US Commerce Secretary Lutnick confirms trade agreements with Cambodia and Thailand during an interview.
by VT Markets
/
Jul 31, 2025
US Commerce Secretary Lutnick announced trade deals with Cambodia and Thailand during an interview on Fox News. The agreements were completed before the August 1 deadline. Previously, former President Trump secured a deal with South Korea.
Focus On Southeast Asian Trade Partnerships
This shows a commitment to building trade partnerships with Southeast Asian countries. This strategy supports ongoing efforts to strengthen global economic ties.
With the August 1 deadline approaching, we should prepare for increased market volatility. The CBOE Volatility Index (VIX), known as the market’s “fear gauge,” has risen over 15% this past week, trading above 20, indicating growing anxiety. It’s wise to prepare for sharp, unpredictable price changes with options strategies, such as straddles on broad market ETFs.
We notice a clear difference between sectors that benefit from protectionism and those that suffer. For example, in July 2025, the Industrial Select Sector SPDR Fund (XLI) has outperformed the retail-focused SPDR S&P Retail ETF (XRT) as investors expect higher import costs for consumer goods. This means buying call options on domestic manufacturers while considering put options on major retailers that depend on imports could be a smart move.
Opportunities In Emerging Markets
These last-minute deals present opportunities in foreign exchange and emerging markets. The Thai Baht has risen 2% against currencies like those of Vietnam and Malaysia in the past 48 hours. This trend may continue as capital flows to nations with secured U.S. market access.
This situation reminds us of market reactions during the 2018-2019 trade negotiations. Back then, companies with complex international supply chains saw their stock prices drop, while those focused on domestic business thrived. We should apply that lesson today by closely examining company earnings reports for geographic revenue exposure.
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by VT Markets
Jul 31, 2025
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