Trump “shocks” South Korea: Allies are not free
In a cabinet meeting on July 8 (US time), President Donald Trump announced that South Korea must pay for its own military defense costs – a move that could significantly alter the structure of the US-South Korea alliance. Trump criticized the old agreement that was canceled by Mr. Biden and said: “We brought economic benefits, but this is a big loss for the United States.”
Ally or Client? Trump Demands South Korea Pay Protection Fees
✅ Affect:
- US-South Korea diplomatic tensions could escalate
- South Korea faces pressure on defense budget
- The US may extend this request to other allies.
New Tariffs: Trump Imposes 50% on Copper, Threatens 200% on Pharmaceuticals
Trump continues “America First” policy by impose 50% tax on imported copper metal and warned of 200% tax on pharmaceuticals. Copper prices immediately jumped. 17% during the day
✅ Affect:
- Mineral and metal stocks benefit
- Pharmaceutical industry under strong pressure, especially companies with factories in Asia
- Market expects rising inflation – Fed unlikely to cut interest rates soon
Gold prices plunge more than 1% due to strong USD, trade expectations
World gold price falls below the mark 3,300 USD/oz, the lowest level in more than a week. The USD rose 0.03%, the optimistic sentiment about US-EU and US-China trade reduced the demand for shelter.
✅ Affect:
- Short term: Gold prices under pressure due to strong USD
- Medium-long term: Trump's tax policy could cause inflation to rise, supporting gold
- Investors should consider buying gold in the correction price zone.
Trump harshly criticizes Powell, demands his “immediate resignation”
Trump said that Fed Chairman Powell Misled Congress about the cost of renovating the Fed headquarters, and criticized the decision to keep interest rates unchanged as a mistake. He emphasized that he would replace Powell if re-elected.
✅ Affect:
- Political pressure mounts on the Fed
- The possibility of interest rate reduction in July is very low (only 4.7%)
- Maintaining high interest rates will put pressure on real estate and businesses.
US prepares to impose EU tariffs, Supreme Court gives green light to cut staff
Trump declared EU tax letter can be sent within 2 days, and the Supreme Court gave the green light to the plan. massive layoffs in federal agencies.
✅ Affect:
- EU-US trade risks increase
- US government spending may fall, affecting bond market
- Tech stocks benefit from bureaucracy cuts
Other developments:
- Ukraine receiving more weapons from the US, Mr. Trump threatened to sanction Russia.
- Fed: The probability of keeping interest rates unchanged in July is 95.3%.
- New Zealand Keep interest rate at 3.25%, leave open the possibility of reduction.
- SJC gold bar price recovered around 121 million VND/tael in Vietnam.
- China recorded the deepest manufacturing deflation in nearly two years in June.
- Hamas – Israel encountered major obstacles in ceasefire negotiations.
- USD/VND exchange rate continued to decline slightly for the second consecutive day.
Investment strategy suggestions
- Industrial metals (copper): may continue to benefit from tariffs – watch related stocks.
- Yellow: watch the support zone of 3,280–3,300 USD/oz for long term buying if USD cools down.
- USD: continue strong – suitable for trend trading strategy.
- US stocks: defense stocks, technology, mineral companies can attract cash flow.
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