MONEY MASTER

Key Takeaway:  Canadian aluminium producers are diverting shipments from the U.S. to Europe after  President Trump reinstated and later doubled tariffs  on imports, pushing U.S. aluminium prices to record premiums. Export Shift Quebec aluminium exports (Q2 2025): U.S.:  Fell to  78%  of shipments (vs.  95%  in Q1) Europe:  Jumped to  18%  of shipments (vs. just  0.2%  in Q1) Quebec accounts for  ~90% of Canada’s aluminium capacity , making the U.S. its traditional main buyer due to proximity. Producer Responses Alcoa Corp:  Diverted  100,000 metric tons  of Canadian aluminium away from the U.S. in Q2, sending more to Europe. Aluminerie Alouette (40% Rio-owned):  Sent  57% of Q2 output to Europe , compared with  4% in Q1 . Rio Tinto:  Declined shipment data but has reportedly curbed U.S. exports, instead  reselling rivals’ supplies  to American buyers to bypass tariffs. Mark...

Key Takeaway Global equities stabilized Thursday as dovish Fed commentary and smooth Japanese bond issuance calmed recent rate volatility. While China’s sell-off weighed on Asian sentiment, Europe and U.S. futures signaled resilience ahead of Friday’s payrolls. Market Snapshot STOXX 600 : +0.3% MSCI Asia ex-Japan : –0.2% Nikkei 225 : +1.5% Australia ASX 200 : +1% India Sensex : +1% (post-levy cuts) U.S. 10Y Treasury yield : 4.2% (↓) U.S. 2Y Treasury yield : 3.6% (flat) Brent crude : –0.6% at $67.17 Gold : –0.8% at $3,578.50 (off record highs) Dollar Index : flat; USD/JPY 148.25; EUR/USD $1.1650 Drivers of the Rebound Fed Rate Cut Bets : Futures now price a  near-100% chance  of a 25bp cut on Sept 17, supporting equities and bonds. Japan Debt Auction : Smooth 30-year JGB issuance helped calm global bond jitters. China Cooldown : Regulators considering market curbs triggered a 6% drop in STAR50 index, but spillover was contained. Policy Moves Elsewhere : India : Tax cuts to coun...

  Key Takeaways: De minimis exemption abolished : All imported packages, regardless of value, now face tariffs, ending a decades-old rule that exempted shipments under  US$800 . Impact on e-commerce : Online retailers like Shein and Temu face higher costs and paperwork, potentially eroding their price advantage. Winners and losers : US textile and manufacturing industries gain tariff protection, while consumers and small businesses importing via online platforms face higher prices. Revenue and enforcement : White House estimates  US$10 billion annually in new tariff revenues , with CBP already collecting nearly  US$500 million  since China/Hong Kong exemptions ended in May. Transition risks : Supply chain disruptions likely as postal agencies and express carriers adapt; full ad valorem duty collection required by  Feb 28, 2026 . Policy Shift The  de minimis exemption , dating back to 1938, allowed small-value imports duty-free. Raised to US$800 in 2015...

Federal Reserve Governor Adriana Kugler warned that the new wave of U.S. tariffs could have lasting inflationary effects, complicating the Fed’s policy path and potentially distorting the broader economy. Key Points Kugler cautioned that  tariffs may drive more than a one-off price shock , particularly as they affect  intermediate goods  like  steel and aluminum . These materials are used  across multiple industries , meaning price increases could  ripple through supply chains  and persist over time. “This will affect all sectors through supply chain networks... It may take longer for that to filter through the economy.” — Adriana Kugler, Federal Reserve Governor Broader Concerns from the Fed Kugler outlined  three core risks  from the current tariff regime: Prolonged inflation  due to supply chain disruptions. Capital misallocation , as the U.S. may shift production toward industries lacking comparative advantage. Distorted inflation ex...

  Key Takeaways: Stricter Semiconductor Monitoring : Malaysia will implement more stringent regulations on semiconductor shipments following U.S. pressure, particularly around high-end Nvidia chips. U.S. authorities have raised concerns that some of these chips, which are critical for artificial intelligence (AI) and data centers, are being diverted to China, circumventing export controls. U.S. Demands Tight Tracking : U.S. officials have asked Malaysia to ensure that Nvidia chips entering the country are carefully monitored, guaranteeing that servers carrying these chips reach their designated data centers and do not end up being rerouted. Investment, Trade, and Industry Minister  Tengku Datuk Seri Zafrul Abdul Aziz  confirmed these demands, stating that the U.S. is pushing for more detailed tracking of chip movements. Recent Legal Actions : The call for stricter regulations comes after a legal case in Singapore, where companies were accused of illicitly supplying U.S. s...

  Key Takeaways: Potential Risks from U.S. Tariffs : Analysts have raised concerns over the upcoming "Liberation Day" tariffs set to be announced on April 2 by U.S. President Donald Trump. These tariffs, which are expected to impact several countries, could slow global trade and negatively affect Malaysia’s export performance. The prospect of more restrictive trade measures and retaliatory actions, along with rising geopolitical tensions, pose key risks to the Malaysian economy in 2025. BNM’s Optimistic Outlook : Bank Negara Malaysia (BNM) has projected Malaysia’s economic growth to be between 4.5% and 5.5% in 2025, with inflation expected to range between 2% and 3.5%. However, these projections do not account for the new tariffs, raising concerns about how these measures might impact growth, especially as Malaysia is still recovering from global trade disruptions. Trade Diversification Provides Buffer : Despite these risks, analysts noted Malaysia's increasing trade dive...

  Key Takeaways: Global Economic Concerns : Asian stocks dropped on Friday, closing the week on a subdued note as deepening geopolitical tensions and fears of the U.S. tariffs’ impact on global growth weighed heavily on investors. This uncertainty kept gold near record highs, with traders seeking safe-haven assets. Central Banks Hold Steady : The U.S. Federal Reserve, Bank of Japan (BOJ), and Bank of England all opted to maintain their interest rates this week, reflecting the cautious stance of policymakers amid growing global economic uncertainty, largely driven by U.S. trade policies under President Trump. Rising Geopolitical Tensions : Israeli airstrikes on Gaza and Ukrainian drone strikes on Russian military sites heightened global tensions, pushing investors towards safer investments like gold. Focus on U.S. Tariffs : Investors are particularly on edge ahead of the U.S. administration’s planned tariff hikes on April 2. These reciprocal tariffs could further escalate inflation ...

Donald Trump’s 25% tariffs  on steel and aluminum imports went into effect today, escalating the ongoing  global trade war . The move, coupled with fresh tariff threats, has sparked fresh  market volatility  and further tensions with  Canada  and the  EU . Key Highlights : Tariff Drama : After a day of back-and-forth threats, Trump’s tariffs on  steel and aluminum  imports officially kicked in. This comes as  Canada  and the  EU  retaliated, with the EU planning duties on over  $28 billion  worth of American goods. U.S.-Canada Tensions : Trump’s latest  tariff threat  was aimed at  Canada , intensifying already strained trade relations. However, Trump downplayed the risk of a  recession  caused by the tariffs while hinting at more levies in the future. Market Reaction : Following the tariff drama,  U.S. equity markets  experienced some stabilization after the chaos left traders ...

Canada  and the  European Union  have announced  retaliatory tariffs  in response to  Donald Trump’s  latest trade measures, intensifying the  global trade war . Key Developments : Canada’s Response :  Canada  has imposed  25% tariffs  on about  C$30 billion  ($20.8 billion) worth of  U.S.-made goods , including  steel, aluminum , and consumer products like  computers  and  sporting goods . This measure directly counters Trump’s tariffs aimed at revitalizing  America’s steel industry .  Canada  matched the tariffs  “dollar for dollar”  but delayed implementation, offering Trump a window to avoid further economic damage. EU Retaliation : The  European Union  has also retaliated with its own duties on up to  €26 billion  ($28.3 billion) worth of  American goods . While the  U.K.  remains a steadfast ally of the U.S. in trade talks, the ...

The impact of  U.S. tariffs  on goods like  steel  and  aluminum  continues to affect both the U.S. economy and consumers. Experts are debating whether the effects of these tariffs will bring higher prices and slow economic growth, especially with inflation already at relatively high levels. Tariffs and Their Economic Impact : Tariff Increases : Tariffs on  aluminum  and  steel  are going higher than before, but the economic argument behind these increases is unclear.  Aluminum production  in the U.S. isn't very elastic, meaning it won’t increase much despite higher prices. This could mean continued high prices for aluminum products without the expected boost in local production. Previous Impact : In 2018, a 25% tariff on  steel  reduced U.S. steel consumption by 7 million tons. Businesses such as  automakers  and  homebuilders  started using  less steel  to reduce costs, leading to produ...

Singapore 's Deputy Prime Minister,  Gan Kim Yong , has issued a stark warning about the potential ripple effects of escalating tariffs, particularly those imposed by the  U.S. under President Donald Trump , on global economic growth. His comments reflect growing concerns across  Asia , a region highly reliant on trade. Key Highlights: Tariff Concerns : Gan expressed  anxiety  over the  U.S. tariffs  on its  three largest trading partners  —  China ,  Canada , and  Mexico  — and the prospect of further tariff measures. He cautioned that these actions could lead to a  cascade of retaliatory tariffs , significantly disrupting  global supply chains  and hindering trade and investment flows. Global Economic Impact : According to Gan, the rise in tariffs and the ongoing  trade wars  could severely  slow down global economic growth , even for countries that are not directly affected by these tariffs...