World shares mostly down as Trump's tariff deadline looms, while US stocks set records
World shares mostly fell on Friday even as U.S. stocks climbed further into record heights as the clock ticks on President Donald Trump's July 9 tariff deadline.
In early trading in Europe, Germany's DAX shed 0.8% to 23,730.61, while the CAC 40 in Paris fell 1.1% to 7,666.91. Britain's FTSE 100 was down 0.4% to 8,790.21. The futures for S&P 500 and Dow Jones Industrial average were both 0.5% lower.
In Asia, Japan's Nikkei 225 recovered early losses, gaining 0.1% to 39,810.88, while South Korea's KOSPI index was fell 2% to 3,054.28.
Hong Kong's Hang Seng index lost 0.6% to 23,916.06 while the Shanghai Composite index added 0.3% to 3,472.32.
Australia's S&P/ASX 200 rose 0.1% to 8,603.00 while India's Sensex index shed 0.1% to 83,148.45.
"Asian markets slipped into Friday like someone entering a dark alley with one eye over their shoulder — because while US equities danced higher on a sweet spotted post-payroll sugar rush, the mood in Asia was far less celebratory," Stephen Innes, managing partner at SPI Asset Management, wrote in a commentary.
"The reason? That familiar, twitchy unease every time Trump gets near the tariff trigger," he added.
Mizuho Bank Ltd. said countries may be receiving letters from Trump stating tariff levels as early as Friday. Countries will have to brace for volatility, it said.
On Thursday, after a report showed a U.S. job market stronger than Wall Street expected, the S&P 500 rose 0.8% and set an all-time high for the fourth time in five days. The Dow Jones Industrial Average added 344 points, or 0.8%, and the Nasdaq composite gained 1%.
Many of Trump's stiff proposed taxes on imports are currently on pause, but they're scheduled to kick in next week unless Trump reaches deals with other countries to lower them.
Elsewhere Friday, U.S. benchmark crude was down 45 cents to $66.55 per barrel. Brent crude, the international standard, shed 53 cents to $68.27 per barrel.
The U.S. dollar slid to 144.34 Japanese yen from 144.92 yen. The euro edged higher to $1.1773 from $1.1761.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
MTV Lebanon
18 hours ago
- MTV Lebanon
08 Jul 2025 12:19 PM Japan, South Korea face 25% tariffs as Trump ramps up trade war in letters to 14 nations
U.S. President Donald Trump on Monday ramped up his trade war telling 14 nations, from powerhouse suppliers such as Japan and South Korea to minor trade players, that they now face sharply higher tariffs from a new deadline of August 1. The imposition of a levy of 25% on U.S. importers of all goods rattled Wall Street, with the S&P 500 Index (.SPX), opens new tab knocked back sharply, though markets in Asia were taking the news in their stride. In letters so far to 14 countries, Trump hinted at opportunities for additional negotiations, even while warning that reprisals would draw a like-for-like response. "If, for any reason, you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added on to the 25% that we charge," Trump told Japan and South Korea in letters released on his Truth Social platform. The higher tariffs take effect from August 1, and notably will not combine with previously announced sectoral tariffs, such as those on automobiles and steel and aluminium. Countries have been under pressure to conclude deals with the U.S. after Trump unleashed a global trade war in April that roiled financial markets and sent policymakers scrambling to protect their economies. Trump's executive order on Monday extends to August 1 the Wednesday deadline for negotiations. Asked if the deadline was firm, Trump replied, "I would say firm, but not 100% firm. If they call up and they say we'd like to do something a different way, we're going to be open to that." It was unfortunate that Trump was hiking tariffs on imports from Japan and South Korea, two of the closest U.S. allies, but there was still time for a breakthrough in negotiations, said former U.S. trade negotiator Wendy Cutler. "While the news is disappointing, it does not mean the game is over," added Cutler, the vice president of the Asia Society Policy Institute. Trump said the United States would impose tariffs of 25% on goods from Tunisia, Malaysia and Kazakhstan, with levies of 30% on South Africa, Bosnia and Herzegovina, climbing to 32% on Indonesia, 35% on Serbia and Bangladesh, 36% on Cambodia and Thailand and 40% on Laos and Myanmar. A deal with India was close, Trump added. Japanese Prime Minister Shigeru Ishiba said some progress had been made on avoiding higher tariffs, of up to 35%, that Trump had suggested recently. "We have received a proposal from the United States to swiftly proceed with negotiations towards the newly set August 1 deadline, and that depending on Japan's response, the content of the letter could be revised," Ishiba told a cabinet meeting on Tuesday. South Korea said it planned to step up trade talks with the United States, and that exemptions or reductions in auto and steel tariffs must be included in any trade deal. Thailand said it was confident it can get a competitive tariff similar to those on other countries. In neighbouring Malaysia, the trade ministry said it acknowledged U.S. concerns on trade imbalances and market access, while believing that constructive engagement and dialogue remained the best path forward. In Indonesia, Southeast Asia's largest economy, an official said Jakarta still had room to negotiate on tariffs, and its top negotiator would meet U.S. trade representatives in Washington. A Bangladesh team in Washington was scheduled to have further trade talks on Wednesday, an official said. The U.S. is the main export market for Bangladesh's readymade garments industry, which accounts for more than 80% of its export earnings and employs 4 million people. 'This is absolutely shocking news for us," Mahmud Hasan Khan, president of Bangladesh Garment Manufacturers and Exporters Association, told Reuters on Tuesday. "We were really hoping the tariffs would be somewhere between 10-20%. This will hurt our industry badly." South African President Cyril Ramaphosa said the 30% U.S. tariff rate was unjustified, since 77% of U.S. goods face no tariffs in his country. Ramaphosa's spokesperson said his government would continue to engage with the United States. U.S. stocks fell in response to Monday's news, with the S&P closing down about 0.8%, although Asian share markets were mostly resilient, with Japan's Nikkei (.N225), opens new tab recouping early losses and South Korean stocks (.KS11), opens new tab jumping 1.8%. "There's going to be a lot of volatility as the headlines start to emerge, as more of these letters come out, and as the negotiations really come to the fore ahead of that August 1 deadline," said Tapas Strickland, head of market economics at National Australia Bank. Earlier on Monday, U.S. Treasury Secretary Scott Bessent said he expected several trade announcements in the next 48 hours. Only two deals have been struck so far, with Britain and Vietnam. China has until August 12 to reach a deal with the White House to prevent Trump from reinstating additional import curbs after Washington and Beijing agreed in June on a tariff framework. On Tuesday, China warned the United States against reinstating tariffs on its goods, and said it could retaliate against countries striking deals with the U.S. to cut China out of supply chains. Vietnam and China agreed to boost trade and investment ties between the two countries during a meeting on the sidelines of the BRICS summit in Brazil, Vietnam's government said on Tuesday. The European Union will not be receiving a letter setting out higher tariffs, EU sources familiar with the matter told Reuters on Monday. The EU still aims to reach a trade deal by Wednesday after European Commission President Ursula von der Leyen and Trump had a "good exchange," a commission spokesperson said. The EU has been torn over whether to push for a quick and light trade deal or leverage its economic clout for a better outcome. Trump also threatened leaders of developing nations in the BRICS grouping meeting in Brazil, with an additional 10% tariff if they adopt "anti-American" policies. The bloc includes Brazil, Russia, India and China among others.
MTV Lebanon
a day ago
- MTV Lebanon
Trump Says New Tariff Deadline ‘Not 100 Percent Firm'
US President Donald Trump reignited his trade war by threatening more than a dozen countries with higher tariffs Monday -- but then said he may be flexible on his new August deadline to reach deals. Trump sent letters to trading partners including key US allies Japan and South Korea, announcing that duties he had suspended in April would snap back even more steeply in three weeks. Tokyo and Seoul would be hit with 25 percent tariffs on their goods, he wrote. Countries including Indonesia, Bangladesh, Thailand, South Africa and Malaysia were slapped with duties ranging from 25 percent to 40 percent. But in a move that will cause fresh uncertainty in a global economy already unsettled by his tariffs, the 79-year-old once again left the countries room to negotiate a deal. "I would say firm, but not 100 percent firm," Trump told reporters at a dinner with visiting Israeli Prime Minister Benjamin Netanyahu when asked if August 1 deadline was firm. Pressed on whether the letters were his final offer, Trump replied: "I would say final -- but if they call with a different offer, and I like it, then we'll do it." The US president had unveiled sweeping tariffs on imports on what he called "Liberation Day" on April 2, including a baseline 10 percent tariff on all countries. But he quickly suspended all tariffs above 10 percent for 90 days following turmoil in the markets. They were due to kick back in on Wednesday and Trump sent the letters in advance of that deadline. Trump's near-identically worded letters to Japanese and South Korean leaders said he would impose 25 percent tariffs as their trading relationships with Washington were "unfortunately, far from Reciprocal." He warned of further escalation if there was retaliation against the levies. But Trump on Monday also signed an order formally extending the Wednesday deadline, postponing it to August 1. The new August date effectively marks a further delay -- and Trump's latest comments threaten to compound the uncertainty over when the deadline really is. According to letters posted to Trump's Truth Social platform, products from Indonesia will face a 32 percent tariff, while the level for Bangladesh is 35 percent and Thailand, 36 percent. Most countries receiving letters so far had duties similar or unchanged from rates threatened in April, although some like Laos and Cambodia saw notably lower levels. The Trump administration is under pressure to show results after promising "90 deals in 90 days." So far only two firm deals have emerged, with Britain and Vietnam, plus an agreement to dial back super-high tit-for-tat tariffs with China. Japan's Prime Minister Shigeru Ishiba said at a cabinet meeting Monday that the announcement of the 25 percent tariffs is "genuinely regrettable," local media reported. South Korea's National Security Adviser Wi Sung-lac meanwhile met with his US counterpart Marco Rubio in Washington, expressing hope that a bilateral summit could soon be held to achieve "mutually beneficial outcomes across key pending issues." Asked why Trump opted to start with Japan and South Korea, White House Press Secretary Karoline Leavitt said: "It's the president's prerogative, and those are the countries he chose." Asia Society Policy Institute Vice President Wendy Cutler said the announcement "will send a chilling message to others," referring to Trump's initial letters to Tokyo and Seoul. "Both have been close partners on economic security matters," she said, adding that companies from Japan and South Korea have made "significant manufacturing investments in the US in recent years." US Treasury Secretary Scott Bessent said Monday that there would be more deals coming up: "We are going to have several announcements in the next 48 hours." Major US stock indexes fell from records Monday on Trump's fresh threats. The Nasdaq tumbled 0.9 percent and the S&P 500 lost 0.8 percent. Trump has also threatened an extra 10 percent tariff on countries aligning themselves with the emerging BRICS nations, accusing them of "Anti-American policies" after they slammed his duties at a summit. But partners are still rushing to avert Trump's tariffs altogether. The European Commission said EU chief Ursula von der Leyen had a "good exchange" with Trump on trade when the pair spoke Sunday.
Ya Libnan
a day ago
- Ya Libnan
How Elon Musk's new political party could become a reality
Elon Musk's proposed new political party has some hurdles to clear before it becomes a reality. The call for a third political party isn't new, and it's been done before to varying success. But experts agree that it will require a herculean effort from Musk to make the so-called 'America Party' successful. Musk, the richest man in the world, has teased a new political party since taking umbrage with President Trump's signature 'big, beautiful bill,' calling it irresponsible and a negative to America's global power. Trump called Musk a 'train wreck' in response to the idea, and longtime Musk foe Treasury Secretary Scott Bessent said Musk's companies may not stand for it. Musk would be battling the unsuccessful history of third parties. Musk's battle begins at the state level where ballot access is governed by law. Anderson said Musk would likely target states with tossup elections where races are typically close, like North Carolina and Georgia. North Carolina's current guidelines require new parties to collect petition signatures from voters who cast ballots in the most recent general election for the state's governor and from three different congressional districts in the state. To become a national political party, the FEC would have to approve an advisory opinion request filed by Musk's America Party. By focusing on the states , Musk's party could avoid registering with the FEC. This would allow his party to be recognized as a Section 527 political organization, which must register with the IRS but has 'no dollar or source limitations,' said Brett Kappel, an election lawyer. Outside of the legal requirements, Musk, already a polarizing figure , would need to mobilize media and a grassroots campaign to remind voters of the America Party, experts said. Because of his deep pockets (and because Super PACs can now supercharge grassroots efforts), Musk could stroll through the legal challenges and the campaigning grind.
