Highlights
Markets are bracing on Monday for a renewed period of news and uncertainty around President Trump's tariff policy. With the pause on imposition of astronomically high tariffs due to expire on Wednesday, the hope is for another delay and that a new deadline of Aug. 1 is in effect. Commerce Secretary Howard Lutnick said on Sunday that Aug. 1 would be the new date for the tariffs to resume, not July 9 after all -- while Trump posted on social media that letters would be going out to some countries on Monday announcing their new higher tariff levels, presumably to take effect later. It's unclear what the letters will say.
President Trump created new uncertainty on Sunday by saying on social media he would impose an additional 10 percent tax on imports from the BRICS countries. The BRICS seemed to stir his wrath by criticizing US policy after a meeting on Sunday in Rio de Janeiro. The leader of the BRICS issued a statement expressing concern over the prospect of a fragmented global economy and the weakening of multilateralism." The statement also took a shot at US and Israel's actions in Iran. The original BRICS group of Brazil, Russia, India, and China now includes South Africa, Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, the United Arab Emirates and Indonesia.
The White House has been talking up the prospect of adding India to the short list of countries UK and Vietnam to make a deal of some kind before July 9. It's unclear how Trump's new BRICS tariff policy will affect that, or whether Trump will actually target Saudi Arabia, where he has close relations. The status of trade talks with major trading partners including the EU and Japan is unclear.
The likely delay in imposing higher tariffs gives firms more time to rush goods into the country at relatively favorably tax rates and to raise inventories ahead of year-end shopping. That, in turn, may let consumers avoid the worst of any tariff price increases a bit longer.
President Trump created new uncertainty on Sunday by saying on social media he would impose an additional 10 percent tax on imports from the BRICS countries. The BRICS seemed to stir his wrath by criticizing US policy after a meeting on Sunday in Rio de Janeiro. The leader of the BRICS issued a statement expressing concern over the prospect of a fragmented global economy and the weakening of multilateralism." The statement also took a shot at US and Israel's actions in Iran. The original BRICS group of Brazil, Russia, India, and China now includes South Africa, Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, the United Arab Emirates and Indonesia.
The White House has been talking up the prospect of adding India to the short list of countries UK and Vietnam to make a deal of some kind before July 9. It's unclear how Trump's new BRICS tariff policy will affect that, or whether Trump will actually target Saudi Arabia, where he has close relations. The status of trade talks with major trading partners including the EU and Japan is unclear.
The likely delay in imposing higher tariffs gives firms more time to rush goods into the country at relatively favorably tax rates and to raise inventories ahead of year-end shopping. That, in turn, may let consumers avoid the worst of any tariff price increases a bit longer.
Definition
Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.
Description
Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.
