Overview

• New duties take effect Oct. 1, including 100% tariffs on branded and patented drugs unless companies build U.S. plants, 50% on kitchen cabinets and bathroom vanities, 30% on upholstered furniture, and 25% on heavy trucks.
• An executive order cleared a proposal to keep TikTok operating in the U.S. via a joint venture valued at $14 billion with ByteDance holding under 20%, subject to China’s approval.
• Asia-Pacific stocks opened lower following the announcements, with Japan’s Nikkei down about 0.5% and the Topix pharmaceutical index off 1.4% as Australia’s CSL dropped more than 3%.
• U.S. tech shares continued to retreat as the 10-year Treasury yield approached 4.2%, and equity futures were flat to slightly lower.
• Markets trimmed expectations for Fed easing after robust GDP and jobless-claims data, lifting the dollar near ¥150 while oil and gold posted modest gains.