U.S.–Japan Deal Alert: Tariffs Drop, Investments Soar, Markets React

Hello, Market Reader’s

Treasury Secretary Scott Bessent revealed that U.S.–China trade relations are “in a very good place” ahead of upcoming talks in Stockholm, as the August 12 tariff truce edges closer to expiry. He hinted at potential deadline extensions for high tariffs currently halfway between post-rollbacks and all-in levels while expressing a firm stance that the August 1 deadline for other countries remains nonnegotiable. Beyond tariffs, discussions will span Chinese manufacturing exports and oil purchases from Russia and Iran, underscoring that this negotiation is more than just numbers it’s a strategic pivot with real-world economic stakes.

Today’s Global Menu

• Focal Point

• World Markets

• Frontier News

• Crypto World

FOCAL POINT

🇺🇸📦 Trump Announces Massive U.S.-Japan Trade Deal with 15% Tariffs

A new wave of trade realignment is here.

President Donald Trump has announced a sweeping U.S.-Japan trade deal, reintroducing 15% tariffs on Japanese auto and electronics imports while promising broader American market access for U.S. agriculture and industrial goods.

What does this mean?

• This move signals America First 2.0, with tariffs used as leverage rather than punishment.

• Japan, seeking stable trade ties amid China-U.S. tensions, agreed to increased purchases of U.S. energy and semiconductors.

• The deal could reshape Asia-Pacific supply chains, prompting multinational companies to re-evaluate their regional strategies.

💼 For investors and businesses:
This isn’t just policy it’s positioning. Tariffs may increase short-term friction, but they also accelerate domestic innovation, infrastructure rebalancing, and bilateral alignment outside of China’s influence.

Expect ripple effects across:

• Automobiles and EV supply chains

• Semiconductors and electronics exports

• Commodities and agritech

WORLD MARKETS

1. U.S. Market Hits New Heights Amid Mixed Earnings: The S&P 500 nudged higher, setting a fresh record, while the Dow climbed 0.4% and the Nasdaq slipped 0.4% on Tuesday, July 22 driven by a wave of earnings and the ongoing tariff pause buzz. Stocks like Tesla rose ahead of earnings, homebuilders surged on strong reports, while defensive names like GM and Coca‑Cola lagged. Bond yields eased slightly, and Bitcoin hovered near $119k showing just how market sentiment is being tugged in multiple directions.

2. Global Stocks Record Highs Despite Labour Weakness: Overnight, global equities hit new peaks as disappointing U.S. labor data eased rate‑cut concerns and drove demand for British gilts. The dip in payrolls hinted at slower growth, boosting risk appetite though gilt yields climbed amid political jitters in the U.K., highlighting fragile investor confidence west and east of the Atlantic.

3. Small‑Caps on the Verge of Golden Cross But Beware: July has seen small‑cap and cyclical stocks outperform mega‑caps, pushing the Russell 2000 up ~3.5% compared to the S&P 500’s 1.7%. A “golden cross” when the 50‑day moving average overtakes the 200‑day looms for the first time in 18 months, seen as a bullish signal. But analysts caution this momentum might be short‑lived, given inflation headwinds, tariff pressures, and tepid Fed cuts anticipated later in the year.

FRONTIER NEWS

🇹🇼 Taiwan Unveils Its AI Power Play Taiwan just rolled out its “Ten Major AI Infrastructure Projects,” targeting a staggering T$15 trillion (≈ $510 billion) in economic lift by 2040. Backed by giants like TSMC and Foxconn, the plan doubles down on silicon photonics, AI robotics, and quantum tech with 500,000 jobs in sight.

🇨🇳 Modest but Meaningful US‑Philippines Trade Shift: Following Trump and Marcos’s recent Summit, the U.S. and the Philippines struck a subtle trade pivot wreaking tariffs on select goods. It’s not a sweeping agreement, but it plants a seed of deeper bilateral commerce and shows how geopolitics can reshape trade in small yet strategic steps.

⛴️ Copper Ships Sprint Ahead of 50 % Tariff Deadline: At least four copper‑laden vessels are cutting through the Pacific, racing to U.S. ports before the August 1 tariff spike. These strategic reroutes some altering course by up to 20 days underline how supply chains scramble when trade policy gets bold. Talk about real‑world consequences.

💥 Trump Media Scores Crypto Victory Despite Dilution Woes: Trump Media & Tech Group (DJT) just bankrolled $2 billion in Bitcoin, making crypto its treasury backbone. Shares spiked ~3–6% on the news but remain down ~42% YTD as dilution from new equity and debt rattles investor confidence.

CRYPTO WORLD

🚀 BNB Hits All-Time High Above $800 - What’s Powering This Rally?

BNB just made history again. Binance’s native token soared past $800, reaching an all-time high, defying the broader market’s cautious tone.

What’s driving BNB’s meteoric rise?

• Strong DeFi traction on Binance Smart Chain (BSC)

• New layer-2 integrations and upcoming cross-chain bridges

• Sustained token burns reducing circulating supply

• Binance’s increasing institutional partnerships and regulatory clarity

📊 But it’s not just fundamentals it’s also sentiment. With major altcoins consolidating, capital is rotating toward ecosystems showing real utility, not just hype.

More importantly, BNB is no longer seen as just a “Binance token.” It’s evolving into an ecosystem asset like Ethereum powering everything from NFTs and DeFi to AI dApps.

🧠 In the age of consolidation, utility wins. Investors are backing tokens that deliver speed, scale, and security and BNB is ticking all three boxes.

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Until tomorrow!

Hanoomaan Global Markets team

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