Trump’s Tariff Extension: A Temporary Breather for EU Trade Relations

by News Editor

May 26, 2025

An Unexpected Reprieve: Trump’s EU Tariff Delay

In a surprising turn, President Donald Trump announced a delay on the execution of 50% tariffs on European Union imports, shifting the deadline to July 9 after a promising dialogue with European Commission President Ursula von der Leyen. The decision follows a recent pattern of tariff announcements and adjustments, which have often left global markets in suspense.

A Diplomatic Dialogue

The deferment arose from what Trump described as a ‘very nice call’ with von der Leyen, who emphasized the EU’s desire to engage in swift and serious negotiations. Previously, Trump had stated that he was ‘not looking for a deal’, but the latest developments suggest a potential shift towards negotiation.

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Market Reactions

Following the news, Asian markets reacted optimistically, with Japan’s Nikkei 225 rising by 0.8% and South Korea’s KOSPI gaining 0.9%. However, reactions varied as Hong Kong’s Hang Seng Index dipped 0.3%.

Impact on Trade Dynamics

Trump’s insistence on tackling ‘non-monetary trade barriers’ and trade deficits, which saw the U.S. record a $236 billion deficit with the EU last year, highlights persistent tensions. However, this latest move might signal a willingness to find common ground.

As we approach July 9, all eyes will be on further negotiations and their implications for the international market landscape.

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Bank Of England Holds Rates At 3.75% In Split Vote As Inflation Risks Rise

by THEFUTURE.TEAM

September 17, 2026

The Bank of England kept its benchmark interest rate at 3.75% on Thursday, but the decision was not unanimous. In a 6-3 vote, the Monetary Policy Committee kept rates unchanged, while three members backed a 25-basis-point increase to 4%. Renewed energy price pressures have added to concerns that inflation could remain elevated.

Inflation Pressures Remain

Policymakers said inflation “is likely to rise further over coming quarters,” citing higher and more volatile crude oil and refined energy prices since the conflict began.

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So far, there has been “little evidence” of significant second-round effects, such as broader wage and price increases. Inflation risks, however, are now “tilted to the upside” and have increased since the July Monetary Policy Report.

Energy Prices Add To Inflation Risks

Brent crude has risen 36% since July, reaching $106 a barrel on Sept. 14, while UK wholesale gas prices increased 78% to 207 pence per therm.

Higher energy costs can feed into transport, production and household expenses, raising costs across supply chains. Refinery pressures have also pushed crack spreads, the difference between refined fuel and crude prices, well above pre-conflict levels.

Economy Shows Resilience

Despite the inflation risks, UK economic activity has held up slightly better than the Bank expected. A softer labor market and higher borrowing costs are expected to help reduce inflation over time.

Previous monetary tightening is still working through the economy, according to policymakers. So far, the latest energy shock has not produced clear evidence of a broader wage-price spiral.

Major Central Banks Take Different Paths

The decision comes during a busy period for global monetary policy. The Federal Reserve raised rates Wednesday to 3.75%-4% in its first increase since 2023, while the European Central Bank recently lifted its deposit rate to 2.5%.

The Bank of Japan is due to announce its decision Friday, with markets expecting a rate increase. Thursday’s split vote shows that pressure for tighter policy remains within the Bank of England’s Monetary Policy Committee.

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