Key takeaways

• The US has announced trade agreements with 69 countries, but only seven countries have established trade frameworks. The global baseline tariff for any imports into the US is set at 10%, with reciprocal rates ranging from 10% to 41% and a new 40% duty on transhipments.
• Uncertainty about trade has diminished, but several key deadlines remain, such as the 12 August deadline for a trade agreement between the US and China, and a slew of section 232 investigations that could mean elevated tariffs on sectors such as pharmaceuticals and semiconductors. While tariffs may slow growth and pressure margins, secular trends (including the technology revolution, reshoring of jobs and reindustrialisation), continue to support US economic resilience.
• We maintain our US equity overweight as earnings growth remains strong, while we tap into powerful long-term themes with our overweight in Technology, Communications and Industrials. We remain neutral overall on fixed income but continue to tactically add high quality bonds for income and stability, using an active management approach to find selective opportunities. As for the US dollar, we foresee a side-ways move, albeit with volatility due to the busy news flow and the tug-of-war between positive and negative forces.

Please refer to the full report for details about the event and our investment view.

https://www.hsbc.com.my/wealth/insights/market-outlook/special-coverage/us-tariffs-despite-recent-announcements-much-uncertainty-remains/