Morning Brief: July 24

• Donald Trump said that duties for US trading partners will range from 15% to 50%, which indicates an increase in their minimum level. According to him, the tariffs will be simple and clear. At the same time, he stressed that the United States has developed unfavorable relations with a number of countries, which may affect economic policy. 

• The trade agreement between the United States and Japan, although it exceeded expectations, could hurt the Japanese economy. The introduction of a 15% tariff is likely to reduce exports and corporate revenues, leading to a decline in investment and consumption. This could slow Japan's economic growth by 0.4% per year. 

• Elon Musk said that Tesla expects difficult quarters due to the cancellation of tax incentives for electric vehicles in the United States and the slow development of self-driving technologies. The company is experiencing one of the worst quarters in 10 years. According to his forecasts, convincing economic results should be expected no earlier than the end of 2026. 

• Chinese President Xi Jinping met with the head of the European Council, Costa, and the head of the European Commission, von der Leyen. According to Xi, Beijing and Brussels should make the «right strategic choice» following the meeting. China and the EU need to find common ground despite their differences. Antonio Costa demanded concrete progress from China on issues related to trade and the economy. And Leyen believes that a turning point has come in relations between the EU and China.

• Washington and Brussels are close to concluding an agreement on a single duty of 15% on all European imports to the United States. This rate is likely to apply to vehicles from Europe and is in line with the terms of a recent trade deal between the United States and Japan.