The US and EU have agreed on a new trade framework, keeping a 15% US tariff on most EU imports such as autos, semiconductors, and pharmaceuticals, while the EU will remove tariffs on US industrial goods and expand access to US agriculture and seafood. Notably, wine and spirits were left out of this deal for now. Meanwhile, US Treasury officials are signaling comfort with current tariffs on China, citing significant revenue—some of which may go towards reducing the federal debt—as a stabilizing factor ahead of ongoing trade negotiations. S&P affirmed the US AA+ rating, partly attributing this to tariff revenues offsetting fiscal strain from recent tax changes. However, the ongoing tariffs are raising supply chain costs, with retailers like Walmart and Target warning of higher prices and pressure on margins as inventories turn over at post-tariff rates. US soybean farmers and multinationals like Estee Lauder are also feeling the pinch. With negotiations ongoing with Canada, Mexico, and China, markets remain sensitive to further policy shifts.