The upcoming tariff ultimatum on 1 August may not be much different from previous deadlines, but the likelihood of tariffs increasing remains high, according to experts. Despite ongoing trade deals, the US economy faces a significant week ahead with uncertain outcomes. Deals with key trading partners are being formalized, raising questions about the EU’s potential deal similar to Japan’s. The impact of tariffs on the economy is still uncertain, leading to speculations about further escalation and potential rate cuts by the European Central Bank in September.

In the US, upcoming economic data will shed light on inflation, GDP, and job market trends. The Federal Reserve is monitoring inflation closely, with expectations of a possible rate cut later this year. Consumer spending, impacted by tariffs and job uncertainties, will be a key factor in determining economic growth. Despite cooling in hiring, wage pressures are expected to ease slightly, influencing the Fed’s decision on future rate cuts. Market expectations are leaning towards a rate cut in September, but uncertainties remain due to inflation data influenced by tariffs.

In the Eurozone, upcoming data on GDP and inflation will reflect the impact of US developments and trade relationships. The European Central Bank is focused on maintaining inflation control and economic growth amid uncertainties. In Central and Eastern Europe, countries like Poland and Hungary are expecting changes in inflation rates and economic performance, leading to potential rate cuts. The Czech Republic anticipates solid growth supported by consumer spending and industry recovery, despite challenges from tariffs. Analysts predict a cautious approach by policymakers in response to economic trends and trade uncertainties.

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