MNI POLITICAL RISK - Trump Strikes Preliminary Trade Deal w/EU

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Executive summary:

• President Donald Trump will meet UK Prime Minister Keir Starmer for a bilateral meeting before heading to the east coast of Scotland.   
• Starmer is expected to press Trump for a better deal on steel and pharmaceutical tariffs. Starmer will also advocate for stronger US support for Ukraine and Gaza, and shore up US commitment to NATO and AUKUS. 
• Trump said he will reduce the 50-day deadline for Russia to reach a ceasefire with Ukraine.
• Markets are braced for one of the busiest weeks ever for US data.
• Trump and European Commission President Ursula von der Leyen announced a preliminary deal that will see the EU levied with a 15% tariff. The deal has received a mixed response from European leaders, who see it as the least worst option.
• US and Chinese officials will begin a third round of trade talks in Sweden today, aimed at extending the tariff truce. A breakthrough could facilitate a meeting between Trump and Chinese President Xi Jinping in the Autumn.
• Commerce Secretary Howard Lutnick said there will be "no extensions" on the August 1 tariff deadline.   
• OMB Director Russell Vought accused Fed Chair Powell of ‘fiscal mismanagement”. 
• Senate Majority Leader John Thune (R-SD) is aiming to get a first FY26 ‘minibus’ through the Senate this week.
• Thailand and Cambodia agreed to a ceasefire, following pressure from Trump.
• Poll of the Day: Democrats' image sinks to its lowest point in decades. 

Please find the full article attached below: US DAILY BRIEF