Dollar firm, Asian stocks mixed as traders ponder tariff outlook
Trump also said levies on semiconductors and pharmaceuticals were coming soon, weighing on Wall Street on Tuesday, with futures indicating further weakness there on Wednesday.
However, stock markets around the Asia-Pacific were mixed, as investors digested Trump's latest, shifting trade salvos. Japan and South Korea are among major US trading partners in the region facing an August 1 deadline to reach a trade deal or be subjected to new tariff rates, although Trump has sent mixed signals on how flexible that date is.
On Monday, Trump said it was "firm, but not 100 per cent firm," reinforcing the view among some in markets that the deadlines are a negotiating tactic that the US president will ultimately back away from. On Tuesday though, Trump appeared to harden his stance by saying, "No extensions will be granted."
Japan's Nikkei edged down 0.2 per cent, shedding early small gains. Australia's stock index declined 0.4 per cent, and Hong Kong's Hang Seng lost 0.9 per cent.
At the same time, mainland Chinese blue chips rose 0.2 per cent, and South Korea's KOSPI climbed 0.5 per cent.
US S&P 500 futures eased 0.1 per cent, following a 0.1 per cent loss for the cash index on Tuesday that extended the 0.8 per cent drop that started the week.
"The delay in the imposition of new tariffs on some of the US's major trading partners to August 1 has simultaneously kicked the proverbial can down the road and supported the notion that the loftier tariff rates are a negotiating ploy," Kyle Rodda, senior financial markets analyst at Capital.com, wrote in a note.
"As a result, the markets have been left hanging, and waiting for a stronger catalyst to drive the next move."
Trump said on Tuesday that trade talks have been going well with the European Union and China, though he added he is only days away from sending a tariff letter to the EU.
Only two US agreements, with Britain and Vietnam, have been reached since Trump's April 2 "Liberation Day" reciprocal tariffs' announcement roiled markets. In June, Washington and China agreed on a framework covering tariff rates.
METALS, CURRENCIES
US copper futures jumped by more than 10 per cent to a record high after Trump threatened new duties on the metal that is critical to electric vehicles, military hardware, the power grid and many consumer goods. They would join duties already in place for steel, aluminium and automobile imports.
By contrast, copper futures in London and Shanghai fell on Wednesday, as traders may not have sufficient time to ship much to the United States following Trump's sudden tariff announcement.
Trump also threatened 200 per cent tariffs on drug imports, which he said could be delayed by about a year.
The US dollar continued its recent run of strength on Wednesday, pushing to the highest since June 20 at 147.02 Japanese yen.
The dollar index, which measures the currency against the yen and five other major rivals, edged up to 97.573, after touching the highest since June 25 on Tuesday at 97.837.
The euro was steady at US$1.1720, and sterling was flat at US$1.3585.
Gold found a floor at US$3,301 per ounce, after slumping more than 1 per cent on Tuesday.
Oil prices edged back from Tuesday's two-week highs. Brent crude futures were down 20 cents at US$69.95 a barrel, and US West Texas Intermediate crude fell 21 cents to US$68.12 a barrel.
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40 minutes ago
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The executive order that redefined trade On January 20, 2025—the very first day of his second term—President Trump signed a sweeping Executive Order instructing the Secretary of Commerce and the Treasury Secretary to ensure that every possible tool be used to extract maximum revenue from global trade. Section B of the second paragraph of that Executive Order makes the objective brutally clear: to increase tariffs, duties, levies, and restrictions to yield up to US$400 billion in revenue for the US government within the calendar year. This is not trading policy. It is economic conquest. Unlike the tariffs of previous administrations that targeted dumping or strategic industries, Trump's approach is indiscriminate. It is premised on the idea that friends are easier to squeeze than enemies because they are less likely to retaliate in kind. 'It's easier to get more from friends—they won't fight back,' he was heard saying in another portion of the leaked audio. 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