Morning Brew Daily: US Sets EU Tariffs at 15% & Viral Tea Dating App Photos Leaked
Release Date: July 28, 2025

In this episode of Morning Brew Daily, hosts Neal Freyman and Toby Howell delve into significant developments in international trade, data security breaches in the dating app industry, retail strategy shifts, intriguing weekend business stories, and a preview of the week's major events. Below is a detailed summary capturing all key discussions, insights, and conclusions from the episode.

1. US-EU Trade Deal: A Tenuous Agreement

The episode kicks off with the breakthrough of a trade agreement between the United States and the European Union after prolonged negotiations. The deal establishes a baseline tariff of 15% on imports, which, while lower than the previously threatened 30%, still surpasses the EU's target of 10%.

Key Points:

• Economic Impact: The 15% tariff is expected to adversely affect the European economy, particularly Germany's export-driven industries. German officials criticized the deal, with the head of The Federation of German Industries stating, "15% will have an immense negative impact on Germany's export-oriented industry" ([04:53]).

• Winners and Losers:

  • Winners: Britain, under Keir Starmer's earlier negotiations securing a 10% tariff; US defense companies benefitting from the EU's commitment to purchase military equipment; and the global economy at large, as the deal averts a more severe trade stalemate.
  • Losers: Predominantly Germany and other EU nations reliant on exports, facing higher costs and reduced competitiveness.

• Economic Projections: Bloomberg Economics projects a $2 trillion hit to the global economy by 2027 due to elevated tariffs worldwide ([07:15]). Daniel Herinberg from Oxford Economics notes that while tariffs are not as destructive as feared, they disrupt supply chains and global trade dynamics ([07:15]).

Notable Quote:

"It's a very powerful deal. It's the biggest of all the deals," – Donald Trump on the US-EU agreement ([04:53]).

2. T App Data Breach: From Safety Tool to Security Nightmare

The discussion shifts to T App, a dating application designed to enhance women's safety by allowing them to anonymously share feedback about their dates. However, the app recently suffered a significant data breach, compromising 13,000 selfies and 59,000 images from posts and direct messages.

Key Points:

• App Purpose: Founded in 2022 by Sean Cook, T App aims to prevent women from unknowingly dating individuals with criminal backgrounds by leveraging community feedback.

• Breach Details: The hackers accessed data stored on an outdated IT system, with newer images post-2023 remaining secure. The company is actively reaching out to affected users ([10:08]).

• Public Reaction: The breach has intensified debates about data privacy and the ethical implications of such rating systems. Critics liken T App to dystopian concepts like those in Black Mirror's "Nosedive" and parallel China's social credit system, raising concerns about mob justice and privacy ([11:36]).

• Market Context: Despite its controversial premise, T App saw a 525% increase in downloads, reaching 4 million users, driven by its viral social media presence and the app's contentious approach to safety ([08:43]).

Notable Quote:

"We are creating, we are formalizing or commoditizing what are so-called whisper networks," – Neal Freyman on the implications of T App's model ([10:08]).

3. Target Ends Price Matching Policy: Strategic Misstep?

Neal and Toby examine Target's decision to discontinue its long-standing price matching policy with external retailers, a move they argue may undermine the company's competitive edge.

Key Points:

• Policy Change: Effective immediately, Target will no longer match prices from external retailers like Walmart and Amazon, though it will continue to match prices within its own ecosystem ([12:41]).

• Rationale: Officially, Target claims that the majority of price match requests were against its own prices, suggesting confidence in its pricing strategy. However, critics argue that this move is counterintuitive, as it removes a safety net that ensures competitive pricing ([14:07]).

• Market Impact:

  • Pricing Disadvantage: A study by Profitero reveals that Target's prices are 13% higher than Amazon's and 5% higher than Walmart's, positioning it unfavorably in price-sensitive markets ([14:07]).
  • Sales Decline: Target has experienced a 2.8% drop in Q1 sales and a 6.3% annual decline in foot traffic as of July 7 ([14:07]).

• Industry Trend: The removal of customer perks like price matching is part of a broader pattern, with companies like Southwest and Starbucks also retracting popular benefits. This trend raises questions about consumer trust and loyalty ([15:05]).

Notable Quote:

"It's hard to imagine ending price matching will boost those numbers," – Neal Freyman on the potential repercussions of Target's policy change ([14:07]).

4. Weekend Winners: Crisis PR and the Stagnant Literary Curriculum

The hosts present their "Winners of the Weekend," highlighting unique business stories that stood out.

a. Astronomer's PR Move Amid Crisis

Astronomer, a tech firm embroiled in a scandal involving its CEO and the head of HR during a Coldplay concert, managed to turn the situation around through an innovative PR strategy.

Key Points:

• Crisis Handling: In response to the scandal, Astronomer released a video featuring Gwyneth Paltrow as a temporary spokesperson, addressing public concerns with humor and leveraging her connection to Coldplay's lead singer, Chris Martin ([18:13]).

• Public Reception: The video went viral, amassing 37 million views on X (formerly Twitter), and resulted in a 15,000% spike in website visits, effectively capitalizing on the unintended fame ([19:44]).

• PR Strategy: By embracing the meme culture and injecting humor, Astronomer successfully navigated a potential PR disaster, maintaining brand visibility and customer interest ([20:39]).

Notable Quote:

"You can't out think, you can't out PR statement a meme," – Toby Howell on Astronomer's effective crisis management ([20:39]).

b. Stagnant Classics in School Curricula

Targeting Educational Content: The second winner discusses the lack of evolution in high school English curricula, which remains dominated by classic literature written over six decades ago.

Key Points:

• Curriculum Inertia: A survey by the National Council of Teachers of English reveals that the most commonly assigned books in middle and high schools are all written more than 60 years ago, with several titles unchanged since 1989 ([20:49]).

• Diversity Issues: The current list lacks diversity, featuring predominantly white authors and minimal representation of women, limiting students' exposure to a broad range of voices and perspectives ([22:19]).

• Educational Impact: This outdated focus may contribute to declining student interest in reading, as modern engagement trends favor contemporary literature and multimedia content over classic texts ([23:22]).

Notable Quote:

"If you're competing with TikTok as an English teacher and all you have on your side is the Crucible, you're probably not going to win that fight." – Toby Howell on the challenges facing English education ([23:22]).

5. Looking Ahead: Major Events for the Week

The hosts provide a comprehensive overview of the upcoming week's key events that are poised to influence markets and the economy.

Key Events:

• Federal Reserve Meeting: Scheduled for Wednesday, the Fed is expected to announce its interest rate decision. The relationship between President Trump and Fed Chair Jerome Powell remains tense, highlighted by a recent awkward interaction during a tour of the Fed's renovation project ([25:05]).

• Tariff Deadline: August 1st marks the hard deadline for the US to finalize tariff agreements with major trading partners, including China, Canada, Mexico, and India. Commerce Secretary Howard Lutnick emphasized that no extensions will be granted ([25:44]).

• Tech Earnings Reports: Major tech giants Apple, Microsoft, and Amazon will release their Q2 earnings, providing insights into the technology sector's performance ([26:01]).

• Economic Indicators: A GDP report and a jobs report are also on the horizon, with investors viewing these as critical indicators of economic health and market direction ([27:11]).

• NFL Preseason: For those seeking a respite from economic news, the NFL kicks off its preseason with the Chargers and Lions facing off in the Hall of Fame Game on Thursday night ([27:22]).

Notable Quotes:

"It is the busiest I can remember in 25 years of working." – James Knightley, ING Economist, on the upcoming week's schedule ([27:11]).

Conclusion

This episode of Morning Brew Daily provides listeners with an in-depth analysis of significant international trade developments, the complexities of data security in emerging tech applications, strategic shifts in retail practices, and noteworthy business narratives. Additionally, it prepares the audience for a week filled with pivotal economic events and industry reports that could shape market dynamics.

For those seeking a comprehensive understanding of current business landscapes and future trends, this episode offers valuable insights and expert commentary to navigate the complexities of today's economic environment.

Notable Contributors:

• Neal Freyman: Host
• Toby Howell: Host
• Gwyneth Paltrow: Featured in Astronomer's PR video
• Donald Trump: US President discussing trade deals
• Ursula von der Leyen: President of the European Commission
• Daniel Herinberg: Lead Economist, Oxford Economics
• James Knightley: ING Economist

Production Credits:

• Emily Milian: Executive Producer
• Raymond Lu: Producer
• Olivia Graham & Olivia Lake: Associate Producers
• Devin Emery: President of Morning Brew

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