Trump Sets Two-Week Deadline for Tariffs – Market Uncertainty Weighs on U.S. Futures, Yen and Euro Rise

TradingKey - Just days after a temporary easing of U.S.-China trade tensions, U.S. President Trump once again issued tariff threats against the global economy.

Ahead of the July 9 deadline for reimposing higher tariffs on dozens of economies, Trump said Wednesday (June 11) in Washington that he would send letters to countries within one-and-a-half to two weeks outlining unilateral tariff rates.

Trump added, “This is the deal, you can take it or leave it.”

Trump’s latest two-week tariff deadline highlights his urgency to reach agreements with trading partners. In mid-May, Trump had also stated that tariff rates would be finalized within "two to three weeks."

Commentators noted that as the July 9 deadline approaches, Trump’s latest remarks only make the outlook more uncertain.

On the morning of June 12 in Asian markets, the unclear trade outlook led S&P 500 futures to fall about 0.30%, and Nasdaq 100 futures dropped 0.40%.

The USD/JPY exchange rate fell 0.39% to 143.97; EUR/USD rose 0.22% to 1.1514. Gold prices (XAU/USD) increased 0.61% to $3,375.37 per ounce.

Howard Marks, co-founder of Oaktree Capital, said investors should expect continued uncertainty from Trump and maintain a cautious stance toward relatively high global market valuations.

Marks said, “Don’t think that just because you reach the end of the 90-day pause everything is going to be settled. Trump does not explain himself, and maybe that’s intentional.”

An analyst from National Australia Bank pointed out that common sense suggests this is another tactic used by Trump to increase pressure in trade negotiations, as he hopes to reach a trade agreement quickly.