TL;DR

Trump tariffs hit 70 countries; global equities slide; China halts US-bound investments.

Highlights

• Trump imposes tariffs of 10–41% on imports from nearly 70 countries; Canada faces 35% duty, EU threatened with 30% tariffs pending talks120.
• China halts approvals for US-bound investments; accuses US of cyberattacks on defense contractors210.
• Global equities fall sharply; Asia leads declines, with Korea’s KOSPI down nearly 4% on tariffs and domestic tax proposals35.
• US dollar strengthens 1.5% this week; two-year Treasury yields ease to 3.94% as risk aversion rises3.
• Apple projects $1.1B in additional Q3 costs from new tariffs; continues supply chain diversification14.
• China’s top solar firms cut 31% of jobs after $60B in losses; Beijing signals possible industry intervention6.
• PBOC sets firmer yuan fix, but CNY hits two-month low on growth and rate differential concerns4.
• SEC launches “Project Crypto” to modernize digital asset rules; Coinbase to offer tokenized stocks to US users1118.
• Tether posts record $4.9B Q2 profit, now holds $127B in US Treasuries12.
• Visa expands stablecoin settlement to new tokens and blockchains13.
• UK Supreme Court to rule on car finance mis-selling; banks face multibillion-pound compensation risk19.
• South Africa cuts rates to 7% as inflation eases; Panama moves to void CK Hutchison’s canal port concession1715.
• US envoy heads to Moscow as Ukraine cease-fire deadline nears; further sanctions threatened9.
• Pakistan’s Cnergyico books first US oil cargo after Trump-backed trade deal, diversifying supply16.

Commentary

The latest round of US tariffs—ranging up to 41% and targeting a broad swath of countries—has triggered a pronounced risk-off move across global markets13. Asian equities bore the brunt, with South Korea’s KOSPI falling nearly 4% amid both US trade actions and new domestic tax proposals35. The US dollar’s continued strength and lower Treasury yields reflect heightened risk aversion, while gold and other safe havens see renewed interest312. Apple ’s warning of a $1.1B Q3 tariff hit underscores the immediate impact on multinational earnings and supply chains14.

China’s response has been swift, halting approvals for outbound US-bound investments and escalating cybersecurity accusations210. The yuan , despite a firmer central bank fix, continues to weaken as growth concerns and US rate differentials weigh4. In parallel, China’s solar sector faces deep structural challenges, with major manufacturers cutting a third of their workforce after steep losses6. Beijing is signaling a willingness to intervene, but industry consolidation remains uncertain67.

The US is also pressuring the EU and Canada with tariff threats, while negotiations continue120. The EU is readying countermeasures, raising the risk of further trade disruptions, particularly in autos and industrials20. Meanwhile, the UK Supreme Court’s pending car finance ruling could trigger significant liabilities for banks, adding to financial sector uncertainty19.

In digital assets, regulatory momentum is building. The SEC’s “Project Crypto” and Visa ’s stablecoin expansion point to deeper blockchain integration in financial infrastructure1113. Tether ’s record profit and growing US Treasury holdings highlight the increasing intersection between crypto and traditional markets12. Coinbase ’s move to offer tokenized stocks signals further convergence, especially as regulatory clarity improves18.

Traders should monitor upcoming tariff deadlines, central bank signals, and key data releases for further volatility. Watch for continued dollar strength, pressure on EM currencies, and sector rotation in equities as trade and regulatory risks evolve34.