• Trump is significantly escalating his trade war, saying “a minimum of seven” new tariff notices would be posted on Wednesday, after slapping a 50% tariff on imported copper on Tuesday and threatening future levies on semiconductors and pharmaceuticals. Despite this aggressive position, Trump indicated that trade talks are progressing well with the European Union and China, with the former aiming to conclude a deal this month. But the guarded response from European Commission President Ursula von der Leyen shows that they are prepared for every contingency.

• The expanded tariffs are also expected to contribute to the global economic outlook that is already destined to slow, with experts like the ECB’s chief economist Philip Lane pointing out the need to look at broader risks beyond tariffs, including security and potential sanctions on foreign investors.

• Meanwhile, in the US, automakers like Tesla and Ford have been urging consumers to purchase electric vehicles before the $7,500 federal tax credit expires on September 30, 2025. The incentive is occurring alongside a big boom in US mortgage applications to purchase a home to their highest level since early 2023 last week, even as borrowing costs held steady, and with refinancing applications also increasing significantly.