Asia markets waver amid Trump’s new tariff threats

July 08, 2025 (MLN): Asia-Pacific markets swung between gains and losses on Tuesday as investors reacted to U.S. President Donald Trump’s statement of new tariffs targeting 14 trading partners.

Goods exported to the U.S. from Japan, South Korea, Malaysia, Kazakhstan, and Tunisia will face 25% tariffs starting August 1, according to letters Trump posted on Truth Social.

Additional Asia-Pacific markets impacted include Indonesia, set to be hit with a 32% excise duty, Bangladesh with a 35% duty, and Cambodia and Thailand with 36% tariff rates.

Imports from Laos and Myanmar will face a 40% duty, Trump’s letters indicated.

Notably, emerging markets such as Taiwan, India, the Philippines, Sri Lanka, and Pakistan were excluded.

Citi Economics Research called this exclusion “interesting” and noted that India and Taiwan, and possibly Israel, are seen as potential partners for future framework agreements.

U.S. Treasury Secretary Scott Bessent stated that around 100 letters will be sent to smaller countries “where we don’t have much trade.”

Citi economists suggested that those yet to receive letters “could get minimum 10% baseline tariff.”

Barclays analysts noted that further letters may follow, but cautioned that significant revisions to tariff rates would be unexpected.

They added that if implemented on August 1, these tariffs pose downside risks to GDP growth forecasts, though the new deadline may allow more time for negotiations.

Japan’s Nikkei 225 gained 0.3%, while the Topix index rose 0.14%. South Korea’s Kospi climbed 1.19%, and the Kosdaq advanced 0.36%.

Mainland China’s CSI 300 rose 0.74%, and Hong Kong’s Hang Seng Index increased by 0.8%.

In contrast, Australia’s S&P/ASX 200 declined 0.13% ahead of the Reserve Bank of Australia’s expected interest rate cut of 25 basis points to 3.6%.

India’s Nifty 50 and BSE Sensex opened flat, as CNBC reported.

U.S. stock futures dropped during Asian trading hours as Trump’s tariff announcement triggered sharp declines on Wall Street.

The Dow Jones Industrial Average fell 422.17 points, or 0.94%, closing at 44,406.36.

The S&P 500 slid 0.79% to 6,229.98, while the Nasdaq Composite dropped 0.92% to finish at 20,412.52.

Copyright Mettis Link News