Spot Silver held mostly steady near the $37 mark on Tuesday, as the Trump administration unveiled sharply higher tariffs on imports from Japan, South Korea and other countries.
Yesterday US President Donald Trump began notifying trade partners, including Japan and South Korea, that considerably higher US tariffs would come into effect on August 1st in a new phase of the trade war he initiated earlier this year. Both nations will face 25% levies.
Trump noted that the US was open to extensions in case countries made proposals.
Trump’s reciprocal tariffs were set at 10% until July 9th so that negotiations could be conducted. So far, the US has reached agreements with Britain and Vietnam.
The US will not immediately impose a new 10% tariff on members of the BRICS bloc, but it will do so if those nations take so-called “anti-American” policy actions, Reuters reported.
Concerns regarding tariff-related inflation have affected Fed policy expectations. Market players no longer expect a rate cut by the Federal Reserve in July. What is more, markets are now pricing in only two 25 bps rate cuts by year-end.
Those expectations were also reinforced by stronger-than-expected US jobs data from last week.
Spot Silver was last down 0.06% on the day to trade at $36.75 per troy ounce.
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