Daily Newsletter 7/8/25

There have been recent changes to the tariff policy. The U.S. government has announced an extension of the deadline for the implementation of reciprocal tariffs from July 9 to August 1. This extension applies to all affected countries.

Although the market exhibited broad weakness yesterday in response to former President Trump’s escalation of tariff threats, we believe the downside risk remains limited—provided these threats are temporary in nature. Should the situation appear more prolonged or escalate further, however, the negative impact on the market could be more significant.

Given that financial markets often interpret recent developments and data differently from the broader economy, we prefer not to comment on every individual change in tariff policy or fiscal measures. The combination of ongoing fiscal adjustments in the U.S. and frequent updates regarding tariffs and foreign trade has contributed to an economic landscape that is more complex than usual. As such, we will focus our commentary on significant shifts rather than routine policy changes.