President Trump sent letters to more countries yesterday threatening higher tariffs if they don't reach a trade deal with the US by August 1st. Of the eight countries who received letters, only Brazil is a major American trading partner, ranking 10th overall. It faces a possible tariff of 50% next month.The higher taxes are because of the trial for its former president Yaier Jaire Bolsinaro. He is a Trump ally who is accused of trying to overturn his 2022 election loss. In the letter announcing Brazil's tar ...

Trade Policy & Tariffs - The current US effective tariff rate stands at 15%, increasing to 17% after recent trade agreements, significantly higher than the pre-administration level of 2% or less [9] - The imposition of tariffs is viewed as taxes on American businesses and consumers, ultimately leading to higher prices and reduced spending [14][17] - The US trade policy is causing a reshaping of global supply chains, trade relationships, and geopolitical dynamics [11] - There is concern that the US President's approach to trade deals lacks binding commitment and can be unilaterally altered, making it difficult for other countries to offer meaningful concessions [6][7] Economic Impact - The tariffs are expected to negatively impact economic growth and employment in the latter half of the year [17][18] - Consumers are starting to feel the impact of tariffs through increased costs, as exemplified by unexpected tariff charges on imported goods [15][16] Federal Reserve & Monetary Policy - The US President is expected to exert pressure on the Federal Reserve to lower interest rates, potentially compromising the Fed's independence and its broader economic objectives [21][22]

President Donald Trump’s threat to impose new tariffs on India over its participation in the BRICS forum puts New Delhi in a tough position as it races to finalize a favorable trade deal with the US https://t.co/gFzVozuv09 ...

The EU is said to be rushing to seal a trade deal with the US to lock in a 10% tariff rate.Get more on today's Bloomberg Daybreak Europe Podcast. today's top stories, with context, in just 15 minutes. https://t.co/apCxFKtxKK ...

V i e w p o i n t | 2. Negative news: 02 Jul 2025 23:09:28 ET │ 17 pages Asia Economics & Strategy Daily Strategy: EM Impact as 90d Tariff Deadline Nears; CN Data; IN Potential Trade Deal CITI'S TAKE EM Asia Strategy Comments: US -Vietnam trade deal – implications for rest of EM Asia as we approach the 90-day tariff exemption deadline; JP Economic Indicator Forecast; CN Data Preview; Potential India-US Trade Deal; KR Second Supplementary Budget May be Cut; July BoK MPB Preview; Upcoming events: EA Service P ...

Investment Rating - The report indicates a new 20% tariff on Vietnam's exports to the US, which is a reduction from the previous reciprocal tariff rate of 46% but still significantly higher than the pre-Liberation Day rate of 4.6% [2][3] Core Insights - The US-Vietnam trade deal aims to establish favorable rules of origin and reduce transshipment, which could lead to higher tariffs for other ASEAN economies like Thailand while potentially benefiting India with lower tariffs [2][3][20] - Vietnam's exports to the US account for 29.5% of its total exports and 25.1% of its GDP, indicating a significant economic impact from the new tariff structure [5][6] - The indirect effects of the US tariffs on Vietnam will also impact other Asian economies that supply intermediate products, with Vietnam's exposure estimated at 8.25% of its GDP, while Thailand, Taiwan, and South Korea face lower but still significant impacts [6][7] Summary by Sections Trade Deal Details - The US and Vietnam have agreed on a 20% tariff on Vietnam's exports, which includes various products such as tech, footwear, and agricultural commodities [2][3] - Vietnam is expected to address non-tariff barriers and provide preferential market access for US agricultural products [2][3] Economic Impact - The total export value at risk due to the new tariffs is estimated at 1.7% of Vietnam's GDP, with Taiwan at 0.9%, China at 0.8%, and Thailand and Korea at 0.6-0.7% [7][6] - The report highlights that the higher tariffs will pressure profit margins for exporters and may lead to increased prices for end consumers [5][6] Regional Dynamics - The transshipment clause poses challenges for ASEAN economies, particularly Thailand and Cambodia, which may face higher reciprocal tariff rates [3][20] - The report suggests that India could gain a competitive advantage in sectors like textiles and electronics if it can negotiate lower tariffs [3][20]

Market Overview - Wall Street is experiencing a rally due to easing tariff fears and optimism regarding a potential rate cut by the Federal Reserve in the near future [1][2] - The S&P 500 and Nasdaq reached new closing highs, with investors hopeful that a rate cut will further enhance stock performance [1] Trade Agreements - Recent trade deals between the United States and Vietnam, as well as with China and the United Kingdom, have positively influenced market sentiment [4][5] - Despite the positive news, uncertainties remain regarding the impact of new tariffs on the economy, as the White House has not provided clarity [6] Federal Reserve Outlook - Optimism surrounding an anticipated rate cut in July is contributing to the market rally, although Federal Reserve Chairman Jerome Powell has maintained a hawkish stance [7] - Market participants are expecting two 25-basis-point rate cuts by the end of the year, but the lack of a clear timeline from the Federal Reserve may affect investor sentiment [7] Dividend-Paying Stocks - In light of market volatility, cautious investors may consider dividend-paying stocks for stable income and capital protection [3] - Three notable dividend-paying stocks include: - **Bank OZK**: Announced a dividend of $0.44 per share with a yield of 3.38%, having increased its dividend 21 times over the past five years [9][11] - **Lindsay Corporation**: Declared a dividend of $0.37 per share with a yield of 0.98%, having increased its dividend five times in five years [13][11] - **Sandstorm Gold Ltd.**: Announced a dividend of $0.02 per share with a yield of 0.59%, having raised its dividend seven times in five years [15][11]

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific companies involved in the US-Vietnam trade deal Core Insights - The US-Vietnam trade deal announced by President Trump includes a 20% tariff on goods sent to the US from Vietnam and a 40% tariff on transshipments, while allowing US products to enter Vietnam at zero tariff [1] - The announced 20% tariff is at the low end of local expectations in Vietnam, where communities anticipated a range of 20%-25% [2] - Vietnam is expected to further open its market to US products, particularly in sectors like automobiles and energy, which aligns with prior expectations [3] - The classification of "transshipment" goods and the rules surrounding it are critical to understanding the economic impact of the trade deal [4] - A product-specific exemption list is anticipated to significantly affect the overall tariff landscape, with Vietnam's exposure to consumer electronics potentially leading to lower effective tariffs [6] Summary by Sections Trade Deal Details - The trade deal allows Vietnam to provide total market access to the US, which is expected to benefit the sales of US products, particularly SUVs [1] - Vietnam has already begun lowering import tariffs on various products, including automobiles and LNG, prior to the US tariff announcement [3] Tariff Implications - Products with high Vietnam content may face lower tariffs, with those having 100% Vietnam content potentially facing tariffs as low as 10% [2] - The effective average incremental tariff against Vietnam has been reduced to around 9% due to product-specific exemptions, significantly lower than the initially announced 43% [6] Market Access and Economic Impact - The easing of administrative processes for US companies in Vietnam is expected to enhance market access and stimulate growth [3] - The report highlights the importance of monitoring further details regarding financial market access for US and international capital [3]

Trade Negotiations & Agreements - The US is pursuing bilateral trade deals instead of multilateral ones, marking a new approach to global trade [6][7] - A trade deal with Vietnam is imminent and is considered a significant win for American farmers and manufacturers, incentivizing domestic production over routing through China [2][3] - The Vietnam deal opens up the Vietnamese market in unprecedented ways [2] - Negotiations with Japan are ongoing, with anticipated announcements before July 9th, indicating progress in trade relations [5] - The US is seeking reciprocity in trade, addressing non-tariff barriers that hinder access for US manufacturers and farmers to foreign markets [9] - The willingness of countries to lower non-tariff barriers influences the US's tariff considerations [10] Tariffs & Trade Policy - The US may impose tariffs on countries that do not present trade deals facilitating negotiations [13][14] - The specific details of export rates with Vietnam will be released in an upcoming statement [4] China Trade Relations - Negotiations with China continue regarding the framework established in Geneva and the UK [11] - The US is urging China to accelerate access to rare earth magnets, as agreed upon in previous negotiations [11]

Trade Deal & Tariffs - A trade deal with Vietnam was announced, including 20% tariffs on Vietnamese goods entering the US market, which could impact importers like retailers [2] - No tariffs are imposed on US goods entering the Vietnamese market [2] - The market views the deal as a step in the right direction, but the 20% tariff rate is higher than desired [3][4] - The market anticipates further trade deals before the July 9th deadline [3] - A 20% tariff across the board with other countries could cause concerns about a slowdown in consumer spending [5][6] - The 20% tariff is better than the originally announced 46% on Vietnam and 95% on Cambodia [6] - Trans-shipping detail with 40% tariffs is a direct hit to China [7] Inflation & Consumer Impact - Tariffs will bring in revenue but may also raise prices [7] - There hasn't been a great deal of tariff pass-through to consumers so far [8] - If tariff rates are higher than 10-15%, the market will pause to see how well consumers hold up [9] Market Reaction - Stocks moved up in the morning following the trade deal announcement, but the reaction wasn't significant [2] - The market wants to see progress on trade deals [3]