President Trump's reciprocal tariffs on 67 nations have caused market volatility. The taxes ranging from 10% to 41%, postponed to August 7, aim to reshape global trade with immediate effects on the market.
Main Market Reactions:
• Bitcoin fell to $114K (three-week low) with liquidations of $630M amid uncertainty Bitcoin Drop
• European healthcare stocks declined (Novo Nordisk -5%) after threats related to drug pricing
• The dollar rose to its best weekly performance since 2022
• Copper faces potential decline in the third quarter to $9,100/mt
Implications for Trading:
• North American technology stocks in artificial intelligence show resilience (Nasdaq +2.94% in July)
• The strength of the dollar creates arbitrage opportunities in emerging currencies
• Cryptocurrency shows short-term volatility and potential price surge induced by tariffs as protection against fiat currencies
• Beneficiaries of nearshoring (Mexico, Vietnam) are seeing increasing inflows into ETFs
The Postponement of Implementation suggests that August may bring panic selling and strategic buying opportunities. Portfolios that combine protections in cryptocurrencies and commodities seem to be better positioned for prolonged trade tensions.
