TL;DR

U.S. imposes sweeping tariffs on EU, Mexico, Brazil; Bitcoin hits $118K; Red Sea shipping risk rises.

Highlights

• Trump administration imposes 30% tariffs on all EU and Mexican imports and 50% on Brazilian goods from Aug. 1; EU and Brazil threaten countermeasures, Canada given deadline to avoid 35% tariffs 123.
• China condemns U.S. tariffs on Brazil, warning of increased global trade friction, and notes potential 10% U.S. surcharge on other BRICS members 9.
• Red Sea shipping risk rises as vessels signal non-Israeli ties to avoid Houthi attacks; insurance costs and disruptions escalate 10.
• North Korea pledges “unconditional” support for Russia’s war in Ukraine, reportedly supplying millions of shells and up to 30,000 troops; Russia and North Korea warn U.S., South Korea, and Japan against forming a security alliance 41819.
• Ukraine and Russia intensify drone and missile attacks, with record barrages and mounting civilian and infrastructure casualties 7.
• Israeli strikes kill at least 66 in Gaza, including 27 awaiting aid; ceasefire talks remain stalled amid international legal scrutiny 8.
• Bitcoin hits a record above $118,000 as U.S. spot ETFs see $1.2 billion in inflows; Ether rallies above $3,000, triggering major short liquidations 11.
• Silver surges to $38/oz, highest since 2011; gold also firmer, but mining equities lag 12.
• Tether to discontinue USDT support on five blockchains by September, urging users to migrate to supported networks 13.
• Huawei develops a new flexible AI chip to compete with Nvidia in China and expand into overseas markets 14.
• EU drops digital tax targeting U.S. tech firms, proposes a broader levy on large companies, reducing immediate transatlantic trade friction 15.
• India announces incentives for domestic rare-earth magnet production as China tightens export controls; U.S. boosts investment in domestic supply chains 17.

Commentary

The U.S. administration’s sweeping new tariffs on EU, Mexican, and Brazilian imports—alongside threats against Canada—signal a major escalation in global trade tensions 123. With the EU and Brazil preparing countermeasures and China voicing strong opposition, traders should expect volatility in sectors exposed to transatlantic and Latin American trade, especially consumer staples and industrials reliant on imported inputs 129. Inflationary pressures may rise in the U.S. as higher import costs feed through, complicating the outlook for rates and the dollar 1. Canadian and Mexican exporters face renewed uncertainty, while the threat of wider BRICS retaliation adds another layer of risk 39.

Shipping disruptions in the Red Sea are again in focus, with insurance premiums rising and vessel transits down sharply as Houthi attacks resume 10. This compounds global supply chain stress and could impact energy and commodity flows, particularly if disruptions persist or escalate 10.

Geopolitical risk continues to intensify. North Korea’s deepening military support for Russia—including artillery, ammunition, and troop deployments—marks a significant shift in the Ukraine conflict’s dynamics and raises the stakes for Western sanctions policy 41819. The U.S. push for clearer commitments from Japan and Australia on Taiwan, and Russia’s warnings against new security alliances, add to regional uncertainty in Asia-Pacific 619. Meanwhile, ongoing violence in Gaza and stalling ceasefire talks keep Middle East risk elevated 8.

In markets, Bitcoin and Ether are outperforming on the back of strong ETF inflows and short-covering, while silver’s breakout to decade highs reflects both safe-haven demand and supply concerns 1112. Tether ’s network changes may shift liquidity across crypto venues 13. The EU’s decision to drop a digital tax on U.S. tech firms removes a near-term trade irritant, but broader corporate levies remain under discussion 15. India’s push to localize rare-earth magnet production and the U.S. investment in domestic supply chains highlight ongoing efforts to reduce dependence on China in critical sectors 17.