The rand weakened on Monday, falling about 0.85% against the US dollar, as markets reacted to heightened geopolitical tensions sparked by US President Donald Trump’s latest trade threat. Trump announced via his Truth Social platform that any country aligning with what he labelled the “anti-American policies” of the BRICS bloc would face an additional 10% tariff, with no exceptions. In response, the South African government clarified that BRICS—comprised of Brazil, Russia, India, China, and South Africa—is not anti-American but rather a call for “reformed multilateralism.” The rand was trading at R17.73 to the dollar by 18h00 SAST, partially reversing recent gains. Despite the currency slide, the local JSE equity market edged higher, with the FTSE/JSE All Share Index gaining 0.19%.

Global markets also showed signs of unease. US stocks tumbled on Monday after President Trump reignited trade tensions by announcing a fresh round of tariffs, with the implementation deadline extended to 1 August. The S&P 500 and Nasdaq each declined by 0.80%, retreating from record highs set the previous week, while the Dow Jones Industrial Average shed 422 points. Treasury Secretary Scott Bessent stated that further trade-related announcements were likely within the next 48 hours. Shares in trade-exposed firms came under pressure, with Toyota down 3.90%, Honda 3.80%, Apple 1.70%, and AMD 2.20%. Tesla dropped 6.80% following investor backlash to CEO Elon Musk’s announcement of a new political party.

In Europe, markets were mixed, with the FTSE 100 falling by 0.19% as the UK rushed to finalise a steel trade deal with the US, amid concerns over a potential tariff increase to 50%. Germany’s DAX led gains, rising 0.99% to close at 24,022.38, while the broader Stoxx 600 index added around 0.40%, supported by investor optimism over EU–US trade negotiations and cautious signals from the European Central Bank. Meanwhile, the EU is working on a broad agreement aimed at avoiding sweeping duties, proposing a flat 10% tariff on most goods, with exemptions for critical sectors. Nevertheless, the bloc is preparing retaliatory measures targeting US exports in response to ongoing metal levies.

Asian markets weren’t spared. Hong Kong’s Hang Seng Index dropped 0.12%, dragged down by losses in financial and consumer stocks, while Japan’s Nikkei lost 0.56%. Traders were cautious ahead of key Chinese inflation data and the looming August 1 deadline for US reciprocal tariffs.

Brent crude oil prices hovered around $69 per barrel after OPEC+ announced a stronger-than-expected output hike of 548 thousand barrels per day in August. The move suggests confidence in global demand recovery, although persistent trade tensions continue to weigh on the outlook for economic growth.