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2025-08-02 18:38:08
The trade war escalates again, with US-Mexico-Canada (USMC) negotiations at a stalemate. Could global markets be poised for significant volatility? ⑴ Although the US has reached agreements with several major trading partners, trade uncertainty persists. ⑵ Investors are closely monitoring ongoing trade negotiations between the US, Canada, Mexico, and other countries. ⑶ Mexico has secured a tariff extension, but Canada has not and now faces a 35% tariff. ⑷ Meanwhile, the trade truce agreement between the US and China expires on August 12, and no new agreement has yet been reached. ⑸ In addition, the US has imposed tariffs of at least 10% on other countries worldwide, including 39% on Switzerland and 25% on India. ⑹ Although the new tariffs don't take effect until August 7, the market is already realizing their severity. ⑺ These tariffs could have a more severe than expected impact on US domestic inflation and the global growth outlook. ⑻ Traders should be vigilant, as a new round of tariff-related market volatility could occur at any time. ⑼ Negative trade news may also affect market confidence in the US economy, leading to weak demand for Treasury issuance and thus pushing up long-term bond yields.
