Markets rise as Trump delays tariff deadline, sends letters to nations
Trump announced the extension while sending letters to over a dozen countries, including major trade partners Japan and South Korea, outlining the tariffs they would face if no agreements were reached by the new August 1 deadline. The letters specified a 25 percent tariff for Japan and South Korea, while Indonesia, Bangladesh, Thailand, South Africa, and Malaysia could see duties ranging from 25 to 40 percent.
When questioned on whether the new deadline was final, Trump stated, 'I would say firm, but not 100 percent firm.' He also left room for negotiation, saying, 'I would say final—but if they call with a different offer, and I like it, then we'll do it.'
Investors responded with cautious optimism, hoping the delay would allow more time for negotiations. Some analysts viewed the move as a strategic play by the White House to pressure trading partners into concessions.
Despite Wall Street's slight dip—with the S&P 500 and Nasdaq retreating from record highs—Asian markets mostly advanced. Tokyo and Seoul led gains, while Hong Kong, Shanghai, and Singapore also rose. Sydney, Wellington, and Taipei declined, while Manila and Jakarta remained flat.
The White House has repeatedly hinted at upcoming trade deals, with Treasury Secretary Scott Bessent claiming, 'we are going to have several announcements in the next 48 hours.' However, only agreements with Vietnam and Britain have been finalized so far, alongside a framework with China to reduce retaliatory tariffs.
Wendy Cutler of the Asia Society Policy Institute warned that the proposed tariffs on Japan and South Korea could strain economic ties. 'Both have been close partners on economic security matters,' she said, noting their significant manufacturing investments in the US.
Japan's Prime Minister Shigeru Ishiba remained firm, stating he 'won't easily compromise.' Meanwhile, National Australia Bank's Tapas Strickland highlighted investor uncertainty, suggesting tariffs may settle higher than expected, particularly for nations with US trade deficits. - AFP
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