TL;DR

Trump launches sweeping tariffs; U.S. targets chips, autos; BoE cuts rates amid global volatility.

Highlights

• Trump administration enacts broad tariffs on $1.6T in imports, raising average U.S. tariff rate to 18.3%; duties range from 5% to 50% across over 90 countries 1.
• U.S. to impose 100% tariff on imported semiconductors, exempting firms with U.S. production plans (Apple , Nvidia , Samsung, TSMC , SK Hynix); implementation details pending 24.
• EU rejects U.S. 100% chip tariff, maintains 15% cap on EU chip exports to U.S., raising risk of trade friction 3.
• Japan faces an additional 15% U.S. tariff; Toyota cuts profit outlook by 16% and warns of a ¥1.4T hit from U.S. auto tariffs 515.
• Switzerland hit with 39% U.S. tariffs on most exports (excluding gold, pharma); Swiss franc (C:CHFUSD ) and equities weaken as officials seek a deal 6.
• U.S. doubles tariffs on Indian goods to 50% over Russian oil purchases; India’s state refiners scale back Russian crude imports 711.
• Putin and Trump to hold first summit since 2021; U.S. to proceed with secondary sanctions on Russia this Friday 89.
• Russia to increase oil exports to the West to 2 million bpd after refinery outages; global crude flows adjust 10.
• Bank of England cuts rates by 25bps to 4% in a narrow vote, signaling gradual further easing 12.
• China extends gold-buying streak, July reserves reach $244B (gold ); FX reserves dip amid yuan (C:CNYUSD ) weakness 13.
• SoftBank posts strong quarterly profit on Vision Fund gains; AMD sees demand rebound and progress on U.S. licenses for China sales 1617.
• China extends beef import probe to November, prolonging market uncertainty for major exporters 20.

Commentary

The Trump administration’s sweeping tariffs sharply escalate global trade tensions, with new duties affecting a wide range of U.S. trading partners and sectors 1. The semiconductor industry faces particular disruption: while U.S.-based and investing chipmakers (Apple , Nvidia , Samsung, TSMC , SK Hynix) are exempt from the proposed 100% tariff 24, the EU’s refusal to match these rates signals the likelihood of further trade disputes, especially in high-tech supply chains 3. Japanese exporters are also under pressure, as seen in Toyota ’s downward revision of earnings guidance and direct attribution of losses to U.S. tariffs 515.

Currency and equity markets are responding to these developments. The Swiss franc (C:CHFUSD ) and Swiss equities have weakened after the U.S. imposed steep tariffs on Swiss goods 6, while South Korean and Taiwanese chipmakers saw gains on news of their exemptions 4. The yen (C:JPYUSD ) remains under scrutiny as Japan’s economic outlook dims and trade headwinds intensify 1415. Meanwhile, the Bank of England’s narrow rate cut and guidance for gradual further easing highlight diverging policy paths among major central banks, adding to FX volatility 12.

In commodities, the realignment of Russian oil exports—prompted by refinery outages and Western sanctions—continues to reshape global flows 10. India’s state refiners are reducing Russian crude purchases amid U.S. pressure 11, while Russia seeks to maintain export volumes to the West. China’s ongoing gold accumulation and dip in FX reserves reflect continued diversification away from the dollar and a fragile yuan (C:CNYUSD ) 13.

Elsewhere, China’s extension of its beef import investigation prolongs uncertainty for major exporters 20, while SoftBank’s strong Vision Fund performance and AMD ’s positive demand outlook provide some support for tech sentiment 1617. The upcoming Trump-Putin summit and the rollout of new U.S. secondary sanctions on Russia will be closely watched for further impact on Russian assets and broader risk appetite 89.