TL;DR

Trump sets 25% tariffs on Japan/South Korea; yen drops; Tesla falls 8% on Musk’s politics.

Highlights

• Trump to impose 25% tariffs on all Japanese and South Korean imports starting Aug. 1; 12 more countries formally warned of possible tariff hikes14.
• Yen drops over 1% past ¥146/USD on tariff news; dollar strengthens broadly2.
• U.S. delays new tariffs from July 9 to Aug. 1 to allow more negotiation time; several new trade pacts expected to be announced within 48 hours315.
• 10% tariff threat on BRICS held in reserve, not immediately imposed; U.S.-China talks ongoing14.
• Tesla falls 8% after Musk launches "America Party," raising concerns about management distraction and political risk5.
• Houthi attack on Red Sea bulk carrier revives shipping risk; Israel launches retaliatory strikes on Houthi facilities11.
• U.S. and Israel coordinate on Iran, with Israel expecting Trump’s support for strikes if Iran restarts nuclear program; White House confirms ongoing talks with Iran1213.
• Cocoa futures remain near record highs (~$8,100/tonne) amid global shortages, pressuring food and consumer sectors16.
• MicroStrategy (Strategy) launches $4.2B share sale for further Bitcoin purchases; books $14B unrealized Q2 gain as Bitcoin trades near $109,000620.
• BlackRock’s Bitcoin ETF now generates more fee revenue than its S&P 500 ETF ; SEC accelerates Solana ETF reviews179.
• U.S. government wallet moves seized Ethereum to Coinbase; Tornado Cash sanctions litigation ends after OFAC reversal78.
• EU regulator probes Robinhood ’s tokenized OpenAI and SpaceX shares, spotlighting scrutiny of equity tokenization10.

Commentary

Trade policy headlines dominated today, with the Trump administration escalating pressure by announcing 25% tariffs on all Japanese and South Korean imports effective August 114. The White House also sent formal warning letters to 12 additional countries, while delaying the broader tariff deadline to August 1 to allow for more negotiations34. Treasury Secretary Bessent signaled several new trade deals could be announced within 48 hours15, but the risk of tariff snapbacks remains for countries not reaching agreements. The U.S. is holding a 10% tariff threat over BRICS in reserve, with China talks ongoing14.

Markets responded with a sharp move in FX: the yen weakened past ¥146 per dollar, and the dollar strengthened against multiple currencies as traders sought safety amid trade uncertainty2. Equities with exposure to Asian supply chains or global trade could see further volatility. Tesla ’s 8% drop followed Elon Musk’s announcement of a new political party, intensifying concerns about management focus as the company faces ongoing delivery and competitive challenges5.

Geopolitical risk resurfaced after a Houthi attack on a Red Sea bulk carrier, prompting Israeli retaliatory strikes and raising concerns about shipping route security11. U.S.-Israel coordination on Iran remains close, with Israel expecting U.S. support for potential strikes if Iran restarts nuclear activity12. These developments may impact energy and defense sectors.

In digital assets, MicroStrategy (Strategy) announced a $4.2B share sale for more Bitcoin , reporting a $14B unrealized gain in Q2 as Bitcoin trades near record highs620. BlackRock’s Bitcoin ETF now surpasses its S&P 500 ETF in fee revenue, and the SEC is fast-tracking Solana ETF reviews179. Regulatory activity continues, with the U.S. government moving seized Ethereum 7 and the end of Tornado Cash sanctions litigation8, while EU scrutiny of Robinhood ’s tokenized shares highlights ongoing oversight of digital asset innovation10.

Cocoa prices remain elevated on global shortages, maintaining cost pressure on food and consumer staples sectors16. Traders should monitor further trade headlines, FX moves, and sector-specific volatility into the close.