Trumps G7 Exit Leaves UK Trade Deal in Place, but Tensions Remain with Japan, EU, and China

President Trump's trade policies continue to dominate headlines as he leaves the G7 summit early to return to Washington, D.C. in a move he says is to focus on the Israel-Iran conflict. While he signed a trade deal with the United Kingdom, Trump hinted at roadblocks on other fronts, particularly with Japan and the European Union. He said that Japan was being "tough" in trade talks and that the EU had failed to offer a fair deal.

"We're talking, but I don't feel that they're offering a fair deal yet," Trump said of the EU. "They're either going to make a good deal or they'll just pay whatever we say they have to pay."

Trump also threatened to send a letter to US trading partners who do not reach a deal, saying, "They're tough, the Japanese are tough." He added that pharmaceutical tariffs would be "coming very soon," and that the US Commerce Department has been investigating certain sectors deemed vital for national security, such as semiconductors and pharmaceuticals.

Meanwhile, Bloomberg reported that two family-owned businesses have filed a challenge to Trump's most sweeping tariffs with the Supreme Court, expediting the process for a potential definitive ruling should the court take the case.

In other trade agreement news, Trump and British Prime Minister Keir Starmer signed the trade deal they agreed to last month. "We signed it and it's done," Trump said as he stood next to Starmer.

Last week, the US made key progress with China as the nations agreed to a framework and implementation plan to ease tariff and trade tensions. Trump said the US would impose a total of 55% tariffs on various Chinese goods.

Here are some key points from the latest developments in the US-China trade war:

• Monopoly maker Hasbro cuts 3% of total workforce amid higher tariff costs. Hasbro (HAS), the maker of popular game Monopoly announced on Tuesday that it would be cutting 3% of its total workforce due to high US tariffs on toys coming from China.
• Nintendo stock pops as Switch 2 sales offer tariffs shelter. Shares of Nintendo (NTDOY, 7974.T) continued to climb, with President Trump's trade policy shift providing an added tailwind to the success of its Switch 2 games console update.
• Supreme Court asked to hear case challenging Trump’s tariffs. Two family-owned companies are asking the Supreme Court to consider striking down President Trump’s most sweeping tariffs.
• US Transportation chief wants civil aviation to return to zero tariffs. Transportation Secretary Sean Duffy said at the Paris Airshow that he wants to return to a 1979 zero-tariff trade agreement for the aviation industry but acknowledged it's part of larger tariff negotiations.