The Trump administration's decision to reinstate tariffs on Asian nations including Indonesia, Thailand, Malaysia, Japan, and South Korea had nations scrambling to negotiate trade deals to avoid them, such as offering increased U.S. purchases of crops, LNG, and industrial goods. The new tariffs, set to take effect on August 1, would raise average Asian import duties to 27% from 4.8%, putting greater economic strain on allies and disrupting global supply chains reliant on U.S. consumption. Countries like South Korea and Thailand, which had engaged in active negotiations, faced punitive rates (25% and 36%, respectively) in the path of Washington’s plan for unilateral trade balance and stricter enforcement against Chinese transshipment. Analysts warn the policies risk alienating longstanding allies, risking Asian economies to deviate from a stable relationship between the U.S. and China to single dependencies, complicating regional diversification efforts and strengthening conviction for BRICS to succeed.

EQUITY

Stocks kick off the week lower on threats of escalating levies against BRICS-aligned nations, starting with a 25% base tariff. Tesla plunged 6.8%, erasing $68 billion in market value after CEO Elon Musk’s launch of a political party with declining sales and strategic shifts toward autonomous vehicles, a critical point for the company. Focus are now around the economic impact of rising protectionism and FOMC minutes for policy clarity.

GOLD

Gold prices stabilised in Asian trade as U.S. tariff threats boosted safe-haven demand, but a stronger dollar limited gains. Technical signals hinted at near-term consolidation toward $3,250/oz before a possible recovery. Ongoing trade and geopolitical tension is expected to keep gold’s safe-haven demand intact.

OIL

Crude oil prices gained even with OPEC+ ramping up August output by 548,000 barrels per day, exceeding forecasts, and plans to restore 2.2 million bpd by 2026, risking flooding the market as storage on idle tankers hits 79.55 million bbl. Tariff threats from Trump, weakening U.S. production, and HSBC’s warning that geopolitical turmoil are losing sway to supply-demand fundamentals could put pressure on prices, leaving oil caught between volatility and oversupply risks.

CURRENCY

Bank of America flags a shift toward USD dominance against G10 currencies even with de-dollarisation chatter, pointing toward U.S. payrolls, bullish option flows, and oversold rebounds, with tactical calls for USD/CAD spikes given Canadian job collapse fears and USD/JPY strength post-macro shock exit. The dollar briefly retreated after Trump’s tariff threats sparked volatility yet stabilised as markets dismissed hard deadlines, eyeing June CPI to confirm reinflationary risk.