Asia markets react cautiously to U.S. tariff threats

July 09, 2025 (MLN): Asia-Pacific markets traded mixed on Wednesday following U.S. President Donald Trump’s firm stance against extending the August 1 tariff deadline.

Trump also announced a 50% levy on copper imports and hinted at additional sector-specific tariffs, as CNBC reported.

In a statement Tuesday, Trump further threatened up to 200% tariffs on pharmaceutical exports to the U.S., though he noted a grace period of about a year to a year and a half before implementation.

Commenting on the developments, Vishnu Varathan, Head of Macro Research for Asia ex-Japan at Mizuho Securities, called the tariff deadlines an “unhelpful distraction” from deeper geo-economic risks.

He said the deadlines divert attention from sectoral tariffs that could impact global industrial ecosystems.

Varathan warned of “bait and switch” risks, as sectoral tariffs may still affect regions despite trade agreements.

He emphasized that Asia, especially ASEAN, remains vulnerable to the escalating trade tensions between the U.S. and China.

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