is there still a possibility that even with these new tariff rates officially in effect, we could see even more negotiations going on?

18:21Yeah, I think in, you know, Trump world, you know, everything's a negotiation, right? Yes. When you're looking at Switzerland, obviously you do have that incredibly steep tariff, 39%, you know, potentially upending, you know, their, you know, massive gold trades, you know, watches, pharmaceuticals in particular. Although, you know, I'd also point out Trump's got separate threats on pharmaceutical goods that are just independent from, you know, these individual nation tariffs that he's announced. I do think that, you know, there is that possibility that Trump could ultimately change his mind and maybe something comes up where you do get lower rates in the future.

18:55I mean, certainly I think, you know, traders are looking at some of those possibilities, we've already seen so much change over the last several months since Trump initially, you know, announced tariffs. And I think, you know, when you've also just got, you know, various sectors or, you know, even sometimes nations trying to placate Trump with investment deals, you know, I mean, look at, you know, the EU, Japan, you know, announcing these big investment deals in the United States, that seems to have helped drive things a bit lower for them in terms of that overall tariff rate. It does seem like maybe there's, you know, more on the table here still, even if you've been slapped with a particularly high rate now.

19:29And in the last 30 seconds, Joe, there's still the overarching question of whether these tariffs are going to make the ultimate goal of spurring more U.S. manufacturing. Yeah, I mean, you know, obviously that's, you know, Trump's got a massive gambit here on reshaping the entirety of global trade. He's claiming, you know, these are going to trash slash trade deficits. These will push companies to move manufacturing back to the United States. I mean, certainly you've got major companies that are already announcing, you know, major manufacturing programs and investments in the United States. But, you know, that could potentially take years before you actually see some of the fruits of those labors.

20:06In the meantime, I mean, you know, obviously some of Trump's biggest critics are going to say this could continue to cause inflation to spiral out of control, cause shortages on store shelves. So I think, you know, we're obviously witnessing a very dramatic realignment of global trade, and we'll have to see how things pan out.

20:46Bloomberg 92.9 in Boston and nationwide on Sirius XM channel 121. Plus, listen coast to coast on the Bloomberg Business app now with Apple CarPlay and Android Auto interfaces. And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. I'm Karen Moscow. And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.

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