Desk Report,
How countries are dealing with Trump’s tariff threat, and what is the market’s reaction?
US President Donald Trump announced new counter-tariffs on Monday. He also extended the deadline for their implementation until August 1. He first sent letters to 14 countries and then to seven more yesterday, warning that new tariffs would be imposed on them if they failed to reach a trade deal with the US within the stipulated time.
How countries are dealing with Trump’s tariff threat, and what is the market’s reaction?
In this situation, all the countries to which Trump has sent letters and those to which he has not yet sent letters are more or less trying to get rid of the US’s high tariffs. The reality is that no country has imposed counter-tariffs on US products this round. As China, the European Union and Canada have done before, no one has done so this time. Al Jazeera reports.
At the same time, the reaction of Wall Street or the US financial sector is not that strong, but rather they are playing a game of patience. The market believes that Trump’s threat may never be fully implemented. Although the index fell immediately after Trump’s announcement on Monday, the market has subsequently recovered from that loss. Even on Tuesday, the day after Trump’s announcement, the index rose in the Asian stock market. The US stock market also showed signs of recovery on Wednesday.
According to CNN, Trump announced a 90-day moratorium on imposing massive “retaliatory” tariffs three months ago. Then three months passed – Trump postponed it again before July 9. In this situation, Wall Street is now not taking this tariff announcement seriously.
Tony Sycamore, a market analyst at IG Australia, said in a statement that this latest tariff announcement is like an aftershock; the market was already prepared for it. Overall, the impact of this tremor was not felt as much as it was after the April 2 announcement.
The countries that received the letter welcomed the decision to extend the deadline. They expressed their willingness to continue negotiations with the US. Japanese Prime Minister Shigeru Ishiba met with a cabinet task force meeting on Tuesday morning. He said that Japan regrets the US’s announcement of additional tariffs and tariff increases. He said that discussions will continue with the aim of reaching a bilateral agreement that is beneficial for both countries.
