Stocks falter as Trump launches tariff sweep to protect earnings
Asian Markets Slide as Trump Unveils New Tariff List
Recent trading in Asia dropped as the United States president announced a fresh wave of tariffs on a wide range of partners. The move came just weeks before a self‑imposed deadline for governments to negotiate tariff‑avoiding deals.
Tariff Details and Immediate Impact
- Trump announced 10% tariffs across the board and set targeted “reciprocal” levies that range from 10% to 41%.
- Canada faces a 35% duty, while Taiwan is slated for a temporary 20% tariff. Cambodia’s rate was cut from an initial 36% to 19% after pressure from Washington.
- The White House said the measures would take effect next Friday, granting governments a short window to finalize agreements.
Regional Reactions
Tokyo, Hong Kong, Shanghai, Sydney, Wellington, and Taipei all recorded declines following the announcement, reflecting concerns about the global economic ripple effects. Seoul was particularly hard hit, falling over three percent as the South Korean government weighs higher corporate taxes and capital gains measures to shore up revenue.
In contrast, Singapore, Manila, and Jakarta saw modest gains, indicating pockets of resilience.
Analysis from Market Experts
“Overall, the tariffs are relatively expected for Asia,” said Lorraine Tan, Morningstar’s director of equity research. “The fact that the larger export countries such as Korea and Japan are at 15% and Southeast Asian countries are at 19% is a fairly reasonable outcome.”
Broader Trading Landscape
On the global stage, trading monitor windows revealed a selling wave in Washington, where hopes for a September Fed interest‑rate cut were dented by data showing the Federal Reserve’s preferred inflation gauge rose more than expected last month. The figures came a day after the central bank appeared guarded about the outlook, even as Trump pressed Powell to reduce borrowing costs.
“US interest‑rate traders have lowered the implied probability for a cut from the Fed in September… the central position is progressively leaning to the Fed keeping rates on hold in the September meeting,” noted a Pepperstone analyst.
Tech Titans Offset Tariff Shock
Despite the tariff uncertainty, major tech earnings pushed higher this week. Apple posted double‑digit quarterly revenue growth that beat expectations. Amazon’s quarterly profits jumped 35%, driven by successful AI investments. Google, Microsoft, and Meta also posted robust results.
“Massive results seen by Microsoft and Meta further validate the use cases and unprecedented spending trajectory for the AI Revolution on both the enterprise and consumer fronts,” said a Wedbush tech analyst.
Currency Market Snapshot – 03:00 GMT
- Tokyo – Nikkei 225: DOWN 0.4% at 40,991.4
- Hong Kong – Hang Seng Index: FLAT at 24,775.34
- Shanghai – Composite: FLAT at 3,573.01
- Euro/dollar: DOWN at $1.1412 (from $1.1421)
- Pound/dollar: DOWN at $1.3196 (from $1.3208)
- Dollar/yen: UP at 150.78 yen (from 150.68 yen)
- Euro/pound: UP at 86.49 pence (from 86.43 pence)
- WTI: DOWN 0.1% at $69.26 per barrel
- Brent: DOWN 0.1% at $71.65
- New York – Dow: DOWN 0.7% at 44,130.98 (close)
- London – FTSE 100: DOWN 0.1% at 9,132.81 (close)
