Logo of Phnom Penh Post newspaper Phnom Penh Post - Markets in Asia rise after Trump tariff threat

Markets in Asia rise after Trump tariff threat

Markets in Asia rise after Trump tariff threat

Asian markets mostly rose on Tuesday after Donald Trump said he would hit China with another round of tariffs but give some room for talks before jacking them to the highest rate.

The latest volley from the White House will see $200 billion worth of goods taxed at 10 per cent from September 24, going up to 25 per cent from January 1 if the sides are unable to hammer out a deal.

Trump also warned that another $267 billion had been lined up if Beijing retaliates.

With $50 billion of goods already being hit, that would mean Washington will have subjected virtually all goods China ships to the US to tariffs.

China on Tuesday warned it would “take countermeasures”, adding that the “US insists on increasing tariffs, which brings new uncertainty to the consultations between the two sides”.

‘Room to negotiate’

After an early sell-off, Asian markets enjoyed a bounce on hopes officials from the world’s top two economies will be able to thrash out an agreement before the end of the year.

The optimism has been boosted by the fact Trump left off some key items from the latest target list, while he is also due to meet Chinese President Xi Jinping in November and will likely want a deal in place.

“While the US tariffs salvo is hardly middling, it’s not as bad as it could have been, so unless China hits with draconian measures, markets should remain supported after this morning’s knee-jerk reactions,” said Stephen Innes,
head of Asia-Pacific trading at OANDA.

“Ultimately the graduated tariff hike allows more room to negotiate before the thumping 25 per cent levy gets triggered, so perhaps China may temper their response accordingly.”

By the end of the day Shanghai had rallied 1.8 per cent and Tokyo was up 1.4 per cent, while Hong Kong gained 0.6 per cent. Seoul gained 0.3 per cent.

However, Sydney dipped 0.4 per cent and Singapore 0.1 per cent.

MOST VIEWED

  • Omicron patients can stay home: PM

    The Ministry of Health has issued a directive on the treatment of people who have tested positive for the highly transmissible Omicron coronavirus variant, following a suggestion from Prime Minister Hun Sen on the night of January 21. The directive permits home quarantine for those who

  • Cambodia’s first ever anime festival kicks off Jan 22 at capital’s F3 centre

    Phnom Penh's first ever Anime Festival will bring together fans, artists, shops and other local businesses with ties to the Japanese animation style for cosplay competitions, online games, pop-up shops and more on January 22, with Friends Futures Factory (F3) hosting. F3 is a project that

  • Mr Pancake or M Crepe? Tasty by any title

    Crowds of people gather around a lone man with a mobile food cart every day at around 2pm in front of the Institut Francais du Cambodge to order what many say are the best crepes in Phnom Penh. To some – even to the man making

  • Phnom Penh condo market loses steam

    Just four new condominiums were launched for sale last year in the capital, down from 17 in 2020, according to research by CBRE Cambodia. The four developments comprised “more than 1,000” units, while the 17 in 2020 consisted of 10,866, the real estate firm reported. CBRE Cambodia categorises condos as “high-range”, “

  • Fourth dose Covid booster drive jabs 43K in two days

    In the first two days of the fourth-dose Covid-19 vaccination campaign, more than 43,000 people volunteered to get the jabs, while over 4.6 million people have received a third shot. Health ministry spokeswoman Or Vandine said that fourth-dose vaccinations, which began on January 14 exclusively with the Pfizer

  • Singapore backs Cambodia's efforts on Myanmar

    Singaporean Prime Minister Lee Hsien Loong supports Cambodia in its efforts to seek a solution to the ongoing Myanmar crisis as the chair of ASEAN. Lee expressed his support during a meeting with Prime Minister Hun Sen via videoconference on January 14, with the talks focused