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

0:00Bloomberg Daybreak U.S. Edition is brought to you by OTC Markets Group. OTC Markets' overnight platform for exchange-listed securities, Moon ATS, provides access to global securities in U.S. dollars from 8 p.m. to 4 a.m. Eastern, Sunday through Thursday. Learn more at otcmarkets.com slash moon. Moon ATS is operated by OTC Link LLC, a FINRA-registered broker-dealer, and is available only through participating broker-dealers. Some people treat ChatGPT like some kind of smart search engine, and some use it to get work done. ChatGPT Work is a new way of working in ChatGPT that can take action across your apps and files, stay with a project for hours if needed, and turn a goal into finished work.

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1:23So healthcare is connected, not complicated. What's that look like? Cheaper prescriptions that are easier to get and care that looks at the whole person. How you need it. Optum is helping make healthcare work as one for everyone. Learn more at business.optum.com. 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 1st tariff deadline. The U.S.

2:05and the European Union are progressing toward an agreement that would set a 15 % tariff rate. In remarks heard live here on Bloomberg, President Trump suggested he will not go below 15 % for his so-called reciprocal tariffs. We're going to have a very, very simple tariff for some of the countries. There's so many countries you can't negotiate deals with everyone. So we'll have a straight, simple tariff of anywhere between 15 and 50 percent. A couple of we have 15 because we haven't been getting along with those countries too well. So we just say let's pay 50. 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.

2:44Other countries, including South Korea and India, are also pushing for agreements before the higher tariffs go into effect August 1st. 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 Jay Powell for not cutting rates and has repeatedly criticized the Fed's$2.5 billion 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.

3:20Last 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 school's finances and leadership. Columbia will pay a$200 million penalty to resolve multiple civil rights investigations. It will pay an additional$21 million 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.

3:53The 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 is fake news. Meanwhile, Karen, the House Oversight Committee has subpoenaed Epstein's jailed ex-girlfriend and accomplice Ghislaine Maxwell to testify next month. Tennessee Republican Tim Burchett serves on the committee.

4:27He 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 folks. I just like to know all of it. And she's the last one standing. It's Tennessee Congressman Tim Burchett. 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, let's turn now to tech earnings and a big miss in the Mag 7, Tesla missed already low Wall Street expectations.

5:01Revenue for the EV maker fell 12 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 the world, but we could. Q4, Q1, maybe Q2. But once you get to autonomy at scale in the second half of next year, certainly by the end of next year. I think I'd be surprised if Tesla's economics are not very compelling. Elon Musk also blamed the loss of government incentives for electric vehicles for Tesla's performance. Tesla shares tumbled 18 percent this year and shares this morning down another six percent.

5:46Meanwhile, Karen, Google parent Alphabet is rebounding this morning after beating Wall Wall Street expectations for second quarter revenue. The shares briefly slipped after the tech giant warned of higher spending ahead. CapEx's forecast hit$85 billion this year. It's up from an earlier estimate of$75 billion. Bloomberg Intelligence senior tech analyst Mandeep Singh says Alphabet CEO Sundar Pichai 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 of 25 percent. So to my mind, they are showing ROI on all that AI spend.

6:21And if they have more AI infrastructure capacity, the cloud business would be growing even faster. Mandib Singh of Bloomberg Intelligence says Alphabet shares did dip but rebound in after-hours trading. This morning, they're up 3%. Nathan, we continue to follow the massive cybersecurity breach involving Microsoft SharePoint software. According to the cyber firm iSecurity, hackers have now breached about 400 government agencies, corporations, and other entities. Microsoft has blamed the breach in part on Chinese state-backed hacker groups. And Karen, tech is front and center in Washington as well.

6:55President 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 in comments heard on Bloomberg Radio. Without question, the most brilliant place anywhere on Earth. America is the 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.

7:31President Trump also confirmed that NVIDIA will be allowed to resume sales of its H20 AI chip in China as part of the trade truce with Beijing.

7:41Time 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 Bloomberg's Michael Barr. Michael, good morning. Good morning, Karen. Breaking news. A passenger plane with 49 people on board crashed in a remote area of Russia's far east. The Antonov airplane went down nine miles from Tinda with 43 passengers, including five children and six crew. An investigation has begun into the causes of what appears to be the deadliest air crash in Russia since 2018. A federal appeals court in San Francisco ruled that President Donald Trump's limits on birthright citizenship are unconstitutional in the latest setback for his immigration crackdown.

8:22The decision by the Ninth U.S. Circuit Court of Appeals upholds an earlier ruling by a judge in Seattle who blocked Mr. Trump's executive order nationwide in a case brought by a group of Democratic state officials from Washington, Arizona, Illinois and Oregon. A federal judge has prohibited the Trump administration from taking Kilmar 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 72 hours if Immigration and Customs Enforcement intends to deport the man who worked and lived in Maryland.

9:02A judge has ordered Brian Koberger to serve life in prison without parole for killing four University of Idaho students. Friends and relatives delivered powerful statements at the sentencing hearing. Koberger killed the students in their rental home in 2022. Judge Stephen Hippler. His actions have made him the worst of the worst. Even in pleading guilty, he's given nothing hinting of remorse or redemption. nothing suggesting even a recognition or understanding, let alone regret for the pain that he has caused. About a 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.

9:49The 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 2025 to show that humanity has already spent more resources than the planet can regenerate in a single year. The network's founder, Mathis Vondernackel. This overshoot makes ever more clear that the future is far more predictable than we typically think. We will be in a world with more climate change and resource constraints. Global news, 24 hours a day and whenever you want it. With Bloomberg News Now, Michael Barr, and this is Bloomberg, Karen.

10:28All right, Michael Barr, thank you. 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. dollars 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.

11:02dollars 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. Some people treat ChatGPT like some kind of smart search engine, and some use it to get work done. ChatGPT Work is a new way of working in ChatGPT that can take action across your apps and files, stay with a project for hours if needed, and turn a goal into finished work. It's designed to help you move from a chaotic starting point to a reviewable first version. So all the source materials, briefs, and scattered information that you have to grind through to turn into something useful can just become something useful.

11:47Put ChatGPT to work on your most ambitious ideas and projects. Get started at ChatGPT.com by selecting Work Mode, available on Plus and Pro plans. It's time to plan ahead and make sure your brand is showing up in ways that can have an impact. That's where 4imprint comes in. 4imprint have promotional products that work as hard as you do. Durable, useful, and designed to make a lasting impression. Think quality apparel your team will wear again and again, including popular and exclusive brands. Drinkware that's enjoyed again and again. Bags, notebooks, tools, and tech items that don't just look good, but actually get used.

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12:57Time now for the Bloomberg Sports Update. Here's John Stashauer. John, good morning. Good morning, Karen. A comedy of errors for the Yankees. In Toronto, throwing errors by Max Fried and Jazz Chisholm. And 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 lead. They went on to win 8-4. So the Yanks played seven games in Toronto the past month. They lost six of them. And that's why the Jays have a four-game lead. He took the loss after being so dominant in July.

13:32He's 1-3 with a 6.5 ERA. Home runs in defeat for Dominguez, Anthony Volpe, and Aaron Judge. It is 37th, 352nd home run of Judge's career. He's now 6th on the Yankees' all-time home run list. Mets got a big home run, 3rd inning. Devo at 2nd, Lador at 1st with one out. And that's ripped out to left center. Forget that. What a shot by Alonzo into the 2nd deck. A 3-run howitzer. And it's 5-1 New York. career home run number 248. And that leads Pete Alonzo, four from Darryl Strawberry's club record. SNY the call, Mets beat the Angels 6-3. They sweep the series. Sean Benai has got his first win. Edwin Diaz, his 21st save.

14:18Red Sox a wild 9-8, 11-0 win over the Phillies. So the Mets are back in first place. The Nationals got shut out by the Reds 5-0. The Giants, as they began training camp, made official that Russell Wilson will be 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 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 Daybell did not reveal who the backup QB will be, Jameis Winston or the rookie Jackson Dart.

14:54John Stash, our Bloomberg Sports, Karen Nathan. Coast to coast on Bloomberg Radio, nationwide on Sirius XM and around the world on Bloomberg.com and the Bloomberg Business App. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. President Trump may be setting a new floor when it comes to what he's called reciprocal tariffs. With eight days to go till his trade deadline, the president says most countries will see duty rates between 15 and 50 percent. Mostly we'll be charging straight tariffs to most of the rest of the world. Because we have over 200 countries people don't realize it's a lot of that's a lot of deals.

15:37Was President Trump speaking in an AI action summit in Washington is 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 15 percent reports. The EU is heading to 15 percent as well. What happened to 10 percent, Brendan? Good morning. Good morning. Yeah, 15 is the new 10 percent. Essentially, that's the way it's shaping up in these global trade talks. A lot of countries thought that they might get 10 percent a few weeks ago, but that's now become the benchmark.

16:16And 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 15%, but the sectoral tariffs on autos, which are 25%, and steel and aluminum that are 50%. 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 U.S. a certain tonnage, and then anything above that would be facing the higher tariffs. So there's some fine print that still needs to be worked out.

16:56But it sounds like the way the deals that the Trump administration have announced this week, these tariff numbers that are being handed out are coming in less than they could have been threatened. 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 it seems like it's not so bad. So that 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 these deals done by this August 1st deadline. 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 232 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.

17:52Yeah, actually, there's a court case next week concerning the country-based tariffs, and 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 big question that the courts have to settle yet, and a hearing will be will be held next week that will help tell us what direction the courts are going to go in. But in the meantime, these reciprocal tariffs are being handed out 15 to 50 percent in the case of Brazil, which is what the president said he will put on Brazil's products headed to the U.S.

18:32because of some issues he has there with the political system. Just 30 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 15%, as we said, but it's these other industries. The German auto industry is going to be very important in these talks. and Europe supplies a lot of chemicals to the U.S. 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.

19:25This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed by 6 a.m. Eastern each morning on Apple, Spotify, or anywhere else you listen. You can also listen live each morning starting at 5 a.m. Wall Street time on Bloomberg 1130 in New York, Bloomberg 99.1 in Washington, Bloomberg 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.

20:05Search 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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