Trump’s Pause Boosts Investor Mood
Asian stock markets slightly increased after US President Donald Trump signaled a willingness to restart trade talks and delayed higher tariffs until at least August 1. This move gave investors hope that the trade tensions may ease.
Trump had earlier announced new tariffs on goods from countries including Japan, South Korea, and others. However, he later softened his stance, saying the tariff increase was “not 100% firm” and could change based on future talks.
The MSCI Asia stock index rose 0.1%, with South Korea and Japan showing gains. The Japanese yen and South Korean won also edged up slightly. US stock futures (S&P 500) remained flat after a dip on Monday caused by tariff fears. Meanwhile, US 10-year bond yields rose slightly to 4.39%.
Markets Stay Strong Despite Tariff Worries
Despite recent tensions, stock markets globally remain near record highs. This recovery follows a sharp drop in April when Trump first threatened new tariffs. Experts say this is due to hopes that Trump will delay or reduce the duties — a move many see as a typical negotiation tactic, often called “TACO” (Trump Always Chickens Out).
Trump issued formal tariff warning letters ahead of an August deadline. The new rates include:
- 25% on goods from Japan, South Korea, and Malaysia
- 32% on Indonesia
- 35% on Bangladesh
- 36% on Thailand and Cambodia
- 40% on Laos and Myanmar
Still, Trump suggested countries that offer trade concessions may get relief. “Maybe adjust a little bit, depending,” he said.
India Holds Its Ground
Indian trade officials said they have given their best offer and are unwilling to accept US demands to open markets for genetically modified crops and American dairy and cars.
Investors Remain Hopeful
Experts believe this delay gives the global economy a temporary break. Markets expect more talks and deals before the final tariff decisions are made.
In short, Trump’s latest trade move gave markets a breather, and investors are cautiously optimistic.
