Stocks slipped and the U.S. dollar edged higher in a cautious start to the week, after former President Donald Trump intensified trade tensions by announcing new tariff threats aimed at countries aligning with the BRICS group.
MSCI’s Asia-Pacific stock index fell 0.6%, reflecting renewed investor anxiety. Meanwhile, U.S. Treasuries gained modestly, with the 10-year yield easing by 2 basis points to 4.33%, signaling a flight to safety. The U.S. dollar index rose 0.1%, while the Chinese yuan weakened in response to the news.
Trump said the U.S. would begin sending tariff letters and unveiling new trade deals starting 12 p.m. Eastern Time on Monday. He warned that countries “siding with BRICS” will face a 10% additional levy, reigniting fears of another round of global trade disruption.
The remarks come as markets had been cautiously optimistic that Trump would, once again, delay or soften earlier threats—as seen in previous trade negotiations. Stock markets recently rebounded from their April lows, buoyed by hopes that the looming July 9 tariff deadline would be extended or re-negotiated.
Now, investors are on edge, scanning for concrete outcomes in ongoing bilateral talks and bracing for potential economic ripple effects if the U.S. proceeds with the fresh levies.
