Reported by Tahir Ishaq Shehu

Global financial markets slipped on Monday after former U.S. president Donald Trump vowed to impose an additional 10 percent tariff on any country that “aligns itself with the anti-American policies of BRICS,” stoking fears of an escalating trade war.

The threat, issued late Sunday, landed just as BRICS leaders convened in Rio de Janeiro, where the group’s summit communiqué condemned “unilateral tariff and non-tariff barriers.” Trump said tariff “letters or deals” would begin going out at midday. Duties suspended during recent diplomacy are slated to snap back into force on Wednesday, though officials hinted at a potential reprieve until August 1.

Tense negotiations

Talks with the European Union are ongoing in hopes of clinching a draft accord before Wednesday and averting a separate 50 percent tariff hike on EU imports.

Market reaction

Equities S&P 500 futures fell, while Dow Jones Industrial Average contracts were little changed. U.S. benchmarks had closed at record highs ahead of Independence Day, buoyed by sturdy economic data and the signing of Trump’s latest economic stimulus bill.

Tesla Shares in Tesla slid in pre-market trading after Trump ridiculed CEO Elon Musk’s newly launched political party on social media.

Currencies The WSJ Dollar Index firmed as the euro and yen weakened.

Bonds Benchmark 10-year Treasury yields edged above 4.34 percent after finishing last week just below that level.

Crypto Bitcoin hovered near its all-time peak around $109,000.

Volatility The CBOE Volatility Index (VIX) jumped more than 7 percent, though it remains well below April’s Liberation Day highs.

Outlook

Investors are bracing for a choppy week as they monitor the BRICS summit, U.S. EU trade talks, and further statements from Trump. “The policy backdrop is becoming more unpredictable,” said Carla Nguyen, chief strategist at Titan Securities. “Until there’s clarity on tariffs, markets will stay on edge.”