Global Stocks Dip as Tariff Uncertainty and OPEC+ Supply Weigh on Markets

Asian stock markets slipped on Monday as mixed signals from U.S. officials regarding tariff delays sparked investor confusion. Despite flagging a postponement, the Biden administration has yet to clarify details or issue formal documentation. Oil prices also declined after OPEC+ surprised markets with a larger-than-expected supply increase.

President Donald Trump said the U.S. would finalize several trade deals soon and notify countries of higher tariffs by July 9, with enforcement beginning August 1. Treasury Secretary Scott Bessent warned that if negotiations stall, tariff rates could revert to April levels, potentially reaching up to 70%.

While Trump initially proposed a 10% base tariff with higher reciprocal rates up to 50%, his recent comments about potential ranges from 10% to 70% have added further ambiguity. Analysts note that this uncertainty comes as key trade partners like the EU, India, and Japan are deep in negotiations, raising concerns about global economic fallout.

Market reactions were cautious. S&P 500 and Nasdaq futures dropped 0.3%, Japan’s Nikkei lost 0.3%, and South Korea’s KOSPI fell 0.7%. The MSCI Asia-Pacific index excluding Japan edged down 0.1%. Safe-haven demand lifted U.S. 10-year Treasury yields slightly, while the U.S. dollar index hovered near a four-year low.

Commodity markets mirrored the jitters. Brent crude fell 52 cents to $67.78 per barrel, and U.S. crude slipped $1.01 to $65.99, as OPEC+ announced a production hike of 548,000 barrels per day for August, with more possible in September. Gold eased 0.3% to $3,324 an ounce.

With limited economic data and only two scheduled Fed speakers this week, markets are bracing for further volatility driven by trade and policy uncertainty.