The US and EU are currently engaged in a trade dispute, with President Trump threatening to impose a 50% tariff on goods coming in from Europe if no agreement is reached by July 9. However, the deadline has been delayed from this coming Sunday, with both sides expressing commitment to ongoing talks. The recent turmoil in the trade relationship has caused a dramatic reaction on Wall Street, with the S&P 500 rallying 2% after news of the delayed tariffs.
The recent trade tensions have also caused uncertainty among American consumers, with five straight months of declining consumer confidence due to anxiety over the impact of the tariffs. However, the latest report from the Conference Board showed an improvement in consumer confidence in May, with the index rising 12. 3 points from April’s low reading. Despite this, there are concerns that the short-term expectations for income, business conditions, and job market may signal a potential recession ahead.
In other news, Salesforce has announced a deal to acquire AI-powered cloud data management company Informatica for approximately $8 billion. The acquisition will give Salesforce access to Informatica’s data management capabilities and has been approved by both companies’ boards. The deal is expected to close in early 2027.
Meanwhile, President Trump has delayed the implementation of the 50% tariff on goods from the European Union until July 9 after a call with Ursula von der Leyen, the president of the European Commission. Trump stated that she expressed a desire to engage in serious negotiations, which he has been calling for. In other developments, Tesla’s sales in Europe have seen a sharp decline of 49% in April compared to the previous year, while the overall market for electric cars has shown growth. This has been attributed to the backlash against CEO Elon Musk’s controversial views.
In a different legal battle, National Public Radio (NPR) and three local stations are suing President Trump over an executive order that aims to cut federal funding for the organization. The lawsuit argues that the order violates the First Amendment and is illegal. In another political move, King Charles III opened the Canadian Parliament with a speech that is seen as a show of support in the face of annexation threats by President Trump. The king’s speech outlined the government’s priorities for the new session of Parliament.
Lastly, Southwest Airlines has announced that it will start charging fees for checked bags beginning on Wednesday, marking the end of their decades-long practice of not charging for checked bags. This change has caused concerns among customers, as it was once a key differentiating factor for the budget carrier. In South Africa, there have been accusations that a proposed policy change to reduce Black ownership requirements for tech firms was intended to benefit Elon Musk’s Starlink business. However, the Communications Minister has denied these claims, stating that there was no attempt to create a special dispensation for Starlink.