Investors tread tight track as Trump tariffs curb rate expectations

Trump Traces New Tariff Path for Pharmaceuticals and Microchips

Asian investors step cautiously as President Trump signals a sharp expansion of import duties that could reshape global trade dynamics. Although a negotiated truce with China signals a turn toward cooperation, Trump’s threat of tariffs on pharmaceuticals and semiconductors raises fresh concerns.

Market Sentiment Reacts to Economic Data

• Service‑sector index barely grew in July, hinting at weaker hiring conditions amid rising costs.
• February jobs data showed far fewer US job gains than expected, prompting speculation of a September Fed rate cut.
• Financial markets pushed the US toward stagflation territory, as noted by Neil Wilson of Saxo Markets.

Stocks swung through the morning: Tokyo, Shanghai, Sydney, Wellington, Manila and Jakarta rose, while Hong Kong, Singapore, Seoul and Taipei fell.

Trump Delivers a Fresh Tariff ‘Salvo’

During a CNBC interview, President Trump announced plans to levy up to a 250‑percent tariff on pharmaceuticals, while semiconductors also fell under his scope. He also warned that India’s Russian oil purchases would prompt further hikes.

Trump Expresses Optimism Over China Truce

In a “Squawk Box” conversation, Trump told CNBC:

“I’ll meet with Xi before the end of the year if we make a deal. If we don’t, I won’t.”

He described his relationship with Xi as “very good” and expressed confidence that the two leaders would finalize a deal.

Key Figures at 02:30 GMT