Economy

The United States will impose additional 50% ad valorem tariffs on selected Canadian imports beginning August 19, 2026, covering an estimated $20 billion in trade across 554 tariff lines including wine, cement, and hockey sticks. USMCA-originating goods are not exempt, though energy, potash, and products already under Section 232 tariffs are excluded, meaning the effective duty rate will vary by product. Canada's Trade Minister Dominic LeBlanc is traveling to Washington this week for negotiations, but no retaliatory measures or changes to the August 19 schedule have been announced.

Perry Warjiyo stepped down as Bank Indonesia governor on July 25, 2026, roughly halfway through a term set to run until 2028, with Senior Deputy Governor Destry Damayanti installed as acting governor under Indonesian law. The permanent succession requires a presidential nomination and parliamentary approval, with no nominee announced as of July 27. Markets registered a muted response, with the rupiah weakening 0.12% and the Jakarta Composite Index falling 0.17% on the day of the announcement.

The Monetary Authority of Singapore raised the appreciation rate of its S$NEER policy band for the second straight review, a move most analysts did not anticipate. The decision was driven by stronger-than-expected GDP growth of 5.7% year on year in Q2 and a rising inflation outlook, with core inflation projected to average 1.5%–2.5% for 2026. Technology-related industries, representing roughly 22% of nominal GDP, are central to both the growth story and the identified concentration risk.