Asian Markets Slip as U.S. Tariff Deadline Nears
Asian stock markets mostly declined as investors grew cautious ahead of a looming U.S. tariff deadline affecting countries worldwide.
President Donald Trump said on Sunday that the U.S. is close to finalizing several trade deals and will begin notifying other countries of increased tariff rates by July 9. These higher tariffs are expected to take effect on August 1.
“President Trump will be sending letters to some of our trading partners, warning that unless progress is made, tariff rates will revert to their April 2 levels on August 1,” U.S. Treasury Secretary Scott Bessent told CNN.
In April, Trump announced a base tariff of 10% on most nations, with “reciprocal” rates reaching as high as 50%. He also warned that levies could rise to “maybe 60% or 70%” and proposed an additional 10% penalty for countries aligning with the BRICS bloc—Brazil, Russia, India, and China—whose policies he described as “anti-American.”
Although few trade agreements have been completed, analysts had long suspected that the initial deadline—this Wednesday—would be extended. It remains unclear whether the revised deadline will apply to all trading partners or only a select few.
In the markets, Japan’s Nikkei index fell 0.6%, while South Korean stocks edged up 0.4%. The MSCI Asia-Pacific index excluding Japan declined 0.6%, with Chinese blue-chip stocks down 0.5%.
