Asian stock markets rose slightly after US President Donald Trump said he was open to more talks on new tariffs. This brought some hope to investors after earlier worries about increased trade tensions. On Monday, Trump announced higher tariff rates for countries like Japan, South Korea, and Malaysia but delayed them until at least August 1. He also suggested that these new duties might be changed depending on how negotiations go.
After this, South Korean and Japanese stock markets saw gains. The MSCI regional index rose 0.1%. The Japanese yen and South Korean won also gained a little, while the US dollar dropped slightly. US stock futures remained mostly flat, and bond yields moved only a little.
Trump’s pattern of threatening trade action but later softening his stance has been called “TACO” — short for “Trump Always Chickens Out.” Analysts believe he may be using these new tariffs as a tool to push other countries into better deals rather than starting a full trade war.
The new tariff plan includes 25% duties on goods from Japan, South Korea, and Malaysia; 32% on Indonesia; 35% on Bangladesh; 36% on Thailand and Cambodia; and 40% on Laos and Myanmar. Trump said these rates could be adjusted depending on how countries respond with offers or concessions.
Despite the tension, global markets are still strong. After a dip in April, they have bounced back, thanks to hopes that a trade war can be avoided. US economic indicators remain positive, with stable hiring and controlled inflation. However, the Federal Reserve is watching the situation closely to see how tariffs may affect future growth.
Indian officials said they’ve already given their best trade offer and are waiting for the US to respond. India is not ready to accept US demands on genetically modified crops or open its dairy and automobile markets.
For now, investors are cautiously optimistic that ongoing talks will prevent any major economic damage.
Also Read: India Now Among World’s Most Equal Nations: World Bank
