Overview

• President Trump signed an executive order on August 11 to extend the 90-day tariff truce with China just hours before higher duties would have resumed.
• Asian equities responded positively, with Japan’s Nikkei and Australia’s ASX reaching record highs as markets welcomed the deferral of triple-digit tariffs.
• Recent negotiation rounds in Stockholm and elsewhere have stalled over issues like rare earth exports and technology controls, leaving a durable trade agreement unresolved.
• Analysts warn that tariffs act as a stealth tax that could boost U.S. consumer prices, making this week’s CPI report crucial for Federal Reserve rate-cut expectations.
• Investors are also focused on President Trump’s scheduled meeting with President Putin in Alaska later this week to assess potential geopolitical impacts on markets.