Overview

• Market volatility has eased as investors embrace the TACO theory that Trump often retreats from tariff threats.
• The Trump administration has modified or withdrawn more than 50 tariffs since April, reinforcing its unpredictable negotiating style.
• Banks have postponed merger and acquisition plans due to concerns over sudden tariff shifts and uncertain policy outcomes.
• Volatility in Treasury yields continues to pressure bank interest margins and raise questions about sector profitability.
• US-China trade tensions persist over rare earths supply and retaliatory measures, sustaining long-term risks for global trade.