• The Trump administration is prioritizing the “quality” of trade deals over the August 1 deadline for new tariffs, US Treasury Secretary Scott Bessent said. He added that President Donald Trump would decide if the deadline can be extended for countries engaged in constructive talks, with the suggestion that the higher tariffs would pressure countries into better deals if the August 1 tariffs are implemented. Bessent also reiterated that talks with China are imminent, but referred to concerns over China’s imports of sanctioned Iranian and Russian oil, and China’s requirement to address economic rebalancing. Separately, Bessent added that the entire Federal Reserve organization should be questioned for success, citing “fear-mongering over tariffs” despite contained inflationary effects.

• In Europe, strategists like BlackRock’s Helen Jewell believe that European earnings expectations have already priced in the risk of tariffs, and that the current rally in European equities can continue without a material trade shock.

• Japanese Prime Minister Shigeru Ishiba, however, is fighting to keep his position after his Liberal Democratic Party (LDP)-led coalition lost a majority in the upper house vote on Sunday. It is the first time since the LDP was formed that it is a minority in both chambers of parliament. Despite the heavy defeat, Ishiba vowed to remain in office to address pressing issues like US tariff threats and rising consumer prices, though analysts say his leadership is now on very shaky ground and his tenure may be short-lived. The result of the election reflects growing voter disenchantment with the LDP, particularly among young voters who are turning to populist parties.