Question of the Week | Countdown to Tariff Deadline: What’s at Stake? - Articles & Commentaries

ADDED:

07 July 2025

PREPARED BY:

Our Observations

The 90-day window set by U.S. President Donald Trump for major trading partners to secure new trade agreements is set to expire on 9 July. While initially framed as a hard deadline, recent developments suggest that limited extensions may be granted—though only to countries deemed to be actively negotiating in good faith.

The U.S. is reportedly preparing to send formal letters to 12 to 15 countries, outlining final trade offer terms. These proposals are expected to be non-negotiable—positioned as “take it or leave it” deals. Extensions of up to 1 August may be granted for those willing to offer meaningful concessions.

Market Implications

The tariff range under consideration spans from 10% to as high as 70%, depending on the industry and negotiations. If imposed, these tariffs could have far-reaching implications across sectors, especially for trade-linked industries such as manufacturing, autos, and semiconductors.

Markets are closely watching how economies respond. The EU remains a key focus, though its response may be complicated by diverging interests among member states.

Meanwhile, China’s separate tariff truce with the U.S. expires on 12 August, adding another layer of complexity to trade dynamics in the coming weeks.

What Can Investors Do?

The expiry of the tariff deadline on 9 July will unlikely be the end of the Trump's populist trade and economic policies. We expect markets to remain sensitive to signals of progress or escalation in trade negotiations. Investors should continue to focus on building well-diversified portfolio anchored in quality and income-generating assets.

Our positioning remains focused on maintaining resilience amid shifting trade policies, with a close watch on developments that could influence risk appetite and capital flows globally.

Disclaimer

This article has been prepared by AHAM Asset Management Berhad (“AHAM Capital”) (formerly known as Affin Hwang Asset Management Berhad) specific for its use, a specific target audience, and for discussion purposes only. All information contained within this presentation belongs to AHAM Capital and may not be copied, distributed or otherwise disseminated in whole or in part without written consent of AHAM Capital.

The information contained in this presentation may include, but is not limited to opinions, analysis, forecasts, projections and expectations (collectively referred to as “Opinions”). Such information has been obtained from various sources including those in the public domain, are merely expressions of belief. Although this presentation has been prepared on the basis of information and/or Opinions that are believed to be correct at the time the presentation was prepared, AHAM Capital makes no expressed or implied warranty as to the accuracy and completeness of any such information and/or Opinions.

As with any forms of financial products, the financial product mentioned herein (if any) carries with it various risks. Although attempts have been made to disclose all possible risks involved, the financial product may still be subject to inherent risk that may arise beyond our reasonable contemplation. The financial product may be wholly unsuited for you, if you are adverse to the risk arising out of and/or in connection with the financial product.

AHAM Capital is not acting as an advisor or agent to any person to whom this presentation is directed. Such persons must make their own independent assessments of the contents of this presentation, should not treat such content as advice relating to legal, accounting, taxation or investment matters and should consult their own advisers.

AHAM Capital and its affiliates may act as a principal and agent in any transaction contemplated by this presentation, or any other transaction connected with any such transaction, and may as a result earn brokerage, commission or other income. Nothing in this presentation is intended to be, or should be construed as an offer to buy or sell, or invitation to subscribe for, any securities.

Neither AHAM Capital nor any of its directors, employees or representatives are to have any liability (including liability to any person by reason of negligence or negligent misstatement) from any statement, opinion, information or matter (expressed or implied) arising out of, contained in or derived from or any omission from this presentation, except liability under statute that cannot be excluded.

DOWNLOAD