 Risk sentiment turned mildly negative in Asia on Monday following US President Donald Trump’s announcement of 30% tariffs on imports from the EU and Mexico, starting August 1. While US futures turned lower, equity markets in Asia were more muted, digesting the move in context of still-holding EU retaliation. The 30% tariff rate on EU goods was notably harsher than the 20% flagged during Trump’s Liberation Day speech in April. Mexico, by contrast, appears to have secured a better outcome than Canada, reflecting Washington’s preference for selective confrontation. Still, Trump’s broader campaign has swept in dozens of countries with tariff bands ranging from 20% to 50%, highlights a return to maximalist trade pressure. Market reaction in FX was largely subdued, though defensive positioning was evident. Yen outperformed for now, followed by Dollar and Loonie. At the other end, Kiwi and Aussie weakened the most. Euro edged lower but avoided steeper losses after the EU confirmed it would delay its suspended retaliation. Sterling and Swiss Franc are positioning in the middle. The EU’s initial response has been measured. European Commission President Ursula von der Leyen confirmed Sunday that retaliatory tariffs on EUR 21B worth of US goods—previously suspended—would remain on hold until early August. She condemned the new US action as disruptive but emphasized the EU’s commitment to diplomacy and proportionate response. ..... | 
