US trade deal with EU has 15% tariffs; Boeing faces possible St. Louis strike; Homeownership rate falls

The United States and European Union trade deal reached over the weekend calls for a 15% tariff to be imposed on most goods from EU countries effective Aug. 1, less than a previously discussed 30% tariff rate that could have significantly raised costs for items from some of the nation’s largest trading partners.

President Donald Trump touted the agreement as the “biggest deal ever made,” and European Commission President Ursula von der Leyen said it “creates certainty in uncertain times.” The deal came after last week’s announced U.S. agreement with Japan, calling for most items from that country to face a 15% tariff effective Aug. 1.

Talks are underway with other countries as U.S. officials seek to address uncertainty about the potential effects of trade tariffs on consumer inflation and business investment. Analysts at Oxford Economics said the agreed-upon European tariff rate was “a few percentage points higher” than the forecasting firm had previously projected, but the deal will help lower uncertainty and head off threats of tariff retaliation from EU countries.

But there could still be a drag on planned capital spending by companies that send products to the U.S. “because the bulk of the hit to exports from tariffs is yet to materialize,” Oliver Rakau, Oxford’s chief Germany economist, cautioned in a statement.

White House officials said the baseline 15% tariff on European goods would apply to multiple products including pharmaceuticals, cars and semiconductors. Current and pending planned tariffs have already prompted several European and Asian companies in those industries to announce expansions of their U.S. production facilities. 

Aircraft maker Boeing was preparing for a strike by more than 3,200 workers at three plants in the St. Louis region, after a union representing machinists rejected a proposed new contract to replace a prior one that expired Sunday night. A strike could begin as soon as Aug. 4.

A statement from Arlington, Virginia-based Boeing said the company was “focused on preparing for a strike” by workers who produce U.S. fighter jets at the St. Louis area facilities. Boeing said its latest proposed accord was “the richest contract offer” made to the St. Louis workers, including a 20% general wage increase over four years.

The International Machinists and Aerospace Workers Union said the latest Boeing offer “fell short of addressing the priorities and sacrifices” of union employees. Among other matters, the union is seeking improved terms regarding pay, medical, overtime and pension benefits.

Boeing last fall ended a 53-day strike by more than 30,000 workers who produce commercial passenger aircraft in the Pacific Northwest with a new contract that included a 38% wage increase over four years. Last year’s strike cost Boeing, its workers and suppliers nearly $9.7 billion, according to consulting firm Anderson Economic Group.

The U.S. homeownership rate continued a general decline of the past several years, posting at 65% in the second quarter, according to the latest Census Bureau data. That was down slightly from 65.1% in the prior quarter and from 65.6% in the second quarter of 2024, but was also the lowest rate posted since late 2019.

Homeownership has generally been slipping during the past two decades amid rising prices and more recently elevated interest rates, according to analysts. Nationwide homeownership was at 68.7% at the mid-point of 2005.

The latest second-quarter census data released Monday showed the ownership rate was 60.7% in the West, 61.4% in the Northeast, 66.6% in the South and 69.5% in the Midwest.