Global markets remain steady amid Trump’s tariffs

Global markets remained calm on Tuesday even after President Donald Trump sent letters to 14 countries, including Japan, South Korea, Indonesia, Malaysia, and Bangladesh, threatening tariffs of up to 40% starting on August 1.

Japan’s Nikkei 225 rose 0.3%, and South Korea’s Kospi jumped 1.8%. European markets also closed higher. The Stoxx Europe 600 gained 0.33%, and Britain’s FTSE 100 climbed 0.54%.

Analysts say investors are used to Trump’s tough trade talk and believe he may soften his stance before the deadline.

Trump described the August 1 deadline as “firm, but not 100% firm,” hinting at some flexibility. Still, he introduced a 50% tariff on copper imports and threatened a 200% tax on pharmaceuticals unless companies relocate production to the US.

He also imposed a 10% levy on imports from BRICS nations, including India, and hinted at new rates for the EU within days.

Copper prices surged, while pharmaceutical stocks dipped after the remarks.

Uncertainty remains
Wall Street was more cautious, with stocks falling again yesterday. Some key trading partners, such as the European Union, India, and Taiwan, haven’t yet received the tariff letters, raising hopes for ongoing talks.

Experts warn that uncertainty could still affect global growth and investor confidence if negotiations drag on or fail. They also say that the effects of the tariffs are yet to be seen.