US: More Tariff Letters Likely Before August – Commerzbank

Regardless of how reactive the Fed is, further developments on the tariff front occurred overnight, Commerzbank's FX analyst Michael Pfister notes.

No country safe from US tariff threats

"The White House press secretary told reporters that Trump could send more letters to countries facing tariffs before 1 August. Among the larger economies affected are Switzerland (which has seemingly slipped through the net) and India, where negotiations on a deal have reportedly been close to completion since April. Switzerland recently announced that the deal has been awaiting Trump's signature for weeks."

"It is currently impossible to say how these negotiations will end. In Japan and South Korea, too, it has repeatedly been emphasised that negotiations are nearing completion, only for them to end without success so far. Conversely, countries such as Indonesia and Vietnam have reached deals involving greater concessions."

"However, countries that have so far slipped through the net should not become complacent. After all, the last few months have taught us one thing: with the current US administration, anything is possible."