Trump’s New Tariffs stir trouble 26/09/2025

HOT stories for today

US market wrap:

• Markets fell for a third straight session, weighed down by sluggish sentiment and a lack of fresh drivers. Thursday’s data was upbeat, showing Q2 GDP grew 3.8% after a Q1 contraction, while jobless claims declined, though that could weaken the case for rate cuts.
• At a Miami event, Ken Griffin of Citadel Securities warned the Trump Administration was “picking winners” by taking stakes in companies, arguing such intervention hurts everyone. He also cautioned the worst of tariff-driven inflation is still ahead. Investors now await Friday’s release of August’s personal consumption expenditures index, the Fed’s preferred inflation gauge, expected to show an uptick. Markets continue to price in two quarter-point cuts at upcoming meetings.

Trump’s New Tariffs stir trouble

• On Thursday, President Trump unveiled a new round of tariffs, targeting multiple sectors. Imports of branded or patented pharmaceuticals will now face a 100% duty, though companies investing in U.S. drug manufacturing facilities will be exempt. He also imposed a 25% tariff on heavy trucks and a 50% levy on kitchen cabinets, bathroom vanities, and related goods.
• The new charges, set to take effect October 1, broaden Trump’s protectionist push and are likely to spark friction with trading partners. For pharmaceutical firms, the policy could encourage domestic production, though it risks raising drug costs in the short term.

Stocks on the move:

• Mirion Technologies (MIR): Dropped over 8% after unveiling a $300M stock offering and $250M in convertible bonds.
• Worthington Steel (WS):  Slid 8% on mixed Q1 results: sales and operating income rose, but production volumes fell.
• Freeport-McMoRan (FCX): Fell 5%, extending Wednesday’s 17% plunge after force majeure at its Grasberg mine.
• MP Materials (MP): Jumped 10% with no clear catalyst, extending year-to-date gains to more than 190%.

Watchlist: COST, KMX, MP, FCX, NVDA, AMD, AAPL, TSLA

Today’s action

• Shares of Asian pharmaceutical firms retreated Friday after U.S. President Donald Trump unveiled new tariffs on furniture, heavy trucks, and pharmaceutical products. The Topix Pharma Index slid 1.47% on the news, while Hong Kong-listed drugmakers also lost ground. Alibaba Health Information Technology fell 2.92%, and JD Health dropped 2.23%, placing both among the session’s biggest laggards.
• In U.S. markets, stock futures were little changed Thursday night as traders awaited fresh inflation data. Dow Jones Industrial Average futures edged up 18 points, or 0.04%. S&P 500 futures gained 0.06%, and Nasdaq 100 futures rose 0.05%. Today, investor focus remains on the potential fallout from Trump’s tariffs and the release of the Fed’s preferred inflation gauge, the PCE price index.

Bitcoin

• Bitcoin slid below $109,000 on Thursday, marking a two-week low of $108,865, before recovering slightly to $109,352. The drop extended the week’s sell-off, with heavy selling pressure during Asia trading sessions repeatedly erasing rebounds seen in U.S. hours. 
• Despite the weakness, the data show that buyers are stepping in. Spot order books indicate the bid-ask ratio is shifting back toward buyers, a sign that accumulation is picking up at these range lows. The ratio, which tracks the balance of buy and sell orders, ranges from -1 to 1, with zero signaling parity. Analysts note the tilt suggests growing demand, even as charts warn the broader downtrend is not yet over.
  Watchlist: Bitcoin: 99 000-125 000, Ethereum: 4000-4980, Solana: 180-240
   

Forex

• EUR/USD hovered near 1.1680 in Friday’s Asian trade, supported by a softer Dollar ahead of the key U.S. PCE inflation report. A Reuters poll showed most economists expect the ECB to keep rates unchanged until at least December 2025.
• The Yen steadied after hitting a three-week low but remains under pressure. Softer Tokyo CPI, political uncertainty, and tariff concerns fuel expectations that the BoJ may delay rate hikes, keeping USD/JPY supported
  Watchlist: EUR/USD: 1.0700-1.1880, USD/JPY: 140-151

Basic Materials

• WTI crude extended its rally for a fourth session, trading near $65.10 in Asian hours Friday after touching a three-week high of $65.18. Supply concerns remain elevated as President Trump urged Turkey to curb Russian oil imports and Moscow moved to extend its gasoline export ban while partially restricting diesel exports.
• Gold edged lower, weighed by a firm Dollar and fading Fed rate cut bets after upbeat U.S. data. Still, downside appears limited, with tariff worries and geopolitical tensions offering support as traders await Friday’s U.S. PCE inflation report.
  Watchlist: GOLD: 2600-3780, US Oil: 55.60-75.80

Key Economic Events Today:

EST time

08:30 am: USD Core PCE Price Index
08:30 am: USD Personal Spending, Income
09:00 am: USD FOMC Member Barkin Speaks
10:00 am: USD Consumer Sentiment
10:00 am: USD Inflation Expectations
01:00 pm: USD FOMC Member Bowman Speaks



Earnings

BMO (Before Market Open):

KRKR                 36Kr Holdings Inc.
KNOP                KNOT Offshore Partners

AMC (After Market Close): Enjoy your weekend!



The TEFS Analyst team wishes you a successful day!