Trump Warns of 10% Tariff for ‘Anti-American’ BRICS Policies

Economic

Summary:

Trump warned of a 10% tariff on nations aligning with BRICS’ "Anti-American" policies, increasing trade uncertainty. Emerging market currencies fell, as BRICS criticized U.S. tariffs and discussed alternative payment systems.

President Donald Trump said he would put an additional 10% tariff on any country aligning themselves with “the Anti-American policies of BRICS,” injecting further uncertainty into global trade as the US continues to negotiate levies with many trading partners.

“Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff,” Trump said in a Truth Social post on Sunday night. “There will be no exceptions to this policy.”

Currencies from developing nations and stocks dropped early Monday as the fresh threats weighed on appetite for risk. South Africa’s rand weakened about 1% against the dollar, leading losses in emerging markets. India’s rupee and China’s offshore yuan also slipped.

The comments come as the US prepares to send tariff letters to dozens of countries in the coming days, with the Trump administration’s 90-day pause on higher duties set to expire on Wednesday. Trump said in a separate post that the letters would start being delivered from noon Monday, Washington time.

Trump Warns of 10% Tariff for ‘Anti-American’ BRICS Policies_1

A Growing Economy Bloc | Nominal GDP, % of world total

BRICS, a grouping of nations that includes Brazil, Russia, India, China and South Africa, is holding a summit in Rio de Janeiro. In a joint statement published Sunday, leaders took a swipe at Trump’s tariffs, saying they “voice serious concerns about the rise of unilateral tariff and non-tariff measures which distort trade and are inconsistent with WTO rules.”

Chinese Premier Li Qiang and Indian Prime Minister Narendra Modi were among those who attended.

Trump’s post didn’t specify which policies he considers “Anti-American,” nor did it provide details on when any of those tariffs might be imposed.

“Trump’s comments are a warning shot for emerging market nations looking to go down the BRICS alignment path,” said Mingze Wu, a trader at StoneX Financial Inc. in Singapore, adding that they’re likely in response to what BRICS said about Gaza.

Major US trading partners are racing to secure trade agreements or lobby for extra time ahead of the July 9 deadline. Treasury Secretary Scott Bessent signaled that some nations without deals in place could have the option of a three-week extension to negotiate, with the levies set to take effect on Aug. 1.

In the statement released Sunday, leaders gathered in Brazil condemned US and Israeli attacks on Iran and called on Prime Minister Benjamin Netanyahu’s government to withdraw troops from the Gaza Strip. They urged a “just and lasting” resolution to conflicts across the Middle East and denounced military strikes against Iran — a BRICS member — since June 13 when Israel began attacks that culminated with US airstrikes nine days later

The 10-member bloc of emerging-market nations also expressed “grave concern about the situation in the Occupied Palestinian Territory” — citing Israeli attacks and the obstruction of the entry of humanitarian aid into Gaza, something Israel denies — while calling for a permanent and unconditional ceasefire, along with the release of all hostages.

China’s premier said BRICS countries should take the lead in advancing reforms in global governance and championing the peaceful resolution of international disputes.

Trump Warns of 10% Tariff for ‘Anti-American’ BRICS Policies_2

BRICS Expands in the Middle East and Africa

“Today’s world is more turbulent, with unilateralism and protectionism on the rise,” Li said. “China is willing to work with BRICS countries to promote global governance in a more just, reasonable, efficient and orderly direction.”

India’s Ministry of Commerce and Industry declined to comment on Trump’s latest post.

At a daily briefing on Monday, a spokeswoman for China’s Foreign Ministry, Mao Ning, repeated Beijing’s oft-stated line that there are “no winners in trade wars” and described BRICS as “an important platform for cooperation” between emerging and developing countries.

“It advocates openness, inclusiveness, and win-win cooperation,” she said in Beijing. “It does not engage in bloc confrontation and is not targeted at any country.”

Trump has also previously threatened to slap 100% levies on BRICS if they ditch the US dollar in bilateral trade. The pushback, in turn, has spurred interest in developing local payment systems and other instruments that can facilitate commerce and investment between the nations.

On Sunday, BRICS leaders agreed to continue talks on a cross-border payment system for trade and investment — a project they’ve been discussing for a decade, though progress has been slow.

--With assistance from Shadab Nazmi, Lucille Liu, Grace Sihombing, Ruth Carson, Shruti Srivastava and Qianwei Zhang.

source : Bloomberg

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Warren Takunda

Stocks

China–U.S. Trade War

The Trump administration is stepping up pressure on trading partners to quickly make new deals before a Wednesday deadline, with plans for the United States to start sending letters Monday warning countries that higher tariffs could kick in Aug. 1.

That furthers the uncertainty for businesses, consumers and America’s trading partners, and questions remain about which countries will be notified, whether anything will change in the days ahead and whether President Donald Trump will once more push off imposing the rates. Trump and his top trade advisers say he could extend the time for dealmaking but they insist the administration is applying maximum pressure on other nations.

Kevin Hassett, director of the White House National Economic Council, told CBS’ “Face the Nation” on Sunday that Trump would decide when it was time to give up on negotiations.

“The United States is always willing to talk to everybody about everything,” Hassett said. “There are deadlines, and there are things that are close, so maybe things will push back past the deadline or maybe they won’t. In the end the president is going to make that judgment.”

Stephen Miran, the chair of the White House Council of Economic Advisers, likewise said countries negotiating in good faith and making concessions could “sort of, get the date rolled.”

The steeper tariffs that Trump announced April 2 threatened to overhaul the global economy and lead to broader trade wars. A week later, after the financial markets had panicked, his administration suspended for 90 days most of the higher taxes on imports just as they were to take effect. The negotiating window until July 9 has led to announced deals only with the United Kingdom and Vietnam.

Trump imposed elevated tariff rates on dozens of nations that run meaningful trade surpluses with the U.S., and a 10% baseline tax on imports from all countries in response to what he called an economic emergency. There are separate 50% tariffs on steel and aluminum and a 25% tariff on autos.

Since April, few foreign governments have set new trade terms with Washington as the Republican president demanded.

Trump told reporters Friday that his administration might be sending out letters as early as Saturday to countries spelling out their tariff rates if they did not reach a deal, but that the U.S. would not start collecting those taxes until Aug. 1. On Sunday, he said he would send out letters starting Monday — “could be 12, could be 15” — to foreign governments reflecting planned tariffs for each.

“We’ve made deals also,” Trump told reporters before heading back to the White House from his home in New Jersey. “So we’ll get to have a combination of letters, and some deals have been made.”

He and his advisers have declined to say which countries would receive the letters.

Treasury Secretary Scott Bessent rejected the idea that Aug. 1 was a new deadline and declined to say what might happen Wednesday.

“We’ll see,” Bessent said on CNN’s State of the Union. “I’m not going to give away the playbook.”

He said the U.S. was “close to several deals,” and predicted several big announcements over the next few days. He gave no details.

“I think we’re going to see a lot of deals very quickly,” Bessent said.

Later Sunday, Trump vowed to impose more tariffs against the BRICS bloc of developing nations, which had condemned tariffs increases at its summit in Brazil. Trump said in a post on his social media platform that any country aligning itself with what he termed “the Anti-American policies of BRICS” would be levied an added 10% tariff.

Trump has announced a deal with Vietnam that would allow U.S. goods to enter the country duty-free, while Vietnamese exports to the U.S. would face a 20% levy.

That was a decline from the 46% tax on Vietnamese imports he proposed in April — one of his so-called reciprocal tariffs targeting dozens of countries with which the U.S. runs a trade deficit.

Asked if he expected to reach deals with the European Union or India, Trump said Friday that “letters are better for us” because there are so many countries involved.

“We have India coming up and with Vietnam, we did it, but much easier to send a letter saying, ’Listen, we know we have a certain deficit, or in some cases a surplus, but not too many. And this is what you’re going to have to pay if you want to do business in the United States.”

Canada, however, will not be one of the countries receiving letters, Trump’s ambassador, Pete Hoekstra, said Friday after trade talks between the two countries recently resumed.

“Canada is one of our biggest trading partners,” Hoekstra told CTV News in an interview in Ottawa. “We’re going to have a deal that’s articulated.”

Canadian Prime Minister Mark Carney has said he wants a new deal in place by July 21 or Canada will increase trade countermeasures.

Hoekstra would not commit to a date for a trade agreement and said even with a deal, Canada could still face some tariffs. But “we’re not going to send Canada just a letter,” he said.

Source: AP

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Adam

Forex

Sterling slipped on Monday in a lacklustre start to a week packed with economic data reports that could offer clues to the interest rate outlook, while globally investors watched the latest deadline on U.S. tariffs.

Sterling slipped 0.3% and last fetched $1.3601 against the U.S. dollar , while the pound was broadly unchanged against the euro at 86.23 pence.

Last week saw investors in UK assets rattled by ambiguities around the health of public finances, as a number of U-turns by the governing Labour Party over welfare reforms sparked speculation around the future of finance minister Rachel Reeves.

Traders are now shifting their focus to a set of data this week, with Monday bringing a report that showed British house prices stagnated month-on-month during June as expected, after an increase in tax on property transactions took effect in April.

However, "the post April dip is likely to fizzle out", said Victoria Scholar, head of investment at interactive investor. "Plus, mortgage lending is improving, thanks to four rate cuts from the Bank of England over the last year and two more priced in this year."

Later in the week, traders will scrutinize a report on gross domestic product that could offer clarity on the health of the UK economy and determine the outlook on interest rates.

Bank of England policymaker Alan Taylor said late on Friday that he thought it would be better to cut interest rates now rather than wait and risk needing to cut them in a hurry.

Taylor expects the Bank Rate to fall to "around 3%" by the end of next year. Traders largely anticipate the next 25 basis points interest rate cut by the central bank will be in September, according to data compiled by LSEG.

Meanwhile, investors globally were awaiting a Wednesday deadline ahead of which economies scrambled to strike trade deals with the U.S. to avoid sharply higher duties on their exports to the United States.

Britain was the first to secure an agreement with the U.S. in May and has avoided the additional tariffs on steel and aluminium. Negotiations are ongoing to remove existing 25% duties on industrial metals altogether.

The pound has appreciated about 2% since the deal with the U.S. and is trading close to its highest level since late 2021, also benefiting from a broader dollar weakness.

Separately, a Deloitte survey showed British business executives now see greater opportunities closer to home, while the attractiveness of the United States as an investment destination dwindled.

In other news, Reeves is expected to announce a 28.6 million pound ($39 million) investment by the National Wealth Fund in a carbon capture project that could create jobs in central and northern England, as the government strives to shore up public support.

Source:reuters

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Michelle

Economic

Forex

The European Union still aims to reach a trade deal with the United States by July 9 after Commission President Ursula von der Leyen and U.S. President Donald Trump had a "good exchange", a Commission spokesperson said on Monday.

It was not immediately clear, however, whether there had been a meaningful breakthrough in talks to stave off the imposition of sweepingtariff hikeson the United States' largest trading partner.

The clock is ticking down on a deadline for countries around the world to conclude deals with the U.S. after Trump unleashed a global trade war that has roiled financial markets and sent policymakers scrambling to protect their economies.

TRUMP TOUTS TARIFF PROGRESS

As he keeps much of the world guessing, Trump on Sunday said the U.S. was close to finalising several trade pacts in coming days and would notify other countries by July 9 of higher tariff rates. He said they would not take effect until August 1, a three-week reprieve.

He also put members of the developing nations' BRICS group in his sights as its leaders met in Brazil, threatening an additional 10% tariff on any countries aligning themselves with the "anti-American" policies.

The BRICS group comprises Brazil, Russia, India and China and South Africa along with recent joiners Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates.

The EU has been torn over whether to push for a quick and light trade deal or back its own economic clout in trying to negotiate a better outcome. It had already dropped hopes for a comprehensive trade agreement before the July deadline.

"We want to reach a deal with the U.S. We want to avoid tariffs," the spokesperson told reporters at a daily briefing. "We want to achieve win-win outcomes, not lose-lose outcomes."

IN TRADE DEALS, 'TIME IS MONEY'

Without a preliminary agreement, broad U.S. tariffs on most imports would rise from their current 10% to the rates set out by Trump on April 2. In the EU's case that would be 20%.

Von der Leyen also held talks with the leaders of Germany, France and Italy at the weekend, Germany said. German Chancellor Friedrich Merz has repeatedly stressed the need for a quick deal to protect industries vulnerable to tariffs ranging from cars to pharmaceuticals.

"Time is money in the truest sense of the word," the German spokesperson told reporters in Berlin.

"In this respect, we should give ourselves another 24 or 48 hours to come to a decision."

Russia said the BRICS group had never tried to undermine other countries.

"It is very important to note here that the uniqueness of a group like BRICS is that it is a group of countries that share common approaches and a common world view on how to cooperate, based on their own interests," said Kremlin spokesman Dmitry Peskov.

"And this cooperation within BRICS has never been and will never be directed against any third countries."

Source: TradingView

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Warren Takunda

Economic

London stocks had popped into the black by midday on Monday but gains were muted as investors mulled the latest twists and turns in the Trump tariff saga.

The FTSE 100 was up 0.1% at 8,829.12, as US President Donald Trump threatened to impose a new 10% tariff on any country that aligns itself with the "anti-American" BRICS group.

Writing on his Truth Social site, Trump said "there will be no exceptions to this policy".

Dan Coatsworth, investment analyst at AJ Bell, said: "Countries and regions are bracing themselves for trade letters from the US as the Trump administration moves to the next phase of its tariff regime.

"Trump might be treating it in the same way as a final notice letter - get your act together and agree to a deal or be put back on the higher tariff rates outlined in the Liberation Day announcement.

"We now have some clarity on how the system will work. Rather than a hard deadline of 9 July where all countries without a trade deal will revert to the higher rates announced on 2 April, the new tariff regime begins on 1 August. More countries are expected to confirm trade deals in the coming days, and extensions are possible beyond the 9 July hurdle for countries where negotiations are deemed to be going well.

"In theory, this clarity - albeit still slightly murky rather than crystal clear - should have had a positive reception from investors as the hard deadline has effectively been pushed back three weeks. However, markets were mixed across Asia and Europe on Monday, with futures prices implying a red day for Wall Street later on.

"What’s troubling investors is Trump potentially moving the goalposts yet again. He has form in constantly coming up with new terms and conditions and has now threatened an extra 10% tariff on countries who align themselves with ‘anti-American policies’ of BRICS nations.

"He also suggests some tariffs could reach up to 70%, greater than the previous maximum amount on the Liberation Day menu. Investors would much prefer one set of rules and for the Trump administration to stick to them."

On home shores, the latest data from Halifax showed that house prices were flat on the month in June, following a 0.3% dip in May.

On the year, house prices were up 2.5% last month, down from 2.6% growth in May.

The average price of a property stood at £296,665 in June, down from £296,782 the month before.

Amanda Bryden, head of Mortgages at Halifax, said: "The market’s resilience continues to stand out and, after a brief slowdown following the spring stamp duty changes, mortgage approvals and property transactions have both picked up, with more buyers returning to the market. That’s being helped by a few key factors: wages are still rising, which is easing some of the pressure on affordability, and interest rates have stabilised in recent months, giving people more confidence to plan ahead.

"Lenders have also responded to new regulatory guidance by taking a more flexible approach to affordability assessments. Over the last two months, we’ve already helped an additional 3,000 buyers - including more than 1,000 first-time buyers - access a mortgage they wouldn’t have qualified for before.

"Of course, challenges remain. Affordability is still stretched, particularly for those coming to the end of fixed-rate deals. The economic backdrop also remains uncertain; while inflation has eased, it’s still above target, and there are signs the jobs market may be softening.

"But with markets pricing in two more rate cuts from the Bank of England by year end, and the average rate on newly drawn mortgages now at its lowest since 2023, we continue to expect modest house price growth in the second half of the year."

In equity markets, Shell was the biggest loser on the FTSE 100 as the oil giant said second-quarter gas and oil results would be significantly lower than the previous quarter due to recent volatility. BP was also in the red.

Plus500 gained as it posted a 12% jump in second-quarter EBITDA to $91.3m.

Hospitality group SSP edged higher after saying it has opened public bidding for the IPO of its joint-owned Indian operations in a proposed stock market listing in Mumbai that could be worth up to £1.23bn.

In broker note action, Weir Group was a high riser after an upgrade to ‘buy’ at Citi.

Currys slumped, however, after a downgrade to ‘sector perform’ from ‘outperform’ at RBC Capital Markets, which said it was time to take profits after a strong run.

Source: Sharecast

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Adam

Stocks

London's main stock indexes were mixed on Monday as investors focused on corporate updates and a three-week delay in higher U.S. tariff rates, alongside progress on trade agreements.

The blue-chip FTSE 100 was flat by 0910 GMT, while the domestically oriented midcap index rose 0.2% after ending the previous week in the red.

U.S. President Donald Trump said on Sunday that Washington was close to several trade agreements and would notify other countries of higher tariff rates set to go into place on August 1, a delay from the July 9 deadline.

Oil and gas stocks weighed on the index, dropping 2.6%, with energy giant Shell losing almost 3% after trimming its second-quarter outlook for integrated gas division and liquefied natural gas production ahead of full results.

Other oil companies also came under pressure with oil prices slipping after OPEC+ hiked output above expectations in August. BP was down 1.9%. Diversified Energy, Harbour Energy and Ithaca Energy all fell over 1% on the midcap.

Among individual stocks, miner Ferrexpo slid 1.7% as iron ore production fell after the discontinuation of Ukraine's value-added tax refunds reduced operations.

Electricals retailer Currys fell 6.2% and led midcap losses, after an RBC downgrade.

Online trading platform Plus500 was among the top gainers on the FTSE 250 after positive second-quarter results.

Weir Group was the top gainer on the blue-chip after Citigroup raised its rating and price target.

On the data front, Halifax data showed that British house prices stagnated in June from the previous month following the increase in tax on property transactions from April.

In other news, British finance minister Rachel Reeves is set to announce a 28.6 million pound ($39 million) investment into a carbon capture project, which is expected to create jobs in central and northern England.

source : Reuters

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Glendon

Economic

Stocks

FundamentalOverview

The S&P 500 continuesto be supported given the lack of bearish drivers. Last Thursday’s NFP lookedlike it could offer a bigger pullback on a hawkish repricing in interest rateexpectations but the positive data came with lower wage growth, which is greatfor the stock market.

In the short-term, the onlyrisk I can see is further hawkish repricing in interest rates expectations, butwe will likely need a hot CPI for that. That should provide a deeper pullback. Butgiven that the Fed's reaction function remains to either wait more or cut, themarket should eventually get back to its upward trend.

We now have two main risksahead for the bulls: tariffs noise and US CPI. The White House is expected tosign trade deals and send letters with the new tariff rates to countries thathave not reached a deal yet. The good news is that we have once again adeadline, which is August 1st. Therefore, it looks like the usual negotiationstactic to speed up the process and accept the US requests.

On the other hand, we havethe US CPI coming up next week. To keep the trend going, we would likely needsoft inflation figures as a hot report should trigger a deeper pullback.

S&P 500Technical Analysis – Daily Timeframe

S&P 500 Daily

On the daily chart, we cansee that the S&P 500 continued to print new all-time highs pretty much everydayonce the price broke above the February highs. From a risk managementperspective, the buyers will have a better risk to reward setup around theprevious all-time high at 6,160-ish level to position for the continuation ofthe uptrend. The sellers, on the other hand, will want to see the price breakinglower to pile in for a drop into the 6,000 level next.

S&P 500 TechnicalAnalysis – 4 hour Timeframe

S&P 500 4 hour

On the 4 hour chart, we cansee that we have an upward trendline defining the uptrend. If we were toget a pullback all the way into the trendline, we can expect the dip-buyers tolean on it to position for a rally into new all-time highs with a better riskto reward setup. The sellers, on the other hand, will look for a break lower toincrease the bearish bets into the 5,800 level next.

S&P 500 TechnicalAnalysis – 1 hour Timeframe

S&P 500 1 hour

On the 1 hour chart, we cansee that we have a minor upward trendline defining the bullish momentum on thistimeframe. The buyers will likely continue to lean on the trendline to keeppushing into new highs, while the sellers will look for a break lower to targeta deeper pullback into the 6,236 level first and, upon a further break lower,into the 6,160 price area.