Global markets remained cautious and mostly flat as investors awaited the outcome of the U.S. tariff decisions set for July 9, a deadline that President Donald Trump has firmly stated he will not extend.
The looming tariffs, part of Trump’s broader trade policy aimed at addressing perceived imbalances, have created uncertainty worldwide, with limited trade deals reached so far, including agreements with Britain and China, but key negotiations with countries like Japan remain stalled.
Treasury Secretary Scott Bessent indicated the administration is focusing on securing narrower “framework” deals with about 18 key partners, including promising talks with Vietnam, India, and Taiwan, to avoid the harshest reciprocal tariffs that could reach up to 46% for some nations.
Meanwhile, the euro surged to a 2025 high against the dollar, prompting central banks to question whether the euro could challenge the dollar’s long-standing dominance in global finance.
The currency’s strength adds another layer of complexity to the market environment as investors weigh the impact of trade tensions alongside monetary policy shifts.
With the tariff deadline approaching rapidly, market participants are bracing for potential volatility depending on whether the U.S. imposes the planned tariffs in full, extends the pause, or reaches additional trade agreements. The uncertainty underscores the fragile state of global trade relations and the delicate balance policymakers must maintain to avoid disrupting economic growth
