🚨 The president's ant i "anti-America" threat

What’s going on here?

The US president pulled out his favorite playbook on Monday, threatening trade partners with a wall of – you guessed it – higher tariffs.

What does this mean?

The US government just extended its pause on tariffs from July 9th to August 1st. That’s likely because the president has only shaken on three trade deals – way off the 90 that were pledged. Still, negotiations are as tense as ever… just look at this latest threat. The BRICS group – ten emerging economies stretching from China and India to Saudi Arabia – spoke out against American levies on Sunday. And in response, the president said any country aligning with those “anti-American policies” will face additional taxes. The stakes are high: economists say the previously pitched, currently paused rates could already slow global economic growth by up to 0.3 percentage points this year.

Why should I care?

Zooming in: Now, we wait.

America’s average effective tariff rate is about 12%: the highest in almost a century. Yet, Harvard’s price trackers show that US shelf prices in tariff-hit categories have barely moved. That’s because many importers have fronted the cost of levies. They think tariffs will be temporary, see, and they’d rather protect their market share than hike prices twice. That’s one reason why inflation has stayed remarkably calm and the S&P 500 has notched record highs.

The bigger picture: A round-the-world ticket, please.

Tariffs have kept many Chinese exporters from shipping straight to the US. In fact, the value of the country’s exports to America was 43% lower this May than last. But China’s still sending some of those packages stateside, just via the scenic route. In May, the country’s companies upped exports to Southeast Asia and Europe by 15% and 12%, respectively, and plenty of those shipments had further to travel. Analysts estimate roughly $3.4 billion worth of Chinese goods were re-exported to the US via Vietnam alone that month.

What’s going on here?

Hong Kong became the world’s ruling initial public offering (IPO) market, after a record-breaking 208 companies applied to list there this year.

What does this mean?

Chinese companies are flocking to Hong Kong like it's the last train out of town – and in many ways, it is. America might be known as the Land of Opportunity, but tensions between the two countries and delisting threats have put Chinese companies off New York. Meanwhile, mainland China’s regulations have made it hard for companies to raise money in foreign currencies and kept many global investors outside the border.

In Hong Kong, though, Chinese companies can play by mainland rules and raise their funds in US dollars. All in all, firms have gone public to the tune of nearly $14 billion in the city this year. That includes CATL’s $5.3 billion secondary listing – 2025’s biggest.

Why should I care?

The bigger picture: Mainland, meet the main attraction.

Hong Kong’s Hang Seng index has risen around 20% this year while Chinese stocks have flatlined – the biggest gap since 2008. That’s mainly down to the buzz around Hong Kong-listed tech superstars like Alibaba and Tencent, rather than China’s sluggish growth, cautious consumers, and fading stimulus hopes... So if you’re buying into Hong Kong’s success, it’s China’s biggest brands that you’re backing – not the country’s economy.

For markets: London will be watching Hong Kong with envy.

The UK raised just £160 million ($218 billion) from IPOs during the first half of the year – its slowest start in at least 30 years. So now, British firms like AstraZeneca and Wise are considering listing stateside. You can hardly blame them: FTSE 100 firms are valued at roughly 16 times their annual earnings – a serious discount compared to the S&P 500’s 27 times. That’s put the UK into a catch-22. Fewer companies listing means fewer investors paying attention, making even fewer companies want to list in London.