President Trump announces flat tariffs starting July 4, bypassing traditional trade talks, as markets eye Japan's bond surge and rising global trade tensions.

Trump announced a 20% tariff on Vietnamese imports, down from the planned 46%, while granting the US full market access. Many Vietnamese exports are Chinese goods rerouted through Vietnam.

Treasury Secretary Bessent said the Fed could cut rates by September if tariffs are not inflationary, aligning with Trump’s push for lower rates. Powell noted cuts would have happened without tariffs and the Fed remains open to adjusting policy as data evolves.

President Trump threatened new tariffs on Japan over its refusal to import US rice, ahead of the July 9 tariff deadline. Talks continue, with Japan’s current 24% tariff rate on exports to the US temporarily reduced to 10% during negotiations.

US 10-year yields held near 4.28% Monday as markets awaited jobs data that could boost Fed rate cut expectations. Powell noted rate cuts would have continued without tariff-driven inflation. Investors are also watching Trump’s tax and spending bill, which may add $3.3 trillion to the debt.

President Trump plans to finalize key trade deals before the July 9 tariff deadline, prioritizing the top 10 agreements while leaving room for extended talks if needed. India may be among the first countries to secure a deal, with Thailand also seeking to reduce tariffs to avoid a potential jump from 10% to 36% on its exports.

President Donald Trump announced Wednesday that U.S. and Iranian officials are set to resume talks next week, reviving diplomatic efforts stalled by the recent Israel-Iran conflict.

Bank of Japan’s Naoki Tamura called for prompt rate hikes, warning inflation could reach the 2% target sooner than expected. He opposed slowing bond purchase reductions and emphasized timely policy action despite global uncertainties.